HMRC Admin 25 Response

Hi Mary 
The invoice will need to be in the name of the company, rather than the employee, to be considered as an expense incurred by the company.
Thank you. 

Hi Robert Beliaiev,
In relation to the payments made to your mother, we would refer to you BIM 47105 - Specific deductions - staffing costs - payments to dependants and close relatives' which also includes examples where payments may be deemed to be excessive in relation to services provided.
BIM47105 - Specific deductions: staffing costs: payments to dependants and close relatives
If you feel that the payments made were excessive, you may wish to make a voluntary disclosure, or where time limits allow, file an amended Company Tax Return to reflect the reduced employment expenses.
PAYE - annual payments can be made to employees, further information regarding 'Annual payroll scheme for  PAYE' can be found at - www.gov.uk/running-payroll/changing-paydays' .If you discover that you have paid an employee the wrong amount or made incorrect deductions, we would refer you to - www.gov.uk/payroll-errors/corrections-pay-or-deductions for further advice. 
Running payroll
Thank you. 
 

Hi Fatimaz,
Unless you are a UK resident or trading in the UK, you are unable to open a limited company at Companies House.
Your company should be registered in either the country you are resident or where you are trading. 
Thank you. 

 

Hi Chris,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest 
Tax on dividends
Thank you. 

Hi Tina Bishop,
Sorry,  but as we do not have your full details we can only provide a general answer.
But based on what you have  has been said, there appears to be farming trade profit of £170k in 21/22 and a loss from the same farming trade in 22/23 of £200k.
We are assuming there is no other income in either year.
Agent has made a 2 year farming profits averaging election for these years which has the effect of spreading £85k profit forward from 21/22 to 22/23 (losses are treated as nil for the purposes of calculating the averaging profits election only).
The way that the spreading works means that whilst we now have a profit of £85k chargeable to tax in 22/23, the whole amount of the farm trade loss from 22/23 of £200K can be utilised using the normal available trade loss rules:
BIM85000 - Trade losses: contents
What the agent is then asking is if they can c/b £85k loss under S64 2(b) (BIM85015) against the general income (which is the remaining £85k farming profit) of 21/22 and then set £85k against general income (which is the spread forward farming profit) of 22/23 under S64 2(a).
This would then leave £30k loss available to carry forward from 22/23 against next available same trade profits under S83.
The query is whether the losses set against 21/22 and 22/23 would be limited to £50K each year due to the loss restriction rules.
The rules for the restricted loss relief are in the Helpsheet HS204 which will be good to refer the agent to:
Limit on Income Tax reliefs (Self Assessment helpsheet HS204)
Loss relief set against general income of a year is restricted to £50k or 25% of the adjusted total income of the year if higher, however, one of the exceptions to this (section 2.3 of the helpsheet) is where the loss is set against profits of the same trade.
This is also covered at BIM85703 which says: 'The cap does not apply to trade losses so far as they are relieved against profits of the same trade.
BIM85703 - Trade losses - restriction of relief: interaction with the income tax reliefs cap
Thank you, 

 

Hi Lok Kwan,
 Sorry, we cannot advise you on whether to apply for that or not as it is up to you to determine your residence status.
If you qualify for split year then you only report any foreign income for the UK part of the year:
RDRM12000 - Residence: The SRT: Split year treatment: Contents
If you do not qualify then you will need to report all your foreign income to the UK:
Tax on foreign income 
The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies.
Thank you.  


 
 

Hi S G,s he would be shown on the deeds as part owner of the property then the transfer of equity would be seen as a sale and yes Capital G Taxains would be due on the difference on what was paid for the property to what is being paid for the transfer.
Please refer to further guidance here: 
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 

Hi Joyjit Chatterjee,
Please refer to guidance here:
Tax on foreign income for points 1 and 2.
Point 3, the article will be no4
Thank you, 
 

Hi Emma Callister,
He will need to send in a claim for overpayment relief. ensure all information below is noted.
All claims must be in writing to us at: Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom.
Please tell us they are claiming overpayment relief give full details of the claim including the amount of tax they have overpaid.
Why they have paid too much tax the tax year / accounting period if they have already appealed the calculation.
If they are claiming repayment any supporting documents showing tax paid be signed by the customer.
Even if sent by an agent confirm the details given are 'correct and complete to the best of my knowledge and belief.
Thank you. 

Hi Pippi123,
The origanal payment would be seen as a gift from your parents.
There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.  
Further guidance can be found here:
Tax on savings interest
Tax on dividends
Thank you.