VAT » VAT rates if no invoice » Go to message
Hi

Without a receipt or VAT Invoice you can’t be sure if there is a VAT element in these payments, so you should record them as a ‘NO VAT’ transaction in your software. We can’t provide support or guidance on use of software packages so you would need to speak to Xero to check if there is another, more appropriate code to use.
Your taxes » NI 4 » Go to message
Hi

You would not be exempt from Class 4 unless you meet any of the categories listed on the return, however as you are also under PAYE after you have submitted your return the calculation on your Class 4 will be adjusted where relevant to take into account Class 1 paid as an employee.
Industry specific help and support » Support for Foster Carers » Go to message
Hi

Generally foster carers would not require to form a partnership. Where both of you were actually acting as the foster carers then yes you would need to split the income and the relief. If only one of you actually acted as the main carer, then that person would declare the full income and claim the full relief.
Your taxes » Tax year » Go to message
Hi

Your partner may have created what is called an overlap amount. I would suggest that your partner gets in touch with HMRC to discuss this.
Income from Property » Tax relief on interest for rental propert » Go to message
Hi

Thanks for your question.

A UK resident company, or property business subject to corporation tax, will not be affected by the changes and will continue to receive relief in the usual way, see links for reference.

working-out-your-rental-income#tax-relief-change

PIM2052

Income from Property » Expenses after tenant leaves but before property sold » Go to message
Hi Johnwa

Thank you for the question, If this was the only rental property then the property business is treated as ceased when the last tenant left, or the decision not to re-let the property was made. Any expenses incurred after that date are not allowable. If you have more than one property the property business is ongoing and the expenses are allowable. The improvements made can be set against your capital gains calculation.

PIM2510


Income from Property » Loss brought forward used against this year's profits » Go to message
Hi

Thanks for your question.

On the tax return you can only insert losses up to the equivalent amount of any profit for the year. For example, if you had a loss of £5000 to carry forward, and a profit of £3000 you could only put £3000 in the losses brought forward box, enough to cover the profit. As you have a loss in 2018-19 you will not be able to put any figure in the losses brought forward box. Do not enter 0.00, leave the box blank. You need to keep a record of the losses brought forward, you can enter the information in the 'any other information for property income' box. Please note that although the amount of mortgage interest you can claim as a deduction has reduced, and with having a loss you will not claim the relief, the unrelieved balance of the mortgage interest can be carried forward to use in future. Please contact us if you need more guidance on how to do this.
Making Tax Digital » Client unable to sign up for MTD and VAT returns unavailable on online account » Go to message
Hi

HMRC cannot comment on compatible software provider’s capabilities and when they will be available.

You would need to contact QuickBooks directly to discuss.
Self Assessment » Interest from UK bank accounts » Go to message
Hi

Yes, include all of your interest on your 2018/19 tax return. Our system will include the £1000 tax free band in the tax calculation at the end of the tax return. This will ensure that you pay the correct tax. I hope this helps
Income from Property » Repairs and maintenance » Go to message
Hi Barb

Thanks for your question.

If the maintenance is on a new property that you have not previously rented out the expenses are all capital expenditure. If the property is an ongoing rental the maintenance is allowable as revenue expenditure under repairs and maintenance, providing they are like for like rather than improvements. Any white goods are replacement of domestic items, up to the equivalent value of a like for like replacement. If the expenditure has put your rental accounts into a loss you record the loss on your return to carry forward to offset against future profits from the rental business. It is not necessary to explain the work, please keep details in case they are requested at a future date. Please see the attached guidance.

PIM2020

Income Tax when you let property: work out your rental income

HMRC Press office

I hope this helps
Making Tax Digital » MTD VAT free software » Go to message
Hi,

The list of suppliers with software in development is not definitive although it is updated regularly. If you have found a supplier not listed on our site, and their software works, then you can use it.

Please note however that HMRC does not recommend or endorse any one product or software provider and is not responsible for any problems you have with software.

We do have a Software Developer Team, who provide technical information and support to software developers during the development and testing of their products relating to HMRC services only.

I hope this helps
Income from Property » Ending renting property out » Go to message
Hi,

Thanks for your question.

Property business losses cannot be carried back against profits for an earlier year, or set against general income except in exceptional circumstances, detailed in PIM4220. They can only be carried forward against profits from the same property business.

Please see the attached guidance regarding losses.

PIM 4205

I hope this helps.

Expenses » End of Year Expenses and Benefits Forms 2018-2019 » Go to message
Hi Claire

There are two ways of doing this. One way would be online through your Government gateway account and the other is to print hard copies to complete and send in to us. If you are sending them into us you would not print the copies from the government gateway. You would find copies of a "clean" p11d by going into the www.gov.uk website.
PAYE and payroll for employers » Temporary Accommodation on P11D » Go to message
Hi Drew1511
This may not come under normal expenses and benefits. If this is a single Director company and they are providing their personal services this may come under IR35. Due to this more questions would need to be asked and I suggest you call the employers helpline on 0300 200 3200
Useful Information » Replacing heating in rental property » Go to message
Hi

Thank you for your question. I agree with your interpretation that replacing storage heaters is an allowable expense