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Loss on sale of Buy to let

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Could someone advise on my situation.

I have two buy to let properties, one owned for around 10 years the other purchased about 3 years ago. The property purchased 3 years ago has not worked out and I have made a net rental loss on it every year, it was bought for £80,000 and now I am looking to sell it for £50,000.

I understand for this I can report this £30,000 allowable loss to HMRC, how could I use this £30,000 can this be offset against my rental profit for the other property which is around £3,000 per year? Can I use the allowable loss against my normal employment tax, in order to reduce my tax liability?

Personal Allowance on 2nd Job

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Hi,

I'm currently working part time and have just been offered a new part time position as well. I'd like to work both jobs but I'm unsure on how this will affect tax?

Both jobs in total will still be under the personal tax allowance, so could I split my allowance over both and pay none?

If not, then the new job will be my main job, but as I'm already employed by the lesser job how do I change that around?

Thank you

Working from home

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Hi
I'm full-time PAYE employee of a national company. Because of the nature of my job, I am based at home and drive to meet clients in a30 mile range.



I do not have a company car, but have to have decent broadband at home to acess company files etc.


Question is, are there any tax allowance(s) I can claim by being home-based?


Many thanks


Dave

Deed of Variation...divorce complications!

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Hi all,

My Auntie has recently received a fairly substantial amount of inheritance and she is interested in writing a Deed of Variation to pass this money on to her Daughter.

To confuse matters, however, her Daughter is in the process of filing for divorce.

We are in the process of getting legal advice on this matter but I wanted to get some info on the well-informed here!

Does anyone know if the Deed of Variation specified the monies were to go to my Cousin, whether her soon to be ex-husband could still have a claim to the money in divorce proceedings?

Thanks! Lily x

Benefit in Kind (BIK)- company car tax question

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My employer is stopping our Company Car Scheme.

On my P11D my car benefit is rated at, £6318
This equates to car benefit of £526.50 per month (£6318/12)
I pay tax at 40% rate

In order to calculate how much less tax I will pay each month, is it as simple as saying for this BIK I pay tax per month which is 40% of £526.50 = £211

So, I should get an addition of £211 in my net salary due to not paying this tax

Is my thinking correct.

Thanks for any replies

Mr Man-Man :T

Started self employment need advice

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I just needed to clarify a question about self assessment tax,I just finished my first small freelance job last month and and plan to continue so will be registering for a UTR number but want to check this is correct - I register now and will need to file a return Oct 2020 - Jan 2021?

WAT (Widening access training NHS)

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Hi all,


I did my training with the NHS in 2007 - 2009, I recently learnt my course was classed as a widening access training course and I should not have paid tax and NI whilst training.

I have claimed this back and received just under 2k NI and just under 4k tax.

Should i also receive interest on top of this? I have read if HMRC repay tax after January after the end of the tax year they have to pay interest... So surely with this being 12 years after, they should also pay interest on this?

Any advice please?

Thanks

Danny

VAT Payment receipt

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Hi,

I've made a VAT payment a few months ago and I cannot find the receipt for it.
It was paid online using the Faster Payments to HMRC.

Is there any way I can retrospectively obtain a receipt or copy of the receipt for this payment so I can add it to my records?


Thanks.

Operating as both a sole trader and Ltd Co?

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Can one operate as both a sole trader and as a director or a limited company at the same time?

For background information, I am a director of a limited company and in my spare time (i.e. time I'm not working on company business) I've been trialling some new software which may be of interest to potential clients. It is all very early days and there's nothing too exciting going on, but I'm wondering if it's possible to classify that development work under a 'sole trader' banner and sell the IP to my IT company for, say, £500?.

If so, would that qualify as a legitimate software purchase by the LtdCo and would I be able to take the £500 tax free given it's under the £1k annual sole trader allowance?

My PAYE earnings are quite high, but not sure if that is relevant or not. Would the £500 be added to my earnings for income purposes or is it possible to have say £50k in employment income taxed under PAYE and then another £1k tax free under sole trader allowances?

CGT or IHT or both?

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Hi please can you clarify something.

My Dad has his home and a buy to let. The Buy to Let is on the market but no offers. From what we understand if he were to sell it he must pay CGT at 28%. Once that is paid does the remainder (whatever he doesn’t choose to spend) become part of his estate, in which case as children we would then have to pay 40% IHT for anything over £1million?

If in worst case scenario he passed before the property is sold is it just IHT that has to be paid as the value of both homes will form part of his estate or would CGT have to be paid as well if his children sold the Buy to Let on his passing?

Thanks

Valuation Attendance

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Hello Everyone,

I'm in the midst of appealing the council tax banding on my new home. My challenge was rejected and now I am at the tribunal stage. I've just received my letter and it states that I may attend but later on states that if I don't attend the appeal may be struck out or dismissed.

My question is, do I have to attend? If I don't will it really be to my detriment?

Thanks.

New Computer Tax Deductible?

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Hello.
I'm registered as a sole trader and file a Tax Return every year.
This is the first year I will be purchasing a new Laptop to use for my self employment, as well as some software licenses.

When filing my Tax Return, can I deduct the full value of these items?
Or is it calculated somehow?

It's been a while since I completed the last return and can't remember whether or not there was a section for it, or how it was calculated.
Thanks in advance for any help.

Double Taxation Relief Advice

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This is a fairly complicated situation, but perhaps someone has some advice. In brief:

1. I'm a UK citizen and I work for a British company (permanent position, been employed for 10 years).

2. I do all my work remotely from home. Although my company is a very large one and I have an office, nobody cares if I work there or from home so I don't go in. This isn't that strange if you understand how this company is run (it's a kind of Google, flexible working, no real boss, if the work gets done we couldn't care less how you live your life type environment).

