A landlord owns 3 commercial properties but only manage to rent out 2 of them. If the rateable value of that unoccupied property is below £12,000 and it remained empty over 3 months. Can the landlord claim small business rate relief in this case ?
Thank you very much HMRC Admin 8
I understand opt to tax is essential before we can reclaim any VAT.
Thank you Jason for your helpful explanation and citation.
If my company acquire a commercial property (assume not qualify for TOGC) at a cost of £100,000+20% VAT and then lease to a VAT registered tenant at £1,000+20% VAT per month. Keep it simple by assuming a lump sum expenditure for the frist quarter of operation £2,000+20% VAT
Property Rental Income - Output VAT £600
Property Purchase -- Input VAT £20,000
Expenditure - Input VAT £400
Can we recover the Input VAT balance of £19,800 after the first quarter of operation from HMRC by submitting a normal VAT return ?
I have some questions about Cash ISA:
1. If I put £20,000 in a Two Year Fixed Rate Cash ISA account on 30-Mar-2022 (the two years term is fixed by the bank). Does that means I have already used up the £20,000 quota for both 2021/22 and 2022/23 tax years ? Or just 2021/22 ?
2. Assume I keep that account to the end of the period until 29-Mar-2024, I can just cacel that Cash ISA account and take out all the deposit and interest tax free ?
@sportyfae, I have located the relevant section from the tax manual. It explained the reason behind why contributions paid by employer not qualify for tax relief and this is the ultimate answer that I need. Thank you very much,
Sections 188(3)(b) and 201 Finance Act 2004
Contributions paid by a member’s employer do not qualify for tax relief for the member.
No liability to income tax arises to an individual member in respect of earnings where the individual’s employer makes contributions into a registered pension scheme.
I am indeed quite confused because I could not find clear rules & examples in HMRC website or other places which describes tax relief calculation for my case.
Refer to the 3rd point mentioned in HMRC website, if "someone else pays in to your pension" can cause oneself to claim tax relief. Then I think "employer pays in to my pension" is the same situation isnt it ?
Claiming tax relief yourself
In some cases, you need to claim tax relief on pension contributions yourself. You’ll need to make a claim if:
- you pay Income Tax at a rate above 20% and your pension provider claims the first 20% for you (relief at source)
- your pension scheme is not set up for automatic tax relief
- someone else pays into your pension
Do I need to submit 3 self assessments (according to the tax year with unused pension allowance) seperately or just making one submission with the total value in the current year ? If this is the case that means HMRC will automatically apply the unused pension allowance from the earliest to most recent year for me ?
Thank you for confirming my understanding.
If employer make direct payment to my SIPP provider for additional pension contribution, I can only claim tax relief by submitting self assessment ? (SIPP provider told me that they will not handle tax relief submission for employer contribution.)
Can you please advise which section I need to fill in ? I suppose it is related to Page TR4 of SA100 but dont know which box is the right one(s). I consider them not suitable because:
Box 1 -- pension provider expressed that they will not claim tax relief on my behalf
Box 2 -- this is not about annuity
Box 3 -- not my employer's scheme, it was paid to my own SIPP
Box 4 -- this is not an overseas pension scheme
The only left out is Box 1.1 , it is a one-off contribution for my case but this option didnt describe clearly if pension provider will claim tax relief or not.
In additiaon, if £80K addtional pension contribution is made in Mar-2023, shall I submit three self-assessments like below.
2020/21 -- submission deadline had passed, will this cause any problem like penalty due to late submission ?
2021/22 -- submission deadline had passed, will this cause any problem like penalty due to late submission ?
2022/23 -- due on Oct-2023 (paper form)
I have similar question regarding unused pension contribution. This is my scenario:
Annual salary £30,000 (the same through out the years)
Unused Pension 2022/23 - £10,000
Unused Pension 2021/22 - £10,000
Is £80,000 the maximum amount my employer can put into my SIPP pension pot ?
£60,000 -- 2023/24
£10,000 -- 2022/23
£10,000 -- 2021/22
Based on your above reply on tax relief, that mean these portion will not have tax relief. Am I right ?
£30,000 -- 2023/24
£10,000 -- 2022/23
£10,000 -- 2021/22