house sale profit and self employed tax credit renewal

teacher2mum

Hi guys can anyone advise pls. I was trying to fill out my tax credit renewal online this morning and stumbled on the last question. I have to estimate my earnings for 2013-2014 as I wont be submitted them yet and then I let they know real figures by 31 st Jan. During this tax credit period though I only made 4k profit as I left my husband after his affair and I could not work as much with having three children, two of which are autistic. He didn't pay CSA and would say he was not their babysitter etc..Anyway July 2013 our marital home sale went through and I received 29k of the profit from that sale. I had already moved into this house which I owned outright and we had been renting. We had no tenant and so I moved in. This was then deemed to be my marital 'deal' alongside the 29k profit. I paid the cheque into my business account and received no interest as literally it came out again as I paid all the credit cards and debts off with it. The final question was 'Did I receive income from anywhere else. Do I put this in here as it was my main residence for 10 years before the split. Don't want to end up owing them loads or does this get entered as an income on my Self assessment form and they work the tax out accordingly and so this will be put in as a profit through that and not additional income....Confused and have to do it this week. Help!! Should I just ring and let them know? Thanks for your advice in advance. :rotfl:

stroptart

You tell tax credits about the interest you got on the money. Not the lump sum. And if its less than £300 you don't need to tell them.
I don't know if you have to pay tax on it though.

teacher2mum

Thanks Stroptart
I did not receive any interest on it as it was y business account and in their for about a day...My business account does not pay interest so nothing to declare their then? I will add to into my self assessment if I need to so will show up if meant to then wont it!!I've been told it relates to the properties I rent out not the marital home and so would make sense if I had interest on it to declare that on my self assessment return too..So nothing additional is there?

Confuses me bloody tax credits x :mad:

teacher2mum

:rotfl::rotfl::rotfl:Yes thanks I understand that now!!
Great help !!!:j So do I just ignore the other income box when filling the online form in? I received minimum interest on it as I said it came in the bank and straight out to pay marital debts!!

Phew that's a relief!!

mark24c

You mentioned the houses where rented have you thought about Capital Gains tax which is payable on the sale of property which is not your main residence

teacher2mum

Thanks this is what I am confused about. I had lived in the marital home (main residency) for 10 years and a couple of years after moving there we bought this house I am in now and rented it out, so that all went through the tax system as usual each year. This house I am in now was gifted to my by my hubby a couple of years earlier so I could get a business loan and so the bank could have first charge on it. Hubby had to sign it over into just my name. Anyway, he wouldn't move out so we lived separated in our marital home for 6 months as soon as this house came free I moved in....I changed my address then for all utilities and tax credits and informed them we were separated. Then it was 10 months later that the marital home house sole and I received my cheque...I assumed it was classed as my main residency as this one I am in will be rented out again soon and it will carry on in my self assessment form as income from property as soon as it is decorated and I have found something else . Does that make sense ? Thanks for your time x:o