New Board: Tax instructions - please read

MSE_Martin

I've decided to add a board on tax questions and answers. This isn't for ISAs, Peps and Tessas, they can go in other boards. This is for pure tax questions.

Tax advice is an entire industry in itself. And i have to admit while my tax knowledge is good, it is by no means my strongest suit (hence why there wasnt a board originally). However there are many questions and answers on here and i think people may find this of use

Martin

rigsby

I own a house valued in the region of 320k and have outline planing permission to build another house on part of my garden which should be valued at approx 200k to250k when I decide to build (I am in the trade).
I plan to retire in about 5 years time and would like to keep the house I live in at present.
Anyone know the best way to avoid CG tax even if I have to move out of my existing home for a while.
I have two adult sons a wife and a dog. Although the sons no longer live at home.

rigsby ??? :-/

johnllew

You're a builder. The profits on the sale of a house that you build should be included in your business accounts and taxed appropriately.

rigsby

johnllew

Thanks for your reply. Unfortunately I am only a site manager for a construction company and do not have to keep accounts. Any further advice???
many thanks
Paul

johnllew

If you are planning on building a house for profit, the Revenue could well treat it as an adventure in the nature of trade and tax the profits like a business rather than a capital gain, even if you only do it the once. Where you buy and sell an asset, such as a house, without doing anything to it, then it is more likely to be treated as a capital disposal than when you actually create the asset yourself, as you would be doing if you built a house. "Being in the trade" makes you more likely to be taxed under the income tax rules. There is a fair bit of case law on this topic that I can point you to if you're interested but you may find this link relevant: http://www.taxarticles.co.uk/badges_of_trade.html

One way to mitigate an income tax charge on the profit would be to put the venture in joint names with your wife or even your sons, if they have spare allowances and/or they are liable at a lower marginal rate of tax than you.

BADGER_3

Hi,
I am soon to start working in a different geographical area to the norm for up to 6 months. My employer is paying me a healthy (set) monthly 'allowance' for the inconvenience and to meet any additional accommodation expenses I incur as a result. I won't often need accommodation owing to where I live, so does anyone have any top tips on how to maximise the amount I can legally claim back from the Tax man who will grab a large amount of it at source?

johnllew

This is the link to the Inland Revenue's own technical manual on employment income: http://www.inlandrevenue.gov.uk/manuals/eimanual/contents.htm

There is everything you need to know about your enquiry. You'll probably find EIM31800 of most interest.

BADGER_3

Thanks very much for your post John. I'll give it a go now I know where to look.

webmasterpolo

Hi,

I have been on numerous tax codes and have made a few small claims back from the tax man while l was in college.  Now a few years on l have the same problems again.  About 2 years about l started a job on BR emergency tax code, and l've never had any of that refunded.

I am now in a difference job with a 461LM1 tax code, so l am on month 1, so again l think l am being over charged.

Can you advise me on the best way to get all this over tax back?  And how l get on the correct tax code (l have been in this job for nearly 1 year now)

I am about to buy a new car and l need all the money l can get, l think there may be near £1000 worth of tax l am owed.

Thanks

Web

gus

webmasterpolo

Shortly after the end of each tax year (5 April) you will receive a P60 from your employer which details your total income and tax deducted for the year. From this you can see if you have paid too much tax. If you have all these for past years your local tax office will be able to help you calculate if a repayment is due. Or post the figures here and I'll tell you.

Ongoing your tax code in your next payslip (after 5/4/04)should be 474L. If so and you have no other income/reliefs your tax deducted from your salary should be spot on.

bridiej

Does anyone know if there is any kind of law regarding P60s?

I left my employer at the beginning of the year to "go it alone".

Have not yet received my P60 despite chasing it up, and was simply told "I'm waiting for the IR to send the paperwork".

That was weeks ago and still no sign - HELP PLEASE ! ??? ???