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  • External examiner fees (research degree) in tax return

    I am academic staff in a UK university (University A) and last year I was invited to be external examiner in a PhD viva examination for another UK university (University B). Not sure if relevant, but I used to work for University B many years ago, and currently I work for University A only. University B paid me £175 as fees for the external examiner service. Their fees claim form says that "Research Degree Examiners may be regarded as self-employed so payment will be made gross." Based on this, I would assume that I can claim my trading income allowance, so I don't need to include the £175 fees paid by University B in my tax return. Is this assumption correct? However, I'm confused because University B has given me a P45 form that states £0 as the total pay and total taxes in this employment and has reported these figures to HMRC, so my self assessment account shows two employers in the 2021-22 tax year (University A and University B), with the correct income reported by University A and £0 reported by University B. In addition to this, University B has also given to me a payslip with the payroll number I had when I used to work for them in the past, showing the £175 that I have received from them. What should I do about this? In my draft return I have declared 2 employers this tax year and entered a £0 pay/tax for University B (based on what the P45 says), but I'm not sure if this is the right way to proceed. Thank you
  • Change of tax code after self assessment due to (non-regular) work expenses

    In the 2020-21 tax year I incurred in some work expenses because of having to work from home, which I included in my 2020-21 tax return. Immediately after submitting my tax return HMRC changed my tax code from 1257L to 1350L, increasing my personal allowance by £930, which is the same amount as my work expenses that year. I guess this change of tax code is done assuming that work expenses will be the same the next year. However, in 2021-22 my work expenses have been lower than £930. I have included the actual amount of expenses for 2021-22 in my draft return. I was expecting the final calculation to take into account the difference between my actual expenses and the tax code that has been applied, so the net difference is the amount of tax relief I would get this time. However, the calculation just deducts last year's work expenses from last year's gross salary and uses the standard 1257L tax code again, without taking into account the fact I have had a tax code of 1350L since I submitted my tax return last year. This means that I have been receiving tax relief equivalent to £930 per year since I submitted my tax return last year and, on top of that, the system is calculating an additional tax relief equal to the amount of expenses I have had this year, so I'm getting double tax relief on my work expenses. It would have been much easier if my tax code hadn't been changed, then the amount of tax relief and tax paid would have been correct every year. I'm not sure what I should do now for the 2021-22 tax return, any help would be appreciated.
  • Trade income allowance on foreign income

    I am academic staff in a UK based university as a regular employee with a work contract, paying taxes and NIC via PAYE. In addition to this, I receive some additional income from an overseas university for providing services such as research outputs, seminars to their students, etc. There is no work contract with the overseas university, just a formal collaboration agreement. According to an earlier response I received in this forum, I declare this additional income in my self assessment as 'any other income' in the 'Other UK income' section and do not include anything in the foreign income section as it is not taxed overseas (there is a double taxation agreement with the UK). I don't have any registered business and haven't registered this in any formal way, I'm just a regular UK employee with this additional income. The info I have read in HMRC pages suggests that this can be seen as miscelaneous income rather than self-employment income, and since it is above £1000 per year I am wondering if I can claim the 'trade income allowance', in other words, deduct £1000 from the amount of income that I include in my tax return. If the answer is yes, how far back in time could I go to ammend this in previous tax returns. I can see that I have the option to ammend the previous tax return (2020-21), but what about older tax returns? Thank you