FREE PERSONAL/SMALL BIZ TAX HELP. Self assessment deadline looming

MUNCHIES_3

Hi Tony, my father-in-law has just lent my husband & I £130’000 to buy a property/business, which has been put into my name only. He is now suggesting that he does not want the money to be paid back. Can he do this and can I accept this without any tax implications?

Scottie7

I am a basic-rate taxpayer, an employee paying through PAYE. In the last tax year (05/06) an uncle lent me money, it came to about £2600-2700. The understanding was I would pay it back (with no interest) in the near future but no firm date/repayment schedule was arranged. This tax year (06/07), when I offered to pay back part of it he said I could keep the whole amount he'd lent. If I do this, or if I pay back part of it, do I need to pay tax on the amount I keep? If I do need to pay tax on it and the untaxed income is below £2500 (eg I pay him back a few hundred pounds of it), can I just do it via PAYE, which seems simpler? Many thanks! I couldnt find an answer to this anywhere!

John_Pierpoint

Dear Uncle Tony,

I'm filling in my 2005/6 tax return and this time I cannot write "Gains less than 8,500 on disposals less than 34,000" on the form.

Until the mid 1970's, I lived with my mother in my late father's house. She had a life interest in half the house and I owned the other half (Dad had died "intestate"). I got married, moved out and struggled to buy a home for my new family.

Mum died in late 2004 and I got probate and sold my late father's house, free of Inheritance Tax by filling in form IHT100 using the magic phrase "RELIEF UNDER THE PROVISIONS 55(2)
FINANCE ACT 1894 AS MODIFIED BY S14(a) FINANCE ACT 1914 AS APPLIED TO INHERITANCE TAX BY PARAGRAPH 2 SCHEDULE TO INHERITANCE TAX ACT 1984".

I believe there is a Capital Gains Tax relief on a second home, occupied rent free prior to 1988 by a dependent relative. What is the magic phrase I should write, when reporting the sale of my half of dad's house?

Best wishes,
John

Phylliseva

What a wonderful service - thankyou! I have two questions re self-assessment:
(1) As a self-employed researcher, if I receive gifts from a family member (eg my mother gave me money to buy a car) is there any tax implication for me? (There is no inheritance tax issue for my mother by the way.) Or should she lend me the money and it gets written off after a certain number of years?
(2) When I'm working abroad are my hotel and food costs tax deductible?

MoneyMagnet

Hi Tony, thanks for your help - glad I spotted this thread just in time! I have a part time eBay business, and this is the first year I've completed a tax return, so sorry if this is a silly question! I started my business in May 05, and bought quite a lot of stock over the next few months. By April 06 I'd sold about 50% of it. My question is, how much of the cost of that stock can I claim as an expense? Can I claim it all, or just the cost of the items that I've actually sold during the year?
Also, can I claim the cost of educational materials (books, classes etc) related to my area of business as an expense?
thanks again

beljc

Hi I am myself and my husband are adult carers. We both work full time.We receive a payment of £962 per month as carers under the supporting people scheme as well as our earnings. We have asked our worker is this taxable she tells us it is not but we remain concerned. Is this correct thanks

property-owner

Hi. Earlier this year I took a voluntary redundancy from work. I was paid a lump sum (part of which was taxed), and I was paid a lump sum of my pension (taxed) and get monthly payments (taxed). Since that time I have done some part time work, which again has been taxed at source. I presume I have no problems there? However, presumably the situation will change after April 5th 2007 with the new tax year?

I also dabble a little with some PEPs and ISAs. I think these are tax free?

My main concern is that I jointly own a property with my wife, my brother and sister-in-law. We rent the property and each month I receive a rent payment, which is put into a joint bank account belonging to my wife and I. Do I "wake up" Mr Taxman - I presume I/we (?) ought to be paying some tax on this, or is it likely that he will never know about it?

One other thing, I may take some part time employment which may pay very small sums (approx £10 a time), but I think it will be reimbursments. How do I stand with that?

gibby4

I have been renting a property to my brother for 10 years (5 sept 1995) He has paid rent to me which covered the mortgage payments. I now wish to sell this property to my brother. Apart from CGT as this is not my primary residence, what would I owe the taxman as I have never declare any rent earnings as I did not know this arrangement with my brother meant I was "earning" £. Would I incure a fine for each year I did not declare those earnings and could you tell me what it might be?

anne99

I am self-employed and have a van that I use exclusively for business. When it broke down I had to use my wife's car for a few days. Can I charge the miles I did in the car at 40p/mile, or could it only be at the lower rate as I do more than 10,000 miles a year in the van? I charge all the actual expenses of the van against the business - I don't use the 40p/mile scheme.

caron

I bought a PC in Nov 2004 for doing necessary evening work for my employer at home, and still use it for such (about 75% work/25% personal use). Can I retrospectively claim any allowance? and can I claim some sort of allowance each year (presumably diminishing?)