Taxing Times

DaveBUK_2

Hello Tony

I bought my old home with a £50K mortage. Recently I moved in to my current house with my now wife and 2 children, but rent out my old home. We took out a loan from my wife's parents of £40k @ 3% interest to buy our new home. Can i claim tax relief on the interest payments of the £40k loan aswell as the £50K mortgage ?

Regards

Dave

quietly

Hi Tony,

First I would like to thank you for your helpful website. I have learned a lot from your factsheets and the bulletins you send me are great. I want to take over the bookkeeping from my husband's ex, so I need to learn it all!

My question is that my husband received his self assessment with a huge amount owing (he owns a limited company & pays himself a salary PAYE),however 1/3 of the amount they want paid is for 2005/6. Does this have to be paid before 31 January as well...and how can we avoid it in the future?

Thanks again for your assistance...and kindness in sharing your knowledge!

Smiles,
quietly

selector_2

My first property I purchased was a buy to let flat while I carried on living at home with my parents. I have now purchased another property in addition which I now live in. Should I decide to sell my original flat will I be subjected to CGT on the whole profit made?

I have heard that there are tax savings to be made if I live in the property for a certain amount of time - is this true?

Thanks.

equinox_2

I am trying to help a friend deal with his tax affairs - he has been off work ill for a long period and claiming an insurance (income replacement) benefit. They have some savings which disqualify them from income support and council tax relief. His wife works earning a low income and claims/receives working tax credits. They have two young children. His insurance benefit is not taxable itself but the question is, will it affect their working tax credits (as "other" income). If it does it would seem unfair because the aim of the working tax credit is to help incentivise people on low incomes, not penalise those who have taken out insurance. Can you clarify the situation here please? Many thanks.

davea_3

By owning 2 properties and selling one of them, I believe would attract capital gains liability on the sale. As a married couple with one property in the husbands name and one in joint names should the property in joint name be changed to the wifes name. Will this remove the liability for capital gains if one property is sold and is there any time frame required to do this before selling?

snapyou

I had a terrible pc crash a while back and lost most of my self employed business records such as invoices and expense records.Any advice?
My turnover is likely to be under £15,000.
Also,my accounting year is 10/10-09/10 so should i be filing 10/10/03-9/10/04 for this year's return?
Many thanks!

drdamski

I have a full time PAYE job but have also started to do self-employed work part-time. Do I already pay enough NI Contributions through my PAYE, or should I pay contributions on self-employed earnings aswell? Currently my self-employed earnings are at the sub-£1,000 level - but this could (hopefully) increase in time. Thanks.

zane_2

Hi Tony, I sold my house in January 2005 and bought another more expensive one and took out a mortgage. I retained the large garden of my old house and have now had planning permission to build a dwelling. My question is, will I be liable for capital gains tax if I sell the plot and if so, is there any way I can reduce it or even avoid it? Many thanks for your advice.

John_Pierpoint

Hi Tony,
This is a questing about income from an estate in probate.
My sister and I as executors and entitled to half each of the residue spend a year sorting out our mothers estate. Thrills and spills along the way but we got there by our selves and when we got the grant of probate, we collected in all the money INCLUDING DIVIDENDS AND FIXED INTEREST CHEQUES THAT HAD ARRIVED DURING THE YEAR AND BEEN PAID INTO MUM'S HSBC ACCOUNT (we had told them she had died)
then we paid out half each. Even now we won't be higher rate tax payers.

WHAT DO WE PUT ON OUR TAX RETURNS AND HOW DO WE PROVE IT IF ASKED.

cheers Johnl

Mary_Hartnell

Dear "uncle",
As can be gleaned from other postings I have made, I am pushing towards state retirement age, already draw a company pension (which soaks up my PAYE personal allowances) , have a "services" business as a self employed sole trader making a lot less than 15K, collect modest income from savings and share investments and have received a few hundred pounds, less PAYE at 22 percent, as a director's fee of a company.

I've almost finished my 04/05 tax return and entered the few hundred of "fee" I get from the company and the on-line system is asking me:
(1) Am I a director ?
(2) Is it a close company ?

The answer to both questions seems to be yes.

(The company is really a money box for a relative who inherited a chunk of money. This relative lives and works in a politically unstable continent in a country that could come apart even with Geldorf's help!
If and when it does, my relative will have nothing but mortgages and debts over there and a share certificate in a private company that may or may not decide to pay future dividends.) The fee comes as some compensation for keeping an eye on things back here in UK and doing various "goffer" jobs.

What effect does answering YES to these questions have ?
Does it mean another dose of 8% class 4 National Insurance, the useless stealth tax?

Best wishes,
Mary

PS. Can I have a final RANT:
I've read through the previous 60 odd postings on this thread and I am horrified. I see mostly decent honest citizens, who want to provide goods and services to customers who are happy to pay for them.
Very often these "traders" haven't a clue how the system works and are being turned into guilty criminals by the complexity of the arbitrary rules.
I understand there is a tax adviser's bible and under this "spin" government
it has grown from 4000 to 7000 pages. No ordinary citizen can understand that lot and have time left to earn a crust. I get the impression that lots of tax advisers can't keep up with it either.
If the climate wasn't so awful perhaps we should all become domiciled in Estonia where I understand they have a flat rate tax.
In the bible it says "The Sabbath was made for man not man for the Sabbath".
Is anybody else getting the feeling they have been created to become little unpaid tax paying machines living with Alice in Wonderland ?
Come back Nigel Lawson all is forgiven, at least you tried to abolish another tax every year.