Home » Forums

[MSE Martin]

If you were sent a Tax Return by 31 October 2006 31 January is the deadline for sending back your completed 2005-06 Tax Return, otherwise risk being fined £100. Tax Accountant Tony Tesciuba, (who also happens to be my Uncle) has offered to answer your basic tax queries.

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?

You can also call your Tax Office for help if it's during office hours (you can find the number online here) or, during evenings and weekends, call the Inland Revenue Hotline on 0845 9000444 (or +44 161 931 9070 from abroad).

IMPORTANT! What to ask about?

Any basic tax questions about small biz or personal tax. Obviously if it's hugely complex then it can't be done. Also don't put any bank account/overly personal details in your question as it can be read by all.

Before asking your question it's well worth reading the previous answers Tony has given.

Previous Articles: Taxing Times 1, Taxing Times 2, Taxing Times 3


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 7 January. At that point this thread will be closed.

When will I get the answer?

What we'll then do is compile all the questions together into one Q&A article and publish this (as long as there aren't too many questions!) as soon as possible, probably a week or so from the closing date.

TO ASK A QUESTION SIMPLY CLICK REPLY

PLEASE ONLY PUT QUESTIONS NOT COMMENTS IN THIS THREAD

[John Gray]

I understand that it is possible to reclaim from HMRC in your tax return 18% of the donations made to charities under the Gift Aid scheme.

But what are considered as "gifts"? Obviously donations to the Disasters Emergency Committee, but what about:

• Subscriptions to 'Friends' schemes for musical charities?
• 'Friends' annual charges for admission to Westonbirt Arboretum?
• Raffle tickets for Age Concern?

Does it relate to whether you obtain a 'benefit' from the donation, and are there limits to this?

Thanks very much!

John Gray

[oldwiring]

In rough terms the gift must be under Gift Aid and made directly to a registered charity or reconised church or its equilcalent of another religion. That would exclude the items you mention IMO. The Gift Aid scheme does permit a donor to obtain certain limited benefits from donations, but the charity concerned will see that what they offer is within the terms of the refulations, lest they find that their emtitlement to recover tax should be withdrawn dor non compliance with the regs. There for a donor has no control over the benefits he may receive. Admission charges used to be gift aidable but the regs on that have been toughened too.

If you are brave, you nay like to enjoy the HMRC site on the subject

http://www.hmrc.gov.uk/charities/

AS to the 18% question. This applies only to higher rate tax payers, By donating money to charity they will have foregone invome that has been taxed at 40%and the 18% is the difference between the dathdard tax @22% which the chrity receives and the 40%.

[oldwiring]

duplicated post Sorry.

[ozzystu]

Hi Tony

In December 2004 I converted my residential Mortgage to a BTL Mortgage and then took out a new residential Mortgage on my new Home, the idea was that the old house be let, subsequently the house was sold in mid april 2005, never having had a tennant

On My 03-04 Tax return I made a claim for a loss pertaining to Finance fees and Mortgage interest.

Can I claim a loss for the 04-05 tax year for Interest, Estate agents fees, Conveyencing and mortgage redemption penalties , which I can then Carry forward.

I no longer have any rental properties, So I suppose I would have to tick the "no longer a rental business" box, does this mean I can still carry forward the losses, or do I then lose that ability ?

[sleebrook]

Hi & Happy NY I have just bought a 2nd property which I intend to redevelop and rent out. There is also an opportunity to build an additional property in the garden of the existing property. What are my tax obligations if I A: Receive rental income from 2nd Property. B: Sell the land with planning permission. C: Build on the land and sell both houses. I have heard that if I can prove the second house is my primary private residence I don't have to declare it on a Tax Return is this correct ? Thanks in advance.

[Ivrytwr3]

Purchased a house in Jan 06, tenants in Mar 06 for 6 months, empty for 1 month and new tenant still there. The rent the tenant pays does not cover the mortgage (we're hopefully in for the long haul!). The property is owned jointly with my wife and i and is unfurnished. And so a couple of questions:

1. Do we need to fill in self assessment forms? (both, just me, or neither?)

2. When do we need to fill one in?

3. What can we claim for to reduce the tax bill?

4. Is it worth employing someone to complete them for you?

[Dazwilly]

Hi Tony,
Could you tell me what amount of my expenses I can claim.I am self employed and I have bought a vehicle and various other tools/equipment. A friend tells me to only claim 40% of these, is this correct? Surely, I claim the entire amount and if I sell the vehicle then the money is shown as income to the business?
Thanks

[ReformedBiochemist]

Hello Tony,

On December 1st 2006 I started work as a 'consultant' for a small biotech company (3days per week). I will need to handle my own tax payments and I don't know how to go about this. I have actually tried emailing and calling the tax office but they were not helpful and keep referring me to other people. Could you please tell me how I go about arranging this? I don't want to end up with a huge tax bill and/or a fine!

Hope you can help...much appreciated!
Best wishes,
Zoe

[shamrockabc]

Hi

I could be working in tax free Qatar in Feburary 2007. Prior to this, I have only worked in the UK on a self employed basis.

