Free Question and Answer Page
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Some previously asked Questions
QUESTION : Can I claim tax relief on my trade union subscription?
ANSWER : Normally no. However, where the subscription includes pension and/or death benefits some tax relief may be available. Refer to your trade union for details.
QUESTION : I have insufficient income to utilise the married couples allowance for 1995/96 and I understand that it is too late to elect for my wife to be able to claim the full amount. Is there any way to avoid wasting the allowance?
ANSWER : The joint election for the wife to be able to claim the full amount of the allowance has to be made on form 18 before the start of the tax year (or if notice to make the election has been given to the Inspector before the start of the tax year then within 30 days of the start of the tax year). The election stays in force for each subsequent tax year until cancelled. HOWEVER, an alternative election can be made to transfer the excess married couples allowance to your wife. You should ask your tax office to supply the appropriate form. For 1995/96 you have until 5 April 2002 to make the election, which becomes irrevocable.
QUESTION : I will be taking in a lodger at £250 per month in 97/98. I am told that this is within the "rent a room" tax free limit. If I provide laundry and cooking services will this affect the tax relief ?
ANSWER : No tax is payable on renting rooms in a private residence where the gross rents do not exceed £4,250 in the 97/98 tax year. Providing meals, cleaning and laundry services are included in the relief. If these are provided at extra cost then that cost should be included in the gross rents. If gross rents exceed the limit, the taxpayer can elect to pay tax on the excess or pay tax on the full receipts less expenses.
QUESTION : I am self-employed and have not yet completed a tax return. I have not made a profit, so do I need to inform the tax office.
ANSWER : Yes. It is important to register with your tax office, even if you trade at a loss. In addition, you will need to register with your local national insurance office, although you will probably fall under the small earnings exemption. Anyway, you really need professional help to complete the formalities and ensure that your accounts and tax affairs are optimised. If you have made a loss there could be several ways that this could be utilised beneficially