Brexit » Important actions you must take to prepare your business for Brexit » Go to message
The Government has said that the UK will be leaving the EU on 31 October whatever the circumstances.

Leaving the EU means there will be immediate changes to the way UK businesses trade with the EU that may impact your business. This includes:

  • UK businesses will have to apply customs, excise and VAT procedures to trade with the EU, in the same way that already applies for goods and services traded outside of the EU.

  • Trading partners in the EU will have to apply customs, excise and VAT processes to trade they carry out with you, in the same way that they do for goods and services traded from outside of the EU.

  • HMRC has helped businesses get ready for Brexit by issuing them with a UK EORI (Economic Operator Registration and Identification) number. We have written to businesses to let them know the UK EORI number they’ve been assigned. Letters to businesses containing their assigned EORI number will arrive by 3 September. You will not be able to move goods in and out of the UK without a UK EORI number.

    If you are a non-VAT registered company or a subsidiary company that trades with the EU, you’ll need to apply now for a UK EORI at get an EORI number. HMRC cannot give you this automatically.

    We strongly recommend that you now use your UK EORI to register for simplified procedures that will make it easier to trade with the EU after we leave. Go to apply for Transitional Simplified Procedures (TSP) to register.

    You can find more details about other actions you’ll need to take in our trader checklist, step-by-step guides for importers and step-by-step guides for exporters on GOV.UK.

    If you move goods between Ireland and Northern Ireland, you should also read our guidance about these movements.

    You can stay up-to-date with important new information by signing up for HMRC's Brexit alert service.
    VAT » Second hand car dealer and VAT Registration » Go to message
    Hi,

    Thanks for your question.

    This will depend on how you are acting as an agent, if you are an agent acting in your own name, then the total value of all supplies will count towards your taxable turnover.

    Please see the following guidance to decide on how you are affected by the agent rules:

    VAT guide (VAT Notice 700) - Section 22
    Income from Property » UK Armed Forces - Private Residence Relief » Go to message
    Hi,

    Thanks for your further question.

    You are correct, where you own a property that you fully intend to live in as your main residence but are inhibited in doing so due to your job role, this property can still be regarded as being your principle private residence.

    You should write to HMRC to nominate the property for this purpose, normally within 2 years of having the situation. There are certain circumstances in which the 2 year period can be extended.

    Please see this detail in our capital gains manual:

    CG64495

    and

    CG64500

    When the circumstances change and you decide that you are no longer going to move into the nominated property then it will stop being considered under the private residence rules.

    I hope this helps.
    Your taxes » cash prize » Go to message
    Hi,

    HMRC will require the full facts along with documentary evidence of the prize and the circumstances of how the money was paid as in some cases this type of income may be taxable or non-taxable depending on certain conditions.

    Therefore, I would advise you to forward a letter with copies of the paper work direct to HMRC. The address is:

    Pay As You Earn and Self Assessment
    HM Revenue and Customs
    BX9 1AS
    United Kingdom

    In the meantime please refer to the following link:

    BIM65151

    Thank you.
    Income from Property » UK Armed Forces - Private Residence Relief » Go to message
    Hi,

    Thanks for your question.

    I am sorry but we would not confirm that there will not be any Capital Gains tax to pay until the property has actually been sold and you have calculated any Private Residence and Lettings Relief due.

    Please see the following link for guidance on this:

    HS283: Private Residence Relief (2019)

    We can confirm that the status of your mortgage will not affect your ability to claim either of the reliefs that you will be entitled to.

    You can no longer claim the 10% wear and tear allowance but you can claim replacement of domestic items relief.

    Although you cannot claim the full cost of your interest charges, for 2018-19 you can only claim 50%. You can claim the other 50% as a tax adjustment at 20% and this is taken off any tax due on the rental income.

    I hope this helps.
    Making Tax Digital » MTD and Flat rate scheme on ESP rates » Go to message
    Hi,

    Thanks for your question.

    I am afraid that HMRC cannot comment on or recommend suppliers, we have a list of suppliers on our website that have confirmed they do have compatible software for Making Tax Digital.

