Can someone point me in the direction of an easy to understand website that explains about working abroad (tax free) for a year over 2 tax years.
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Working abroad
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Tax on savings interest for non-residents
Anyone know if non-ISA savings interest is taxable in the UK for non-residents?
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Ltd - taking a salary up to the NI threshold
I have a Ltd company since April 2019, from reading up I understand I can take a salary up to the NI limit (I have only paid a dividend of £2k so far). So this will be £166 per week for 19/20.
My question is (and it isn't covered in anything I've read so far) what are the practicalities to doing this? Am I able to pay April to date from my business bank account to me in one lump sum and then monthly thereon; with an entry (in what box?) on my 2019/2020 self assessment tax return?
I think that is probably too simple so I would appreciate comments.
My question is (and it isn't covered in anything I've read so far) what are the practicalities to doing this? Am I able to pay April to date from my business bank account to me in one lump sum and then monthly thereon; with an entry (in what box?) on my 2019/2020 self assessment tax return?
I think that is probably too simple so I would appreciate comments.
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Sage software - anything better?
I would like to use a software package to prepare a TB and a bank reconciliation so that I have this ready for the accountant at the end of the accounting period. I have tried Sage (which I find hard to use and I don't need a package with a monthly subscription either as my accounts are simple)
Other than doing the whole thing on Excel, is there anything out there which is easy to use and has a one off fee?
Thank you
Other than doing the whole thing on Excel, is there anything out there which is easy to use and has a one off fee?
Thank you
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CGT - Post Divorce
Hi,
I recently got divorced and as part of the divorce settlement, was 'gifted' the Buy to Let property that was in my wife's name.
I jointly own a house with my fiance which we have sold in order to move to another area. (Close to my Buy to Let).
My question is, would I benefit from moving into the Buy to Let (BtL) and declaring it as my main residence until we find a house we would like to buy? Once we do, I will sell the BtL and settle any CGT I owe.
The points I am concerned about are:
1. Do I qualify for the CGT allowances by living in the property for 6 months?
2. Do I pay CGT if the property was gifted to me at current market price (no rise in the 2 years since my divorce)? (Following the steps on the HM Gov online calculator, I do not have to pay any)
3. If I don't pay, does my ex have to? The value from time of purchase has increased by about £80k? I signed an agreement I would be liable for any tax liabilities on the property post divorce.
Any help would be appreciated.
I recently got divorced and as part of the divorce settlement, was 'gifted' the Buy to Let property that was in my wife's name.
I jointly own a house with my fiance which we have sold in order to move to another area. (Close to my Buy to Let).
My question is, would I benefit from moving into the Buy to Let (BtL) and declaring it as my main residence until we find a house we would like to buy? Once we do, I will sell the BtL and settle any CGT I owe.
The points I am concerned about are:
1. Do I qualify for the CGT allowances by living in the property for 6 months?
2. Do I pay CGT if the property was gifted to me at current market price (no rise in the 2 years since my divorce)? (Following the steps on the HM Gov online calculator, I do not have to pay any)
3. If I don't pay, does my ex have to? The value from time of purchase has increased by about £80k? I signed an agreement I would be liable for any tax liabilities on the property post divorce.
Any help would be appreciated.
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Interest on savings
In June this year my OH drew down £11250 from his SIPP, this being £12500 less marriage allowance of £1250, he has no other income. Tax was deducted and he started the process of claiming this back. He went online to check his tax code as he hasn't received anything as yet and noticed his coding was adjusted by £370 for interest on savings. He hadn't taken this into consideration as it was below the personal savings allowance of £1000. After an exchange on the on line chat on HMRC he was told he had to have income of over £12500 for this allowance "to kick in". Am I misunderstanding how this works?
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Does P11D value take people over the tax threshold?
The P11D value I understand is a cash equivalent amount of the benefits listed. Say its £5k for a company car, which is taxed at 20% for a basic rate taxpayer.
If I earn £48k salary, my head says total remuneration is £53k so higher rate tax would be due on £3k.
How is this done in practise? The tax code would be reduced to 7.5k but would that be enough to make some of the £4K gross monthly salary knock into higher rate tax?
Im trying to work out exactly when I would notice Im paying higher rate tax because I could then avoid it by pension contributions.
If I earn £48k salary, my head says total remuneration is £53k so higher rate tax would be due on £3k.
