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[MSE Martin]

We're just a month away from the end of the tax year.


Tax Accountant Tony Tesciuba, (who also happens to be my Uncle) has offered to answer your basic tax queries in the Chat Forum over the next few days.

Why's he doing this?

First because I asked him to, and he's a site user, and second because I promised if he does I'd put a link to his site www.tesciuba.com in here!

Where else to get help?

Answers to many tax questions can also be found on the Inland Revenue website.

IMPORTANT! What to ask about?

The first thing to do, if you have a question, is check it's not been answered before. The answers to previous questions are already compiled in the Taxing Times and Taxing Times 2 article. Please do read those first as many questions have already been answered there. If not then ask it here.

Ask any basic tax questions about small biz or personal tax. Obviously if it's hugely complex and specific then it can't be done. Also don't put any bank account/overly personal details in your question as this forum is public and will be read by many people.

As general guidance questions should be no more than a paragraph long

How long will Tony be doing this for?

All questions should be asked by the end of play on Sunday night. At that point this thread will be closed.

When will I get the answer?

What we'll then do is add all the new questions, with answers, to the Q&A article as soon as possible (as long as there aren't too many questions!) after the closing date.

TO ASK A QUESTION SIMPLY CLICK REPLY.

PLEASE ONLY PUT QUESTIONS NOT COMMENTS IN THIS THREAD

[Lendusapund]

Hi
Ive heard that builders can claim back tax/get relief on their travel to & from work. Can anyone else (employed and using own car to work & back) get assistance? Ive a 80 mile round trip per day.
Thanks
RichT

[MrsTine]

If a business was started over 2 years ago but only traded or the first 6 months (a matter of a couple hundred pounds) but is registered with Companies House, but haven't told the Inland revenue, how should we go about trying to make it legal or is the easiest going to be closing it down?

[gtheak]

Hi, I wonder if you would be able to help.
I live in a flat which was bought for me in my parents' name 5 years ago for £42000. my parents now wish to transfer it over to me, but as property generally has increased in value since and none of us can afford to pay cgt on that increase, I wondered if there was a way that its value could be "declared" between us to the revenue at a level which limits the cgt bill; the flat has been underpinned, is uninsureable as it is sliding down the hill, and thus unmortgageable. the flat upstairs completely failed to sell when they tried a year or so ago.
Similar properties (without these faults) sell for almost £100,000 here now.
I am afraid to do any improvements to the flat which would increase any capital gains tax bill!
Surely its value would not be "market value"? Would the revenue accept a professional valuation taking the faults into account, or is there another way to accurately declare its value?
many thanks

[robospike]

A friend has started working for his self while employed. He has asked me to help him out with the "paper stuff" to get him started.

He has only done a few jobs (Labour) raising around £300, and has had to buy in "services" such as web hosting etc. He has also bought and sold around 60 items with a small profit, (Very small 50p here, and £2 there) to enable the labour side of the work to take place.

He has been working on this for nearly a year and is aware that he should have spoken to the Revenue to declare himself self employed. This hasn't been done as yet and he's aware that he will have a £100 fine. (Can the £100 be a business expense next year?)

The self employed stuff is just about breaking even, maybe a small profit.

As he works full time too what requirements is there RE: Tax, NI etc, are there any others?

I have given him the CWF1, is it just a case of sending this off?

Many Thanks in advance for any pointers, he is stuck, and I am doing what I can!

[purnell929]

Hi

As a director of a small limited company (incorporated March 2001) I'd like some advice on reducing our Corporation Tax bill.

Last financial year we paid a bill of £27k to the Revenue, with only a couple of weeks left on this financial year our estimated bill is £60k.

We've always purchased as much new machinery as we can afford.

What other ways do we have to reduce our Corporation Tax liability?

Best regards
purnell929

[Dora the Explorer]

I'm over retirement age but still working for few hours a month as an independant consultant. I pay tax on my earnings by way of completing my self assessment each year.
Recently I opened a cahoot savings account with a deposit of several thousands and the interest is paid net of tax each month. I would rather have all the interest earning further interest and pay tax on it through my self assessment at the end of the tax year.
I would be grateful if you could advise me what I can do to prevent cahoot paying my interest net of tax, and start paying it gross?

[ltlmiles5]

I'm thinking of hosting some French students in my spare room during the Easter and summer holidays. I have been told that any income I get will be mine to keep, tax free as the government is trying to encourage more families to open their homes to tourists as there is insufficient housing.

Is this true?

Will the same apply to those who are currently receiving some kind of state benefit, eg working families tax credit?

Thank you very much in advance.

