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HMRC response to paper returns?

August 28, 2017, 10:43 am
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Has anyone received an HMRC response to a paper return for 2016/17 - other than acknowledging the receipt of the return?

I'm beginning to wonder if HMRC are just piling them up, pending this "Fix-it-all" version of their 2016/17 assessment software they're planning to release in October.
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Why have I been put on a non cumulative tax code?

August 28, 2017, 11:12 am
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Hey all

I had a letter from HMRC last week to say they are changing my tax code from 1150L to 1143L X due to me now receiving medical insurance as a benefit. I've only ever been on 1150L so I'm a little confused and not entirely sure what a non cumulative tax code means other than my tax will be worked out equally over 12 months rather than working it's way up to my tax free allowance (if that makes sense?)

If I've got this right then surely as I've been working for the last few years a similar annual amount then it shouldn't really affect me as I've always paid tax. Is this correct?

My real question is, I get paid a different amount every month due to commission as I'm in a sales role. Will I suddenly be paying more tax?

Help please!!
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Nomad with British business, looks like I am not UK tax resident

August 29, 2017, 1:51 am
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I am EU citizen. I have been studying, working and living in the UK, then moved to Nordic country (which is not my homecountry) then again left to stay in Kenya. Before leaving Europe I established myself as sole trader with my still valid UK bank account, National Insurance Number and address with my siblings in the UK. My business is purely online services.
When it comes to paying taxes, I wanted to clear them with HMRC but just realised I do not fall under British Tax Residency based on Statutory Residence Test.
Now:
- In Kenya I have only visitors permit and have been staying there for more than a year now, yet I do not hold work permit, hence dont pay taxes here.
- According to tax authorities in the nordic country, I am not tax resident from the moment i left the country for good.
- I have never paid taxes in my home country nor I fall under its tax residency rules.
Seems like I am not tax resident anywhere.

I would be totally comfortable with paying my income taxes for HMRC, but does my non tax resident status determine how much I would pay? Does government track amount of days I stay in the UK to determine my status? Seems I am not doing tax evasion anywhere, yet I dont feel comfortable paying no taxes.
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HMRC 2014 Brief on Bitcoin and other Cryptocurrencies

August 29, 2017, 10:03 am
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Hello,

I'm trying to make some sense of HMRCs Bitcoin Brief and how it relates to my situation. I'd very much appreciate it if anyone could help.
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

My situation is I've used a small amount of my money (less than 5% of savings) on purchasing Bitcoin and about 15 other cryptocurrencies. I hope to realise gains on them over a timescale of months to years.

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From the Brief
Quote:
Chargeable gains: CT and CGT - if a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for CT or CGT purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for CT on chargeable gains if they accrue to a company.
I don't understand the phrase "not within trading profits or otherwise within the loan relationship rules". Could anyone explain this to me or point me to somewhere to learn more?

I also don't understand whether I treat all cryptocurrencies within my portfolio as equivalent, with a chargeable event only happening when I convert one of the cryptocurrencies back to Sterling? Or is a direct conversion between two cryptocurrencies (say Bitcoin to Ethereum) a chargeable event?

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Also from the brief
Quote:
....depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable.. For example gambling or betting wins are not taxable and gambling losses cannot be offset against other taxable profits..
I'm not sure if the concept of ICOs (Initial Coin Offerings) existed when the brief was written in 2014. But do you think it could be argued that a purchase of an ICO is so highly speculative that it should not be taxable?

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Finally, I've seen it mentioned online that the relevant tax for those trading cryptocurrencies is income tax rather than capital gains tax (although its not apparent to me where this comes from).

To be able to invest in multiple cryptocurrencies I do have to engage in trading-like activity: Buy Bitcoin using Sterling -> send it to a trading exchange (e.g. Bittrex) -> convert it to a different cryptocurrency. This is because you can't convert Sterling directly to most cryptocurrencies (at least not easily).

However, I consider what I do to be more akin to investing rather than trading (since aside from sometimes buying Bitcoin to enable purchase of a different cryptocurrencies, the intention is always to hold the other cryptocurrency for at least a few months rather than profit from any within day price movements) and so I believe CGT and not IT is the correct tax for my activities. Is this fair?
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Gifting rented property to spouse

August 29, 2017, 3:06 pm
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Hi guys. I'm after some advice and I can't seem to find the answer on here as my circumstances are slightly different to prevoius posters.

I currently own 2 properties.
I am the sole owner of a property which is let to tennants (has a buy to let mortgage).
My wife and I have a joint residential mortgage on the property that we live in.

