Does anyone know if the inheritance tax allowance on property (currently £125K), is applicable to unmarried couples where a property is jointly owned on a tenants in common basis. Also, how does the allowance work on properties worth less than £250K if each person owns less than £125K of its value?
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Inheritance Tax on Property
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ESA / Tax Code query
Just wondered if anyone could clarify something for me.
My OH has been on contributions based ESA for some years. Last week his state pension started and therefore, as expected, the ESA stopped.
Today he received a P45 showing how much ESA he has received up to it ceasing and I noticed that the tax code on the form is 990N. On checking back this code has been used on his annual P60 forms from the DWP for years.
We did transfer the 10% married couples allowance to me, but even so surely his tax code should now be more than 990, which I presume equates to a tax free allowance of £9,900.
Very confusing.
P.S. Have copied this in on the disability benefits thread as well.
My OH has been on contributions based ESA for some years. Last week his state pension started and therefore, as expected, the ESA stopped.
Today he received a P45 showing how much ESA he has received up to it ceasing and I noticed that the tax code on the form is 990N. On checking back this code has been used on his annual P60 forms from the DWP for years.
We did transfer the 10% married couples allowance to me, but even so surely his tax code should now be more than 990, which I presume equates to a tax free allowance of £9,900.
Very confusing.
P.S. Have copied this in on the disability benefits thread as well.
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What does it mean to Claim VAT back?
This may sound like a silly question but what does it mean to Claim VAT back, is it a case of getting the actual money back or using the amount to offset against lower tax returns?
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Employee Mileage Payments and Self Assessment
having been an employee of my own company since 2004, since April last year I have been an employee of a Plc.. with my own company running alongside. with my own company I used to reimburse myself for all fuel costs, tyres etc. rather than claim a mileage payment. But now my employer pays me 22p/mile.
I am looking to complete my Self Assessment online and I have received some conflicting information from colleagues. Some are saying that we can claim up to the thresholds below, but a couple of them are saying that HMRC only pay 20% of the allowance.. that doesn't seem right to me:think:.
Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p (40p before 2011 to 2012) 25p
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
can i claim 10,000m x 23p and further miles for the tax year at 3p? or are employees only entitled to receive a portion of this? I have entered what I think is the correct information on my self assessment - which I haven't submitted yet, but the calculation so far seems to suggest that I would only receive a small portion of the 23p/3p.
I am looking to complete my Self Assessment online and I have received some conflicting information from colleagues. Some are saying that we can claim up to the thresholds below, but a couple of them are saying that HMRC only pay 20% of the allowance.. that doesn't seem right to me:think:.
Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p (40p before 2011 to 2012) 25p
https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
can i claim 10,000m x 23p and further miles for the tax year at 3p? or are employees only entitled to receive a portion of this? I have entered what I think is the correct information on my self assessment - which I haven't submitted yet, but the calculation so far seems to suggest that I would only receive a small portion of the 23p/3p.
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Tax Return, Trading allowance, Class 2 NI
I'm filling in my 2017-18 SA return just to pay class 2 NI payments. Only income is around £1000 casual income covered by the trading allowance. I've looked through the form and cannot see any mention of paying class 2 NI payments. If I send the form with below £1000 income will I get a bill for the years Class 2 payments?
I'm unsure how to pay my class 2 NI payments. How does it work?
I'm unsure how to pay my class 2 NI payments. How does it work?
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IHT & CGT conundrum
Hi all. Can anyone advise me on something?
My mum died and split her will 50/50 between me and my brother.
My brother (bless him) lived all his life at mum's house (looking after her in her later years, he's a bit of a legend in the family)
When we sell the house, if it is for more that the IHT value agreed with the HMRC, will he pay CGT on his share of the extra? He doesn't own another house, just his 50% in this one?
Thanks in advance for any thoughts.
My mum died and split her will 50/50 between me and my brother.
My brother (bless him) lived all his life at mum's house (looking after her in her later years, he's a bit of a legend in the family)
When we sell the house, if it is for more that the IHT value agreed with the HMRC, will he pay CGT on his share of the extra? He doesn't own another house, just his 50% in this one?
Thanks in advance for any thoughts.
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CGT on Currency Conversion
If I hold US shares with a US broker I would calculate any UK CGT liability by using the $US/£ exchange rates on the dates on which I bought and sold the shares. But if I subsequently convert the proceeds from $US to £ and I don't achieve as good an exchange rate as the official rate for the day (which i won't), can I declare this currency transaction as a capital loss to offset against my capital gain?
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Personal allowance and Double taxation mine field!
