HMRC Admin 25 Response

Hi volavoka,
As you did not sell the shares immediately upon vesting, you may be liabile to pay Capital Gains Tax on the disposal of shares.
The gains will be based on the disposal value minus the acquisition cost, which would be the value of the share when your employer awarded the share to you.
Please have a look at the guidance here:
ERSM180020 - CGT Interface
In relation to capital gains.
Thank you. 

Hi AdeleW398,
As your main job will use all your tax free personal allowances (£12,570) 
The 2nd part time job will be taxed on the full amount at basic rate tax (BR)
If you live outside of Scotland the tax band will be 20%.
If you live in Scotlance the tax band will be 21%.
You can find out more here:
Tax codes
The National Insurance rates can be found here:
National Insurance rates and categories
Thank you. 

Hi Miles25,
If you have to complete a Self Assessment tax return, you would claim private pension relief on SA100, page TR4 box 1 or the online equivalent box. This will extend the amount of income taxed at 20%, reducing the amount taxed at 40% and so give tax relief.
You can have this tax relief included in your tax code, so that you receive the tax relief with each salary payment.
You still need to include this in your tax return at the box mentioned above.
To include in your tax code, you will need to write to:
H.M. Revenue and Customs Self Assessment BX9 1AS
To claim Private Residence Relief and include supporting evidence.
Your pension provider can supply details of how much you have paid in each month.
For convenience, please show in your letter, your gross annual payment figures otherwise, my colleagues will need to spend lots of time adding up the monthly payment into an annual figure, to include the tax relief in your tax code.
Thank you. 


 

Hi Andy,
You would need to regiser as self employed here:
https://www.gov.uk/set-up-self-employed (even if you are registere for self assessment).
It is up to you which way you want to be paid for your services.
The conversion and global transfer costs of converting your income to pounds sterling, is not an expense you can claim for.
Your gross turnover is the amount originally invoiced in Canadian dollars and converted using a just and reasonable exchange rate and not the pound sterling amount after the conversion costs are deducted.
The UK / Canada tax treaty can be found ahere:
CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF CANADA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS
Article 15 is suggesting that your self employed income is taxable only in the UK, but there are some circumstances where your self employed income can be taxed in Canada.
If you had to pay tax in Canada, because of the tax treaty rules, you would claim a Foreign Tax Credit in your Self Assessment Tax Return, so that you are not taxed twice and so avoid double taxation.
Thank you. 

Hi Laura Ford,
The employment history will be available online once the details are received from the PAYE sources.
Sorry if the link was not what you were looking for. 
Thank you. 

Hi bluetack333,
Yes.
If you dispose of the property, you would work out the gain which is the difference between the disposal value and and the acquisition cost, minuse expenses.
You would be able to claim private residence relief for the periods that the property was your main residence, plus and additional 9 months, over the number of months you owned the property.
This will allow you to work out how much tax relief can set against the gain.
You would pay tax on the remainder.
Have a look at HS283 here:
Private Residence Relief (Self Assessment helpsheet HS283)
There is a calculator at www.gov.uk in the capital gains section.
Any gain arising from the disposal of the property must be reported and paid withing 60 days of the completion date, otherwise, penalties and interest will be applied.
Thank you. 

Hi FP W,
You will need to convert the foreign income into pounds sterling.
As no tax is foreign deducted, you would declare this in the self employment section.
If the turnover from the UK companies and the foreing company are for the same trade, you can declare the whole turnover under the same trade.
If if is a different trade, you would need to declare a second trade on your tax return and report it there.
Thank you. 


 

Hi Ian Hardiman,
You would need to write to HMRC each year to report the interest paid to the non resident company and any tax deducted.
We would then raise a charge.
The tax on the interest is due under ITA07/S874(2).
Guidance is at SAIM9200, SAIM9170 and SAM22010 provides more information:
SAIM9170 - Deduction of tax: collection arrangements: persons other than companies: direct collection
SAIM9200 - Payment of interest overseas
SAM22010 - Assessments: non SA assessing: legislation
Thank you. 

Hi kuen0227 Chung,
HMRC will  add the overpayment to your income for the year and you’ll need to pay tax on it at your marginal rate.
(the highest rate of tax you pay on your income).
Thank you. 

 

Hi Torpi,
Yes, you can do this.
The return is checked by Student Loan Company and they would contact you if any changes are due.
Thank you.