PAYE and payroll for employers » Amended FPS to report leaving dates » Go to message
Hi Julie,

Apologies for the delay in responding to you about this, we will have some advice for you as soon as possible.
VAT » VAT Restoration after company restoration. » Go to message
Hi rooters11,

Thanks for your question. We have removed it from the Forum to protect your privacy.

We are seeking advice from our technical experts and will respond shortly via private message.

Please check your private messages by going to My Community - messages.

Expenses » Accommodation Licensed Trade - Benefit or not? » Go to message

We have a bit more information for you regarding the Limited company element of your query, including some links to relevant guidance you may find useful.

Please see this guidance on What's exempt at GOV.UK .

See also paragraph 21.3 of the 480 manual for further clarification:

Where accommodation is provided by a company for a director of the company or an associated company, the exemption provided by (a) or (b) in paragraph 21.2 above isn’t given unless the director:
(a) has no ‘material interest’ (see paragraph 1.11) in the company, and
(b) is a ‘full-time working director’ (see paragraph 1.10) or the company is non-profit making or is a charity (see paragraphs 1.14 and 1.15)

Hope this helps .
Industry specific help and support » Support for Foster Carers » Go to message

Thanks also for your feedback also on the Online Guide for Foster Carers. We'll pass this on to the team who wrote it, I'm sure they will be glad you found it useful.

Thanks again.
Income from Property » Cash Basis » Go to message
Hello, thanks for your question.

As of 2017-18, the cash basis is the default method of reporting profits or losses of a property business for most individuals with cash receipts for the tax year of £150,000 or less.

The profit or loss to be reported under the cash basis is found by calculating: The total amount of receipts that the business received during the tax year, less the total amount of expenses that the business paid during the tax year.

In simple terms you only need to show money when it comes in or goes out. There is no need to account for debtors or creditors.

If you believe it is more appropriate to continue using traditional accounting, e.g. when the income is earned and when the expenses are incurred, you must make an election on your tax return.

Please see this guidance on which explains when this is appropriate, and also the tax return notes.
Self Assessment » Reading the messages you are told about by email » Go to message
Hi there,

I'm sorry to hear you have been having trouble with messages from HMRC.

Could you let us have a little bit more detail please about the emails that tell you you can read the messages on the intranet? If you could let us know the email address they are sent from, and exactly what they say, that would be a great help. Once we have this information we should be able to help you further.

Look forward to hearing from you.
Income from Property » Purchase of Freehold Interest » Go to message

Yes you are correct. The freehold interest and legal costs incurred in acquiring the property are considered as capital expenditure when calculating any capital gain on the disposal of the property. You would include these in your acquisition costs. You can find more information in our Capital Gains manual.

Thank you for using the HMRC Online Customer Forum.

Income from Property » Claiming Mileage or Accommodation When Going to View Properties » Go to message

Thanks for your question. You cannot claim the cost of mileage or accommodation to go to view properties you may wish to purchase. If you purchase a property, please see the guidance in our Income from Property manual that explains when you can claim travelling expenses.

Hope this helps answer your query, and thank you for using the HMRC Online Customer Forum.
Income from Property » Allowable expenses for rental property - Lease Extension » Go to message
Hello, and thanks for your question.

Legal and professional fees for renewing a lease (if the lease is for less than 50 years) are deductible as expenses from rental income. But any proportion of the legal costs that relate to the payment of a premium on the renewal of a lease are not deductible. These are considered as capital expenditure and may be allowable in computing any capital gain on the disposal of the property. You can find more information in our Income from Property manual.

Hope this helps, and thank you for using the HMRC Online Customer Forum.
Expenses » Accommodation Licensed Trade - Benefit or not? » Go to message

Thanks for your question and sorry for the delay in replying.

Our Technical experts have responded to the two parts of your query as follows:

Regarding the Sole trader element – We are unsure of the question being asked here. If you are referring to an amount to disallow against a business expense due to private use, there is no set amount for this and the value will need to be worked out based on the private use.

