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Tutoring Taxes - How do I minimise?

August 18, 2018, 10:58 pm
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Hello,

I'm a teacher in Sharjah in the UAE, earning approximately £53,000 tax-free. I am a British citizen.

I have been offered a job tutoring in France for £150,000 but am wondering what the tax status will be? I will lose my UAE residency if I leave my job. The tutoring company is registered I *think* in the USA, but if not in the UK. Would it make a difference where they are registered and where I am paid from? They leave sorting out the tax to me.

Is there any way to minimise tax to the UK? I was born in Pakistan and though I don't have citizenship there, could get it. Would this help? Could I get residence in Monaco?

Not sure if I am going to be shouted at for trying to minimise my UK tax! I just don't know much about taxes as in the UK it was taken out from my pay check and here in Sharjah, it's not an issue. Obviously I wouldn't like to pay more than I have to.

Thank you.
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Gift aid and not paying enough tax

August 19, 2018, 4:26 am
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What happens to gift aid donations if, upon completing your tax return, it transpires that you haven't paid enough tax i.e. donations are more than 4 times what you pay in tax?



Is the 25% clawed back from your tax return calculation, with the charities none the wiser, or is it claimed back directly from the charities by HMRC?


HMRC just state that "You must tell the charities you support if you stop paying enough tax." but that doesn't seem realistic e.g. "Dear Wakefield Cathedral, You know I visited 18 months ago and signed a gift aid declaration for the £10 entrance fee, well it turns out the £2.50 you consequently claimed from HMRC shouldn't really have been claimed because I later had to replace the boiler on a flat I rent out so yeah, good luck with that".
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CGT, SDLT and house hopping

August 19, 2018, 8:33 am
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I am just about to come into ownership of my mothers house due to her recent death. I have been living with her for a couple of years to help look after her in her old age, so this is my only home.

Additionally I have the opportunity to buy another family house at a highly reduced rate due to it needed significant refurbishment. I'm thinking of purchasing that, doing the work and selling it at the market rate. (Whether that's a good idea is a discussion I'm going to have in the property forum).

Unfortunately it's not an option to sell the current house before buying the second, as she wants a quick sale and I'm not ready to move. I gather that if I sell the second house while still in the first I'd be liable to a large CGT due to the increase in value? I'm trying to work out the sequence of events I should follow to minimise taxes.

So:
1. Buy house 2, paying the higher rate of SDLT
2. Do it up and move in to it (estimate 3 months refurb)
3. Sell house 1 in about a year. (There should be no CGT as any increase in value between now and selling it would be within allowance?)
4. Claim refund on higher SDLT as I sold main residence within 3 years
5. Sell house 2 in a normal chain, buying a smaller long term house 3. (No CGT as it's my primary residence when selling?)

I'll obviously get an IFA involved if I go ahead, but thought I'd see if that sounds approximately right before making more investigations.

Thank you x
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Scottish income tax.

August 20, 2018, 5:25 am
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With regard to the 19% tax band what happens if your wife has given you 10% of her personal allowance?
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Seeking a specialist tax expert please

August 20, 2018, 5:42 am
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I'm looking to invest a fairly large sum into stocks, bonds etc. from which to hopefully receive an annual 'retirement' income.

I've been advised that I need to set-up a legal, tax efficient structure within which to invest this capital, so that I'm not 'over-paying' taxes. I therefore need to find a specialist tax expert who understands the intricacies of vehicles like QNUPs, Bonds etc.

I'm been looking extensively online. There are hundreds of tax advisors out there and I don't which one is any good, therefore I was wondering if anybody could recommend any tax specialists who really know their beans please?

I'd ideally like someone who can meet in or near London.

Feel free to post below or, if you would prefer, you're welcome to send me a Private Message.

Thanks in advance for any guidance.
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Tax help on 2nd home required

August 20, 2018, 7:15 am
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Hi
I have a 2nd home with no mortgage and do not rent this out at present. I am single and have no children and i am on the highest tax banding at present on PAYE
I have outgoings on the 2nd home of 150% council tax as that council charge for the empty property, water connection and electricity connection along with higher insurance for an unoccupied property. The HMRC have stated that if i rent the property out i will be taxed on the full income at the higher tax rate and if i sell the property i will have to pay capital gains. I spent 25 years paying a mortgage and paying the interest on this mortgage. I did rent the property out and to redecorate the property to get it back to a livable state has just cost about £6k. I will now have monthly outgoings but if i rent will not make much income off the property and dont see the worth and hastle in it. Can any one advise if there is a way to claim back the cost of maintain the property without anyone living there
regards
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How long does it usually take to receive cheque for tax rebate?

