Thanks.
The report from the Surveyor which I sent with the CG34 was quite detailed and included this and details of quite a few comparable properties ranging in price from £165,000 to £246,000. The £246,000 flat which sold in February had 2 bedrooms (I only have 1), is in much better condition and not adjacent to the Railway. The closest to my flat, but still in better condition and not adjacent to the railway sold for £220k. The £165k flat, although larger than mine and in better condition only had a 57 year lease. (mine is 105).
You do realise that the value of a a leasehold flat drops like a rock when it goes under 80 yrs unexpired. With a 57 yr lease i would expect the value of the property to be far lower (in this case 165K) than an unexpired lease of 105 yrs which is very healthy.
i would be most grateful to see what the ft article above states in relation to what you have noted. We do not subscribe to ft unfortunately :( so I can view the article in question.
This is shocking and the summons is not commensurate to the gravity of the "crime" committed.
We have had instances in the past where clients have let a Company go (against our advise) even though they have earned monies on which CT is due. Perhaps the tax office are passing on this information to Co house where applicable and pressing their agenda that way?
It will be interesting to see how this pans out in practice going forward and importantly if it is sustained by Co House with little info to go on.
Shocking but also sensible that maybe at last some of the serious defaulters cannot get away with it.
From memory if you take out Fee protection insurance, you get free tax helpline too. I understand some these tax advise helplines are really good. Is that still correct ?
I was talking to an ex-employee of a Letting Agents and that person advised me that their ex-employer had a similar request to furnish info of Landlords but they contacted all Landlords on their books that declare their taxes and only supplied those names and omitted to supply the ones that weren't. Nothing further came out of it from HMRC as they told me. Devious, I thought!!
scary how near we are to the new tax year without adequate ans
Looking through the Test Case Generator for 2016 from HMRC (for software developers) I could not work out the correct solution. This is 'cos the TCG does not cater for start and end of self employment in the tax year 2015/16.
The sad thing is all the Agent Updates bulletins issued on this subject does dot not clarify this aspect.
I think as soon as the SPT is reached, the SA Calculation will work out the full amount of Class 2 NI of £145.60 for 52 weeks, which is not fair on the taxpayer when one considers the period of SE to be quite short and under the old rules pre 5.4.15 it would have been 3 mths Class 2 NI to pay. I see your point too.
I suppose one can always opt for Voluntary Class 2 NI and still pay at £2.80/wk to qualify for other State Benefits, if opted for a full year's Voluntary contribution. This will only apply to SE clients that earn less than £5965 profits during the year though.
Maybe others on here can throw more light on this?
I had a prospect client that came to see us recently who was in receipt of income for about 6 months as a self employed person (journalist) and 3 months of Maternity Allowance and a few months of PAYE income and we quoted £180-£200+VAT pa (we are based in Middx) & she wasn't interested. Reason? Her previous Chartered Accountant practice (3 partner practice) based in one of the coastal city was charging her £60+VAT only for the whole lot!!! I actually saw the invoice from the practice for the previous year and I was surprised to see how much others do charge.
My answers
You do realise that the value of a a leasehold flat drops like a rock when it goes under 80 yrs unexpired. With a 57 yr lease i would expect the value of the property to be far lower (in this case 165K) than an unexpired lease of 105 yrs which is very healthy.
i would be most grateful to see what the ft article above states in relation to what you have noted. We do not subscribe to ft unfortunately :( so I can view the article in question.
This is shocking and the summons is not commensurate to the gravity of the "crime" committed.
We have had instances in the past where clients have let a Company go (against our advise) even though they have earned monies on which CT is due. Perhaps the tax office are passing on this information to Co house where applicable and pressing their agenda that way?
It will be interesting to see how this pans out in practice going forward and importantly if it is sustained by Co House with little info to go on.
Shocking but also sensible that maybe at last some of the serious defaulters cannot get away with it.
From memory if you take out Fee protection insurance, you get free tax helpline too. I understand some these tax advise helplines are really good. Is that still correct ?
PM if you are interested. I am in full time practice.
Some letting Agents are being very crafty
I was talking to an ex-employee of a Letting Agents and that person advised me that their ex-employer had a similar request to furnish info of Landlords but they contacted all Landlords on their books that declare their taxes and only supplied those names and omitted to supply the ones that weren't. Nothing further came out of it from HMRC as they told me. Devious, I thought!!
scary how near we are to the new tax year without adequate ans
Looking through the Test Case Generator for 2016 from HMRC (for software developers) I could not work out the correct solution. This is 'cos the TCG does not cater for start and end of self employment in the tax year 2015/16.
The sad thing is all the Agent Updates bulletins issued on this subject does dot not clarify this aspect.
My thoughts on this very interesting qn
I think as soon as the SPT is reached, the SA Calculation will work out the full amount of Class 2 NI of £145.60 for 52 weeks, which is not fair on the taxpayer when one considers the period of SE to be quite short and under the old rules pre 5.4.15 it would have been 3 mths Class 2 NI to pay. I see your point too.
I suppose one can always opt for Voluntary Class 2 NI and still pay at £2.80/wk to qualify for other State Benefits, if opted for a full year's Voluntary contribution. This will only apply to SE clients that earn less than £5965 profits during the year though.
Maybe others on here can throw more light on this?
5 years backdated claim?
"RIFT Tax can claim up to 5 years of travelling expenses from the tax man”.
I thought you can only go back 4 years on such PAYE claims starting from 2010 onwards. OP are you sure they advertise 5 years?
Our recent experience
I had a prospect client that came to see us recently who was in receipt of income for about 6 months as a self employed person (journalist) and 3 months of Maternity Allowance and a few months of PAYE income and we quoted £180-£200+VAT pa (we are based in Middx) & she wasn't interested. Reason? Her previous Chartered Accountant practice (3 partner practice) based in one of the coastal city was charging her £60+VAT only for the whole lot!!! I actually saw the invoice from the practice for the previous year and I was surprised to see how much others do charge.