Regarding the limited company element - There may be an exemption for company directors living above the pub as long as they meet the criteria below:

Accommodation at the place of work is exempt if:
• your employees can’t do their work properly without it, for example agricultural workers living on farms
• an employer is usually expected to provide accommodation for people doing that type of work (for example a manager living above a pub, or a vicar looking after a parish)

If you provide the accommodation to company directors, they have to be either full-time or work for a non-profit or charity organisation and hold less than 5% of the shares.

Hope this helps.
PAYE and payroll for employers » Tax Codes Updates Received Via the DPS » Go to message
Hi Chris,

Very sorry for the delay in replying to you about this.

Our Technical Advisers have said that they are not aware of any delay in coding notices being issued electronically.

They would like to look into further detail of the specific case you mentioned. They would need the contact details for the individual as well as the PAYE reference.

As this is a public forum, please don't post the information here, but if you could phone our Online Services Helpdesk with the information they will be able to look into it further for you:

Technical support with HMRC online services

Call HMRC if you’re having technical problems with HMRC online services.

Do not use this helpline for:

  • tax queries - contact the helpline that deals with your tax, Child Benefit or tax credits affairs

  • issues with VAT online services – call the VAT online services helpline

  • Telephone:
    0300 200 3600

    0300 200 3603

    Outside UK:
    +44 161 930 8445

    Opening times:
    Monday to Friday: 8am to 8pm
    Saturday: 8am to 4pm
    Sunday: 9am to 5pm

    Hope this helps and thanks for bringing this to our attention.
    Self Assessment » Company traded for four months and now dormant » Go to message
    Hello Joseph,

    We have asked our Technical Advisers, and they have said that it would be best if you could phone the Corporation Tax helpline, so you can discuss your record with an Adviser and any action needed. The helpline number is 03000 200 3410, opening times are 8am to 6pm, Monday to Friday. The best time to call is between 8am to 9am and 5pm to 6pm when phone lines may be less busy.

    Hope this helps and thanks for using the HMRC Online Customer Forum.
    VAT » VAT and MTD » Go to message
    Thank you for your feedback. We take your comments seriously, and have passed these on to teams who are working on Making Tax Digital for VAT for them to review.

    I have taken the following information from guidance available on I hope you will find it useful in response to the specific points you have raised. The full guidance is available at this link Software suppliers supporting Making Tax Digital for VAT and this link Making Tax Digital for Business - stakeholder communications pack on, or alternatively please search for Making Tax Digital for VAT.

    Regarding the point you raised around software providers, please see the following guidance available at Software suppliers supporting Making Tax Digital for VAT:

    "HMRC is working with more than 150 software suppliers who have said they’ll provide software for Making Tax Digital for VAT in time for April 2019.

    If your taxable turnover is above the VAT registration threshold you must follow the rules set out in VAT Notice 700/22 by 1 April 2019.

    More than 40 of these suppliers have said they’ll have software ready during the first phase of the pilot, in which HMRC is testing the service with small numbers of invited businesses and agents. Other software suppliers will follow. The pilot will be opened up to allow more businesses and agents to join later in 2018."

    Regarding your points around contact from HMRC about MTD and timescales, the following guidance available at Making Tax Digital for Business - stakeholder communications pack may help:

    "Section 3. The Background to Making Tax Digital
    Increasingly, businesses and agents see the benefits of digitisation. Millions of businesses are already banking, paying bills and interacting with their customers or suppliers online, and many are already using accounting software.

    HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world and MTD is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
    • more effective
    • more efficient
    • easier for taxpayers to get their tax right

    It is anticipated that the move to digital integration will eliminate many of the existing paper-based processes, allowing businesses and their agents to devote more time and attention to maximising business opportunities, encouraging growth and fostering good financial planning.