[mumtoE]

Hi. I have recently moved in to my partners house. He owns the house I have moved into and I own a flat which I am now renting. My rental income is about £80 less than my mortgage payment (redemption mortgate). Am I liable to tax as I'm not even covering my mortgage? I have a young baby now so strictly speaking I guess my principal place of residence is at my partners house.
Thanks for any advice!
C

[handyandy105]

Hi, I have been self employed for 18yrs i'm not VAT registered. I'm a carpenter with an old van that has just been written off by the local bus!! The insurance has just offered me £1200 settlement and I wondered what your thoughts are on buying a NEW van can I get tax relief on a brand new van or would it be better to go for a second hand van either way I need some form of either business or personal loan to buy one. Thanks in anticipation A

[nickh28]

Hi, I work in the Engineering Construction Industry. I used to be based on site (all over the UK- permanent employer, no permanent place of work), but now I'm based in the office (permanent on both counts). I used to claim tax relief on my mileage as expenses at the recommended rates, and the remainder I used to claim as expenses deductions on tax credits (according to them this is lawful to do). My question is, since I was permanently based in the office, and I lost any allowance I was claiming, can I claim for tax relief and/or expenses deductions for expenses I incur now as I don't live near work?

Thanks in advance,

Nick

[dbhayes]

I am a high rate tax payer, exclusively PAYE and have not been required to complete a self-assessment.

I changed employer mid-way through the tax year (Sep-05), during which time an underpayment has arisen in respect of (an extremely expensive) employer's medical insurance benefit (BUPA, AXA etc...).

As a result, the underpayment is based on a full-year's premium whereas I would be deamed to have left the scheme on termination of employment.

In the first instance could / should the benefit be applied on a pro-rata basis hence reducing the magnitude of underpayment? At present my 06-07 tax coding has been adjusted to reclaim 40% of the full amount.

Secondly, whilst I am not subject to any medical benefits in my current employment, subsequent coding notices (i.e. 06-07 & 07-08) have rolled over this benefit, assuming it is still being paid.

I contacted the tax officer but the IR believe everything to be correct at present and thus will not make any adjustment in my favour pending receipt of subsequent P11D's. As a high rate tax payer, I really don't want to lose any of my allowance uneccessarily. Is there any way of forcing the issue or do I have to just wait it out on the off-chance that it'll all sort itself out eventually?

[lynnechapman]

Hi
Up until January 19th I was employed for 3 days a week but due to deterioration in my mum's health I decided to resign to spend more time with her. I do some self-employed work as well and pay tax in January and July. Would the fact that I have left employment during the tax year mean that I might be eligible for some rebate on the tax paid on that employment?
Thanks
Lynne

[webwiz]

I do quite a lot of share dealing. I know I have not exceeded my capital gains allowance but my level of dealing is such that I am supposed to report it all. This is a pointless chore. If I don't report it and the IR find out, is there any penalty, given that no tax was payable anyway?

[mr_fishbulb]

Hi Tony,

I have been put forward for a new contracting job. The job needs to pay through a limited company and the pay rate is £200/day.

As I have never worked like this before, plase can you explain how being paid like this works and how I will be able to convert £200/day into a PAYE salary I can use to compare this job to others.

Cheers.

[moneysavingrocks]

Hi Tony,

Last year my wife and I bought a small property in India. The total cost came to £50,000, and we used our savings to buy it outright. We didn't inform the IR in the UK, as we had paid the relevant stamp duty/charges there.

The flat is about to be rented out and will generate an income of about £300pcm. We have set ourselves up as tax payers in India but do we also need to let the UK Inland Revenue know? If so, how?

Thanks!!

[bryancole]

I've been self employed for over 3 years.

9 months in 2005/06 have been self employed. Only tax paid has been through several large CIS vounchers at 18%.

For last 3 months of year have now gone PAYE. Because of salary have been paying 40% tax. I have already done some figures and beleive what I will have paid in CIS vouchers and PAYE tax will be too much. Approx. £5k. when taking into account running business costs etc.

How soon can I fill in my self assesment and get the money back?

Bryan

[lindaot]

Hi I have 2 questions:

1. I'm from venezuela and I am a work permit dependat, I started to work for the first time here in england last september as a contractor (under a umbrella company), I am ellegible for a tax return? am I paying too much tax? - I earn 17.5 per hour - but I only work this taxable year from sept - march

2. my husband and I bought a house last august - with a 95% mortgage - should we get any tax relief for this?

sorry is this questions are very stupid... but I'm not from this country and it is very different from mine and also it is not quite easy to understand all the procedures and legal matters

thanks very much in advance

Linda Otero

[Worzel]

Hi,

My question regards CGT - Unfortunately I have a accumulated a lot of losses this year and wonder if its possible to carry forward those losses to next year in the hope that and gains next year can be set off against them.

Hope you can adivse, thanks.

worzel

[out_to_lunch]

My wife has a limited company incorporated last March.
It's earned about £150 since then, (fortunately she has clients on the horizon
for this year
She has just received a payment slip from the tax authorities for tax year to
April 2006.
I don't think that she has filed a tax return for the business as it essentially earned
nothing, AND she understood the tax year relevant to business ended in December.

I gather though from the existance of this forum and the (payment slip) that she should
have filed a return stating her operating loss for the year ending April 2006 already.

What should she be doing at this point to ensure she get's her loss recognised and satisfy
the taxation rules ??

Many Thanks...