    Find software that's compatible with Making Tax Digital for VAT
    Income from Property » AIRBNB income from Abroad » Go to message
    Hi,

    Thanks for your further question.

    Rental income received from letting a property outside the UK should be declared on a Self Assessment tax return.

    When you talk about not having to declare it if it is below a certain amount, I presume you are referring to the £1000 Property Income Allowance. If your gross rental income is less than £1000 and you are not claiming any expenses, then you do not have to declare the income.

    If your gross income is more than £1000, you would have to declare the gross income to HMRC. You would still be able to claim the £1000 property income allowance to set against the gross income and just pay tax on the difference.

    The important point to be aware of is that you are looking at your gross income to determine whether you have to declare it or not. Also, you cannot claim the property income allowance as well as expenses. You can only claim one or the other.

    Please see the following link for further guidance:

    Tax-free allowances on property and trading income

    Income from Property » Inserting Finance Costs in 2018/19 Tax Return » Go to message
    Hi,

    Thanks for your question.

    You show 50% of your loan interest in the relevant box for 'Allowable Loan Interest'. You show the other 50% in the second to last box on the expenses section, headed 'Residential Finance Costs Not Included previously'.

    This is then automatically taken off any tax due on the rental income at 20%.

    I hope this helps.
    Income from Property » VAT on fees charged by UK letting agents on UK rental property » Go to message
    Hi Paul,

    Thanks for your question.

    The rental agent is allowed to charge VAT on their fees. The rate for VAT in the UK is 20%. You can claim for the letting agent fees plus the VAT amount as an allowable expense.

    I hope this helps.
    Your taxes » cash prize » Go to message
    Hi,

    Was the achievement award/prize an employee recognition award?

    To enable us to assist you further we require the exact nature as to why you received the award/prize?

    What did you do to achieve the award/prize?

    Also was the payment received from the USA?

    Thank you.
    Making Tax Digital » Link in MTD Email Has Expired » Go to message
    Hi,

    Thanks for your question.

    This will need to be escalated to the Making Tax digital team, specifically after liaising with them as the issue does not appear to be a sign up issue but as stated refers to the verification stage of a business tax account and that email correspondence is acceptable. This may require access to the clients account to make enquiries.

    Please contact them on the details found here in the link below:

    Get help using VAT online services
    Making Tax Digital » MTD » Go to message
    Hi,

    This has now been looked in to by our Making Tax Digital team and firstly, please accept our apologies for any confusion caused by the recent email received purporting to the requirement to sign up for Making Tax Digital.

    This email was sent with the intention of encouraging those who have not yet signed up for Making Tax Digital to begin the sign-up process. However, the email addresses that the message was delivered to have also included some traders that are not required to or have already signed up for Making Tax Digital.
    Making Tax Digital » email stating I have not registered and I have. What now? » Go to message
    Hi,

    This has been looked in to by our Making Tax Digital team and firstly, please accept our apologies for any confusion caused by the recent email received purporting to the requirement to sign up for Making Tax Digital.

    This email was sent with the intention of encouraging those who have not yet signed up for Making Tax Digital to begin the sign-up process. However, the email addresses that the message was delivered to have also included some traders that are not required to or have already signed up for Making Tax Digital.
    Income from Property » AIRBNB income from Abroad » Go to message
    Hello,

    Thanks for your question.

    The A1 document is a National Insurance document and applies if you are normally self-employed in the UK and you are going to work temporarily somewhere else in the EEA. It enables HMRC to determine which member states social security legislation will apply. As you will not be working abroad, it appears that this form will not apply to you.

    For HMRC purposes in the UK, we do not require you to complete any documents other than to declare any rental income you receive from the Airbnb, as income from property, on a foreign supplementary page, SA106 when you submit your tax return.

    I am afraid you will have to approach the authorities in Poland to see if there is anything else they will need from you.
    Getting started » Made redundant but staying with company as self employed » Go to message
    Hi,

    Thanks for your question.

    To assist you further please refer to the following link to check your employment status for tax purposes.

    Check employment status for tax