BellaBoo

Sorry to interuot but I believe you've been given incorrect information. If your father is disposing of the beneficial interest to an LLP then he won't own the property or any income from the property, the LLP will. Nor will he be able to dispose of his beneficial interest if there is a mortgage on the property (at least not without repaying the mortgage). It is also the transfer of beneficial ownership that is relevant for CGT (legal owner is just a formality, it is the beneficial owner that is the real interest and that tax is concerned with). So disposing of the beneficial interest will give rise to CGT. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg70230 https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg11700p

If your client owns 100% of the property then they will own 100% of the rental income. The assumption about it being split equally only applies to property held jointly as tenants in common and is only really relevant where the shares they hold are unequal. If they held it as joint tenants or as tenants in common with an equal (50/50) split then they could only be taxed on a 50/50 basis. While if they own as tenants in common in shares of say 60/40, they will be taxed on a default 50/50 basis unless they use form 17 to declare their split is 60/40 (and they'd then be taxed on the 60/40 basis rather than the default 50/50).

Just to clarify what HMRC have said (I may be mistaken but it doesn't sound like you've understood them), you cannot use the rent a room scheme even for the furnished letting if you also have receipts from unfurnished accommodation or for letting property that isn't residential at all (as in the case of the room being let as a yoga studio). This means you can either claim your actual expenses against the total rental income from both lettings or the property allowance of £1000. But you cannot claim rent a room relief for either letting.

Hi, not HMRC Admin but might be able to explain why travel is not allowable in the circumstances you describe. If you are an employee and paid via PAYE, accepting multiple short term engagements then it is the employment that is temporary rather than the workplace (the workplace is actually permanent, because it is for the whole/most of duration of the contract).

Hi, not a HMRC Admin but if tax was deducted it must've been paid as employment earnings. Were you given a p60 or payslip showing the deductions?

Are you sure this is qualifying capital expenditure in a computation of CGT liability HMRC Admin? Doesn't it depend on whether the expenditure was maintaining what already existed or introducing an improvement or something new? https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46915

Hi not HMRC Admin but it isn't a mistake. All dividend income counts as taxable income. Just the first £500 for 24/25 (£1000 for 23/24) is taxed at 0%.

Hi not HMRC Admin but it is not possible to separate the legal & beneficial ownership in Scotland. Scottish law doesn't recognise the concept so it isn't possible, full stop. However I'd also point out that you cannot just transfer the income to a spouse, even in England. You'd need to transfer the capital as well due to settlement rules around gifts to spouses that are a right to income. https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4205 You'll need your lenders agreement to transfer any interest in the property as any property needs to pass unencumbered. Your spouse won't be able to claim relief on the interest paid if the mortgage is in your name. If they assume any liability for the mortgage then that counts as consideration for SDLT & LBTT purposes.

Medical bills have an unavoidable personal purpose to them so that even if there is also a trade purpose, the expenditure can't be wholly and exclusively incurred for trade purposes because of the unavoidable personal purpose. https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37940

Hi, not a HMRC Admin but may be able to help. The reason £8,000 is added to your pension when you pay £6,400 is because the pension have claimed the basic rate relief due on the contribution. This means any refund to you could only be made for any additional tax you paid. Based on the earnings you have given, this would be the difference between 40% (what you paid) and 20% (what the pension has already claimed). As this is 20% which is the same as the basic rate relief, it is nice and easy to calculate as £1,600 refund. Further, HMRC Admin are correct where they say it doesn't reduce your gross salary. But reduction of personal allowance isn't based on gross salary (you asked the Admin the wrong question to put it bluntly). It is based on adjusted net income and pension contributions do reduce your adjusted net income. It will be reduced by the amount actually contributed to the pension (£8,000 in your case). Last point, if I have understood your circumstances correctly, you're likely on a normal tax code because you weren't expecting to go over 100k. If that is the case, you won't have paid any tax on a reduced personal allowance in order to get refunded for it. But if you didn't make the pension contribution then you would end up being asked to pay it. Hope that makes sense and helps provide a better understanding of what happens or needs to happen.