As it stands I am in the higher tax rate wheras my wife is not. It is the income that I recieve from the let property which ticks me over into the higher. Is it possible to somehow gift some of the let property to her so that it would bring me beneath it (I'm looking at 50/50)? I'm obviously not trying to be dodgy and commit any sort of crime, but rather save a few $$$ where possible; afterall this is the moneysavingexpert forum!

If its possible for me, is the process fairly smooth? What kind of fees am I looking at? Will I have to use a solicitor? Do I have to ask permission from the mortgage company that provides me the buy to let?

Thanks very much
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Cohabiting - Tax?

August 30, 2017, 6:23 am
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Hi there,

So been looking on the internet and not really finding the answer. So my partner lives with me in a property that I own under shared ownership. The house is in my name i.e mortgage and rent paid by me etc.

He pays me £336 each month towards utilities, food contribution etc. Does this class as income? Do I have to tell HMRC?

I understand under the rent-a-room scheme this is below the threshold but he isn't technically a lodger?

Any help would be greatly appreciated!
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Missing NI contributions

August 30, 2017, 8:56 am
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Hoping someone can help me, I've posted on the benefits board but didn't get much help.

I checked my NI record on the government gateway and I'm missing contributions from 2004-2005, 2005-2006, 2006-2007.

In 2004-2005 I didn't work as I was at college full time, I claimed DLA middle care low mobility. I'm credited for £7.03 for this year but I don't know why.

2005-2006 I was at university working 3 nights most weeks NMW job totalling 16 hours a week after breaks. For this year I have £4 odd contributed. My employer was mega dodgy and I didn't have a P60 or anything, it was a night club and the company no longer exists. Again I was on DLA at this time.

2006-2007 I was still at uni, for the start of the tax year I was in the job above then I left as I took unwell. I had surgery at the end of that year, was still on DLA. For this year it says I was credited with 2 weeks.

The HMRC website says I can claim the NI contributions if I would have been entitled to ESA. The problem is ESA didnt exist at the time and we were told by citizens advice that students couldn't claim incapacity benefit.

Does anyone know if I can get these years credited? I would have been eligible for IB/ESA as I was suffering from blackouts at least 3 times a week as I have done throughout my life. I have my medical records from this time period that verify this.
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self employed and rental property....

August 31, 2017, 4:16 am
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hello, we are in need of some advice please

we are in scotland
we have a family home in joint names and a rental in joint names.(husband and wife).

one of us is due to go pt paye at basic tax and pt self employed, pushing total income into the higher rate tax.
the other is paye at basic rate.
if the higher rate tax payer was removed from the deeds of the rental, then tax is only payable by the paye person @ basic rate----yes??
also was told that higher rate tax payer can claim say 25% ownership of the rental and so only pay higher tax on this part of the profit.????

also would there be any advantage to having the family home property in the higher rate payers name only- meaning that each person has one sole property.
or
is it worth going down the road of setting up as a ltd company??? this i need to read more about but was mentioned to me.

any advice welcome
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Living in Germany but working for a UK based company

August 31, 2017, 4:52 am
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Hi all,
I will be moving to Germany with my family at the end of the year, my German partner will begin work there and I will keep the same position I had in England but work from home.
I wanted to ask about tax, national insurance and health insurance for both countries. I will be coming back to the UK office once a month for a week, I hope that to become once a week every two months. This isn’t a temporary move so it would be my preference to pay tax and the equivalent of national insurance into the German system so if things go wrong or I’m told it’s not working I will be eligible for help from Germany.
Can anyone give any information regarding my situation?
Thanks,
Jay
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Starting new job half way through tax year.

August 31, 2017, 3:46 pm
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I'll be starting my first job after graduation. I'll be earning £15962. How much tax will I be paying? per month? I understand there is tax free allowance per year and I only have work part time so I'm not sure. Really new to this tax system.

Anyone who could help maybe? :)
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Why give it to the tax man???

September 2, 2017, 2:10 am
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Just done my tax return for the 2016/17 and despite earning £60000 ( self employed) I now have a tax bill of about £18000. I dont have many expensives to off set against it but wondering us there anything I could to to help reduce the amount of tax I have to pay. Hopefully I'll earn the same this year (fingers crossed) so if I can do anything would help
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Paying tax

September 2, 2017, 1:21 am
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Just done my tax return for 2016/17 and haven't earnt myself(self employed)£60000 I find myself with a tax bill of about £18000. I don't have much expenses to put against it. Hopefully will earn the same if not more this year fingers crossed but is there any thing I can do to help lower this bill??? I'm at a loss what to do
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National Insurance number recorded slightly out by new employer

September 2, 2017, 7:11 am
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Hi there

After checking through my details on an employee portal as a new starter - I saw my national insurance number recorded slightly wrong with a difference in digit as would appear where one of the number's is a 7 this has now been turned into a number 1! - after I couldn't edit this I've tried alerting the employer but no response received yet and it's now out of their SLA times so don't know when they will respond, which I've heard could be later then sooner, it's a large organisation to be fair and I didn't know whether I should keep creating multiple tickets for the same issue and annoy them, while at the same time, don't know the effects for me or if anyone does have the exact number being displayed on the portal.

