Simon, that page you've linked is where the property being let isn't residential accommodation (ie offices are being let).
See this PIM page under 'qualifying indivudial' where it references the same s785 of ITTOIA that I did in my previous reply.
Importantly, see the very last paragraph on that page, where HMRC say:
"Therefore, there can be no rent-a-room relief where the property ceased to be used as the taxpayer’s accommodation before the letting began (or commenced to be used as the taxpayer’s accommodation after the letting ceased), even if that is in the same year of assessment."
Simon, I'm not hmrc but in order to be eligible for rent a room, all of your receipts from letting need to be rent a room receipts. If you have any other trade income or letting income (such as letting to a tenant) the yiu are not eligible.
S785 ITTOIA 2005.
I'm not hmrc, but I believe hmrc have given you the right advice.
The only time rent would be allowable would be if part of your home was solely used for business purposes (such as a therapist having a room in their home set aside and used only for counselling/therapy sessions). In your circumstances, it would seem impossible to identify any part of the rent expenditure that was incurred wholly and exclusively for business purposes and therefore no part of the expenditure would be allowable in the computation of profits.
See the 2nd last paragraph here:
Admin I think you've misunderstood the question.
The original question is whether they can use unused income tax personal allowance against capital gains.
Not whether they can use the personal allowance for capital gains.
In order to claim expenses as an employee, you must be obliged to incur and pay the expense as holder of the employment, and the expense must be incurred wholly exclusively and necessarily in performing the duties of the employment.
Renting office space fails on this test in both accounts.
1) it is not incurred in performing the duties of employment but rather to enable you to perform those duties
2) every holder of the job would need to be obliged to incur the same type of expense. While people can claim wfh, this is for things like power use and not rent.
I would also advise you can only claim tax relief from hmrc and not the actual expense itself.
Where your main residence is is a question of fact. No one thing on its own will give an answer but they might consider things like where are your bank accounts, car etc registered to, where would family and friends contact you/expect you to be and a whole lot more.
Staying somewhere for 30 days will not make it your main residence.
Plus if you owned a property longer than the period it was your main residence, PRR would be apportioned to cover only the period you were living there.
Hi hmrc admin. I think there's some confusion. The poster isn't asking if he can deduct for training/qualifications he undertakes himself.
He is saying he has to pay the platform a commission (on his earnings from tutoring).
@stuart, I'm not hmrc but I think the link they meant to provide the first time was a different link, on how to calculate profits of a business. I don't know the exact page, but I think you might find it helpful to bookmark the manual index page:
I'm not HMRC (although semi qualified in accountancy so do have some knowledge), just to be clear.
If your pension is deducted before tax then the figure on your P60 has already taken the pension contributions into account.
If your salary was 60k and pension £5k (deducted before tax). Then your pension contributions are deducted from your salary to arrive at your gross taxable pay of 55k. If you check your p60, you should see it's the gross taxable figure you're using. As pension contributions were already deducted to arrive at the p60 figure, there is no need to make a further deduction.
While someone who has contributions taken after tax would have a salary of 60k, gross taxable on p60 of 60k, and would therefore need to deduct the 5k contribution. If they have the exact same salary and exact same contribution, they should also have the same adjusted net income (which is what is used for child benefit purposes) of 55k.
if you deducted the 5k again (in the before tax example), the adjusted income would be 50k and that's clearly not right - their salary was 60k, they contributed 5k and therefore had income of 55k, not 50k.
I thought in order to claim property allowance, you can't claim any other expenses including mortgage interest? This page on www.gov.uk seems to agree with me.
It is still an expense, just not one that is deductible for residential lettings when calculating profits and instead is relieved when calculating tax liability.
Also, I believe the same poster (@suzy king) has also been advised they can claim both the rent a room relief AND property allowance for the same property for the same tax year.
One of the conditions of rent a room relief is they can't have any income from a trade, letting or agreement, other than rent a room receipts. So if they have receipts from the same property for a tenant, FHL etc then they cannot claim rent a room relief.
I'm not hmrc but may be able to provide enough to point you in the right direction.
Are you employed or self employed? You haven't said and it could make a difference.
What was the reason you lived as a digital nomad for 3 months? What sort of work did you do from home/the hotels?
If you were travelling for personal purposes (not because it was required by your employment), then no tax relief will be allowable.
If you're an employee, the question is always going to be if the expense is necessary for you to perform your job, why isn't your employer paying it? Not an official criteria but the answer can help determine whether it's a necessary expense or a choice.