How is this done in practise? The tax code would be reduced to 7.5k but would that be enough to make some of the £4K gross monthly salary knock into higher rate tax?
Im trying to work out exactly when I would notice Im paying higher rate tax because I could then avoid it by pension contributions.
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Class 2 NI Contributions
On another forum a contributor wrote the following about paying NI in order to get another year of contributions towards the state pension:
"Say your friend is a seller on eBay or a dog walker.
If she turns over £100 a year and does a tax return, as long as the amount earned is under £1,000 per year there is no tax to be paid. She can pay a years class 2 NI which costs around £150 a year. As long as that avenue is available, that is the one she should take"
Can anyone confirm this is correct because in the information I have read on line profits need to exceed approximately £6,500 to pay Class 2 NI?
My wife is not in work through ill health, but she does make money from eBay, so I wonder if this is an avenue she could use to make NI contributions.
"Say your friend is a seller on eBay or a dog walker.
If she turns over £100 a year and does a tax return, as long as the amount earned is under £1,000 per year there is no tax to be paid. She can pay a years class 2 NI which costs around £150 a year. As long as that avenue is available, that is the one she should take"
Can anyone confirm this is correct because in the information I have read on line profits need to exceed approximately £6,500 to pay Class 2 NI?
My wife is not in work through ill health, but she does make money from eBay, so I wonder if this is an avenue she could use to make NI contributions.
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Certificate of Lawfulness and Council Tax?
Hi All,
Hope all is well. I have been wondering if anyone could help and give me some advice please?
Basically, our Victorian terraced home was converted into two self-contained flats by its previous owner many years ago, each flat has its own separate council tax/water/gas/electric bill etc. Everything is freehold on one title. It has a ground floor flat, then all upper floors is another flat by itself.
We have recently decided to combine the two flats into single dwelling house, for our whole family to live in. The reason is to make 2 council tax bills into just 1 council tax bill, to save our costs.
Our council told us that we need to apply for planning for this, so we did. We applied for Certificate of Lawfulness (Proposed) and its been granted now. It means this change does not require requiring planning permission.
Now, we are kind of confused as to what needs happening next. Obviously, there would be some building works to be involved, for example: -
- Removing the doors of the two flats internally
- Removing the extra kitchen, as we only wish to keep one
- Changing all water / electric / gas supply, from two supplies into one supply
Question, do we have to carry out all building works first before we could apply for changing 2 council tax bills into 1 council tax bill please?
Also, does anyone know if we still need any building regulations certificate/checks at any stage from now on please? After getting the Certificate of Lawfulness (Proposed) I mean.
I would be really grateful.
Many thanks,
GP
Hope all is well. I have been wondering if anyone could help and give me some advice please?
Basically, our Victorian terraced home was converted into two self-contained flats by its previous owner many years ago, each flat has its own separate council tax/water/gas/electric bill etc. Everything is freehold on one title. It has a ground floor flat, then all upper floors is another flat by itself.
We have recently decided to combine the two flats into single dwelling house, for our whole family to live in. The reason is to make 2 council tax bills into just 1 council tax bill, to save our costs.
Our council told us that we need to apply for planning for this, so we did. We applied for Certificate of Lawfulness (Proposed) and its been granted now. It means this change does not require requiring planning permission.
Now, we are kind of confused as to what needs happening next. Obviously, there would be some building works to be involved, for example: -
- Removing the doors of the two flats internally
- Removing the extra kitchen, as we only wish to keep one
- Changing all water / electric / gas supply, from two supplies into one supply
Question, do we have to carry out all building works first before we could apply for changing 2 council tax bills into 1 council tax bill please?
Also, does anyone know if we still need any building regulations certificate/checks at any stage from now on please? After getting the Certificate of Lawfulness (Proposed) I mean.
I would be really grateful.
Many thanks,
GP
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Tax whilst working abroad on secondment
Hello,
Any one know where I stand in relation to tax on my income whilst working abroad on a secondment?
I receive £30 a day for eating expenses paid directly into my wages and £20 overnight compensation allowance also paid directly into my wages. Should I be paying tax on this?
Any one know where I stand in relation to tax on my income whilst working abroad on a secondment?
I receive £30 a day for eating expenses paid directly into my wages and £20 overnight compensation allowance also paid directly into my wages. Should I be paying tax on this?
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Minimising Tax on Savings Interest
I'm trying to work out the optimum way of financing my pre-state pension retirement and am trying to understand savings interest tax.
