Self assessment question
Discussion
Previously I have put all of my rental income through myself from a perspective of a tax return (never made a profit though) however as my wife is a home maker bringing up the children she earns £0 so I'd like to put the rental income through her rather than myself.
Now how do I go about this? Is it simply not include it on my return and commence new returns for my wife? 2013/14 and onwards will be making profits so Id rather not pay 40-45% tax instead 0-20%.
Thoughts.
Now how do I go about this? Is it simply not include it on my return and commence new returns for my wife? 2013/14 and onwards will be making profits so Id rather not pay 40-45% tax instead 0-20%.
Thoughts.
Currently it is your property (100%) and therefore your income. It would be like you having a bank account in your own name and then saying because you are married it should be split 50/50.
You can alter the beneficial ownership of the income (so it differs to the legal ownership) but this has to be formally documented. In practice beneficial ownership of the income and legal ownership of the property usually go hand in hand.
You can alter the beneficial ownership of the income (so it differs to the legal ownership) but this has to be formally documented. In practice beneficial ownership of the income and legal ownership of the property usually go hand in hand.
Welshbeef said:
Now how do I go about this? Is it simply not include it on my return and commence new returns for my wife? 2013/14 and onwards will be making profits so Id rather not pay 40-45% tax instead 0-20%.
Thoughts.
My only thought is that the HMRC will not like this. Its in your name, your investment.Thoughts.
LC23 said:
Currently it is your property (100%) and therefore your income. It would be like you having a bank account in your own name and then saying because you are married it should be split 50/50.
You can alter the beneficial ownership of the income (so it differs to the legal ownership) but this has to be formally documented. In practice beneficial ownership of the income and legal ownership of the property usually go hand in hand.
But surely if say someone in that situation divorced everything would be 50:50 at best for the male. You can alter the beneficial ownership of the income (so it differs to the legal ownership) but this has to be formally documented. In practice beneficial ownership of the income and legal ownership of the property usually go hand in hand.
Welshbeef said:
Married so everything is joint (but title deeds mine).
As others have suggested, it doesn't work like this for income tax purposes. It's when you get divorced that everything is considered to be joint
The Tories have announced that from April 2015 there is a £1k married tax allowance, so that £1k of personal allowance can be shifted between partners. There would be no point in doing this if you could use both allowances interchangeably already, which you can't.
Edited by 335d on Saturday 10th January 11:00
All done and submitted - leaving the payment until a few days before end of Jan. only a small undercharge for me.
I've a strong fear that 2014/15 I'm hugely under paid in tax to date. So to mitigate this in going to calculate exactly what the charge should be v what has been recovered to date then potentially elect to make a significant payment into my pension fund before end of March.
Way I'm looking at it the effective cost of doing one v the other will not be that significant hence I'd rather chunk it into pension and therefore back to my pocket in the very long term.
Is there any other way / ideas ?
I've a strong fear that 2014/15 I'm hugely under paid in tax to date. So to mitigate this in going to calculate exactly what the charge should be v what has been recovered to date then potentially elect to make a significant payment into my pension fund before end of March.
Way I'm looking at it the effective cost of doing one v the other will not be that significant hence I'd rather chunk it into pension and therefore back to my pocket in the very long term.
Is there any other way / ideas ?
Eric Mc said:
Not altogether sure what you are saying. Your "English" is rather unique?
Any chance of explaining yourself a bit better?
I should be on 40% possibly 45% depending on bonus year - however an error has meant I've been on BR all year - clearly that's somewhat less as such I have the choice of paying the full tax OR dumping a fair chunk into pension as the net effect now would be maybe £20k-30k (as a guess) tax due come 31/1/16 or dump that into a pension. Any chance of explaining yourself a bit better?
Welshbeef said:
Eric Mc said:
Not altogether sure what you are saying. Your "English" is rather unique?
Any chance of explaining yourself a bit better?
I should be on 40% possibly 45% depending on bonus year - however an error has meant I've been on BR all year - clearly that's somewhat less as such I have the choice of paying the full tax OR dumping a fair chunk into pension as the net effect now would be maybe £20k-30k (as a guess) tax due come 31/1/16 or dump that into a pension. Any chance of explaining yourself a bit better?
GT03ROB said:
Eric Mc said:
Not altogether sure what you are saying. Your "English" is rather unique?
Any chance of explaining yourself a bit better?
It's Sunday...see his post from last Sunday...Welsh has probably done a couple of bottles of red by now! Any chance of explaining yourself a bit better?
Eric Mc said:
Welshbeef said:
Eric Mc said:
Not altogether sure what you are saying. Your "English" is rather unique?
Any chance of explaining yourself a bit better?
I should be on 40% possibly 45% depending on bonus year - however an error has meant I've been on BR all year - clearly that's somewhat less as such I have the choice of paying the full tax OR dumping a fair chunk into pension as the net effect now would be maybe £20k-30k (as a guess) tax due come 31/1/16 or dump that into a pension. Any chance of explaining yourself a bit better?
Countdown said:
Your job title says Finance Director? Are you a qualified accountant?
There are limits on how much you can increase your pension contributions by.
Not all Accountants are vat and tax experts instead many are purely commercially focused. There are limits on how much you can increase your pension contributions by.
FYI I'm FCMA I would have to do a conversion course to go into practice so my knowledge of personnel tax is from general knowledge and interest in it.
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