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Self Assessment voluntary Class 2 contributions

January 31, 2019, 3:14 am
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Hi All,

If you were employed for part of a tax year, but not the full 52 weeks, but your earnings from employment were above the lower earnings limit for the year and HMRC says they have that year down as a qualifying year for your pension, is there any benefit to paying voluntary class 2 contributions for that year on your self employment profits which were under the class 2 small profits exemption?

Do class 1 and class 2 NI contributions go towards different things?

Thanks in advance for any replies.
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HMRC portal - You have no tax to pay

January 31, 2019, 3:52 am
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I've filed my tax return on the 30th of Jan, and although I need to pay an amount for tax, the portal shows "You have no tax to pay."

I think I need to wait for the system to show me the amount, however what happens if that goes past the deadline of 31st Jan?

How to best tackle this?
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Bank interest on self assessment

January 31, 2019, 4:50 am
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So I'm doing my last minute self assessment tax return. I am employed PT but let out one property so need to do this.

I have about £33.00 bank interest from my current account to add on.
I have a £30.00 dividend payment that I received also.

Now I've read there is a personal allowance for these which is separate from my employed income tax threshold.

I am a basic rate tax payer

When doing my return though it says that the bank interest is taxed at 0 percent as well as the dividend......but then seems to still include these amounts in the TOTAL taxable income.

How so?
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Advice please regarding self assessment

January 31, 2019, 8:04 am
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Hi,


I would like some advice, please. My partner, who is a farmer lives in a council property. Is he able to also claim any tax allowable expenses associated with running his business from the council property?
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some self assesment problems

January 31, 2019, 9:12 am
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I've been doing self assessment for years, as an artist, with very low income. This year I've had the usual letter from HMRC telling me I need to do a tax return, but when I've gone to do it today*, it says I DON'T need to fill out the self employment pages because I've earned under £1000.

Do I file it as it is,(there are other pages to fill, it seems)without mentioning my self employment bits, or do I tick the over 1k box and declare it, (I mean is that what the letter is telling me to do?) I realize I could do this anyway if I wanted to pay NI, but I don't have the money this year.

I'm sorry if the answer is obvious, I have comprehension issues when it comes to forms and money stuff.:(


*I know it's leaving it late and I shouldn't put it off, but I'm normally very quick at entering it.:o
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What is Non Coded Income ?

January 31, 2019, 9:26 am
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I have just checked my Tax codes on line and have discovered that I apparently have £3,434 of Non Coded Income.
I have tried phoning the tax office but no one will pick up as they are very busy.


I can't think where this random number might have come from.
It's not interest from savings as there is another amount covered by this.
Any thoughts?


tia


sparkie
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Demand to register to vote - Wrong details

January 31, 2019, 12:55 pm
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NOT TAX, BUT COUNCIL RELATED.

Following a recent split from my fiance I've moved back home with my mum while I try to get back on my feet (buy my own place).

One of the first things I done when moving in was register to vote, as I know how important it is to be on the register when it comes to credit checks.

However, a couple of weeks after moving in two lovely wombles from the council's electoral register department visited, asking who lived at the address to ensure everyone was registered to vote. For some reason, my name wasn't on there.

I gave them my full name and as people often confuse my surname with a similar surname, I spelt for them.

Not long later, a letter was delivered to the house. As It was from the council my mum opened it. It turned out to be a letter demanding that I register to vote (even though I already have) and threatened £80 fine if I do not register. Upon closer inspection, the letter is not addressed to me, but instead a person with the surname that is similar to mine - First name the same.

As I knew I had already registered I logged on to my Credit Expert to confirm I was on the register at this address which credit expert confirmed I am.

Now the made up person is receiving further demands to register.

I do not have time to chase the council up regarding this as they are only open during office hours and there is no info on the website or letter RE: wrong information. All I can see is that it's an offence to provide incorrect information on this registration form.

Do I just ignore it? Can I face any repercussions as it is not me they are writing to and I am on the register already?
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Self Assessment on PAYE

January 31, 2019, 1:12 pm
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I have to say that I am a bit confused by the whole self assessment system. I got a letter saying I had to register for an account with HMRC and do a self assessment. I had to research possible reasons, they did not offer a reason. Turns out it was due to earning over a certain amount.