Hi everyone
Im moving to Sweden with work and the plan is to rent out our house for the 2/3 years that we are not living in the UK. I have been trying to figure out if I will retain my personal allowance whilst not living in the UK, which I can use against the rental income. I cant seem to get a straight answer from the HMRC website - any ideas?
Secondly, does anyone know if there are any double taxation issues to consider for the rental income? The plan would be to have a UK bank account that we use solely for the rent and any house maintenance costs, so wouldnt spend the income in Sweden.
Any help would be great! :)
Im moving to Sweden with work and the plan is to rent out our house for the 2/3 years that we are not living in the UK. I have been trying to figure out if I will retain my personal allowance whilst not living in the UK, which I can use against the rental income. I cant seem to get a straight answer from the HMRC website - any ideas?
Secondly, does anyone know if there are any double taxation issues to consider for the rental income? The plan would be to have a UK bank account that we use solely for the rent and any house maintenance costs, so wouldnt spend the income in Sweden.
Any help would be great! :)
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Mortgage to provide working capital for property rental business
Mortgage interest is an allowable expense up to the "capital value" of the property at the time it was introduced into the letting business.
The example here (BIM45700 example 2) uses the market value of £375k as the "capital value" even though it was bought for £125k but there is a large time gap between being bought and being rented. Who knows if £125k was the market value when it was bought. Had it been bought for less than the market value and rented straight away, does the market value still apply as the balance of the capital account, or is it the price paid?
https://www.rossmartin.co.uk/land-a-property/3000-interest-on-re-mortgaged-buy-to-let-property
The example here (BIM45700 example 2) uses the market value of £375k as the "capital value" even though it was bought for £125k but there is a large time gap between being bought and being rented. Who knows if £125k was the market value when it was bought. Had it been bought for less than the market value and rented straight away, does the market value still apply as the balance of the capital account, or is it the price paid?
https://www.rossmartin.co.uk/land-a-property/3000-interest-on-re-mortgaged-buy-to-let-property
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Payments On Account: Is a refund automatically sent after fall in profit?
Last year I completed a self-assessment tax return for the first time.
I paid ~£2000 tax for 2016-2017 and made two payments on account of £1000 towards the 2017/2018 tax year.
Total contributed towards 2017-18 tax year: £2000
For 2017-18 my net profit fell and my tax (due to be paid by Jan 31 2019) is ~£1300 (tax due) + ~£570 (first payment on account towards 2018-19).
Total due by 31st Jan 2019: £1870
I am therefore owed a small amount of tax.
Will HMRC automatically refund difference this or do I need to include this somewhere on my self-assessment tax return?
I paid ~£2000 tax for 2016-2017 and made two payments on account of £1000 towards the 2017/2018 tax year.
Total contributed towards 2017-18 tax year: £2000
For 2017-18 my net profit fell and my tax (due to be paid by Jan 31 2019) is ~£1300 (tax due) + ~£570 (first payment on account towards 2018-19).
Total due by 31st Jan 2019: £1870
I am therefore owed a small amount of tax.
Will HMRC automatically refund difference this or do I need to include this somewhere on my self-assessment tax return?
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Live Overseas - Any Tax Exemption?
Hi All
In the last tax year (17/18) I bought a house in the EU, and moved between there, NZ and the UK. Up until now i've just paid tax as a regular resident in the UK where I work mostly remotely for UK companies (self employed, full NI contributions etc).
This year I'm trying to cut my tax as much as possible and HMRC have been super helpful in lots of things - but I'm wondering about my NI liability- is it different if I'm not a residence or is it tied completely to the 'tax' owed.
Any advice?
In the last tax year (17/18) I bought a house in the EU, and moved between there, NZ and the UK. Up until now i've just paid tax as a regular resident in the UK where I work mostly remotely for UK companies (self employed, full NI contributions etc).
This year I'm trying to cut my tax as much as possible and HMRC have been super helpful in lots of things - but I'm wondering about my NI liability- is it different if I'm not a residence or is it tied completely to the 'tax' owed.
Any advice?
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Self assessment newbie!
I'm employed and in the process of filling out a self assessment for the first time and have a couple of questions I hope someone may be able to answer.
Firstly, I get medical insurance but it is payrolled as benefit in kind so it is included in my P60 gross salary figure and I've therefore paid the tax as part as my 'income'. Should I be listing this 'benefit' on my self-assessment when asked or is it already taken care of in my salary figure?
Secondly, my employer seems to have special dispensation not to produce a P11d anymore. I do have expenses, which I have a personal record of. The expenses includes private car mileage paid at a rate of 35p/mile. It would be nice to claim the relief on the difference, but I'm not sure if I can claim it without a P11d. And even if I can I'm not sure where I claim it.
