My client was self employed prior to his departure to Australia, and has remained UK domiciled throughout the period of approx 18mth-2yrs working in Australia.
He returned to the UK around August 2021, and will be remaining in the UK for the foreseeable, new family on the way. His Australian employment income ceased when he left Australia.
Since returning to the UK he has work on a self employed basis in the building industry.
He earned an Australian salary through the 2020/21 tax period, and then 3 months in the 2021/22 tax period prior to returning to the UK.
The 3 month earnings in the 2021/22 period, will need to be declared as foreign income, as he is now UK resident once again, but I wasn't sure whether he had to declare the 2020/21 earnings as he was UK resident in the 2021/22 tax period (SA106 only).
Bf amounts due to members £60k
Current Year Profits £15k
Withdrawn £86k
NCA £18k
Amounts due from partners £11k
Cash £10k
Current liabilities £5k
NCL £34k
Total members interest (£11k)
Its the negative members interest that's put a spanner in the works, as I would expect this to be £nil as there Net assets are £nil, as the amounts due from members highlights the negative members interest!
Apologies, the date was 2013 not 2003, at which point the client took out a loan with its banks, interest charged to P&L etc, however, the client advised me that the loan was for working capital.
Loan value Approx £300k
Market value of building £200k when introduced into BS
Cost Approx £150k
As far as I'm aware, no disposal CGT was accounted for in tax returns etc.
The client has been in business since early 1990's, and the previous accountant added the building asset in 2003. The clients previous account retired in 2017, at which point they came across to me.
The client has now decided that they would like to consider retirement and are looking to dispose of the business, including the property, if the buyer is willing to acquire the property, however, my client is also happy to retain the building and just dispose of the business.
Current position is that no buyer has been sought, and the agent is currently looking at marketing the business for sale early 2019, and raised the question of building ownership.
I understand your frustration, however, as this is a forum, surely you enrolled to either seek/provide additional support from/to OP's, rather than the route of denigrating users for not having the wealth of knowledge displayed by yourself.
In any event, the trivial benefits scheme isn't applicable, as the OP's client is wanting to provide vouchers of £500-£750 to each employee, which far exceeds the trivial benefit value, and as such, the OP has provided a valid conclusion, that a taxable benefit is being provided, and as such would be taxable.
My answers
My client was self employed prior to his departure to Australia, and has remained UK domiciled throughout the period of approx 18mth-2yrs working in Australia.
He returned to the UK around August 2021, and will be remaining in the UK for the foreseeable, new family on the way. His Australian employment income ceased when he left Australia.
Since returning to the UK he has work on a self employed basis in the building industry.
He earned an Australian salary through the 2020/21 tax period, and then 3 months in the 2021/22 tax period prior to returning to the UK.
The 3 month earnings in the 2021/22 period, will need to be declared as foreign income, as he is now UK resident once again, but I wasn't sure whether he had to declare the 2020/21 earnings as he was UK resident in the 2021/22 tax period (SA106 only).
Thank you
Yes the TB balances.
Bf amounts due to members £60k
Current Year Profits £15k
Withdrawn £86k
NCA £18k
Amounts due from partners £11k
Cash £10k
Current liabilities £5k
NCL £34k
Total members interest (£11k)
Its the negative members interest that's put a spanner in the works, as I would expect this to be £nil as there Net assets are £nil, as the amounts due from members highlights the negative members interest!
Apologies, the date was 2013 not 2003, at which point the client took out a loan with its banks, interest charged to P&L etc, however, the client advised me that the loan was for working capital.
Loan value Approx £300k
Market value of building £200k when introduced into BS
Cost Approx £150k
As far as I'm aware, no disposal CGT was accounted for in tax returns etc.
The client has been in business since early 1990's, and the previous accountant added the building asset in 2003. The clients previous account retired in 2017, at which point they came across to me.
The client has now decided that they would like to consider retirement and are looking to dispose of the business, including the property, if the buyer is willing to acquire the property, however, my client is also happy to retain the building and just dispose of the business.
Current position is that no buyer has been sought, and the agent is currently looking at marketing the business for sale early 2019, and raised the question of building ownership.
Could do will a little more information regarding the original purchase
Hi James, thanks for the feedback, what is VT Transactions, is it similar in nature to that of Sage 50??
Many thanks
I think that the vouchers of between £500 to £750 refers to the amount that the client is wanting to give to each of their employees?
I understand your frustration, however, as this is a forum, surely you enrolled to either seek/provide additional support from/to OP's, rather than the route of denigrating users for not having the wealth of knowledge displayed by yourself.
In any event, the trivial benefits scheme isn't applicable, as the OP's client is wanting to provide vouchers of £500-£750 to each employee, which far exceeds the trivial benefit value, and as such, the OP has provided a valid conclusion, that a taxable benefit is being provided, and as such would be taxable.
Stocking loans are mainly used in the motor trade, repayments are made as and when the stock items are sold.