Paying in gift money and not paying tax on it, and paying NI?

[Deleted User]

Your reference is your UTR. Direct Debit or Debit Card - whatever! 

textbook

[Deleted User] said:

Your reference is your UTR. Direct Debit or Debit Card - whatever! 

Ok  so I clicked on - self assessment using UTR number plus letter K for reference and paid  using debit card.    I printed out confirmation.  I only paid for national insurance contributions not any tax but I guess that's still self assessment.  £11,300 profit so not tax just NI needed.

HMRC are a disorganised joke which doesn't work properly.   If this gets lost I guess I'll have to chase them.  You would have thought they'd made payments easier and more efficient.

 

[Deleted User]

It worked did it not? All you had to do was google ‘pay HMRC’. Literally millions of taxpayers use this method.

Jeremy535897

textbook said:

macman said:

There is no tax on money received as a gift. The giver can generally gift up to £3K pa outside of IHT.
Don't put it into your business account, as it is nothing to do with your business. 

So I could pay £500 in cash into my personal account from my parents and write a letter to confirm it's a gift?

What's IHT?

You don't need a letter for £500. IHT is inheritance tax.

macman

[Deleted User] said:

macman said:

There is no tax on money received as a gift. The giver can generally gift up to £3K pa outside of IHT.
Don't put it into your business account, as it is nothing to do with your business. 

Yes - but, at the same time, if the business needs the cash flow, there are no implications. A record of the gift would be advisable though just in case the taxman does query the source of the funds at some point.

What i meant was not to pay it direct into the business a/c. But fine to pay into personal a/c and move as required.

macman

textbook said:

macman said:

There is no tax on money received as a gift. The giver can generally gift up to £3K pa outside of IHT.
Don't put it into your business account, as it is nothing to do with your business. 

So I could pay £500 in cash into my personal account from my parents and write a letter to confirm it's a gift?

What's IHT?

The letter should be from your parents, since they are making the gift. But for this amount it's really not necessary at all.

textbook

macman said:

textbook said:

macman said:

There is no tax on money received as a gift. The giver can generally gift up to £3K pa outside of IHT.
Don't put it into your business account, as it is nothing to do with your business. 

So I could pay £500 in cash into my personal account from my parents and write a letter to confirm it's a gift?

What's IHT?

The letter should be from your parents, since they are making the gift. But for this amount it's really not necessary at all.

I printed out a gift letter.   It says who the money is from and who i give the money to with signatures.   But you think it's ok to pay cash or cheques of £500 a few times a year into personal account and not pay tax on them?   Won't HMRC get suspicious?   How much can you pay in?

Jeremy535897

textbook said:

macman said:

textbook said:

macman said:

There is no tax on money received as a gift. The giver can generally gift up to £3K pa outside of IHT.
Don't put it into your business account, as it is nothing to do with your business. 

So I could pay £500 in cash into my personal account from my parents and write a letter to confirm it's a gift?

What's IHT?

The letter should be from your parents, since they are making the gift. But for this amount it's really not necessary at all.

I printed out a gift letter.   It says who the money is from and who i give the money to with signatures.   But you think it's ok to pay cash or cheques of £500 a few times a year into personal account and not pay tax on them?   Won't HMRC get suspicious?   How much can you pay in?

Maybe it was an issue in East Germany before the wall came down, but HMRC don't trawl through everyone's personal bank accounts like that. Nobody pays tax on gifts of £500. If you run a cash business, and bank lots of cash , it is helpful to have something to show this particular cash was not sales.