August 20, 2018, 12:36 pm
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Hi I telephoned the HMRC regarding my tax rebate they told me I was due a refund and I should receive a cheque within 2 weeks, I would just like to know how long it usually takes , how long have people waited for theirs ie has it arrived in 3 days ? 5 days 10 days ?
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Personal Tax return - accountant 'forgot' to file!

August 21, 2018, 7:18 am
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Sorry I'm not sure if I'm using the correct forum - but was hoping for some advice??

My husband owns and runs a small business - he uses an accountant that deals with the Tax Returns for both him and the business.

The last 4 years the accountant has submitted his personal Tax return without any issues. About a month ago we received a fine from HMRC saying this had not be done. The Accountant did the business account but 'forgot' to do his personal return. They have now filed his return urgently as they realised their mistake.
He has since had debt collectors chasing him with a fine from HMRC and so have now paid this as we did not want them at our door.

The accounting company has said they will take up an appeal with HMRC 'free of charge' to try and cancel the fine, and get the money back, but they have said this is all they are willing to do. If it is unsuccessful we will not get any money back.

I know it is a persons own responsibility to do the Tax return but when you pay an accountancy company (which is not cheap) to do this for you - who have also done it for 4 years without any previous issues, would you expect them to take responsibility for this?

Is there anything we can do?

Any advice is much appreciated - If we have to suck it up then we will - and of course change accountants!
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How National Insurance "months" are calculated

August 21, 2018, 9:59 am
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Hi,

Some NI rates are on a per week basis.

It's not clear from the HMRC website what exactly is "per week".

Is it the number of weeks the payslip covers? For example, if the payslip period is 01/04/2018 to 30/04/2018, that is 4 weeks and 2 days.

Or the number of weeks actually worked? If I'm self-employed and take a week off and therefore am not paid, do I pay NI that week?

Regardless of the answer above, what happens for partial weeks? Round up or pro rata?

Thanks,
Tom
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Tax code query

August 21, 2018, 12:12 pm
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For some reason, in July (my company's new financial year) my tax code was changed to 1160LX, rather than 1160L. (Number is correct - I get a company benefit.)

I haven't changed job. I did have a pay increase in July, and one of my company benefits probably costs slightly more this year. However, every July I've had a pay increase and never had X added to my tax code.

I don't understand why this would cause an 'X', as I should still be taxed as per the whole tax year, not just on the basis of this month. Can anyone explain to me, please, or should I call HMRC and get it changed back to L only?

TIA.
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Receiving a bonus in pay packet on PayE (Into Super Tax Bracket) can i claim back tax?

August 21, 2018, 5:26 pm
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Hello everyone im currently serving with the armed for forces and i am receiving a commitment bonus in 2 weeks (sept 2018) of 15k which will be around 10,200 after the tax :( i now earn 30k per annual before tax so this with orher bonus’s for being away from the Uk all the time will send me well over the 45k mark and send me into the 40% tax bracket i believe .Im wondering if i can cliam tax back for the almost 5k lost in tax as it’s half way through the year i doubt it will be able to sort it’s self out enough to not charge me enough tax for the next couple of months to make up the 5k i lost on it will it? I rent out my home so i do my own tax returns so can it be added on there somewhere for the 17/18 tax returns? Also i am going overseas over this bonus money (15k) time and i will be receiving a couple of hundered extra for being away plus my pay is going up by 2.9% as we haven’t received it since April we will be getting 6months back pay of it in the same pay packet so im wondering if i will get charged 40% tax on that also . Is it better to wait until im getting a normal pay packet to cliam for this bonus (15k) so i don’t get charged 40% on everything else in September packet ? Any information will be greatly appreciated i know this seems like im on mega money but i can assure you im not im getting a big bonus going away for the month and getting a payback of a pay increase all in one month so im going well over 45k for the year now out of no where and ill have to be in the Army for another 15+ years to ever earn 45k a year normally :/ Thanks for your time
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Tax Return query

August 22, 2018, 9:30 am
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I'm completing my first self-assessment since going partly self-employed during the last tax year. I have 2 queries I'm unsure about:

* I sold my share in a jointly owned property to my ex-partner during the tax year, it was my only property which we both lived in, and I moved into rented accommodation. Do I need to declare this sale somewhere on my tax return and if so, where? The section about property income seems to all be about rental income. And more importantly will I get taxed on the money I got for this transfer?

