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  • RE: Child Benefit - Calcutating Charge.....


    If the pension contributions are taken before tax, they should not be included in the amount on the P60.

    You would only be declaring the pension contributions if they were not deducted before tax as you would not have received tax relief on the income

    Thank you.
  • Re: Several rebates needed on PAYE 2021/22


    As none of these are Self Assessment criteria, we would not advise you to complete one of this.

    You can provide the information to our Income Tax department by telephone or in writing:

    Income Tax: general enquiries

    Thank you.
  • RE: The information you gave does not match an HMRC record


    An SA302 can be issued by our Self Assessment department, they can also advise regarding the late filing penalty.

    You can contact them by telephone or by writing to us:

    Self Assessment: general enquiries

    Thank you.
  • RE: Self employed foreign earnings


    As previously advised if you have received foreign earnings whilst UK resident then you must submit a self assessment form and complete the foreign section.

    If you pay tax in HK you may be entitled to claim foreign tax credit relief on these earnings.  If you need any further advice my suggestion would be to contact the tax office and discuss your query with a taxes adviser:

    Contact HMRC

    Thank you.
  • Re: N. Ireland & S. Ireland border


    You would determine your own tax residency by completing the online Statutory Residency Test. 
    This test is a self service and does not ask for any evidence such as a stamped passport. 

    More information on days spent in the UK is included in the following guidance :

    RDR3 Statutory Residence Test

    Thank you.
  • Re: CGT tax free allowance on holdback amount


    Capital Gains Tax is a tax on the profit arising when you sell (or ‘dispose of’) an asset that has increased in value.

    It is the gain you make that is taxed, not the amount of money you receive, therefore, the whole of the gain arising from the sale of your company shares would be taxable in 2021/22.       

    Capital Gains Tax: what you pay it on, rates and allowances

    Thank you           
  • Re: Transfer of previous earnings after becoming a tax resident


    The remittance basis is an alternative basis of taxation for a tax year for a UK resident who is not domiciled in the UK.

    Earnings and gains made prior to a tax payer being resident in the UK will not be subject to a remittance basis charge

    There is no specific guidance but the attached gives the basics:

    Residence, Domicile and Remittance Basis Manual

    Thank you.
  • Re: Using HMRC online service to file company tax return


    Purchase of stock from overseas would not be itself preclude you from using HMRC's online filing service.

    For a full list of the conditions, please see the GOV.UK website.

    You will need to ensure that you have a balanced set of account prepared in accordance with accountancy principles and adjusted for tax purposes before you can use the online filing service.

    Thank you.
  • Re: Tax return for limited company during first year of trading - p&l disclosure


    No, the accounts submitted to companies house are not as detailed as the accounts provided to HMRC.

    The accounts required by HMRC are the statutory accounts. Statutory accounts must include: 

    1. A balance sheet, which shows the value of everything the company owns, owes and is owed on the last day of the financial year,
    2. a profit and loss account which shows the company's sales, running costs and the profit or loss it has made over the financial year.
    3. notes about the accounts,
    4. a director's report (unless you are a micro-entity).   

    You will then need to make adjustments to the profit and loss account in the corporation tax computations to exclude any expenses that are not allowable and also to include and that are allowable and are not reflected in the profit and loss account. The taxable profit will not match the net profit reflected in the accounts provided to companies house, this is very common.

    Thank you.
  • Re: Is scholarship paid to employees or directors corporate tax deductible?


    As you are a director and shareholder of the company the scholarship expenditure by the company may not be allowable for CT purposes.

    Please consider the guidance provided in HMRC's Business Income Manual at BIM47080 which is available on the GOV.UK website. Please see extract below: 

    "Where on the other hand an employee or director of a company, on whom the expenditure is incurred, has a significant proprietary stake in the business or is a relative of those who do, there is obviously a much greater chance that the expenditure may have been incurred  not,or not wholly, for business purposes but the provide the employee with some personal benefit.  If that is the case, then the expenditure is not deductible - the business purpose has to be the exclusive purpose.    To take an extreme example, there could be no allowance for the educational costs of the business proprietor's son who is employed in the business during university holdays. In such cases it is often helpful to as whether the expenditure would have been incurred on an otherwise unconnected employee doing the same job".     

    If, after carefully considering the guidance in the Business Income Manual; you conclude that the expenditure has been incurred wholly AND exclusivley for the purpose of trading, then the maximum that can be paid to you is £15480 without PAYE/NIC deductions. 

    Please refer to the guidance in HMRC's Employment Income Manual at EIM06220 which includes the list of condtions for exemption from PAYE/NIC.         

    Employment Income Manual

    Finally, the salary and scolarship income would be subject to PAYE and NIC unless the scholarship expenditure has been incurred wholly and exclusively for the purpose of trading.                                                                                                                                                                   

    Thank you