We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax Tony

13468911

Comments

  • kateweb
    kateweb Posts: 23 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I'm registered self-employed and work from home, but have recently taken work that involves me going to meetings three times a week, incurring travel expenses. I live in London Zone 2, and the meetings are at Oxford Circus (Zone 1); can I claim any of these expenses back, since they were incurred soley for work purposes? I don't have a weekly/monthly Travelcard, so there's no mixed personal/work issue on those fares.

    Thanks!
  • Hi,
    My husband and I registered a limited company in 2004, but we have just started trading about 3 month ago (oct 2006),as you know it always take longer than you thought. I filled a form last year that saying the company didnt start trading.
    At the mean time, my husband is self-employed by doing his own staff.
    I have sent ours tax return before 31 Sep 2006.

    There are two questions:
    1, When should I tell the tax man about the company has started trading? I have been told differently,so should I tell HMRC now, 3 months after trading or tell HMRC after the company's accounting year finish which I havent quite know yet.

    2, Do I have to ask an accountant to do the account for the company?
    I am studying AAT in the college at the moment can I do it myself? If so, could you please give some advice of accounting period?

    Thank you very much!
  • My husband and I registered a limited company in 2004, but we have just started trading about 3 month ago (oct 2006),as you know it always take longer than you thought. I filled a form last year that saying the company didnt start trading.
    At the mean time, my husband is self-employed by doing his own staff.
    I have sent ours tax return before 31 Sep 2006.

    There are two questions:
    1, When should I tell the tax man about the company has started trading? I have been told differently,so should I tell HMRC now, 3 months after trading or tell HMRC after the company's accounting year finish which I havent quite know yet.

    2, Do I have to ask an accountant to do the account for the company?
    I am studying AAT in the college at the moment can I do it myself? If so, could you please give some advice of accounting period?

    Thank you very much!
  • waterlily
    waterlily Posts: 27 Forumite
    We moved abroad to Spain approx 2 years ago due to my husbands ill health. Prior to our departure I ensured that all Tax returns were completed for our small building business that we had to close due to the aforementioned reasons. The business stayed open for 4 months.
    All our post was sent to a friends and reviewed asap. On 3 occasions I have had to contact our local Tax office in the UK and explain that we have done all the returns they requested in triple but they still say they never recieved them. They are now saying we owe them thousands in thier estimation and have issued CCJ's etc. I am furious because this is just not so.
    I am returning to the UK at some point later this year as my husband now needs constant medical assistance but I need to sort this out first. Can u point me in the direction of the first few steps I should take. Please do not say Beachy Head!!!
    Many Thanks
    Waterlily
  • waterlily
    waterlily Posts: 27 Forumite
    We moved abroad to Spain approx 2 years ago due to my husbands ill health. Prior to our departure I ensured that all Tax returns were completed for our small building business that we had to close due to the aforementioned reasons. The business stayed open for 4 months.
    All our post was sent to a friends and reviewed asap. On 3 occasions I have had to contact our local Tax office in the UK and explain that we have done all the returns they requested in triple but they still say they never recieved them. They are now saying we owe them thousands in thier estimation and have issued CCJ's etc. I am furious because this is just not so.
    I am returning to the UK at some point later this year as my husband now needs constant medical assistance but I need to sort this out first. Can u point me in the direction of the first few steps I should take. Please do not say Beachy Head!!!
    Many Thanks
    Waterlily
  • lee_c_3
    lee_c_3 Posts: 49 Forumite
    Turning a hobby into a business

    Hi tony,

    I have been running a small, (50 students) martial arts club for 4 years now. I have been doing a monthly expenses sheet to include mileage, stationary, parking, 50% of my internet and 50% of my mobile phone fees, along with training fees for personal training and development with my instructor.
    I have not claimed for any heating and electricity or any pc hardware, software.

    After paying my hall hire there has never been enough money to pay back all my expenses and now the club technicaly owes me around £3000. This is not really an issue as I teach because I enjoy it rather than to make money.

    1 teach for 10 hours a week in the evenings after my paye full time job finishes. The club is not a source of income, although when the expenses are paid back they go into my savings account.

    I am not sure if i need to contact HMRC, as I do not actually make any money from my club.
    Thanks in advance
    Lee
  • Tony. Firstly can I thank you for your advice last time. My father has had his tax bill reduced by about £600.

    My question this time relates to the contribution my father is paying to my son who has unofficially let his house to his grandfather.

    My son has recently redeveloped an old house,advised the revenue that it is now his prime residence and moved in.

    Instead of selling his old house, his grandfather has moved in so that he can be near the family now he is on his own(age 93). Dad is paying all the usual utilities and council tax bills and is also making a regular monthly payment to my son by D/D. The amount is LESS than the INTEREST element on my sons mortgage on the property but does pay most of it.

    Should this be mentioned on my sons tax return? He does not make a profit. If he does declare a loss can this be carried forward and set against any future rental income? David
  • Hi
    I will be retiring this year after being a sole trader for 10years.
    My question is I will have stock left when I stop so how is my unsold stock value treated by the IRS if I cannot sell it all off before I retire.
    What other questions/pitfalls should I be aware of as far as IRS is concerned on ceasing to trade.
  • My husband uses his car for business and gets paid mileage allowance by his employer. However, if he has to claim for more than a set number of miles he has to have a hire car. We have had to pay tax on this even though there is no personal use. He usually has it for a week at a time, he drives to work in his own car, collects the hire car from there then he is away all week at various offices all over the UK, staying overnight in hotels. On Friday he drops the hired car back at his office and comes home in his own car. It seems so unfair that he is taxed on this. Have been in touch with the Revenue and they don't want to know - say it is up to the employer whether they send a P11D. His employer is unhelpful and states this is their policy. Is there any way we can prove to the Revenue that there is no personal use involved as we are paying hundreds of pounds a year in tax. Thanks.
  • I am a sole trader in my 3rd tax year of trading. The first year I had a tax refund as I'd been employed for most of the year & therefore didn't need to pay anything on account. I know that I owe tax for year 05/06 to be paid at the end of this month with first payment on account for 06/07 (though I haven't yet submitted my tax return!). I fully expect my income for 06/07 to be less than the previous year.

    My questions are:
    1. Is it best to request to reduce the payments on account for 06/07. I understand that if I underestimate my income and then owe extra tax I will have to pay interest on what I owe.
    2. If I don't ask to reduce the payments, when I do my 06/07 tax return - if I do if before the date of the 2nd instalment in July can that 2nd instalment in July payment then be reduced or will I need to wait until a later date for a refund? I would rather it were in my bank that theirs!

    Thank you.

    Helen
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.6K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.