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£1000 trading allowance query
I sometimes sell the results of my hobby to fund more materials for the hobby. I keep reading online that if I sell the things I make I have to register as a business if gross income goes over £1000. Does this include postage? Most of what I make gets sent abroad, especially the US and the postage rates are ridiculously…
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School Fees payments & IHT
I was looking for a clarification about grandparents paying school fees. Specifically I wanted to check that this does not count as a gift that would create an IHT liability. My best guess is \NO as it doesn't go directly to the child and if it affected IHT there would be some humungous estate tax bills out there !
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Selling a share at undervalue
Due to a lack of funds if my mother was to buy back my share of house at undervalue, say 50k less than market value will this cause any tax issues? What do we need to be concerned about if doing this
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Update taxable income
For several years I have earned more in overtime, however moving departments and will stop earning overtime very soon. I noticed my tax code change and my predicted earnings are more than what I will earn. Should I change this and what affect will this have on my tax code etc?
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Self assessment penalty
I received a £45 fine notification for missing the payment deadline for tax year 2020. As a PAYE earner it’s all a bit new and confusing for me. I originally thought they changed my tax code recently the past couple of months to reflect this, however realised last month and setup a payment plan early March. This is shown…
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Coronavirus and mileage expenses
Hi, So i was working at a temporary workplace site and claiming travel expenses, since the pandemic i have been working at home and only going to site to collect paperwork and bringing back to do my work at home. My questions are; 1. If i have been working at home is this now classed as a new temporary workplace? 2. If so…
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Marriage tax allowance and other 50k cliff edges
I realise this is a nice problem to have but I wasn't aware of quite how quickly things shift as soon as your taxable income for the year gets to the 50k mark. High-income child benefit charge, ineligibility for the married tax allowance, plus the more obvious bits like income tax at 40% (obviously somewhat tempered by NI…
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Money not yet spent tax return.
Hello, I am currently self employed and in the most basic terms buying and selling products to make a profit. The extra I make on each item I sell is what I keep. Then I use the rest of the money to buy other things to sell. Once I make a sale, there is a time where I have money in my business bank account that just hasn't…
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Taxed on a one off bonus payment
Hi all, looking for a bit of advice on the following: My partner only works part time, 2 days a week and only earns around £8000 a year, well below this years £12570 tax allowance. She received a one off bonus payment in her pay this month (April 2021) i.e. the first month of the new tax year. This has resulted in her…
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Can I reduce my IHT bill by doing this?
Would this work as a way to save IHT? Situation.. * House valued at £1,000,000 * No mortgage Solution to cut IHT... * I find a way re-mortgage the house (assume that I can satisfy the lenders conditions to pay back the mortgage) and take out say £500,000. * I withdraw the £500,000 in cash from the bank gradually (assume…
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Gross or net figure on Tax Return for Personal Pension Contributions
Should I include my net or gross Personal Pension contributions on my Tax Return?
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New tax code notification
I received a letter at home a couple of weeks ago with my new tax code as I worked at home quite a bit in 2020/21 tax year. The letter stated my employer would be notified of my new tax code but so far they have not received anything from HMRC. Does anyone know how long it takes HMRC to send the new code to my employer or…
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Claiming working from home expense twice
Hi everyone, I claimed my £312 work from home expense via here last month for the year 2020/21 via the 'microservice': https://www.gov.uk/tax-relief-for-employees/working-at-home because I worked for an employer who paid my taxes for several months in the last tax year through a payroll. I am also registered as…
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12% NI automatically deducted from protective award payment
I am due to receive this payment shortly. Ex colleagues who have already received theirs have confirmed that 12% NI is automatically deducted before the payment is made. I understand NI is payable, but due to my regular salary levels I am above the 12% threshold and only pay 2% NI on incremental income. Does this mean I…
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question about self assessment
Hi I am a new solo trader and I'd be thankful if you can help me understand what is the correct way of doing self assessment as a sole trader using traditional accounting (not cash basis) in the following scenario. In March 2021 (previous tax year), I invoiced a client 10k for a project that is going to be completed this…
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Most Tax Efficient Way to Extract Funds
I will speak to my accountant at the end of our tax year but just wanted to have a rough idea of the best route to tax efficient payment from my LTD company. I have two roles. One FT PAYE job and a side line business that has done very well over the past 12 months. PAYE: £75k basic £6k car allowance £7.5k bonus Pension…
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Paying earnings into wife's account
I have recently started doing self employed work on top of a normal 37 hour employed contract. I have registered for self assessment. My wife is also self employed only under her own name/company but is unlikely to earn anywhere near the £12,570 before she has to pay any tax. My question is, When I request a payment from a…
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Accounting for fixed savings interest in self-assessment
Hello, My in-laws have a property which they have rented out for about 3 years and, as such, have been completing a self-assessment. Unfortunately my father in-law has dementia and this year has completely forgotten to do it so has been fined. We've paid the fine but are now trying to help him with it - the property part…
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Gift and transfer amongst children
We are all based in the UK and looking to buy a flat for
our three children by raising the mortgage on our house. Currently only our
eldest child is above 18, so we would buy the property in her name to start
with and we would have a family agreement to establish the following: - We would receive the net rental income…
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Accountant fee for tax return
Not sure if this is the right place for this question but....... What is the going rate for an accountant to complete and submit a tax return? My partner and I don't have a complicated tax situation apart from having 3 three rental properties. For both our tax returns we are charged around £900 by our accountant to prepare…