What tax would be payable in the following two scenarios:
Scenario 1
Scenario 2
What tax would be payable in the following two scenarios:
Scenario 1
- No income
- £20,000 interest from savings
Scenario 2
- £16,666 UFPLS from pension (£12,500 + £4,166)
- £20,000 interest from savings
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Reclaiming interest on Furnished Holiday Let
Good morning,
We are considering buying a lodge on a holiday park as a furnished holiday let.
I understand that a furnished holiday let is classed as a business ans we can deduct all of our expenses from our rental income before we are assessed for tax. Does anyone know if this includes the interest that we would be paying on the lodge itself?
Thanks in advance.
Kind regards,
Mike
We are considering buying a lodge on a holiday park as a furnished holiday let.
I understand that a furnished holiday let is classed as a business ans we can deduct all of our expenses from our rental income before we are assessed for tax. Does anyone know if this includes the interest that we would be paying on the lodge itself?
Thanks in advance.
Kind regards,
Mike
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Help working out CGT
Hope you don't mind but I'm stuck working this out. I've used the .gov calculator but I get stuck with the residential relief and letting relief.
Bought jointly with ex Sep 1994 £85.500
No idea of buying costs it was a new build and we did use solicitors
Improvements extension £30000
Bathroom/wet room £15000
Sold 05.09.19 £360000
Estate agent fees and solicitor cost £5500
Lived in together Sep 94 to April 16
Husband lived there until Aug 17 when he died and I inherited the whole property no will
Property rented out Oct 17 to Apr 19 then empty until sold. I paid tax on rent as per usual.
I feel stupid I cannot do it I've done my tex returns no problem the last 3 years due to rental income so I assume this will be a calculation on the online return for this tax year 19/20 so will need to be paid after April 20?
Many thanks for your help
Bought jointly with ex Sep 1994 £85.500
No idea of buying costs it was a new build and we did use solicitors
Improvements extension £30000
Bathroom/wet room £15000
Sold 05.09.19 £360000
Estate agent fees and solicitor cost £5500
Lived in together Sep 94 to April 16
Husband lived there until Aug 17 when he died and I inherited the whole property no will
Property rented out Oct 17 to Apr 19 then empty until sold. I paid tax on rent as per usual.
I feel stupid I cannot do it I've done my tex returns no problem the last 3 years due to rental income so I assume this will be a calculation on the online return for this tax year 19/20 so will need to be paid after April 20?
Many thanks for your help
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CGT - On a Gifted Buy to Let
Hi,
I recently got divorced and as part of the divorce settlement, was 'gifted' the Buy to Let property that was in my wife's name.
I jointly own a house with my fiance which we have sold in order to move to another area. (Close to my Buy to Let).
My question is, would I benefit from moving into the Buy to Let (BtL) and declaring it as my main residence until we find a house we would like to buy? Once we do, I will sell the BtL and settle any CGT I owe.
The points I am concerned about are:
1. Do I qualify for the CGT allowances by living in the property for 6 months?
2. Do I pay CGT if the property was gifted to me at current market price (no rise in the 2 years since my divorce)? (Following the steps on the HM Gov online calculator, I do not have to pay any)
3. If I don't pay, does my ex have to? The value from time of purchase has increased by about £80k? I signed an agreement I would be liable for any tax liabilities on the property post divorce.
Any help would be appreciated.
I recently got divorced and as part of the divorce settlement, was 'gifted' the Buy to Let property that was in my wife's name.
I jointly own a house with my fiance which we have sold in order to move to another area. (Close to my Buy to Let).
My question is, would I benefit from moving into the Buy to Let (BtL) and declaring it as my main residence until we find a house we would like to buy? Once we do, I will sell the BtL and settle any CGT I owe.
The points I am concerned about are:
1. Do I qualify for the CGT allowances by living in the property for 6 months?
2. Do I pay CGT if the property was gifted to me at current market price (no rise in the 2 years since my divorce)? (Following the steps on the HM Gov online calculator, I do not have to pay any)
3. If I don't pay, does my ex have to? The value from time of purchase has increased by about £80k? I signed an agreement I would be liable for any tax liabilities on the property post divorce.
Any help would be appreciated.
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Corbyn proposals
As your may be aware, Labour are proposing a 50% top income tax rate on income over £123k.
Fortunately I am expecting a large commission payment over the coming months which would take me very substantially over that figure - I am currently marginally over it.
