FAQs - UK individuals
Are there any tax implications of making a gift?
Gifts to a spouse are exempt from capital gains tax. They are also exempt from inheritance tax unless to a non-UK domiciled spouse, in which case gifts of assets worth up to £55,000 only are tax-exempt.
Gifts to other individuals and into trusts will be chargeable for capital gains tax, although reliefs may be available to reduce or defer the gain arising. These gifts may also be potentially exempt for inheritance tax purposes although there are allowances available to reduce the value of the transfer and specific advice should be sought before making the gift.
There may also be income tax relief available for Gift Aid payments to charities.
Can I claim any deductions for work related expenses?
In general, expenses can only be deducted from your employment earnings if they are wholly, exclusively and necessarily incurred for the purpose of your employment.
Some expenses are more straight-forward than others in this regard and we can assist in reviewing the nature of the expenses and determining whether any tax relief is available.
What do I do if I am behind in my tax filing?
It is the taxpayer’s responsibility to inform HMRC if they need to complete a tax return for the year. A completed tax return is generally due by 31 January following the end of the tax year of assessment (i.e. year ended 5 April).
If you have fallen behind on your tax filing, HMRC probably are already aware of this and would have been issuing you with their tax return reminders and fixed penalty determinations. If not, you need to contact HMRC to inform them of your status as soon as you become aware. In either case, it would be advisable to contact HMRC and agree a timetable for getting your outstanding returns to them.
Interest, surcharges and possibly penalties may be applicable if there is any outstanding tax that is overdue.
Smith & Williamson can help you to bring your tax affairs up to date. Please contact us if you would like further assistance.
