David Woan

I became an elected member of local government (a County Councillor) during May 2022, and I receive a monthly allowance (a form of 'salary') in addition to mileage expenses. 1: What is my employment status for income tax purposes? and; 2: What class does this type of remuneration fall into? I failed to located any reference to this type of income, please could HMRC update the system?

In Nov 2021, I sold my financial services practice to another financial services business; more precisely, I sold the rights to service the clients and to the ongoing fee income. The buyer and I agreed a total consideration price, and we further agreed that the total amount would be paid over to me via 36 x monthly instalments, reviewable every 12 months. I received the first monthly instalment in January 2022, and payments are continuing. No capital was used to set up my practice (from scratch) in 2003, nor did I employ anyone, or own any business assets for the duration of trading. Via the transaction described above, I have disposed of, and extinguished my business interests. For my 2021/22 return, do I: Declare this disposal as capital gains or income? Declare the entire consideration? Declare only the instalments received during the tax year? Any help would be greatly appreciated! Kind regards Dave