If Labour were to win a general election in November and immediately introduce a new budget, is there any precedent in when such tax changes take place? Would it be immediately or (say) come into effect from April?
I.e. Will I have any time to do any juggling? (Bringing the commission payment forward, paying it into my pension etc)
Fortunately I am expecting a large commission payment over the coming months which would take me very substantially over that figure - I am currently marginally over it.
If Labour were to win a general election in November and immediately introduce a new budget, is there any precedent in when such tax changes take place? Would it be immediately or (say) come into effect from April?
I.e. Will I have any time to do any juggling? (Bringing the commission payment forward, paying it into my pension etc)
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paying 40% tax - additional pension contributions?
I have been thinking about cutting my tax payments for years and have never done it. Hopefully, I will sort it out this time.
I am a 40% tax payer working full time. I would like to cut the tax to the bare minimum, what is the best way of achieving this?
I have been reading around and it seems like increasing pension contributions seems to be the simplest one.
My understanding is that if I contribute any taxable income over 46,350 towards the pension scheme then my tax will get down to 20%. Is my understanding correct?
I do contribute toward into a workplace pension scheme.Should I increase the monthly contributions going into it?or do I need to open a SIPP and make additional contributions myself?
Which options is the simplest in terms of claiming back the tax amount?
I am a 40% tax payer working full time. I would like to cut the tax to the bare minimum, what is the best way of achieving this?
I have been reading around and it seems like increasing pension contributions seems to be the simplest one.
My understanding is that if I contribute any taxable income over 46,350 towards the pension scheme then my tax will get down to 20%. Is my understanding correct?
I do contribute toward into a workplace pension scheme.Should I increase the monthly contributions going into it?or do I need to open a SIPP and make additional contributions myself?
Which options is the simplest in terms of claiming back the tax amount?
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New job Tax bracket to choose
OK I have a possible job offer but did not know the wage to choose.
Wage offered is between 37-42 pa so which one do I choose, if I go above 40 000 then I pay huge amount of tax don't i
Thanks for advice.
Wage offered is between 37-42 pa so which one do I choose, if I go above 40 000 then I pay huge amount of tax don't i
Thanks for advice.
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Capital Gains Tax Advice Needed
Please could someone clarify something for me?
I purchased my first home in January 2003 with my ex partner. We split up and I bought his share in May 2006.
The original purchase price was £22,500.
The property was valued in May 2006 at £60,000, we reached a settlement and I took out a new mortgage in my sole name.
The property has been rented out since May 2006, the tenants are moving out next week and I would like to sell. The current value will be around £65,000-£70,000.
Will any CGT be payable on the original price of £22,500 or the settlement valuation of £60,000.
Thanks in advance
I purchased my first home in January 2003 with my ex partner. We split up and I bought his share in May 2006.
The original purchase price was £22,500.
The property was valued in May 2006 at £60,000, we reached a settlement and I took out a new mortgage in my sole name.
The property has been rented out since May 2006, the tenants are moving out next week and I would like to sell. The current value will be around £65,000-£70,000.
Will any CGT be payable on the original price of £22,500 or the settlement valuation of £60,000.
Thanks in advance
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Payments from surplus income - inheritance tax
Hi
Not sure if correct forum
My dad is in his 80's, we lost mum earlier this year and he is now on his own. No debts and assets totalling around 900K so getting v close to income tax threshold
His regular income from pensions is around 3K per month. His fixed outgoings are 600 a month and he spend maybe another 400 on living expenses.
This means he is accruing around 2K a month in 'surplus income'
He is concerned with inheritance tax and wants to make sure me and my siblings and his grandchildren get maximum benefit from his estate. We all of course don't want to do anything wrong or illegal.
Looking at 'gifts' and exemptions the lump sum type stuff is quote clear (upto 3K per annum)
There is however the option for him to make regular payments to contribute to e.g. savings accounts for his grandchildren.
Our thinking was to set up ongoing standing orders from his current account paying into the grand-childrens savings accounts (these are various JSIPPs / JISAs).
Is there any guidance or rules of thumb on what would be considered an acceptable payment vs a gift.
e.g. he has in total 11 grandchildren - if he was to put £100 each into their savings accounts (so total £1100 per month) would this be OK?
