HMRC Admin 19 Response

Hi,

Yes, as you are only selling half of your shares, you can only claim half the purchase price of £5000.

Thank you.

Hi,

That is confirmed in the links sent in the previous reply.

Thank you.

Hi,

Your daughter would declare this as self employment and all income must be converted to sterling.

Thank you.

Yes,

That is correct.

Thank you.

Hi,

Yes. you need to declare it and send details of the years the backdated pay relates to if you wish it to be allocated to the correct years. As the payment has not yet been made, this will not be declared until the 2024 to 2025 tax return.

Thank you.

Hi,

You will pay tax in the country you are tax resident. Your residence is for you to determine based on the guidance available here:

RDR3 Statutory Residence Test

Thank you.

Hi,

It is likely that the additional £3493.20 due comes from the reduction in your allowances when your income exceeds £100,000. For every £2 your earn over £100,000, you lose £1 of your tax free allowances. So with your income of £117,449, you would lose £8724.50 of your tax free allowance. This then means £8724.50 previously tax free needs to be charged at the basic rate of 20%, and £8724.50 previously charged at basic rate needs to be charged an additional 20% to make up the higher rate of 40%. So (8724 x 0.2) x 2 = £3489.80.

Please note that while this reduction in allowances would usually be dealt with automatically in your tax code, one off payments in your wage or second sources of income may make it more difficult for the tax code to adjust. If you would like us to check your calculation, please contact our Self Assessment team.

Self Assessment: general enquiries

Thank you.

 

Hi,

If the sole trader has purchased a business as a going concern then the previous owners taxable supplies would have to be taken in to account by the new owner when deciding whether there is a requirement to register for VAT.

If the previous owner was VAT registered or had a requirement to be VAT registered then the new owner would have a liability to register on the day of the transfer. You can see guidance here:

VATREG29300 - Transfers of going concerns (TOGC): VAT registration: taxable supplies

VATREG29250 - Transfers of going concerns (TOGC): VAT registration: VAT Act 1994, section 49(1)(a)

Thank you.

Hi,

If your company is established outside of the UK and you supply goods to consumers below a value of £135 then there would be a requirement to register for VAT. You can see the guidance here:

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

Thank you.

"Hi,

If you have received grants then these would normally be outside the scope of VAT as there is no supply for a consideration. Please see the guidance below:

VATSC06311 - Consideration: Payments that are not Consideration: Grants: What is a grant?

Thank you.