Does this mean that for my next tax return , y/e April 2007, I will only have to declare my UK income earned, from April 2006 to January 2007 ?

The job is a two year renewable contract , and the information I have been given states that I have to be a non resident for the salary to be tax free ie. Have worked there for a complete tax year.

Any additional information that you think I should be aware of would be gratefully received .

Thanks,
Shamrock.

[jessegeller]

Hi, I started a small business in Aug 2006. I logged it all with Inland Rev but didn't get much back - just a letter a month or two later and a booklet. I have no clue about tax at all - basically I need to know if I need to submit something this year or if I work a year and then do it (if that makes sense). Also if I DO have to do it this year I'm not sure what date I tot up my books until. I tried to investigate via the inland revs online tax returns form but I needed a reference number to enter the site and I've never been given one (the letter I received was blank in that area!)

Any advice would be welcomed.

Thank you

[moneygrubber]

Dear Tax Tony

1. I am employed fulltime earning £31K and paying PAYE. I have about £20 monthly in direct debits to various charities - can I claim back tax on these? What if I ticked the box on the direct debit forms allowing the charity to claim it? If I can claim, how far back can I go...the full 8 years?

2. I am employed fulltime earning £31K and paying PAYE. For three years I have studied part-time to be a therapist. For the past year (as a final-year student) I have been treating clients part-time (in addition to my full-time job) and being paid in cash/by cheque. I am now about to complete my training and plan to start self-assessment. I expect to continue earning an extra £50-£100 a week. What I'm hoping is that all this has not been illegal, either because my fees could be considered 'donations' until I was fully qualified, or because I was paying tuition fees exceeding my earnings in my last year, or both? If I'm wrong and I should have started self-assessment a year ago, and owe tax, how is HMRC to know whether I lie about how many treatments I did?

3. Both my husband and I are employed fulltime earning £32K and £39K and paying PAYE. Now that we will both start working part-time in addition as therapists, would it be better for us to form a company or just each self-assess?

Thanks!

[sofia_guy]

Hi!
I've been working in UK as a programmer for the last 2 years for the same employer. Now I’m back home in Bulgaria and I am working remotely for the same employer from UK. When leaving UK, I’ve filled in the P85 to let Inland Revenue know them that I’m leaving country. Taking into consideration the fact that I am not an UK resident anymore, but I still get paid in my UK PayPal and from there to my Barclays UK bank account, do I need to pay any tax on this money in UK? Or do I need to pay income tax here in Bulgaria?
Thank you,
T.

[The Baron]

Hi Tony

I'm 25 and the legal owner of a flat my family inherited from my grandmother when she died. No inheritance tax was paid as her estate was worth less than the threshold. My parents put it in my name for tax reasons because at the time I was still at school and so not earning. It has been let for the whole time we've owned it (since 1992) and I have never lived there.

I'm now getting ready to enter the property market myself and my Mum has said I can sell the flat and use the proceeds towards my own place. However, I'm pretty sure I'm liable for captial gains tax. I've done my sums and reckon I'm liable for CGT on all but the final 36 months, which I think are always exempt.

In the time I've owned the flat its value has increased by about £100k, so I reckon I stand to pay 40% of that, minus whatever the last 36 month exemption saves me, so around £40k. Ouch.

I've looked at the various exemptions and none seem to fit. Although I haven't owned another property at any point, I don't think I can claim it as my 'main and only residence' and get full relief through that. Are there any magic tax-saving exemptions or tricks I've missed?

Yours ever hopefully,
Richard

[gillygell]

I am about to set up on my own ,do I only pass on the vat on the goods that I have been charged by my supplier to my customer or do I charge it on the goods and service which I will be providing.I am not vat registered

[llangefniboy]

My aged mother has named me as the executor of her will. She owns the house in which she and my stepfather resides. She has left the property to her children with the proviso that my stepfather can reside there rent-free for life. When I need to value the property for probate/IHT purposes, is a discount to the unencumbered open market value available because of the life tenant? Is there a rule of thumb on this and would it be best to get a professional valuer to act? The value of my mother's assets is well over the current IHT limit.

Thanks.

[adamfairs]

Hello,

My girlfriend graduated as Vet in 2006 and, like most vets, has a work car. The vet car is stacked full of equipment so is not easily useable for personal use. She needs the car at home to drive directly to calls (especially if they're in the middle of the night). Could you tell me the tax implications of this and whether she needs to complete a tax return? Is this seen as a perk and is there anyway around her being taxed for it?

Cheers,

Adam

[adamfairs]

Hi,

I've recently switched from working in an office to working remotely, full-time, from home. I'm using my own computer at home for this. Can I claim for the depreciation of my computer or the cost of a new computer? Also, can I claim for travel costs for the rare occasions where I have to travel to the office? Am I obliged to complete a tax return?

Cheers,

Adam

[coxwell]

I live in France but have money/investments in the UK. What would the tax liability in the UK be, do I still get a personal allowance?

regards
dc

[colmax]

Hi Tony,
I hope you can help me. I recently purchased a van for work as a window cleaner. I work quite close to where I live so I don't do many miles. Am I obligated to use the 40p per mile rule or can I use all of the expenses that my van incures for work?
Thanks Colin