Tax Tony

MSE_Martin

If you were sent a Tax Return by 31 October 2006 31 January is the deadline for sending back your completed 2005-06 Tax Return, otherwise risk being fined £100. Tax Accountant Tony Tesciuba, (who also happens to be my Uncle) has offered to answer your basic tax queries.

Why's he doing this?

First because I asked him to, and he's a site user, and second because I promised if he does I'd put a link to his site www.tesciuba.com in here!

Where else to get help?

You can also call your Tax Office for help if it's during office hours (you can find the number online here) or, during evenings and weekends, call the Inland Revenue Hotline on 0845 9000444 (or +44 161 931 9070 from abroad).

IMPORTANT! What to ask about?

Any basic tax questions about small biz or personal tax. Obviously if it's hugely complex then it can't be done. Also don't put any bank account/overly personal details in your question as it can be read by all.

Before asking your question it's well worth reading the previous answers Tony has given.

Previous Articles: Taxing Times 1, Taxing Times 2, Taxing Times 3


As general guidance questions should be no more than a paragraph long.


How long will Tony be doing this for?

All questions should be asked by the end of play on Sunday 7 January. At that point this thread will be closed.

When will I get the answer?

What we'll then do is compile all the questions together into one Q&A article and publish this (as long as there aren't too many questions!) as soon as possible, probably a week or so from the closing date.

TO ASK A QUESTION SIMPLY CLICK REPLY

PLEASE ONLY PUT QUESTIONS NOT COMMENTS IN THIS THREAD

John_Gray

I understand that it is possible to reclaim from HMRC in your tax return 18% of the donations made to charities under the Gift Aid scheme.

But what are considered as "gifts"? Obviously donations to the Disasters Emergency Committee, but what about:

• Subscriptions to 'Friends' schemes for musical charities?
• 'Friends' annual charges for admission to Westonbirt Arboretum?
• Raffle tickets for Age Concern?

Does it relate to whether you obtain a 'benefit' from the donation, and are there limits to this?

Thanks very much!

John Gray

oldwiring

In rough terms the gift must be under Gift Aid and made directly to a registered charity or reconised church or its equilcalent of another religion. That would exclude the items you mention IMO. The Gift Aid scheme does permit a donor to obtain certain limited benefits from donations, but the charity concerned will see that what they offer is within the terms of the refulations, lest they find that their emtitlement to recover tax should be withdrawn dor non compliance with the regs. There for a donor has no control over the benefits he may receive. Admission charges used to be gift aidable but the regs on that have been toughened too.

If you are brave, you nay like to enjoy the HMRC site on the subject

http://www.hmrc.gov.uk/charities/

AS to the 18% question. This applies only to higher rate tax payers, By donating money to charity they will have foregone invome that has been taxed at 40%and the 18% is the difference between the dathdard tax @22% which the chrity receives and the 40%.

oldwiring

duplicated post Sorry.

ozzystu

Hi Tony

In December 2004 I converted my residential Mortgage to a BTL Mortgage and then took out a new residential Mortgage on my new Home, the idea was that the old house be let, subsequently the house was sold in mid april 2005, never having had a tennant

On My 03-04 Tax return I made a claim for a loss pertaining to Finance fees and Mortgage interest.

Can I claim a loss for the 04-05 tax year for Interest, Estate agents fees, Conveyencing and mortgage redemption penalties , which I can then Carry forward.

I no longer have any rental properties, So I suppose I would have to tick the "no longer a rental business" box, does this mean I can still carry forward the losses, or do I then lose that ability ?

sleebrook

Hi & Happy NY I have just bought a 2nd property which I intend to redevelop and rent out. There is also an opportunity to build an additional property in the garden of the existing property. What are my tax obligations if I A: Receive rental income from 2nd Property. B: Sell the land with planning permission. C: Build on the land and sell both houses. I have heard that if I can prove the second house is my primary private residence I don't have to declare it on a Tax Return is this correct ? Thanks in advance.

Ivrytwr3

Purchased a house in Jan 06, tenants in Mar 06 for 6 months, empty for 1 month and new tenant still there. The rent the tenant pays does not cover the mortgage (we're hopefully in for the long haul!). The property is owned jointly with my wife and i and is unfurnished. And so a couple of questions:

1. Do we need to fill in self assessment forms? (both, just me, or neither?)

2. When do we need to fill one in?

3. What can we claim for to reduce the tax bill?

4. Is it worth employing someone to complete them for you?

Dazwilly

Hi Tony,
Could you tell me what amount of my expenses I can claim.I am self employed and I have bought a vehicle and various other tools/equipment. A friend tells me to only claim 40% of these, is this correct? Surely, I claim the entire amount and if I sell the vehicle then the money is shown as income to the business?
Thanks

ReformedBiochemist

Hello Tony,

On December 1st 2006 I started work as a 'consultant' for a small biotech company (3days per week). I will need to handle my own tax payments and I don't know how to go about this. I have actually tried emailing and calling the tax office but they were not helpful and keep referring me to other people. Could you please tell me how I go about arranging this? I don't want to end up with a huge tax bill and/or a fine!

Hope you can help...much appreciated!
Best wishes,
Zoe

shamrockabc

Hi

I could be working in tax free Qatar in Feburary 2007. Prior to this, I have only worked in the UK on a self employed basis.

Does this mean that for my next tax return , y/e April 2007, I will only have to declare my UK income earned, from April 2006 to January 2007 ?

The job is a two year renewable contract , and the information I have been given states that I have to be a non resident for the salary to be tax free ie. Have worked there for a complete tax year.

Any additional information that you think I should be aware of would be gratefully received .

Thanks,
Shamrock.

jessegeller

Hi, I started a small business in Aug 2006. I logged it all with Inland Rev but didn't get much back - just a letter a month or two later and a booklet. I have no clue about tax at all - basically I need to know if I need to submit something this year or if I work a year and then do it (if that makes sense). Also if I DO have to do it this year I'm not sure what date I tot up my books until. I tried to investigate via the inland revs online tax returns form but I needed a reference number to enter the site and I've never been given one (the letter I received was blank in that area!)

Any advice would be welcomed.

Thank you