3. My wife is Japanese and for family reasons we're relocating to Japan. I practically live there already but not formally yet and I'm still going back and forward to the UK at the moment. I'm still going to work for my company in the UK but from Japan instead. I will stress here that there is absolutely no problem with my employer in this regard, but it's also not something I've formally "cleared" with them either and I don't expect any support from them. They basically don't care but if I make some kind of annoying issue out of it then they might start to care so I don't want to do this.

4. The one problem I have is the tax situation. By the strict letter of the law, if I become a resident in Japan then I will in principle have to pay tax in Japan even if I'm earning this money in the UK. Obviously this is a complete disaster as I'll be paying tax in both the UK and Japan, making the entire idea of living permanently in Japan more or less impossible financially (and it will take several years to improve my Japanese well enough to work there for a Japanese company). In short, this tax issue is a pretty big deal for my family - basically make or break on my career, where we live, my children, my marriage, etc.

5. There is a treaty that provides Double Taxation Relief between the UK and Japan. It basically exists to cover for this sort of situation and in theory I would be able to claim back all the tax I pay in the UK if I notify the government that I'm living in Japan. I've been trying to research this but it's complicated and all the advice seems to be written for completely different situations (e.g. you work for a British company but get sent to work abroad for some period). None of it is written for remote workers who have just voluntarily relocated for lifestyle/family reasons so I wondered if anyone had experience/advice on how this works, if it's doable, and so on.

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TLDR: I'm a UK citizen living in Japan but working for a UK company. I can't afford to pay tax in both countries so I want to claim Double Taxation Relief in the UK but I have no idea how this really works or even if it applies to my situation and if anyone has done this before or knows how it works I'd love some advice!

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Valuation of a gifted property

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Hi

To potentially reduce IHT, I would like to gift a share/whole of my previous main residence to my four children.

Now I know part of the gift will be sheltered by PRR and LR. But initially what will be an acceptable valuation to HMRC? Can I base it on the value the next door property was sold at? Or must get a proper valuation done, as these are not cheap?

The property is suffering from subsidence (if this matters).

Thanks

Hana

IHT question

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I am British and my wife is Thai.

Recently my wife sold a property in Thailand and has transferred £70,000 to my UK bank account. This is so that the money can be invested long term in equity funds through my Hargreaves Lansdown share account (which is in my name only).

My UK assets are well over £325,000 which I believe is the amount I can give away upon my death and for my dependents not incur UK IHT.

Given that my estate is based on my assets minus any liabilities (debts), would it make sense for my wife to "loan" me the £70,000 so that it will be considered a debt (for IHT purposes) and thus this amount will be reduced from my estate when I die as she will have to be paid it back before any UK IHT calculations are made?

Thoughts?

Expenses for self assessment

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I am a self employed fitness instructor and fitness teacher. I’m working out my expenses and I’ve researched things I can claim for under allowable expenses but I am uncertain about internet?
I work from home and I use my internet to research, email clients, run my website, online booking etc.
But can this be an allowable expense, as obviously I also use my broadband for non work related browsing.
And my phone contract, it’s for work and non work too.
What’s the rule of thumb for this please ?

Excuse ignorance.

Small earnings at university?

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Hi all,

New here so apologies if this is in the wrong place, but i'm asking for some general advice for small earnings at university.

Basically, i am a fully qualified lash technician and i thought it would be a good idea to make some money on the side as a student doing my friends/friends of friends eyelashes. I am wondering whether i would need to go through HMRC and declare this income etc.

I am not planning on asking for much money or doing it regularly, my degree will be my first priority, just times can be tough as a student and any money flow is appreciated. I currently sell clothes on depop and ebay occasionally and i don't declare this but just wondering what the rules are (obviously i don't want to get into any trouble!)

Thanks all.

Company Car question

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Hi all,

Not sure if this is the right place to post this so apologies if not!
I have a question around tax and company cars, more specifically additional contributions.

I am given a company car allowance (£600 before tax) and I can either use this full amount towards a company car, or take the cash and put towards a private purchase etc.

I tend to go for the company car as although you pay monthly tax based on BIK, I'd lose 40% of the allowance in tax taking the cash.

Historically I would never chose a car above my allowance.
Now however we are seeing electric cars coming in 2020 with 0% tax (Kia, Tesla etc) so its looking more appealing to spend more on the monthly rental of an electric car, as you won't pay any tax.

However my question is this... If I were to chose a company car for £700 a month - £100 more than my allowance - would that mean a full £100 out of my pocket each month, or £60? (ie £100 taken at source so I don't pay tax on it).


Difficult to explain what I'm after I hope this makes sense! I guess the question is whether I would be taxed on the additional contribution, despite the amount being taken at source?

Thanks
Jon

CGT main residence election

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Hello all
I have been reading the HMRC manual on CGT, and want to check my understanding.

I bought my house in 2011. Lived there continuously. Bought another house in 2018, which I intend to live in once it is done up. I am currently in the process of selling the first house, but it is almost approaching 18 months since I bought the second one.

Am I correct to believe:
1. If I do not sell my first house within 18 months of purchasing the second one, I will be liable to CGT on the sale of the first home?

2. As I am still within 2 years of having become the owner of more than one house, can I now nominate my first home as my main residence to protect me against having to pay CGT on it?

It sounds too simple to me, so I would appreciate some sage advice please!
Thank you.
So, my question is, would I
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