Firstly, I get medical insurance but it is payrolled as benefit in kind so it is included in my P60 gross salary figure and I've therefore paid the tax as part as my 'income'. Should I be listing this 'benefit' on my self-assessment when asked or is it already taken care of in my salary figure?
Secondly, my employer seems to have special dispensation not to produce a P11d anymore. I do have expenses, which I have a personal record of. The expenses includes private car mileage paid at a rate of 35p/mile. It would be nice to claim the relief on the difference, but I'm not sure if I can claim it without a P11d. And even if I can I'm not sure where I claim it.
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Child Benefit threshold
All,
I was just wondering if anyone knew of a template or similar that could be used to try and get the threshold for repaying child benefit? Currently it starts at 50k and if you earn over 60k you need to pay it all back.
That's all well and good, but the thresholds have not changed for nearly 6 years. Given the tax is largely seen as unfair due to it being based on a single income. Whether you agree or not with child benefit for middle earners the fact we have a tax which stays static for so long and is not based on any wage growth is crazy.
Thanks
I was just wondering if anyone knew of a template or similar that could be used to try and get the threshold for repaying child benefit? Currently it starts at 50k and if you earn over 60k you need to pay it all back.
That's all well and good, but the thresholds have not changed for nearly 6 years. Given the tax is largely seen as unfair due to it being based on a single income. Whether you agree or not with child benefit for middle earners the fact we have a tax which stays static for so long and is not based on any wage growth is crazy.
Thanks
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Tax return for P2P interest
Hi all,
I wonder if anyone is able to help please.
I hold full time employment with PAYE at source. Last year, I invested a little bit of money in a P2P lending scheme. In the 2017/2018 year, I earned an interest of around £50. I have no other untaxed income. I wonder if I will need to fill out a self assessment form for this?
I wonder if anyone is able to help please.
I hold full time employment with PAYE at source. Last year, I invested a little bit of money in a P2P lending scheme. In the 2017/2018 year, I earned an interest of around £50. I have no other untaxed income. I wonder if I will need to fill out a self assessment form for this?
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40% threshold and stakeholder pension
Hi, after a bit of advice or knowledge before I contact HMRC. Thanks in advance.
I'm have a couple of jobs, one regular salary taxed using my tax code and PAYE and another job that is taxed using tax code BR. The second job is very irregular, sometimes I'll get a few thousand one month, other months I'll earn nothing or a few hundred. At the end of every year, the two jobs combined take me right to the edge of the 40% tax allowance and perhaps even just over. However, I also pay £100 a month into a personal stakeholder pension. When this is taken off my taxable income, I'm just the right side of this boundary. The tax relief for this is already claimed back by the pension provider, but I believe that it should affect how much taxable income I have and therefore where my 40% boundary is.
So.. I told HMRC all of this last year and they said they would change my tax code. Looking at it online now, I started off with a personal allowance of £11,850. Then they added on a "personal pension payment" allowance of £827, then deducted £827 as "adjustment to rate band", leaving me with exactly the same allowance as I started with.
Any idea what's going on and if it's correct? Why £827 for £1,200 of contributions (actually 1500 pre-tax)? And why is it taken off again, so seemingly having no effect?
Thanks :-)
I'm have a couple of jobs, one regular salary taxed using my tax code and PAYE and another job that is taxed using tax code BR. The second job is very irregular, sometimes I'll get a few thousand one month, other months I'll earn nothing or a few hundred. At the end of every year, the two jobs combined take me right to the edge of the 40% tax allowance and perhaps even just over. However, I also pay £100 a month into a personal stakeholder pension. When this is taken off my taxable income, I'm just the right side of this boundary. The tax relief for this is already claimed back by the pension provider, but I believe that it should affect how much taxable income I have and therefore where my 40% boundary is.
So.. I told HMRC all of this last year and they said they would change my tax code. Looking at it online now, I started off with a personal allowance of £11,850. Then they added on a "personal pension payment" allowance of £827, then deducted £827 as "adjustment to rate band", leaving me with exactly the same allowance as I started with.
Any idea what's going on and if it's correct? Why £827 for £1,200 of contributions (actually 1500 pre-tax)? And why is it taken off again, so seemingly having no effect?
Thanks :-)
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Mortgage interest allowable expense?
If you buy a property to rent out with a mortgage on your main residence, and later sell the buy to let but keep the mortgage, can you continue to deduct mortgage interest from rental from your other buy to lets?
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not paid tax in a long time...advise please
Not sure what section to put this in so put it here also.
