New Sole Trader Accounts Questions!

[chlodah]

I’ve recently inherited a business and have to do a self assessment. This is fine, although I’m absolutely clueless about it as I’ve always been employed elsewhere! I wondered if a gift from my grandparents is classed as income and therefore liable for tax? Also compensation I received is this subject tax declaration? Thankyou

 

[Scalloway]

You don't pay tax on gifts received
You don't pay tax on compensation or damages for any wrong or injury suffered by as an individual

 

[Lisa Thomas]

Really recommend you hire an accountant as mistakes can be costly. DM me if you don't find one on here. Not sure if @Scalloway is taking on clients.

 

[WaveJumper]

Trip to an accountant forthwith

 

[MyAccountantOnline]

I’ve recently inherited a business and have to do a self assessment. This is fine, although I’m absolutely clueless about it as I’ve always been employed elsewhere! I wondered if a gift from my grandparents is classed as income and therefore liable for tax? Also compensation I received is this subject tax declaration? Thankyou

The gift from your grandparents is unlikely to be subject to Income tax but may be subject to Inheritance tax - when was the gift received, how much was it, was it a gift for any specific reason eg for a wedding etc and are your grandparents still alive?

Compensation is generally not taxed but again can you give full details on exactly what it was for, who paid it etc.

 

[Scalloway]

Not sure if @Scalloway is taking on clients.

I have been retired for six years. I still hang out here because I'm the treasurer of a couple of organisations and it helps keep my knowledge current.

 

[Lisa Thomas]

I have been retired for six years. I still hang out here because I'm the treasurer of a couple of organisations and it helps keep my knowledge current.

Worth a shot.

 

[Scalloway]

No problem.