* Secondly, how do I know which class of NI contributions I should be paying?

Any assistance gratefully received as I'm terrified of doing something wrong...
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On the edge of the higher rate - private pension question

August 22, 2018, 11:43 am
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Hello everyone

My salary has been on the boundary of the higher rate for the last few years (and I have technically crossed it for the last two tax years). But this year I won't cross the higher rate based on my basic salary or savings interest.

I have been thinking about a second private pension (SIPP), of which I want to claim 40% relief.

If my salary and savings don't take me over the high rate: if I generated enough income from a rental property to take me over the 40%, could I then claim relief at 40% on the SIPP pension contributions?

Thanks
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Sale of inherited property

August 23, 2018, 12:34 am
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I am aware that the base cost for capital gains purposes in the probate value and agents and legal fees are allowable deductions when calculating any gain. If the net gain is less than the capital gains annual exempt allowance is there any requirement to report the gain if the individual that inherited the property is not required to file a self assessment tax return each year.

Online guidance states that;

You still need to report your gains in your tax return if both of the following apply:

the total amount you sold the assets for was more than 4 times your allowance

you’re registered for Self Assessment

While the first condition is met the second is not. On that basis I believe there is no requirement to disclose. Am I correct?
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PAYE, mileage, wash uniform at home @ self assessment

August 23, 2018, 4:05 am
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I have a couple of queries.
I am currently working full time and paying tax through PAYE. I am required to drive and use my own car, company pays 40p per mile. Last tax year 17/18 I drove just over 10,000 miles as part of my job. I understand I can claim back the other 5p against tax.
Also I am required to wear a uniform, when I have looked into washing your uniform at home on the gov website I can't see an option for this be included as I also submit a self assessment for several properties I rent.
How do I claim for the 5p mileage shortage and the uniform washing?
I asked my tax advisor who looks after my property about both the uniform washing and car mileage and he said I had to claim these myself, however looking at the government website I cannot see how this can be submitted.
TIA
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Inheritance Tax

August 23, 2018, 6:15 am
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A bit of advice please re inheritance tax.
It looks to me that a person is allowed have £325,000 in savings/investments etc and £125,000 allowance on your house making £450,000 inheritance tax free, am I correct?


Also are you able to give as a gift up to £3000 each year to close members of your family which would be inheritance tax free. Just how close a member of your family does it need to be? Specifically I'm thinking about son/daughter in laws and grandchildren.

Finally if I have not given any 'gifts' for over 7 yrs can the £3000 apply to each of the 7 yrs (making £21,000)
Thanks for any advice out there!
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Car Allowance - Tax Relief P87 Form

August 23, 2018, 6:43 am
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Hi everyone,

I have managed to confuse myself while trying to complete a P87 form for the use of my own vehicle for business miles. I do not receive a mileage allowance as such (e.g 40p per mile), but instead receive £400 per month car allowance, plus a fuel card on which I pay tax for my private mileage. Assuming that I am eligible for tax relief, for the section of the form 'Total mileage allowance payments received from your employer' should I insert the total amount of car allowance payments received for that tax year??

Thanks :)
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Calculation of Tax for 2 Jobs

August 23, 2018, 8:37 am
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Hi All,


I'm in need of some advice/guidance. I'm currently employed full time earning £27k. However im looking at taking on a weekend job at £22k (pro rata) at 15 hours in total (estimate).


Could anyone be able to advise me how much I would be taxed and what my take home pay would be.
Much appreciated.
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Memorandum of Gift or Monetary Deed of Gift?

August 24, 2018, 5:12 am
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My parents want to gift £3,000 to myself, which is the annual exemption limit per parents. I need to have a legal document to record such a transaction.

What I am confused about is the difference (if any) between a Memorandum of Gift or Monetary Deed of Gift.

I don't want to use the latter if the former is technically different.

Anyone know?

Thanks,

Jon
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Would we be taxed

August 24, 2018, 2:28 pm
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If my partners dad were to sell his house for 300k and give all his kids 75k each would they need to pay tax on it?

I can only find information on inheritance tax, which seems to say that a person would only be taxed on amounts received over 325k

Though I feel like I’m misunderstanding that or missing something

Tia
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