    We know that the majority of customers want to get their tax right but the latest tax gap figures (2016/17) show too many find this hard, with avoidable mistakes costing the Exchequer over £9 billion a year. The improved accuracy digital records provide, along with the help built into many software products and the fact that information is sent directly to HMRC from the digital records avoiding transposition errors, will reduce the amount of tax lost to these avoidable errors.

    We have consulted with stakeholders throughout the development of MTD, both formally and informally. Having listened to concerns about the pace of change, particularly for small businesses, the government announced in July last year that the pace of mandation would be slowed. VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) are mandated to keep digital VAT records and send returns using MTD-compatible software from 1 April 2019.

    The primary legislation for MTD relating to VAT and Income Tax is contained in the Finance (No.2) Act 2017, providing certainty about the broad framework in which MTDwill operate, with secondary legislation for VAT laid in February 2018, coming into force from April 2019.

    The MTD timetable
    MTD for Income Tax is available now on a voluntary basis for the smallest businesses and landlords, some of which are likely to also be eligible to take part in the private VATpilot.

    We are starting small and expanding the services as we test them with businesses and agents. As we expand the pilots we will invite businesses with more complex affairs to join, with additional functionality being rolled out for testing in the coming months.

    March 2018: Public MTD pilot for Income Tax launched

    April 2018: Private MTD pilot for VAT launched

    Later in 2018: Public VAT pilot launched

    April 2019: From 1 April 2019 all VAT registered businesses with a taxable turnover above the VAT threshold are required to keep digital records and send VAT returns digitally to HMRC using MTD-compatible software.

    Currently over half of businesses with turnover above the VAT threshold use software for tax purposes, but no taxes other than VAT will be mandated before 2020 at the earliest. This will ensure that there is time to test the system fully and for digital record-keeping to become more widespread amongst businesses.

    Frequently asked question 12.19
    Many businesses are already submitting information digitally- what’s in it for them?

    The MTD programme is much broader than just keeping records digitally and updating HMRC electronically from those records.
    It will bring with it a whole new way of interacting with government and MTD provides the necessary technological first step to achieve this.

    If you are already recording your business transactions digitally using MTD-compatible software you will now be able to send information to HMRC at the click of a button, rather than logging on to HMRC’s portal and typing in data to submit returns as a separate activity.

    Software will help you to stay on top of your record keeping, allowing you or your agent, and those who represent them, to better understand how your business is is performing.

    You can view an estimate of the tax you might owe at the end of your accounting year, based on the information you have provided so far in your business tax account as well as through your software.

    You can also choose to send an update to HMRC more often, for example, if you want to see a more up-to-date estimate of the tax you might owe and you can pay your bill as you go, if it makes it easier for you to manage your budget."
    PAYE and payroll for employers » Onboarding Pension Payrolls » Go to message
    Hi Chris,

    Our technical experts have advised that if you wish to change a payroll ID you should ensure you include in your FPS submission
    • The old payroll ID
    • The new payroll ID
    • That you check the “Payroll indicator changed” box

    If you have already submitted an FPS using a different payroll ID within the new software and not supplied the old Payroll ID along with the "Payroll ID Changed" indicator this may have resulted in duplicate employments being created for the employees.

    In this case you would need to send the FPS again and check the “Payroll indicator changed” box, which is often found in the admin tool – your software provider will be able to advise.

    There is an issue of duplicate employment records being created that we are aware of - HMRC does take steps to correct records where we identify duplicate employments have been created in error through regular checks and this should rectify itself in due course. As this is an issue with the content of the submission and not a technical issue with the submission itself, if you have any concerns about this you should contact our Employer Helpline and discuss this further with them.

    Hope this helps.
    VAT » VAT under proposed MTD arrangements » Go to message

    Apologies for the delay in replying.

    We have spoken to our Technical experts, and they have advised you will need to speak to your software provider to establish if your software will be compatible. Only VAT registered businesses that are above the registration threshold will be mandated to sign up for MTD, so if the value of your taxable turnover is below £85,000 you will not have to sign up.

    Hope this helps, and thanks for using the HMRC Online Customer Forum.