Pentonia
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Considering questioning whether a landlord has opted to tax the land rented
Hi An organisation that I am assisting pays rent on land it rents. The landlord charges VAT on the rent to the organisation and has done for many years. However, for various reasons I am surprised that the landlord has opted to tax the land (excluding a TOGC they have owned the land since pre the introduction of VAT) and I am thinking about recommending that the organisation raises the appropriate question (to query the option to tax) to the landlord. However, before doing this I thought it appropriate to ask the following. 1. Whilst I appreciate that organisations can opt to tax any specific land and buildings that they own (I know the residential exceptions to this), can they apply for a single option to tax that applies across all the land and buildings that they own? 2. If an organisation has charged VAT for many years on a piece of land that has not been specifically opted to tax, can either: a. The land be treated as opted to tax by default due to time? b. Would they be able to request an option to tax now? -
HMRC Charities and clubs registered under the Co-op and Community Benefit Soc Act 2014
Hi A club I am a member of is a registered society registered under the Co-operative and Community Benefit Societies Act 2014. I am aware that every few years our accountants apply to HMRC to allow us to be treated as eligible for the tax reliefs available for charities. We gain the exemption but are also given a future date to renew this. My question is simply, as we are eligible for these tax reliefs are we eligible to register with HMRC Charities and obtain a Charity/CASC reference number. Whilst one benefit of this might be to avoid the need to renew the exemption every few years, my main reason for asking is as follows. We have previously looked into obtaining the reduced subscription rates for Microsoft Office 365 available to charities and community clubs (this would be of benefit to our club officers). Whilst Microsoft will accept clubs recognised by HMRC as a charity for tax purposes, they insist on the club having a HMRC Charities Number (Prefixed X. i.e. the Charity/CASC reference number) and will not allow in any other case, even when the evidence of our accountants is supplied. I quite understand if this is not possible, but as I am led to believe that organisations based in England and Wales that are not registered with the Charities Commission are eligible to obtain a HMRC Charities reference number I thought it appropriate to ask. -
BIK issue: Electric supply to job related accommodation
Hi This is a question surrounding electricity supplied to an employee in job related accommodation. We are happy that the accommodation falls under the provisions of Sections 99 and 100 ITEPA 2003 and that the 10% rule will not come into play. We believe that some of the electricity used will be incurred in enabling the employee to perform their duties. On top of admin work done from home (and this is not insignificant) the accommodation is used to view a main entrance/exit from the site and to monitor security of the grounds. Secondly, whilst we are able to record the number of units of electricity used in the accommodation, we are not able to identify the time of day/night it is used. The employer is charged electric at different rates for day, night and weekend. It is not practicable for the employee to contract directly with an electricity supplier. Whilst the easiest option to avoid a tax benefit charge is to recharge the employee at the day rate for the electric used, this is considered unfair, but are at a loss as to an appropriate calculation. Is there any guidance available, or can you make any ‘in principle’ suggestions? One suggestion has been to simply charge the employee for half the day rate to cover the multiple rate and working from home issue. -
RE: Tax return for UK National now resident in Spain
Thank you very much. With the NHS Pension this is what I was on balance expecting but wasn't 100%. I have read both answers and a 'Google' search that uses AI to form its output gives the incorrect answer. I knew from another thread that a HMRC Admin had said that NHSBSA for UK-Greece was Non-Government but didn't want to conclude that this automatically meant that UK-Spain were the same. FYI: Your link to "DT claims and applications - Types of income: Pensions and Annuities" does not give me access as I do not have a HMRC Sharepoint login but I have been able to identify the page as "intm343040" and open it anyway; thank you.... -
DTA Article Number for form HS304 - UK national resident in Spain
Hi I am trying to assist with completing form HS304 and I am struggling to find key information. Can you advise? When claiming for exemption from UK tax we need to enter in box 3a of form HS304 the article number under which exemption is claimed. Whilst I know that income from a UK pension (not government service pension) and from a property rental in the UK is eligible for exemption, I cannot locate the article number under which exemption is claimed for these two sources of income. Please can you advise of the Article number under which exemption is claimed for: 1) A UK pension, and 2) Property rental income? -
RE: Tax return for UK National now resident in Spain
Further question(s) if you don't mind. I've looked and cannot find. On completing HS304: 1) Which Article Number of the DTA is relief for pension income claimed (I appreciate that we only claim for pension income that is not a government service pension. eg an appropriate private, NHS (sometimes) and state pension? We exclude government service pensions from this form) 2) Likewise, Which Article Number of the DTA is relief for property rental income claimed? -
RE: Tax return for UK National now resident in Spain
Thank you for your reply. Asking a follow-up question as I am finding conflicting information; Is a NHS pension paid by NHSBSA treated as a government service pension and taxable in the UK or is it taxable in Spain? -
Checking VAT registration number - Registered name different
Hi We are doing verification checks on a new supplier and are checking the VAT registration number on the invoice. There are a few companies in the group (3 or 4), and two swapped names in late 2020 (A Ltd changed name to B Ltd and B Ltd changed name to A Ltd). This has been checked with Companies House. Doing a VAT reg number check for Co A Ltd, the registered name comes up as B Ltd (Both share the same address) and from the registration and group registration docs we have been sent I can see that the VAT registration was before the date of transfer and B Ltd is not listed on the group registration. Our purchase from this company is totally immaterial but the question is simply whether we can legitimately pay and recover the VAT, or what steps should we take to enable us to legitimately process and claim the VAT. -
Tax return for UK National now resident in Spain
I am assisting a colleagues parents with preparing their tax return. They retired to Spain and became resident in Spain in Sept 2020 and started paying Spanish tax on their UK income Jan 2021. They have each drafted a “DT-Individual Spain” to claim relief at source from UK tax which they intend to submit with the 2023-24 Tax Return. We appreciate that once this application is accepted by HMRC that they will not need to include on their UK Tax Returns UK State Pensions, NHS Pension and private pension (currently taxed at source) but their Government Pension will remain taxed in the UK and will need including together with any other UK income. The question surrounds the submission of the “DT-Individual Spain” and the 2023-24 Tax Return given we are now in November. Should the 2023-24 when submitted include the UK State Pension and if so should the “DT-Individual Spain” be submitted at the same time or should it be delayed until the final 2023-24 tax liability is paid? The alternative is to submit the “DT-Individual Spain” in the belief it will be accepted before January 2025, but this potentially causes issues if it is not processed in time. The concern is around HMRC processing and the repayment of tax due for 2023-24 falling into a ‘black hole’ with prior years refunded and not 2023-24.