1) If I purchase a new phone and computer specifically for my freelance (self-employment) purpose, can I claim them as expenses in my self-assessment tax returns?
2) If I do claim them as expenses, I will lose the £1000 allowance for self-employment income?
I may be taking a side hustle (self-employed). Before any projects is commissioned, all freelancers will need to go through a few training sessions with the client to learn to use their proprietary tools. The client will pay for the time spent by freelancers on the training but participation in training does not guarantee jobs. This means that as a freelancer, I may go through the training with the client but never get any projects (i.e., no income from doing projects for them).
Do I need to declare the money received from taking part in the training (again, client is paying for freelancers' time spent on taking prat in the training, not for doing actual projects for them)?
Registration for self-assessment
I filled in the form to register myself for self-assessment on 27 June 2023. However, I received HMRC's email on 5 July 2023, telling me that HMRC was not able to register me due to incomplete information (see below email).
The questions in the form (see below) were left blank because none of them applied to me. Was this the reason why HMRC could not register me for self-assessment?
In addition, after submitting the above-mentioned form to the HMRC to register for self-assessment, I received an advice from a chartered accountant, who also provides services to help people file self-assessment tax returns, that I would not need to do self-assessment for Year 2022/2023.
So this means that I can disregard the above HMRC's email which asked me to provide more information in order to register me for self-assessment, given that I would not need to do self-assessment for Year 2022/2023 anyway?
*** HMRC's email begins here ***
Thank you for your form to register for Self Assessment.
Unfortunately we are unable to process your registration form for Self Assessment as the form is incomplete. When you re-submit your registration form please ensure all fields are completed and all information supplied is correct.
You may wish to check the criteria for Self Assessment which can be found on our website at: https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return. Or alternatively this link may also be of assistance: https://www.gov.uk/check-if-you-need-a-tax-return
*** HMRC's email ends here ***
*** The questions that were left blank (not applicable to me) in the application to register for self-assessment begin here ***
I am a company director (company
directors with income taxed at source
and no further tax to pay do not need to
complete a tax return)
Date untaxed income received from
I'm getting income from land and
property in UK
Date income from land and property
I'm getting taxable foreign income of
£300 or more
Date started receiving taxable foreign
I receive annual income from a trust or
Date annual income from
My annual income will exceed £100,000
Date my annual income will exceed
I've untaxed income which cannot be
coded in PAYE
Date untaxed income received from:
The above Child Benefit statement
applies to me
Date Child Benefit payments started:
I have Capital Gains to pay
Tax year end date where Capital Gains
Any other reason?
What date does this reason apply from:
*** Questions end here ***
I have arrived in the UK via the British National (Overseas) visa scheme for Hong Kong people. All Hong Kong employees have to contribute to the Mandatory Provident Funds (Deleted by Admin) which is Hong Kong's version of pension. Since the Hong Kong government does not allow people to get early paid-out from Mandatory Provident Funds using the reason of moving abroad via the British National (Overseas) visa channel, the pension funds is not paid out to me now (and will likely only be paid out to me when I reach 65 years old). Therefore, I only have the pension and there is, technically, no income yet (until I'm 65 or until the Hong Kong government allows us to get early paid-out). Do I need to declare this in any section of the self-assessment tax returns and if so, which section?
I may take on some side hustles, in addition to my full-time job. I'd ike to know as a freelancer, besides doing self-assessment and file tax returns for any income earned through self-employment, do I also need to set up VAT and file VAT return?
I have not had any existing or potential freelance jobs yet but I'd like to set myself up now to prepare for it when and if I do have freelance jobs in the future.
I may take on some side hustles (in addition to my full-time job which will be PAYE). Can I start registering myself now as self-employed even if I don't have any freelance jobs now yet and may not have at the end of the tax year?
If so, do I then report no profit (and no cost) in the self-assessment tax returns form?
I recently had to travel out of town (two train rides each way lasting ~1.5 hours each) for a job interview. It was the last round when the employer invited me to meet with the other members of the team.
Immediately after this, a conditional offer was made (conditional on checking references). An official final offer was made recently (after completing reference checks).
The above expenses (mainly Oyster PAYGs and one return train tickets for one leg of the journey each way) were not paid for by the then potential and now future employer.
Can I claim relief on that either via my PAYE or self-assessment?
My apologies, there is a typo in 2) above...I meant to say, "since it was my sole and main residence since 2002/2003, then I am exempt from capital gain tax".
And I have met all the conditions for the full Private Residence Relief as stated here: https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2023
May I confirm that your answers above - that I do not need to register for self-assessment nor complete a 2022/2023 self-assessment tax return still hold?
My Question #1 is actually: "But given that this is my sole and only residence--not only in Hong Kong but also anywhere in the world, my understanding is that I am exempt from paying capital gain tax? Am I correct?"
According to your guidance for "HS283 Private Residence Relief (2023)", the disposal of main/sole residence is exempt from capital gains tax if all of the conditions are met and I have met all the conditions:
HS283 Private Residence Relief (2023): https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2023
//However, you’ll be entitled to full relief where all the following conditions are met:
the dwelling house has been your only or main residence throughout your period of ownership
you have not been absent, other than for an allowed period of absence or because you have been living in job-related accommodation, during your period of ownership
the garden or grounds including the buildings on them are not greater than the permitted area
no part of your home has been used exclusively for business purposes during your period of ownership. Working from home using a room that is also used for non-business purposes will not prevent entitlement to full relief
Therefore, whether I claim split-year or not, I do not need to pay capital gains tax because:
1) Private Residence Relief for main/sole residence that has met all the conditions listed in HS283 Private Residence Relief (2023);
2) My final move to the UK is after I have disposed of the property (30 November 2022) in mid-December 2022.
May I confirm that we do not need to complete the Capital Gains Tax summary section in the tax returns for the disposal of overseas residential property if we have met all the conditions, as stated in HMRC's website?
"If you meet all of these conditions, you will not have to pay CGT on the disposal. You will not need to complete the Capital Gains Tax summary pages of your tax return if you’ve made no other disposals or chargeable gains and do not want to make any capital gains claims or elections."
Also you mentioned in the above about completing the "Foreign" section on capital gains (SA106). However, on page 1 of the SA106 notes, it says:
"Do not use the ‘Foreign’ pages for:
• capital gains from the disposal of overseas assets – use the ‘Capital Gains Tax summary’ pages"
Can you please confirm? Thanks!