Should I wait until I receive the first payslip which isn't to far off and then contact HMRC?

They did see my national insurance card and copied it, before I started but where it is nearly 20 years since issue maybe hasn't copied well due to it's fadeness, leading to this oversight - would I be able to ask for a card re-issue to avoid this type of mistake again in the future does anyone know just as a random silly out there question.

There was also a DBS check being performed, but I'm sure I was involved in supplying or reconfirming the national insurance number for that.
(**The portal is a paperless alternative to filling in P46, collecting payslips, seeing contract and updating personal details etc)

Thanks for any help.
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Sole owner of property and inheritance tax

September 2, 2017, 7:18 am
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My property is worth about £500,000 and is in my sole name. In my will I leave everything to my husband and son. I just want to know whether my husband will be liable to inheritance tax when I die. There should not be a problem if we owe the property as joint tenants and it will go to him with no inheritance tax. The reason I am asking as I am wondering whether I should change my will and house deed to include his name. Thanks
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Owed £5000 from 2014, can I add this as income for 2015 or 2016?

September 2, 2017, 10:24 am
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Been advised today that I am owned over £5000 as I was paid below the legal minimum wage in 2014 due to me paying too much into an AVC using smart pensions before I left. The payment will be subject to NI and tax.

For the last 2 financial years I have had no income apart from interest on savings and have not been a tax payer as I deferred a company pension but now I am taking it and just paying a little income tax again.

Will I be taxed and pay NI for 2014 or 2017/18? More importantly as this was an error made in 2014 that has only just been spotted by my old company can I use this £5000 to be credited as income for either 2015 or 2016?
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MCI error Gateway account

September 3, 2017, 2:31 am
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Hello,

I have been trying to log in into my Gateway account lately and I keep getting this message
saying there is a MCI error and to call them instead.

Well I have called the Revenue main number so many times, never getting through. Any idea about the best way around this automated revenue number? any other number I could call? Should I write a letter instead asking them to resolve this MCI error?

Thanks for your help.
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Council tax single occupant reduction

September 3, 2017, 3:44 am
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Hello,

I hope this is the right thread for my query, if not I apologies, feel free to move it.

We are a married couple renting a flat and regularly paying our council tax. Two months ago my spouse moved out to go abroad for family reasons. Date of return is unknown at the moment, could end up being out of the country for more then 6 months.

Would it be possible for me to apply for the single occupancy reduction in Council tax? I live on my own now.
We have a joint tenancy and some utility bills are under my spouse name and paid by DD through my spouse bank account.

Thanks for your help
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Capital gains on inherited property

September 3, 2017, 9:32 am
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My elderly parents will leave my brothers and I their house after their death worth about £400,000 which I believe they bought very cheap years ago about £100,000 but it was a lot of money at that time. Will we be liable for capital gains when we sell as we both have our own property. Thanks
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HMRC - Self Employed CIS Allowable Expenses

September 4, 2017, 3:36 am
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Hi all,


Having trouble working out if daily travel expenses are allowable for my boyfriend. I have tried contacting HMRC and haven't had a clear response. So am even more confused!


He is self employed. Currently working on a project as a Labourer/Plumbers Mate in London, so is commuting daily. He has been at the project since Feb 2017 with a month of working somewhere else in May 2017 and looks likely he'll be there until the end of the tax year in 2018.


Will he be able to claim this? Anyone got any clear advice. I work within accounting so am not usually confused about his tax return, but this seems a bit unclear.


Thanks so much!
Sarah
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Marriage tax allowance

September 4, 2017, 11:58 am
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Hi,

I have just finished my self employed tax return for last tax year (up to April 17) and did not need to pay tax as was working part time. My partner earns more than me so I think I can give her some of my tax free allowance....all good - which I guess would come off her tax due this year.

However from start of April I started full time employment and therefore already know we won't qualify for it for this tax year. So can we still go ahead and set it up for this year, and then cancel it at the end of this tax year. Will they know (magically somehow) that the rebate is for last year, even though this year I am now on PAYE?

Thanks Ramble
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