HMRC Admin 32 Response

Hi,

You won't need to complete the return if the gross income is less than £1,000 and it meets the criteria shown here.

Trading allowance

Thank you.

Hi,

Yes, completion of the SA100 and SA109 would still be required.                    

Remittance basis 2021 (HS264)   

Thank you.

Hi,

Where a person is liable to pay Class 2 National Insurance contributions (NICs), Class 2 NICs are due for each contribution week or part of a week that a person is self-employed. So, where a person is self-employed and liable to pay Class 2 NICs for part or all of one day in a week, liability arises for one week’s NICs due at the weekly flat rate.                                                                                                
Class 2 NIC are a fixed weekly amount – £3.45 per week for 2023/24 (£3.15 per week for the 2022/23 tax year) if you have made sufficient profits (see below).

The rules for Class 2 NIC changed for the 2022 to 2023 tax year onwards.

Prior to the 2022 to 2023 tax year you needed to pay Class 2 NIC if your profits were above the Small Profits Threshold. 

For 2022 to 2023 onwards, you pay Class 2 NIC if your profits are above the Lower Profits Limit (which is £12,570 in 2023/24 and was £11,908 in 2022/23). If your profits are below the Small Profits Threshold (£6,725 in 2022 to 2023 and 2023 to 2024) then you can choose to pay voluntary Class 2 NIC. If your profits from self-employment are between the Small Profits Threshold and the Lower Profits Limit then there is no Class 2 NIC to pay, instead you will be treated as making Class 2 NIC. This will mean you will be able to access entitlement to contributory benefits in the same way as if you had paid Class 2 NIC.

For 2023 to 2024 onwards, the Lower Profits Limit will be the same amount as the personal allowance for income tax (£12,570 for 2023 to 2024).

A ‘contribution week’ is defined as a period of seven days beginning with midnight between Saturday and Sunday. The first day of the contribution week is Sunday and Saturday is the last. The first week of the contribution year starts on the first Sunday after 5 April.

Thank you.

Hi,

Possibly.  You may have generated a Capital Gains Tax liability, when you disposed of the properties. The double taxation agreement allows Portugal first right to tax any gains, but as a resident of the UK, HMRC also have a right to tax an gains arising from the disposal property in Portugal. You will need to work out if there is a UK gain. You will need to convert all figures to pounds sterling, using the official exchange rate in operaton at the time of inheritance and at disposal.  

The official exchange rates can be found at:

Exchange rates from HMRC in CSV and XML format

There is a calculator below that can help you work out any gains.

Tax when you sell property

The gains will need to be reported in a self assessment tax return on SA106 and SA108 and submitted with SA100.

Thank you.

Hi Sarah,

The figure on the P45 is the taxable figure and is the one you should use.

Thank you.

Hi,

Yes, you would show USA and the tax deducted in column C.

Thank you.

Hi,

If the property is jointly owned by your parents, they each may have a capital gain tax liability if they gift the property to you and or your siblings. If a gain arises, they each will have 60 days from the completion date to report and pay any Capital Gains Tax.

There is a capital gains calculator at:

Work out tax relief when you sell your home

If you own your home (or a share in it) your tax-free threshold can increase to £500,000 if: you leave it to your children (including adopted, foster or stepchildren) or grandchildren and your estate is worth less than £2 million.

You may wish to speak to inheritance tax regarding any inheritance tax implications

How Inheritance Tax works: thresholds, rules and allowances

Inheritance Tax: general enquiries

You may also want to review the guidance at:

How Inheritance Tax works: thresholds, rules and allowances - Overview

Thank you.

Hi HK user & mrk.li

If you qualify for split year then you only report any foreign income for the UK part of the year.

RDRM12000 - Residence

If you do not qualify then you will need to report all your foreign income to the UK.

Tax on foreign income

The guidance at RDRM12150 at GOV.UK will help you work out if split year treatment applies. 

Thank you.

Hi natty,

If you contact our Income Tax team by telephone or writing we can update this.

Income Tax: general enquiries

Thank you.

Hi,

Our timescales for repayment returns is 30 net days so I'm surprised you have not heard anything by now.

Please contact our VAT team again as we will need to find the officer who is processing the claim and get in touch with them urgently.

Thank you.