As I am PAYE and have no other income, it was actually a bit odd to fill in the assessment, but I did and all I provided was gross income and tax paid, which it then decided I needed to pay more tax. Ok, so if I swallow that (i.e. my P60 apparently did not show enough tax payed through PAYE), I go to pay it... but you cannot pay by personal credit card, you have to have a corporate credit card?! I am not a business I am just a normal PAYE employee. At the top of the HMRC website when I try to pay says "Business Tax Account". Again, I am not a business.

I feel like there must be a mistake here - I want to pay the tax using a personal credit card, but the only possible option is to take it from my current account...
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SA for 2018/19 Earliest date to file and tax reclaim

January 31, 2019, 2:25 pm
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Does anyone know how early I can file my SA for the year ending 6 April 2019?

I want to reclaim some tax on a pension drawdown, my income including the drawdown is under the tax free threshold for the year.

If I submit my SA as soon as I can after 6 April 2019, will i get the overpaid tax back before Jan 2020?
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UK Income Less Than £7000 PA

January 31, 2019, 2:40 pm
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Never registered as self employed. How to deal with tax?

February 1, 2019, 2:51 am
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Hello,

From 2017 April to 2018 September I worked in a company independently: no benefits, just weekly pay for completed tasks straight into my bank account. I would submit a simple excel table style invoice at the end of the week.

At first, I didn't make much, I still lived off my savings, but then I ended up earning regularly, which was enough to live frugally and save as much as possible.

I never registered as self-employed and didn't even think that I need, should or that's the type of work I am doing. Only a year later this thought stumbled upon me when a friend started talking about her "self-employment".

So now I have 14k of savings, which are decreasing because I am living off savings again and currently applying to a regular type of jobs, meaning, not going to be a self-employed, at least for a while, probably never in the UK - I don't have plans to settle down but I am open to this or any other idea. Just no definite long term plans besides a long time travel in the next 1-4 years.

I know, the deadline for tax returns has already passed. I didn't think it will be a big deal, because I didn't plan to return to the UK after I left my previous job and also I didn't make that much money - I just saved as much as possible, while still enjoying my life. I am not sure how much I have earned in total. Let's say 14000 in 2017 and 20000 in 2018.

But now I'd like to invest this money and as I was reading the forms I noticed, they will be checking my history for money laundering reasons. I don't have any paperwork. And I don't know where to go from here. I had a few ideas.


Option 1 (not honest): just spend this money and invest income from my future employment. But ... can I use the same bank account (I was thinking to upgrade my account and start with ISA)? Can I open a new bank account in a different bank and start from scratch or will they check my whole history anyway?

Option 2: deal with HMRC and come clean. Would I need to register as self-employed when I no longer am? If not, then how do I file a tax return?

It just seems a bit insane to me, that I worked my butt off to save a little, give myself some breathing and travel time and now I'll have to leave half that for taxes... ;/ I am already late for tax, so I'd rather wait for much longer, sort out my work and savings/investment situation, get some income and only then deal with taxes.
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Mileage claims

February 1, 2019, 8:25 am
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In the past I have submitted Self Assessments for some self employment for 2014/15 & 2015/16. I have subsequently found out that I can claim some additional mileage as my full-time employer pays less than the HMRC 45p per mile.
As I’ve done a SA, apparently I can’t use a P87. Is there another way I can claim this?
I realise I’m probably too late for 2014/15 by now..
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Help with VAT tax return

February 1, 2019, 10:34 am
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Hello!

I am confused about my VAT return, and I just want to make sure everything I have done so far is correct:

https://imgur.com/a/BislbRh



I completed the purchase of a commercial property on the 16th of January 2019.

I paid

£43,500 as purchase price & £8700 VAT

£600 as lawyer fees & £120 VAT

£20 as CHAPS fee & £4 VAT



This comes to a total of

£44,120 and £8824 VAT.



Is this all correct, and have I filled out the VAT return form correctly?

I am currently in the process of letting this place out, or selling it back on auction.



The property is in Scotland, where I live also.
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Made mistake on SA return - what do I do?

February 1, 2019, 10:38 pm
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Hi all,

I’m a bit worried as I’ve made a couple of mistakes on my 2017-18 SA return and am really worried about what to do.

Not only on the self employed side, but also property too - as I thought 100% mortgage interest was deductible.

I know, I know. :(

I need to get this right, so what is my first port of call? Call HMRC to let them know? Get a tax advisor to make sure everything is correct? Or just sit down, get everything in order and amend my return?

