No a discretionary trust can not only have one beneficiary - there should at the very least be another long-stop beneficiary e.g. a charity - otherwise what happens if the sole beneficiary goes under a bus?
Also the rule about perpetuities does not allow non-distribution of income, except during an accumulation period. Accumulated income is capital/relevant property for IHT; undistributed income is not.
As already stated, proper legal advice is required - an accountancy forum can advise on the tax or accounting implications or consequences but should not provide legal advice.
buying things (goods or services) at a charitable auction does not entitle either the charity or the winning bidder to claim gift aid - they have received something in exchange for their bid.
If they will not be able to use whatever they won then why can't they return it to the charity for resale to someone who can use it, with a request that their bid be returned to them and the charitable trust makes a donation or grant (rather than a bid) to the charity of the same amount instead?
yes, if your charity derives more than 50% of its incoming resources from investment income that is managed on a discretionary basis by professionals, then it is a passive financial entity. Whilst charities were specifically exempted from FATCA they are not for CRS and there is no deminimus limit for reporting. Who the account holders are depends on whether the charity is a ltd company or a trust? If a trust then those being given grant are the account holders and if they happen to be in a another country that is within CRS then a report must be filed by 31 May 2017 (for the 2016 calendar year) through the HMRC FATCA/CRS (automatic exchange) portal
The net Estate is after liabilities and the form does not ask for the gross estate but rather the amount of the then prevailing nil rate band and the (net) Estate that did not pass to the surviving spouse in order to calculate what percentage of the currently prevailing nil rate band can now be used - admittedly it is a rather cumbersome calculation but then isn't everything to do with IHT calculation?
you have not given us enough information to help you, except to say that you need to tick off the net pay by employee against the take home pay by employee to see where the difference(s) arises
Debits = gross wages, ers nic, ers pension conts & reimbused business expenses
Credits = everything else such as net pay, PAYE, pension creditor, staff deductions & advances etc.
If your difference is not immediately recognisable to you then one of the other numbers or your formulae are wrong
It depends on his other income and whether or not more than 80% of the overall tax for 15/16 was deducted at source or collected through PAYE? If less than 80% then payments on account (PoAs) will be due as the balance of tax is more than 1,000.
Presumably, if your software is correct, it is more than 80% and no PoAs are due then you should go back to the agents dedicated line and argue the toss. Alternatively your software is wrong and PoAs are due and these are not usually collected through PAYE.
You could always consider claiming to reduce the PoAs but in the event that they turn out to have been payable then interest will be due on them from the due dates.
My answers
No a discretionary trust can not only have one beneficiary - there should at the very least be another long-stop beneficiary e.g. a charity - otherwise what happens if the sole beneficiary goes under a bus?
Also the rule about perpetuities does not allow non-distribution of income, except during an accumulation period. Accumulated income is capital/relevant property for IHT; undistributed income is not.
As already stated, proper legal advice is required - an accountancy forum can advise on the tax or accounting implications or consequences but should not provide legal advice.
noted and agreed but it from the OP it doesn't sound like they 'did it right' on several levels...
buying things (goods or services) at a charitable auction does not entitle either the charity or the winning bidder to claim gift aid - they have received something in exchange for their bid.
If they will not be able to use whatever they won then why can't they return it to the charity for resale to someone who can use it, with a request that their bid be returned to them and the charitable trust makes a donation or grant (rather than a bid) to the charity of the same amount instead?
yes, if your charity derives more than 50% of its incoming resources from investment income that is managed on a discretionary basis by professionals, then it is a passive financial entity. Whilst charities were specifically exempted from FATCA they are not for CRS and there is no deminimus limit for reporting. Who the account holders are depends on whether the charity is a ltd company or a trust? If a trust then those being given grant are the account holders and if they happen to be in a another country that is within CRS then a report must be filed by 31 May 2017 (for the 2016 calendar year) through the HMRC FATCA/CRS (automatic exchange) portal
https://www.gov.uk/government/news/changes-to-tax-relief-for-residential...
The net Estate is after liabilities and the form does not ask for the gross estate but rather the amount of the then prevailing nil rate band and the (net) Estate that did not pass to the surviving spouse in order to calculate what percentage of the currently prevailing nil rate band can now be used - admittedly it is a rather cumbersome calculation but then isn't everything to do with IHT calculation?
Client should submit a 2015/16 self-assessment tax return ASAP with the trust dividend income in the appropriate boxes
you have not given us enough information to help you, except to say that you need to tick off the net pay by employee against the take home pay by employee to see where the difference(s) arises
Debits = gross wages, ers nic, ers pension conts & reimbused business expenses
Credits = everything else such as net pay, PAYE, pension creditor, staff deductions & advances etc.
If your difference is not immediately recognisable to you then one of the other numbers or your formulae are wrong
It depends on his other income and whether or not more than 80% of the overall tax for 15/16 was deducted at source or collected through PAYE? If less than 80% then payments on account (PoAs) will be due as the balance of tax is more than 1,000.
Presumably, if your software is correct, it is more than 80% and no PoAs are due then you should go back to the agents dedicated line and argue the toss. Alternatively your software is wrong and PoAs are due and these are not usually collected through PAYE.
You could always consider claiming to reduce the PoAs but in the event that they turn out to have been payable then interest will be due on them from the due dates.