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Tax On Mortgage Payment Made By Parents

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I am in the fortunate position that my parents have received a lump sum from some investments and want to share some of that by paying a lump sum (~£50k) off my mortgage for me.


Does anyone know what (if) tax liability this will carry for me or them?

Probate!

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Is it true to say on death anything, investments and property, not in joint names needs to go to probate?

This being the case a house with one person on deeds should really have a beneficiary added to eliminate the risk and cost?

Capital Gains - advice needed please

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Hi everyone, would really appreciate your thoughts and advice on this one.

I've sold my house which i lived in for approx 2 years, i then moved away into a rented flat for 5 years and let out my house until it made sense to sell it. Which is now.
I don't own any other property.
It sold at 50,000 more than the asking price. I think I therefore need to pay capital gains as it was not may main residency- even though I don't own any other property? is that right?

Also - would my tax free allowance of 11,000 include both income tax and capital gains? is it a cumulative 11,000? and does that mean I don't pay tax on the first 11000 I earn? or is it that I don't have to pay the first 11000 tax I owe? I'm really confused, just want to do the right thing but not over-pay a penny if I can help it.

awaiting your input gratefully! thank you

Company isn't in a rush for me to have a NTR/UTR number

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Hey guys.. I started a new job employed as a hairdresser and my boss told me last month that as of this month April/2017 that I will be self employed. I asked him when I need to register as I have no idea. He then told me there is no rush. I have since been paid one month as self employed with invoices provided although I haven't registered and don't have a NTR/UTR number.. is this possible for them to pay me without? My family members have told me this is illegal? Although a colleague of mine has been self employed with the company for 6 months and still hasn't reigesterd as self employed- the company hasn't asked her to regiester and doesn't seem to bothered? Will I get in trouble with HMRC for not registering? Any advice or help on this I would be so grateful. Thank you in advance

Capital gains help with property sale

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Hey all, just looking for some advice.

A couple of years back my uncle passed away. After that, my father took ownership of his bungalow.
Last year my father signed over ownership of the property to my brother and me.
Because it is far away from where we are we wanted to sell it and use the money to get someplace closer.
We've had it on the market and found a buyer for our asking price of 200k. Neither my brother or myself own any properties apart from this one.

What would be the capital gains tax on this sale for my brother and me? What would it be calculated on?

Thanks for any advice

Alex

Tax refund

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Approaching the end of the tax year, my income has consisted of a very small p/t wage, a small amount of rental income and a modest withdrawal from a pension pot - all coming in under the personal tax allowance but I was taxed on the pension income.
I know there are forms to claim the tax back but I decided to wait until the end of the year and do it then.
I was planning on submitting a claim somewhere in the week after the new tax year starts. I assume HMRC will be inundated with claims at that point - Are they? Roughly how long will they take to process the claim?
I am about to start taking an income from my pension and just trying to plan out how much and when.

Thanks

Capital Gains Tax

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I bought a 2 bed flat in 2009 for £68,000 as a first time buyer and lived there until 2015 when I began renting it out. I'm looking to sell it so was wondering if I sold it for say £80,000 would I have to capital gains tax?

Reporting Untaxed Interest

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I'm a 40% tax payer, collected by PAYE and HMRC don't not require me to fill out a Self Assessment return either. This is nice position to be in and hassle free apart from handling piddling amounts of unavoidable current account interest as I had an offset mortgage. In the past, I've just phoned through the interest amounts and it would turn up in a tax calculation and a tax code change.

With the introduction of PSA, I presumed I would be the ideal target to benefit from this by removing the burden on handling these tax pennies and particularly not for 2017/2018 where the PSA is not included in your tax code (only the predicted excess over the PSA).

I'm a Personal Tax Account user and it offers a link to update the HMRC with an estimate for 2017/2018 untaxed interest, which I did (£300) and because it is below £500, it makes no difference to my tax code.