Any help gratefully appreciated.
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Definition help! Taxable Income

February 2, 2019, 3:06 am
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Hi All

From government eligibility point of view, how do we define taxable income?
Is it gross income total or is it after pension, personal allowance etc?

Thank you
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error code on tax return still waiting to be fixed

February 2, 2019, 3:15 am
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I did my online tax return in early January. It wouldnt submit due to error code 8415, (I believe it was something to do with CGT) I phoned the online support 4 times & tried their suggestions of cancelling various sections, logging out, logging back in & trying again. I even cancelled the whole thing & did it again. But the error code is firmly stuck there, must be a glitch their end. I was finally asked to email the whole return to them which I did on 10th & am waiting for their technicians to sort out the problem. I've phoned since & its still waiting to be dealt with. Now it's past the deadline but its out of my hands until the technicians have sorted the problem their end, also I don't actually owe any tax. However I cant help being nervous about submitting my return late, has this ever happened to anyone else? (just looking for a some reassurance really)
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IHT - residence NRB

February 2, 2019, 6:12 am
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Person A has an estate worth £820k, comprised of £650k cash and £170k which is a 1/3 share in a mortgage free property. Their deceased spouse passed on their £325k allowance, taking the total IHT allowance to £650k. The question is how much of the residence NRB would be applicable to person A on death given that they only own 1/3 of a property and they would be passing that on to their daughter, who also owns part of the remaining 2/3?
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Change of intended use for VAT registered business - VAT claim affected?

February 2, 2019, 6:28 am
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Hello!

I bought a vacant commercial outlet in January 2019.

When I registered for VAT, and opted to tax, I stated that I was intending to let the commercial premises out.

Since then, I've decided to put it on for auction, due to a change in household circumstances. I'm still looking to let it out, if it doesn't do well in the first auction.



I'm reclaiming my VAT which I paid for the purchase of the property at the moment. Would the change of intended use affect this claim?
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Self assessment tax penalties - help for appeal

February 2, 2019, 9:12 am
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Hi all,

Before I start, I know that everything was my fault, I am just trying to see what grounds I have for an appeal. I feel terrible and ashamed already and penalties will severely affect my financial and professional future.

Long story short - apparently I registered for self assessment when full-time student in 2013 for student job didn't actually end up doing. Looking back at emails, in order to sign up to this company, I needed to give them my UTR, so I think I thought it was the tax equivalent of a national insurance number, so nothing significant needing follow up. I was a full time student Sept 2009- Sept 2014 then lived and worked abroad Sept 2014- Sept 2018.

2019, am back in UK and just set up a limited company and registered for self assessment, my new details triggered post to be sent to my new address regarding the tax years 2013/14, 2014/15, 2015/16 stating that I have over £5k in penalties to pay due to not filing tax returns.

I honestly don't remember filing for self assessment but I clearly did it naively thinking it was just what you do to get paid for student jobs. Of course I accept responsibility there but it was an honest mistake.

I rang HMRC as soon as I got this letter and they said I had to file for these tax years via post and then appeal them by post if I wanted to.

Does anyone have any view on what to focus on in my appeal? I was thinking the fact that I have never actually worked as self-employed during that time, do not owe any tax, and did not intentionally ignore any correspondence or responsibility. In addition, for 1.5 years in the tax years in question (14-16) was not a UK resident for tax purposes. HMRC were clearly sending me post to my old university address. Of course the rule is that you should inform them if you move, but in my ignorant student mind, I had not understood that I was under a different tax status.

Also, should I pay them fine then file my returns and then appeal? Or file and appeal and then what to see about the fines?

Another addition is that they told me that tax years since 2016 have been cancelled as they were made aware of my updated situation. This seems odd to me because I never told them I was no longer self-employed since I hadn't realised that I was registered as self-employed in the first place. The only thing I can think of is that I always told the student loan company when I was employed full time and moved address, but then that would have meant my circumstances changed from 2014, not 2016. Also, if they were using student finance details, then surely they would have seen my updated addresses. Any thoughts on this?

Is the fact that I am filing and appealing so many years down the line going to seriously affect my chances?

Thanks in advance!
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Tax from donations

February 3, 2019, 1:58 am
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I am starting a new business, it will be a guest house. Most of the money collected for opening the B&B is from a donation. Now the question, Do I have to pay tax from all donations? Do I have to count donations as my income?

I'm self-employed and 100% of the money will be spent on buying a house and modernizing it. that is about 200,000 pounds. If I buy a house, can I count it as an expense and get a tax refund?

Regards
John
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