Surely, the new landlord bought these items along with the property, and is therefore replacing items that he bought? (If he was advised prior to the purchase this should have been suggested to him so that an appropriate amount of the purchase price is allocated to the household items in the purchase contract.)
My understanding is that when any employee/officer is paid any form of earnings, then details of that payment must be submitted to HMRC.
So, if a business had one employee who was paid below all tax/NI thresholds for a year, a FPS is still required to be submitted to HMRC 'on or before' each payment is made.
It is the payment to an emploee that is reportable, not payment of NI/tax.
As treasurer for my local church, we changed to A&L a few years ago as previous bank was not providing the level of service that it should of. This allows dual on-line authorisation. In fact it lets you set up several online uses with different levels of access. You can also set different autorisation levels for different payment bands (i.e. one person to authorsie up to £X, two people form £X to £Y, etc). And all this for free!
Additionally, we can use the local post office for counter services.
I have been asked about a similar situation: Cricket Club member was injured during practice. Club held a fund raising day for the members benefit. Raise over £15,000. Cricket club is not a registered charity or CASC.
Are there any tax implications (1) for the club if the funds pass through it's bank account; and (2) for the member if funds are paid directly to him (rather than the club purchasing items for him)?
Assuming the current home has equity of at least £50K, then your client could borrow from the company against this property (thus releasing equity from this property to use to fund new house). As this loan is for a qualifying purpose (to fund rental property) there is no BIK charge (alternitivly pay the offical rate of interest to the company and then claim interest as an expense aganist rent).
The company will still need to pay 25% over to HMRC under s455 CTA 2010 (old s419 tax), which it will get back when the loan is repaid.
Last week I received a notice of a check into a clients 2008 tax return (under S9A). Before getting to the botom of the leter I realised it was out of time. A quick call to HMRC got the reply that where a return is submitted electronically their system can have 2 receipt dates for the return. In this case, as the return was submitted in January 2009, the second date was after 31 January, therefore extending the enquiry window. After a week of checking HMRC returned my call to confirm that they were in fact out of time to open an enquiry and have since send my client and myslef a (very short) letter of appolgy.
This is very worrying on 2 levels: (1) the fact that this error arose in the first place; and (2) the fact that the enquiry letter was sent out without any sort of checking.
But given the standard of English within the letter, perhaps I shouldn't be so surprised at this glaring error!
My answers
Surely, the new landlord bought these items along with the property, and is therefore replacing items that he bought? (If he was advised prior to the purchase this should have been suggested to him so that an appropriate amount of the purchase price is allocated to the household items in the purchase contract.)
Unfortunately this has been an issue ever since the HMRC Online Services Accounts were introduced. HMRC have never seen it as a priority to change.
Unless the rules are relaxed, I think you could fail on the 'let commercially' condition. HMRC helpsheet HS253 explains further: https://www.gov.uk/government/publications/furnished-holiday-lettings-hs...
Isn't a FPS required for any payment?
My understanding is that when any employee/officer is paid any form of earnings, then details of that payment must be submitted to HMRC.
So, if a business had one employee who was paid below all tax/NI thresholds for a year, a FPS is still required to be submitted to HMRC 'on or before' each payment is made.
It is the payment to an emploee that is reportable, not payment of NI/tax.
Alliance & Leicester (now Santander)
As treasurer for my local church, we changed to A&L a few years ago as previous bank was not providing the level of service that it should of. This allows dual on-line authorisation. In fact it lets you set up several online uses with different levels of access. You can also set different autorisation levels for different payment bands (i.e. one person to authorsie up to £X, two people form £X to £Y, etc). And all this for free!
Additionally, we can use the local post office for counter services.
Similar Situation
I have been asked about a similar situation: Cricket Club member was injured during practice. Club held a fund raising day for the members benefit. Raise over £15,000. Cricket club is not a registered charity or CASC.
Are there any tax implications (1) for the club if the funds pass through it's bank account; and (2) for the member if funds are paid directly to him (rather than the club purchasing items for him)?
Many thanks for any help.
Chris.
Borrow against the let properties
Assuming the current home has equity of at least £50K, then your client could borrow from the company against this property (thus releasing equity from this property to use to fund new house). As this loan is for a qualifying purpose (to fund rental property) there is no BIK charge (alternitivly pay the offical rate of interest to the company and then claim interest as an expense aganist rent).
The company will still need to pay 25% over to HMRC under s455 CTA 2010 (old s419 tax), which it will get back when the loan is repaid.
Watch out for HMRC 'computer glitch'
Last week I received a notice of a check into a clients 2008 tax return (under S9A). Before getting to the botom of the leter I realised it was out of time. A quick call to HMRC got the reply that where a return is submitted electronically their system can have 2 receipt dates for the return. In this case, as the return was submitted in January 2009, the second date was after 31 January, therefore extending the enquiry window. After a week of checking HMRC returned my call to confirm that they were in fact out of time to open an enquiry and have since send my client and myslef a (very short) letter of appolgy.
This is very worrying on 2 levels: (1) the fact that this error arose in the first place; and (2) the fact that the enquiry letter was sent out without any sort of checking.
But given the standard of English within the letter, perhaps I shouldn't be so surprised at this glaring error!