HMRC Admin 17 Response
Joined: 1/20/2021
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RE: FPS has not updated employee personal tax
Hi ,
If you have amended the Jan and Feb submissions then this should update the employees personal record.
The employee will need to contact personal tax to advise on 0300 200 3300.
Thank you . -
RE : Corporation Tax payment on bank interest for Residents Association (Unincorporated Association)
Hi ,
With regards to property management, flat management and other such resident associations funds received in the form of interest is subject to corporation tax.
Whilst normally such entities would be entitled to what's known as concessional exemption whereby despite being active HMRC will record them as dormant one of the rules to this is that their tax burden does not exceed £100.
If you believe this would be the case for yourselves I recommend writing to HMRC detailing your circumstances so the situation can be reviewed.
Regarding the type of income when reporting such information this is covered by our online manual BIM40805 - Specific receipts: interest and dividends: whether trade receipt .
Thank you . -
RE: Can a beneficiary spouse claim mortgage tax relief as allowable expense?
Hi ,
Thanks for your question.
In the case that you solely contribute to mortgage payments, your Wife would not be able to claim relief on such amounts as the expense has been incurred wholly by yourself.
As per your second question, this forum only offers general advice on queries, and so cannot recommend specific action on your personal circumstances.
Thank you . -
RE: New rental income - claiming expenses
Hi ,
Thanks for your question.
As PIM2505 found here:
PIM2505 - Beginning and end of a rental business: commencement ,
the date a property business begins is a question of fact that depends on the nature of the property business.
Where the property business is letting property, the business can't begin until the first property is let.
Relief is only due under special rules which are highlighted within PIM2505 and must have been wholly and exclusively for the rental business.
Thanks -
RE: Clarification on Deed of Assignment for Rental Income
Hi ,
Thanks for your question.
As per the information provided, option 2 would be the viable option in order to correctly notify HMRC of the beneficial ownership
change in terms of rental income/expenses only by declaring a valid deed/declaration of trust ,
whilst still maintaining that you are responsible for mortgage payments.
Thanks . -
RE: Insurance premium refund
Hi ,
Thanks for your question.
It is my understanding that you made the insurance premium payment during the 2023/2024 tax year, which was included as an outgoing during the 2023/2024 Tax Return.
You have then subsequently sold the property during the 2024/2025 tax year, in turn, received a pro rata repayment.
As outlined previously, you would only declare the insurance premium amount for the period you owned the property during the 2024/2025 tax year (i.e. 5 months if sold in September).
As you have received a direct repayment pro rata, you have in theory received relief by subject of repayment, so not necessary to be declared,
only the apportioned amount between 6th April and the date of sale.
Thanks -
RE: Savings Interest and Adjusted Income Calculation
Hi ,
Savings Interest is taxable income, so would be included in your taxable income total when calculating your Adjusted Net Income.
The Personal Savings Allowance (like other personal allowances) is NOT applied in the ANI calculation - your total taxable income
in this case would be £111,500.00 .
See: Personal Allowances: adjusted net income .
Thank you . -
RE: Taking lump sums from more than one pension pot
Hi ,
You can usually take up to 25% of the amount built up in any pension as a tax-free lump sum.
The most you can take is £268,275.
Please have a look at the guidance at :
Tax when you get a pension .
Thank you . -
RE: S455 charges
Hi ,If the £10k has been withdrawn from the £20K and not paid as part of the salary,
the £10K is what would show as the repayment.
Thank you . -
RE : Self Assessment expense - effect of VAT for resident and non-resident
Hi ,
Please have a look at the guidance at :
Charge, reclaim and record VAT .
We cannot comment on matter occuring at a future date.
Thank you .