Thanks
Not sure if correct forum
My dad is in his 80's, we lost mum earlier this year and he is now on his own. No debts and assets totalling around 900K so getting v close to income tax threshold
His regular income from pensions is around 3K per month. His fixed outgoings are 600 a month and he spend maybe another 400 on living expenses.
This means he is accruing around 2K a month in 'surplus income'
He is concerned with inheritance tax and wants to make sure me and my siblings and his grandchildren get maximum benefit from his estate. We all of course don't want to do anything wrong or illegal.
Looking at 'gifts' and exemptions the lump sum type stuff is quote clear (upto 3K per annum)
There is however the option for him to make regular payments to contribute to e.g. savings accounts for his grandchildren.
Our thinking was to set up ongoing standing orders from his current account paying into the grand-childrens savings accounts (these are various JSIPPs / JISAs).
Is there any guidance or rules of thumb on what would be considered an acceptable payment vs a gift.
e.g. he has in total 11 grandchildren - if he was to put £100 each into their savings accounts (so total £1100 per month) would this be OK?
Thanks
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Self Assessment Nightmare - big fines
Hi There
Im hoping someone can advise please on a scenario thats unfolding into a bit of a nightmare regarding self assessment.
Ive relocated to England recently following four years of living in Scotland. I informed HMRC of my address change so that my tax code can be updated accordingly. Yesterday I received a late filing fine for £100 stating that I hadnt completed my self assessment for y/e April 2017. This was news to me as I wasnt aware that I needed to complete self assessment returns. Having googled the subject it transpires that because my wife claims child benefit and, from 2014 I earned in excess of £50k I should have completing self assessments from this period.
Having spoken to HMRC this morning Ive been informed that I need complete backdated self assessments going back 2014 and that Ive accrued several thousand pounds worth of late filing fines. Sure enough, the post today includes two further fines for £1500 each for 2016 and 2017 for late filing, I think there will be more to follow.
Im obviously highly stressed by this, I wasnt earning the amount to complete a self assessment at the time the rule came in regarding child benefit and a 50k salary, so wasnt aware of the requirement. HMRC didnt notify at all whilst I lived in Scotland that I was in breach of any self assessment rules. Ive been salaried PAYE employee since 2014, surely they should have been aware of my situation and communicating the issue to me?
It feels a real kick in the guts and Im wondering how to proceed. My wife cancelled child benefit immediately, I registered for self assessment yesterday and am awaiting a verification code in the post. Ill complete the backdated assessments, should I pay the fines as I receive them first and then appeal them individually? Also, as well as the fines Ill presumably have backdated taxes for the period whilst I was Scotland when my wife was still claiming child benefit?
Im not sure whether I should engage some professional advice as it feels as though its going to choppy, stressful waters ahead?
Any advice would be greatly appreciated.
Thanks in advance
Im hoping someone can advise please on a scenario thats unfolding into a bit of a nightmare regarding self assessment.
Ive relocated to England recently following four years of living in Scotland. I informed HMRC of my address change so that my tax code can be updated accordingly. Yesterday I received a late filing fine for £100 stating that I hadnt completed my self assessment for y/e April 2017. This was news to me as I wasnt aware that I needed to complete self assessment returns. Having googled the subject it transpires that because my wife claims child benefit and, from 2014 I earned in excess of £50k I should have completing self assessments from this period.
Having spoken to HMRC this morning Ive been informed that I need complete backdated self assessments going back 2014 and that Ive accrued several thousand pounds worth of late filing fines. Sure enough, the post today includes two further fines for £1500 each for 2016 and 2017 for late filing, I think there will be more to follow.
Im obviously highly stressed by this, I wasnt earning the amount to complete a self assessment at the time the rule came in regarding child benefit and a 50k salary, so wasnt aware of the requirement. HMRC didnt notify at all whilst I lived in Scotland that I was in breach of any self assessment rules. Ive been salaried PAYE employee since 2014, surely they should have been aware of my situation and communicating the issue to me?
It feels a real kick in the guts and Im wondering how to proceed. My wife cancelled child benefit immediately, I registered for self assessment yesterday and am awaiting a verification code in the post. Ill complete the backdated assessments, should I pay the fines as I receive them first and then appeal them individually? Also, as well as the fines Ill presumably have backdated taxes for the period whilst I was Scotland when my wife was still claiming child benefit?
Im not sure whether I should engage some professional advice as it feels as though its going to choppy, stressful waters ahead?
Any advice would be greatly appreciated.
Thanks in advance
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