So my question is ... What are those in my position supposed to do?
  1. Provide an estimate before the tax year and a actual figure after the tax year (via the other income link) which all still creates work for the HMRC, for no change in tax code and no tax collected or refunded?
  2. Just not bother unless it has a material effect?

Urgent query: paying voluntary Class 2 NICs for past years

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Hi everyone,

I hope this post is in the right place.

There's a summary at the bottom if you don't feel like reading all this :)

I'm hoping someone will be able to give me some advice before I miss the deadline for this:

I moved to the UK from the Netherlands and registered as self-employed in 2010, originally not expecting to stay here for the 10 years it'd take to build up the minimum entitlement for the State Pension, and so I initially got a Small Earnings Exception. My earnings have since exceeded the Small Profits Threshold and I am now paying Class 2 & 4 NICs, but in the first couple of years I paid neither. I now expect that I will be spending more than 10 years working self-employed in the UK, and I realised today that I technically have until Wednesday 5 April 2017 to pay Class 2 NICs for the 2010-2011 tax year.

I called HMRC and was told by the nice lady on the phone that she doesn't think I can just pay it and thinks I instead have to write and explain which years I want to cancel the exception for and the reason etc. before I can pay. She advised against simply paying because she didn't think the payment would be allocated correctly. But she didn't sound sure. She said there was no guidance regarding this.

Naturally I will be writing to HMRC, but of course there's no way I'll hear back from them (which would be by letter also) in time for the 5 April deadline.

So now I'm thinking... Class 2 NICs are now paid through Self-Assessment, right? What if I just paid, e.g., £124.80 (applicable rate for 2010/2011) into my Self-Assessment account and wrote the letter asking them to apply that payment as voluntary Class 2 NICs for 2010/2011? Could this satisfy the deadline?

Tl;dr: Does anyone here have experience paying Class 2 NICs for previous years? Did you just get asked to pay them into your Self-Assessment account?

Many thanks,
Rene

Crystalizing a Capital Gain on my main property

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I'd like to know if anyone is aware of a method to crystalize the Capital Gain we have built up over 25 years of owning our main house.
The reason for asking, is that we have a second property and we'd like to minimise the Capital gain on this, by electing this as our main residence. If we change our main residence without crystalizing the gain on the first property, then our CG liability on the first property would be considerable
Thanks for any ideas
Paul

Very basic business - do I need an accountant

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Hi,

I'm new to this....

I've just started doing some extra work during the evenings as a Graphic Designer. I registered as self employed and notified the tax office that this was to run alongside my full time daytime job which I am employed in the usual fashion.

My self employed business is incredibly basic. I send out 1 invoice a month and this gets paid within a day or two.

I keep my basic accounts on a excel spreadsheet I downloaded from a website called Basicbookeeping (I think).

My question is that with my 12 invoices a year and no expenses to be claimed do I need to pay an account for end of year accounts?

I'm only in my third month of my new venture and don't foresee any expansions for at least the next year or so. I put aside a portion of my payments to pay my tax and I have a separate bank account for my business. It seems that a large portion of my pocket money business's profits will be needed to pay for an accountants services. I tend to be making about £180 per month after tax.

Thanks,

Andy

Recompense for HMRC Errors

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Last November HMRC wrote to me saying I owed £580 outstanding tax from 2006/07. I asked that they write if off under ESC A19. They said no, so I asked for a review by a second officer. He also said no as they had written to me on 4 Jan 2008 about the outstanding tax so it did not fall under ESC A19.
I decided to take HMRC to the First Tier Tax Tribunal in Feb 2017.
Today I have received a letter from HMRC's Litigation officer, he says in Oct 2007 HMRC changed my address to an address in Kent. He says this detail goes to the heart of my case. I wrote back today telling him I have never lived there and I have no idea why HMRC did this.
As he says, this goes to the heart of my case and I think HMRC is going to back down and give me my £580 back.
My question is, is there any reasonable chance of getting recompense from HMRC for the worry and distress this has caused me? If yes, how much should I ask for?
Thanks in advance for all replies.

