HMRC - update

[Chatterbox Childcare]

After the previous thread questioning Capital Gains/Mortgage Interest and variable allowances for electricity/gas and rates I have spoken to Glynn Evans in the Manchester office of the HMRC (0845 9000 444) and this was the advice given:

Electricty/Gas/Rates

Due to the job that we do the allowances for this are fixed (as shown on the HMRC website for Childminders) and if you claim any different and are inspected, the HMRC inspector will disallow anything outside of this

Mortgage Interest

Yes you can claim mortgage interest BUT if you do you will be classed as a business and therefore liable to business rates (when I looked into this with my council last year it was £250.00 per square metre per year)

Capital Gains

If you change from a residential home to a business by claiming Mortgage Interest then you will be liable to capital gains as you are then classed as a business

In his words "don't open this can of worms"

After I explained why I was asking the questions (I did quote straight from the words that Chani had written) he said "this is what I am telling you is right".

Obviously everyone can make up their own mind on this and that this information helps but if you are in doubt or require more clarification please ring the number above and ask to speak to Technical

[peanuts]

thank you for this information debbie.

[Mookins]

thank you Debbie for taking the time to ring for the info, maybe best we stick to HMRC rules, me thinks it could be more hassle than its worth if we dont:(
cxan understand from a certain point of view why it is what it is, just a shame that renters can claim but mortgages cant

xxx

[clio0602]

Thanks for that. I was getting totally confused. I'll be sticking to the guidelines!! xx

[aly]

Thanks for that. I was getting totally confused. I'll be sticking to the guidelines!! xx
me too.

:thumbsup:

[Pipsqueak]

thank you Debbie:thumbsup:
being such small business's I know NCMA and HMRC worked hard to ensure that we have been treated fairly.
Its a-ok if you know your way round the system - like an accountant would but for the rest of us - yes I agree it would be a can of worms and putting ourselves on the line.

[RedDragon]

Thanks Debbie,


with you helping me follow the rules I sleep soundly at night.

xxxxx

[green puppy]

Thank you Debbie!:)

[chani]

Thanks Debbie,

I still disagree with HMRC on this, but, if it is challenged by HMRC (which it generally won't be) it may be more hassle than it is worth it fight them.

[Alibali]

Thanks Debbie.

[sarah707]

Thank you for all your hard work Debbie! :D

[linzi133]

thanks!:) ! ! ! !

[miffy]

Thanks Debbie :thumbsup:

Miffy xx

[charlie potato]

What Debbie was told is what we were told on our ICP training by a lady from HMRC. There is more a likelihood of being checked now i think with the government we now have. Its just not worth it. xx