Tax Tips

Rent a Room Scheme

Question.   I’ve been thinking of taking in a lodger to help with my mortgage. Will I have to pay any tax on rental income received?   Answer.   Rental income is taxable, however renting out a room to a lodger may qualify for ‘Rent a Room’ relief. The Rent a Room scheme is open to owner occupiers or tenants who let out furnished accommodation to a lodger in their ...

Working in the Republic of Ireland

Question   I live in Newry where up until recently I have also been employed. I have been offered a post in Dundalk, where I intend to commute to work. Which tax authorities do I need to notify?   Answer.   Firstly, you will need to apply for a PPS number before you can work in the Republic of Ireland. To get a PPS Number, you will need to visit your ...

Auto-Enrolment

Question.   I became an employer in 2017 and currently employ 8 staff. Can you confirm what my obligations are in relation to work place pensions?   Answer.   The government’s Auto Enrolment scheme is being phased in for all employers. Every worker who meets the eligibility criteria must be enrolled into a workplace pension if they are aged 22 or over, are under State Pension age, earn more than £10,000.00 ...

New Rules on UK inheritance

Question.   I was told that under new rules there would be no UK inheritance tax due on my home when I die. Is this correct?   Answer.   It would be wrong to say that there will be no inheritance tax levied on the value of your house because that depends on the total value of all of your assets, including the house, when you die. However, you are ...

Country Money – Travel and Subsistence Allowance

Question.   I operate part of my NI construction business in in the Republic of Ireland where I employ and process southern payroll. As my employees need to travel to different construction sites, can I reimbursed their travel costs in any tax efficient manner? Answer.   An employer can pay tax-free mileage and subsistence in accordance with Civil Servants Rates published by the Revenue Commissioners to fixed based employees ...

PAYE Coding Notice

Question.   I have just started to work and have received a 2017/18 PAYE Coding notice from HM Revenue and Customs. What is this and what should I do with it?   Answer.   HM Revenue & Customs (“HMRC”) will issue a PAYE coding notice to an individual’s employer. The coding notice advises the employer of how much tax to take off the employee’s income.   The coding notice will start ...

Registering for Self Assessment

Question. I have received dividend Income in 2016-17 for shares that I had bought and the voucher advises this is information needed for completing your Tax Return. I have never completed a tax return before, why would I need to complete a tax return now and how would I register with HMRC to complete a tax return?   Answer.   There are a number of reasons why you would need ...

PAYE Late payment penalty notice

Question.   I have received late payment penalty notices from HM Revenue & Customs for late payment of PAYE for the last 2 months? I usually pay by cheque each month and the cheques were posted on or before the 19th following the month end. Why have I got a penalty and how much will I pay?   Answer.   PAYE payments paid by cheque must reach HM Revenue and Customs ...

Trade Losses & NIC

Question.   I have a small self-employment business which has made a loss for the past 2 tax years, as my only other source of income is investment income. Are my losses wasted?   Answer.   Provided your business is run on a commercial basis with an expectation of profits then your losses can be off set against other income as follows;   You can make a current year loss claim to ...

Changes to Tax Liability

Question.   I own a Company and extract a salary of £10,000 per annum and a dividend of £30,000. For 2015/16, I paid no tax on this income. I know there has been changes to how dividends are taxed. Can you explain what my tax liability will be in 2016/17 and what impact the recent budget will have on my income for the forthcoming tax year ...

One thought on “Tax Tips

  1. Pingback: Tax | Pearltrees

Comments are closed.