Can anyone advise on this Tax question?

nomunnofun

CLAPTON wrote: »

well you actually wrote



Whether or not one keeps a record of gifts to ones children is reasonably different to paying the 'family' solicitor for a deed of gift which is not needed in these normal circumstances.

Could not agree more. As for NEVER having experienced a gift having to be justified, I came across this quite a few times (in 26 years as a tax bloke both in and out of HMRC) both in terms of cash introduced into a business and generally in HMRC investigations. I have never had to produce any more than a written record of the gift, perhaps with some back up documentation.

AndyJR81

Oh well horses for course I guess. Having had a client die last year and his family desperately trying to remember the (substantial) amounts of cash he'd given away to his numerous relations (including 19 grandchildren!), and unable to find the 'back of fag packet' summary his previous advisers had allegedly 'helped' him to produce - pick any number between 0 and £325K for your remaining nil rate band mate - I'll stick to my own non-lackadaisical methods of record keeping.

p00hsticks

jem16 wrote: »

Paul would not be invited to complete a tax return each year as he wouldn't fit the category of needing to do one.

http://www.hmrc.gov.uk/sa/need-tax-return.htm

Agreed that he won't need to fill in a tax return form, but as a 40% earner, if he has any additional income over and above his PAY income (e.g. interest on savings, share dividends etc) then it is his reponsibilty to contact HMRC and let them know as he will have additional tax to pay. I beleive that there is a simply one page form that can be completed in these circumstances, but I can't remember the reference number, and the tax due can either be made as a one-off payment or by an adjustment to the tax code.

FlashBarry

p00hsticks wrote: »

Agreed that he won't need to fill in a tax return form, but as a 40% earner, if he has any additional income over and above his PAY income (e.g. interest on savings, share dividends etc) then it is his reponsibilty to contact HMRC and let them know as he will have additional tax to pay. I beleive that there is a simply one page form that can be completed in these circumstances, but I can't remember the reference number, and the tax due can either be made as a one-off payment or by an adjustment to the tax code.

On this point, Paul is not earning any interest (other than in tax-free ISA) and he has no shares. The only additional income will be these one-off cash gifts from his Mother (1 x £500 and possibly 1 x £15,000).

Therefore, from what I have read here, he will not need to contact HMRC or start completing a tax return just for these additional gifts. Correct?