Common Q&A's part2

Investment Property
Q: I have just bought a house with my girlfriend, so at the moment, I own my ‘bachelor pad’ and our new house. We plan to keep my old house and rent it out. I know there won’t be any tax to pay on the sale of our new house, because I don’t think you pay tax on your home. But can you tell me what tax implications there’ll be on my old house please?
A: Firstly, you’re right- you don’t tend to pay tax on your home due to Private Residence Relief (PRR).
If you’re going to rent your bachelor pad out, then you will pay tax on the rent received, but you could claim relief for any mortgage interest and relevant expenses etc.
When you come to sell it, you’ll have to figure out how long it was your home and how long it was let for. The period that you occupied it should be covered by PRR. But the period when it was let, may instead be covered by Letting Relief- which at best, can mean you won’t have any Capital Gains tax to pay at all!
It would be advisable to write to HM Revenue & Customs (HMRC) and let them know that your circumstances have changed and that you wish to nominate your new house as your home.
There are criteria to qualify for PRR and Letting Relief, so please make sure you seek professional advice - ideally from me !, before making any decisions.


Employing an apprentice
Q: I’ve been thinking about taking on my grandson in the business. He’s only just left high school, but I’d like him to get involved in the business as I’d like him to look after the business after I’m gone. I’ve always taken on adults, so can you tell me what the main things I’d need to consider would be please?
A: Young workers have a lower limit to how many hours they can work (working time directive), when during the day then can actually work and more breaks are required during their shifts. And normal holiday and health and safety rules apply to young workers.
On the plus side, the National Minimum Wage that applies to young workers is lower than that for adults.
Depending on the level of their income and when they’re working, young employees can be subject to normal tax and National Insurance deductions. If they earn above £102 per week, then they’ll need to be added to the payroll, but they can earn up to £136 per week before you need to start calculating any deductions.
You may also be interested in the National Apprenticeship Service. Through this scheme, young people obtain on-the-job training from the employer and qualifications, and the employer gets some or all of the training costs subsidised by the government.