Recent Questions by taxadvisor.uk

Hi

If someone has taken £180K in a tax free lump some from their pension, do they need to show it on their tax return and if so in which box?
Thank you

You have previously helped me with advice on holiday lets, dividends and trading stocks and shares. To summarise with position with our limited company:
• We started in residential lettings in 1983 and then sold all our properties in 2003 leaving us with a retained profit of £646899. At the end of the 2011/12 tax year we still had retained profit in the P and L account of £532688
•We then moved to holiday letting trading which ceased 2011/12 as we were not letting for sufficient weeks under the rules and reverted to residential letting
• One property was disposed of in 2012/13 and one is currently on the market leaving us with a v. small portfolio of 2 holiday lets. And we have £175,000 in cash currently gaining very little in interest from the bank. As the further property is sold we will have more cash.
• So in Jan 2013 we purchased £50k worth of shares – 10 different holdings
• In June 2013 we sold 5 holdings and bought 5 different holdings
• In August 2013 we sold all the shareholdings for £55608 – profit of £5608
We are looking at doing some more trading in stocks and shares and no desire currently to go back into the property market. We are also interested in looking at increasing dividend payments to extract cash from the business to fund retirement.

So questions for you:
• To be seen as trading in shares by HMRC do we have to notify them or do we just put a statement in the 2012/3 accounts which I am just about to complete on line? How much trading do we need to do to ensure this is clearly what we are doing?
• For 2012/3 we did not sell any shares and I understand that for the HMRC return I can reflect the value as Intangible assets at cost and show dividend income £71.66 in the P and L account.
• For the current year we have bought and sold shares and intend to do more of it once we are clear about the rules. If trading is definitely the way forward then how do I account for it in the accounts please?
• The business makes a loss on the property side (-£3946 2011/2) but we still have £532688 retained profit. We would like to take more out in dividends and for instance, my wife who is a director has not been working this year so could easily absorb £25k. However are there rules that limit the acceptable levels of dividend from the HMRC point of view?

Hi how can I register for PAYE (I am operating as a Limited Company) and what will I need to provide to my accountant so that he can handle my affairs on his database with hmrc .