Do I have tax liablity - its not stright forward! Help!

Curly_Chick

Hello I could really do withsome advice as I have a bit of a complicated set of things that need taxing and not sure what is the best way to do all of this!

Here are the breife details:
- I have a full time job and do tax and NI via PAYE
- I have a company car which I am taxed on and this is doen via my work directly from my wages - the company car basiclly use up my whole persoanl allowance for the year

This year I will also be doing the following and know that there are some tax liablitites to these things but not sure what and how to go about it!

1) I do freelance training in addititon to my regular job and the company I do this for previously did tax and NI on my payments but are moving me and the other trainers to "servie provider" contracts where I as a trainer have to submit an invoice for the "service" of deliverling the training course and I am now responsible for tax and NI on these payments. They say I need to be registerd as self employed but I already have a full time job - so what am I meant to do in this situation?

2) I am going to be renting my flat out and will be owning a small share in my partners flat aprox 25% - so my input to the new flat and costs will be 25% and I will pay half of bills etc. As I will still own my own flat so I own 1 property and 25% of another - am i liable for tax on the rent of my own flat? Or if I later decide to sell will I end up having to pay CGT on my own flat? or if that is an issue can I make the flat I own 25% of the one for CGT?

Any advice on how to deal with the above situatiosn would be really helpful as I don't want to be hit for a tax bill i am not expecting I wont to make sure that if I am liable for tax put the money aside - but not sure how it works!

Thanks in advance

John_Pierpoint

Employed & Self Employed at the same time:

https://forums.moneysavingexpert.com/discussion/587105

Renting out a former principal private residence

https://forums.moneysavingexpert.com/discussion/2407883

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Warning: You are entering a zone of lots of new bureaucracy: legal, administrative and fiscal.

00ec25

It is very straightforward

1. you register as self employed and do a tax return - perfectly normal position lots of people simultaneously have PAYE employment and a self empoyment business on the side

2. of course you have to pay tax on the rental, you do not live there so the occupant is a tenant not a lodger, and therefore there is no tax free amount

3. for CGT purposes you have a liability when you sell

John_Pierpoint

00ec25 wrote: »

It is very straightforward

1. you register as self employed and do a tax return - perfectly normal position lots of people simultaneously have PAYE employment and a self empoyment business on the side

2. of course you have to pay tax on the rental, you do not live there so the occupant is a tenant not a lodger, and therefore there is no tax free amount

3. for CGT purposes you have a liability when you sell

1. You work out how much you are going to earn and then register to pay the weekly "stamp" - this is to remind the tax man to put you on self assessment. You might as well apply for the passwords required to learn the on-line system now. If you have reasonable earnings you get charged a surtax that pretends to be class IV National Insurance - but try asking what you will get in exchange for this insurance payment. If you have low self employment earnings you then apply for exemption from paying the weekly "stamp".
As you have signed up for Self Assessment expect to pay tax in advance in January and July and sort out the actual figures when you do you self assessment. You get a honeymoon until the 6th of April following your first year of trading as self employed; as until then the system has no idea of how much to charge you.
Make sure that you have savings to pay both the back tax and the tax on account.

2. Tenants, presumably in a furnished property, have all sorts of legal rights. Make sure you read up on it all starting with gas safety certificates, penalties for mishandled deposits, EPC's, HMO's (I'll let you google those) and rip off letting agents.
Check how long your local court takes to grant repossession if a tenant simply refuses to pay any rent, plus the very strict procedures that have to be followed before you can make someone homeless to the satisfaction of the local authority. You could claim 10% of the rent tax free as a contribution from the tax man towards your "fair wear and tear" costs - beware of heating systems requiring replacement; especially on Xmas eve.

3. CGT will NOT be a problem if you understand the rules; as explained in the link above.

It is a wonderful learning experience about "living in the real world" of commerce but I would not say:
It is very straightforward

But here on MSE there are lots of us ready to help;).

Curly_Chick

Thanks for your comments - I am sure this tax stuff is stright forward for some people - but I haven't had to do this before so it dosen't seem stright forward to me!

On the being a landlord front - I do have quite a bit of information (local regulations, contrats, notice and recoveing rent/evections) so am actully feeling more confident about that than the tax!