Fixing a property return anomaly
Where a disposal of residential property results in a tax bill, it has to be reported to HMRC within 60 days on a property disposal return (PDR). However, some individuals missed this requirement and have been unable to do so retrospectively because a self-assessment return has been filed in the meantime. What’s going on and what should you do in this situation?
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EVs and the tax-free mileage allowance
You’re a director and regularly use your electric vehicle (EV) for business journeys. Your company provides a workplace charger which is free for all staff to use. Does the origin of the electricity impact your claim for tax-free mileage?
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HMRC loses employment status case involving football referees
HMRC has lost another employment status case, this time involving football referees engaged by Professional Game Match Officials Ltd (PGMOL). The tribunal rejected HMRC’s argument that the referees should be treated as employees for tax purposes. Why does the decision matter?
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Investing: loans vs shares
You have the opportunity to invest in a promising start-up company. You can either purchase shares or lend it the money. What are the potential tax consequences you need to factor in when making your decision?
UK residents have to file a property disposal return (PDR) where a disposal of UK-sited residential property leads to a tax bill, i.e. where the gain is not covered by private residence relief etc. The PDR must be filed within 60 days of completion, and a payment on account of the tax must be made at the same time.
A problem has come to light where a number of taxpayers should have filed a PDR but did not do so. The gains were then reported on the self-assessment tax return. The problem is that an electronic PDR cannot be filed once a self-assessment return is filed. There is a misconception that filing a tax return displaces the requirement to file a PDR. In fact, this is only the case where a tax return is filed before the 60-day deadline for the PDR passes. In practice, this will only be possible for disposals where the date of exchange is close to the end of a tax year.
HMRC has now confirmed that any outstanding PDRs should be filed using a paper return. You should contact HMRC to request this, or your accountant/tax advisor can do this if they hold a valid 64/8 for you.
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