I havent paid any tax or NI for approx the last 17 years. My last employment was in 2001, of which I left to go into full time education, this was PAYE so my last tax return. I didnt last in education and left and then went into some labouring work which was cash in hand work. I did this on and off ever since never earning more than £7-10k in a year. As it was cash in hand I have no records of payment and only have the odd cash deposit in to my bank account. Long story short I never declared myself as self employed and now want to go legit. Whats the best way to go about this? Would it be possible to just register as self employed now and start paying taxes or will HMRC come after me?
I havent paid any tax or NI for approx the last 17 years. My last employment was in 2001, of which I left to go into full time education, this was PAYE so my last tax return. I didnt last in education and left and then went into some labouring work which was cash in hand work. I did this on and off ever since never earning more than £7-10k in a year. As it was cash in hand I have no records of payment and only have the odd cash deposit in to my bank account. Long story short I never declared myself as self employed and now want to go legit. Whats the best way to go about this? Would it be possible to just register as self employed now and start paying taxes or will HMRC come after me?
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HMRC & divi tax
Hi
I'm 64 YO retired, with an occupational pension and pay income tax. I also receive annual share divi of around £4K. Since the tax free allowance on divi's is now reduced to £2K.
1) Will the business I hold shares in advise HMRC to collect tax or, is it my responsibility to advise HMRC? PS shares were from share-save schemes while I was employed and I do not hold any other shares.
2) Should I sign-up with HMRC Services on-line and handle it this way? Would this be appropriate way to do it for someone in my position?
I would appreciate any guidance on the above.
Regards
MB1447
I'm 64 YO retired, with an occupational pension and pay income tax. I also receive annual share divi of around £4K. Since the tax free allowance on divi's is now reduced to £2K.
1) Will the business I hold shares in advise HMRC to collect tax or, is it my responsibility to advise HMRC? PS shares were from share-save schemes while I was employed and I do not hold any other shares.
2) Should I sign-up with HMRC Services on-line and handle it this way? Would this be appropriate way to do it for someone in my position?
I would appreciate any guidance on the above.
Regards
MB1447
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Military Tax Refund?
Hi,
I heard that I can claim back tax on things like mileage if i'm in the military? I don't want to do it myself, does anyone know of anyone that does it for me and doesn't charge a fortune?
Thanks in advance :)
I heard that I can claim back tax on things like mileage if i'm in the military? I don't want to do it myself, does anyone know of anyone that does it for me and doesn't charge a fortune?
Thanks in advance :)
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From renting out whole property to rent a room halfway through year
I rent out the whole property until the end of September, so in that tax year April-Sept I would expect to pay tax on the profits less expenses in the usual way via Self Assessment. Just as in tax years where it was rented out for the whole year.
Then from October onwards I rent out only one furnished room to a lodger whilst the property is my one and only home. I would hope I could claim the £7,500 Rent a Room Relief on that part of the year where I meet the criteria (it being my only home whilst I live there). All I need do is tick box 37 on the property pages, is that correct? The question is whether all the property income in one year is lumped together (from the form it looks like it is) and then you claim the allowances as and which apply.
It might make sense for me to claim "total receipts less expenses" for Rent a Room, "Method A". How do you work out the expenses, I think 50:50 given it is a two bedroom property and the lodger if using half the property. So I would split the energy / water consumed (minus standing charge) in two and then the marginal cost of having two occupants instead of one on the council Tax? That would meet the "wholly and exclusively" rule if that is the applicable test here. In fact if the whole £7,500 relief applies to the 6 months I have a lodger, I would just use method B as my expenses won't be enough to make it cheaper that way.
For future years I doubt I'd be over the £7,500 threshold so I'm not too worried.
Then from October onwards I rent out only one furnished room to a lodger whilst the property is my one and only home. I would hope I could claim the £7,500 Rent a Room Relief on that part of the year where I meet the criteria (it being my only home whilst I live there). All I need do is tick box 37 on the property pages, is that correct? The question is whether all the property income in one year is lumped together (from the form it looks like it is) and then you claim the allowances as and which apply.
It might make sense for me to claim "total receipts less expenses" for Rent a Room, "Method A". How do you work out the expenses, I think 50:50 given it is a two bedroom property and the lodger if using half the property. So I would split the energy / water consumed (minus standing charge) in two and then the marginal cost of having two occupants instead of one on the council Tax? That would meet the "wholly and exclusively" rule if that is the applicable test here. In fact if the whole £7,500 relief applies to the 6 months I have a lodger, I would just use method B as my expenses won't be enough to make it cheaper that way.
For future years I doubt I'd be over the £7,500 threshold so I'm not too worried.
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