HMRC Admin 19 Response

Hi bull-jai,

We can confirm that the correct reference number to use for overseas customers is, your National Insurance number followed by IC, your surname and then your initial. 

With regards to your query about completing a new Direct Debit mandate, which is held within the CF83 application form, please complete your personal details, that is, name, address, date of birth, National Insurance number and the Direct Debit mandate. You do not need to complete the whole form, just enclose a covering letter to advise that you are completing the direct debit mandate to change your method of payment from annual payment to Direct Debit. Please ensure that the CF83 and the mandate are both signed and dated.

Thank you.


 

Hi,

If you incur VAT after your date of registration then you can recover the VAT as input tax subject to the rules of input tax. You can see the guidance here:

Introduction to input tax

If you incur VAT before your VAT Registration date then you would need to have the goods on hand at the date of registration to reclaim this VAT as input tax. You can see the guidance here:

Input tax when VAT paid on goods and services received before VAT registration

Thank you.

Hi,

You can see guidance here:

Pharmaceutical goods supplied with or without medical treatment

Thank you.

Hi,

You can see the guidance here:

Flat Rate Scheme for small businesses (VAT Notice 733)

As per the guidance:

You’re a limited cost business if the amount you spend on relevant goods including VAT is either:

less than 2% of your VAT flat rate turnover
greater than 2% of your VAT flat rate turnover but less than £1,000 per year
If your return is less than one year the figure is the relevant proportion of £1,000. For a quarterly return this is £250.

Relevant goods are goods that are used exclusively for the purposes of your business, but do not include:

vehicle costs including fuel, unless you’re operating in the transport sector using your own, or a leased vehicle
food or drink for you or your staff
capital expenditure goods of any value (read paragraph 15)
goods for resale, leasing, letting or hiring out if your main business activity does not ordinarily consist of selling, leasing, letting or hiring out such goods
goods that you intend to re-sell or hire out, unless selling or hiring is your main business activity
goods for disposal such as promotional items, gifts or donations
any services.

Thank you

Hi HMRC_user,

You take the market value of the crypto at the time it was gifted to you and convert to pounds sterling, using a just and reasonable exchange rate. You then take the value of the crypto disposed of and convert to pounds sterling. Deduct the acquisition value and costs from the disposal value. If you are left with a positive figure, you have a gain.  

In 2023 to 2024, the annual exempt allowance for capital gains is £6000. If your gain is below this figure, there is not Capital Gains Tax to pay.

Thank you.

Hi,

You cannot appeal a late filing penalty until you submit the relevant late return. You can see guidance here: 

Check when to appeal a Self Assessment penalty for late filing or late payment

Thank you.

Hi,

If it is assumed that you spend the remaining 11 months of the year in the UK, you would continue to be deemed tax resident in the UK and you would continue to pay UK tax under the PAYE system. You can see a detailed guide for UK employers who have employees working overseas here:  

Employees working abroad

Thank you.

Hi,

There are no Income Tax implications on the giving or receiving of cash gifts, unless, that is, the gifted money generates interest or dividends, which may be taxable. You can see guidance here:                                         

Tax on savings and investments: detailed information                                                                                                                                                                                                                                                                                                                                                                               
There may, however, be Inheritance Tax implications. You can see information here:     

How Inheritance Tax works: thresholds, rules and allowances                                                                            

You will need to contact our Inheritance Tax team for any queries relating to Inheritance Tax:      

Inheritance Tax: general enquiries       

Thank you.
 

Hi,

Please complete your tax return in full, declaring all income including UK and foreign dividends and ignoring any FTCR. Navigate through to the calculation and take a note of how the dividends are being taxed, the amount of dividend at the rate of tax. This calculation will show your UK tax liability without claiming a foreign tax credit. You then need to look at the double taxation treaty for each country you have dividends from:

Tax treaties

Each double taxation agreement will limit the amount of relief to a percentage of the dividend received, for example, USA is 15% for individuals. The FTCR will be the maximum of the foreign dividend at 15%, in the case of USA dividends, or the tax deducted on the dividends in the UK calculation. You can see guidance here:

Relief for Foreign Tax Paid 2023 (HS263) Updated 6 April 2023

Thank you.

Hi,

As your bonus will be paid in the last month of the tax year, you should only pay 20% tax on that income if the figures provided are accurate. In the unlikely event that you are overtaxed on this income, it should be repaid when your 2022 to 2023 tax year is reconciled, which usually happens in May.

Thank you.