Paying my Wife to reduce tax liability?

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Hi

I run a small property maintenance business employing 3 full time staff on PAYE. My wife has her own domestic cleaning business (on her own) and works for around 12 clients on a self employed basis. She also carries out 8-10 hours a week helping with my book keeping / invoicing and answering the phone etc. On advice from my accountant I have been paying her £10000 per year (on a self employed basis) which I think is reasonable for the hours worked. She earns approx £14000 from her own clients and declares a total of £24000 on self assessment (before offsetting expenditure). Now, my question - this last tax year I have earned just over £70000 (I also use self assessment but through an accountant). Would it be plausible / legal / moral to give my wife a pay rise to absorb the amount that takes me in to the higher tax rate bringing us both down to the 20% rate or would this be very frowned upon as effectively she'll be earning £35000 annually from me for just 8-10 hours work per week? It would be nice to save some money in income tax but I don't want to end up on the wrong side of HMRC!

Many thanks in advance..

Paul

MSE News: Inheritance tax changes rolled out from tomorrow - what it means for you

transfer of property parent to child

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Hi All,

I am an adult and my parents wish to transfer a house they own that is mortgage free to my name. The house is currently rented out and I don't plan on living there. My parents live in another house they own in the same town (UK). Can people advise me of the process to transfer with minimal charges/avoid IHT etc?

Thank you for reading.

Can someone make sense of my payslip

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Hi all, I am a bit confused with my holiday pay.

So on my weekly payslip it says total hours 45 X £12 = £540
Tax relief is weekly expenses...
We are supposed to accumulate holiday pay each week depending on how many hours we do, as its agency I've requested to have my holiday pay paid on top of my wages each week.

Where I am confused is, my 45 hours totals £540 but when they do my tax and NI deductions they incorporate my holiday pay into my 45 hours.
How can they do this? Surely my holiday pay would be for example £58 on top of my £540 hours?

If anyone can clear this up for me I would really appreciate it.
Thanks and sorry my thread is not so clear I don't know how to express what I mean easily.

https://ibb.co/huJ23v

Self Assessment tax help

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Hi everyone,

This is my first year of self employment and first year of filing a tax return just wondered if i could get some advice.

Im currently a joiner, i had to buy my own working tools this past year costing upto £1100 can i claim the full amount back under other expenses and capital allowances as these are an assets?

Or do i just claim back 20% tax relief ? I am with cis scheme and have been deducted 20% of my wages a week to cover my tax.

The other question i have is say my gross profit (income) for the year is £8000 i have paid £2200 in tax already would my refund only be £2200 as i didnt meet the tax freshold or can i claim my mileage ect

Thanks im very new to this ....

Tax on Pension Backpayment

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Hi

Looking for some advice as my wife has recently won an appeal on her pension payments.

6 years ago my wife was awarded a "limited ill health pension" which we appealed have appealled against and it has now been updated to a "full ill health pension" and all payments backdated, around £5K per year over the 6 year period.

This has given my wife a large lump sum payment this tax year which she has had to pay tax on, however if the payments had been made at the correct time they would not have been taxable as it would have been under my wife's personal tax allowance for those years.

Is there any way HMRC can re-open her previous tax years and put these payments into those years so that they will be taxed at the level that they would have been if they had been made correctly in the first place?

Thanks for any help or advice anyone can give..

PAYE mechanic, tax relief on tools over 2.5k

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Hi,

So my brother is a PAYE mechanic. Started at a new garage 18 months ago.

Since being there he has upgraded a good few tools and also had to get a new tool box.

After going through all his receipts he had spent over the 2.5k limit and HMRC say he would need to file a SA.

The reason it went over the limit was due to the tool box, however, this is paid in monthly instalments. Does he only include the payments he has made in the 16/17 tax year or the total amount he will eventually pay?

Thanks

Tax return 2017

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Anyone else having trouble when I click complete return button it's kicking up error trying on an I pad ?
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