We're back! We have been away upgrading the website to a new and improved platform. This time we have a bundle of news (freeview) and lots of updates to the subscription (paid) content.
The government is consulting on imposing a CGT charge on non-residents, although according to the news today we already have the start of "overheating" in the residential property market. That problem is surely not going to get better now that pensioners can already cash in small pensions of up to £30,000 and from next year, may cash in their entire pot.
Quite an interesting VAT case where it was claimed by HMRC that it has an "accelerated payment" solution which a taxpayer may use if he or she pays by direct debit but is unable to file their return on time. I can't find anything by that name online, and it does not come up in any search on HMRC site. In fact, I tried to pretend to be the taxpayer in the case to see if I could work out what I was meant to do. I found that there was very little help. I guess that you phone HMRC and then make payment using fast payments online banking. I would also guess that most taxpayer assume like the taxpayer in the reported case (see below) that HMRC takes payment in the normal way. Bit of a nasty trap.
On a brighter note we have been updating many of our subscriber guides and this week we have the new 2014/15 Directors' tax planning toolkit.
Follow the links below for summaries and briefings.
Best wishes
Nichola Ross Martin FCA Tax Director
Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients
News and freeview
New 'portlet' for Employment Related Securities service
HMRC has a created a new online "portlet" which from 6 April 2014 will allow employers to file their Employment Related Securities online. Importantly, employers are also required to register existing approved and unapproved share schemes.
Pensions: new measures Budget 2014
A summary
CGT on non-residents: consultation
The government is consulting on imposing a capital gains tax (CGT) charge made on gains made by non-residents disposing of UK residential property
Gift Aid News
The CIOT alerts donors to the possible negative effect of the increase in the personal allowance; an unexpected income tax liability.
MP's shocked over HMRC's abuse of powers MPs have been shocked to learn that officials at HMRC sanctioned the use of terrorism powers in order to track down Dave Hartnett’s whistleblower. Worryingly HMRC's head fails to assure MPs that HMRC will not misuse these powers again.
Case round-up
VAT
VAT: late payment by DD not a reasonable excuse?
In Gillens Limited v HMRC [2014] TC 03406 a company was late in making its VAT payment having failed to allow time for a payment to clear. It did not know that HMRC provides an "accelerated payment solution" in these circumstances - we can't find that on HMRC's site either!
CGT
Entrepreneurs' relief and employment status
In Susan Corbett v HMRC [2014] TC 03435, a wife, who had apparently resigned from her husband’s business was still treated as an employee for the purposes of Capital Gains Tax (CGT) relief.
Painting is plant for capital gains tax
In HMRC v The Executors of Lord Howard of Henderskelfe A3/2013/1568) the Court of Appeal has confirmed that a valuable painting was plant and therefore a wasting asset so that its sale proceeds were exempt from capital gains tax. This might also be an important result for capital allowances.
Enquiries and assessments
Sch 36 information notice and redacted information
Taxpayer asked to provide addresses on grounds of confidentiality but failed to avoid a penalty for non-disclosure because he did not explain why this was necessary at the outset.
Giving evidence: discovery assessments
In Brimheath Developments Limited & Michael Victor Burgess v HMRC [2013] TC 03438 the taxpayers failed to discharge the required burden of proof in connection with discovery assessments to demonstrate that they were unfair and were not based on inferences from the available evidence.
Tax appeal: HMRC has “no reasonable prospect of success”
In Roderick Thomas & Stuart Thomas v HMRC [2014] TC 03412 the taxpayers attempted to prevent HMRC from proceeding in tax litigation on the grounds that it had “no reasonable prospect of success”.
Professional negligence
Mehjoo: accountant not negligent, after all
In Hossein Mehjoo v Harben Barker [2014] EWCA Civ 358 the Court of Appeal held that an accountant was not negligent for failing to advise his non-dom client on the use of a tax planning scheme involving Bearer Warrant Shares.
Goodwill hunting
Goodwill: court finding challenges HMRC's view
Sofra Bakery: goodwill retained by owner on incorporation
Subscribers: new guides and updates (paid content)
Directors' tax planning toolkit 2014/15
NEW: our rolling planner for this year
Offshore Employment Intermediaries
NEW: introducing the tax and NICs rules apply from 6 April 2014 which are designed to tackle tax avoidance when UK companies engage UK workers via offshore arrangements.
CGT: different ways of taxing UK property
NEW: at a glance guide
Penalties: VAT
NEW: at a glance guide
Top Tips for Partnerships
Partnerships with mixed membership: excess profit allocation rule
Planning between spouses unaffected.
Running a LLP in tandem with a company
UPDATE: this also provides a handy summary of the new LLP rules
Salaried members: when is a partner taxed as an employee?
A new three step test determines whether a LLP member is "salaried member" for tax purposes
Editor's choice
What is the optimal monthly or weekly salary that can be paid by an employer without incurring a liability for the employer or employee for National Insurance (NICs)? What about the £2,000 NICs alllowance? What about annual payroll for RTI?
The guide explores the tax-planning points and pitfalls of using dividends to create a tax-efficient pay package.
RTI Annual Schemes
UPDATE: don' forget to register at the start of the new tax year.
The General Anti-Abuse Rule: agent briefing (subscriber view)
NEW: this briefing note looks at the key features of the General Anti-Abuse Rule (GAAR) contained within the Finance Act 2013, what areas of tax it covers and what you need to know about the provisions it contains when considering tax planning.
Top Tips for directors
Retirement: a purchase of own shares
Index
Converting part of a home into an office
How to create a tax-efficient home office.
Employee Shareholder Status - tax & planning
Introducing the new measures introducing a new category of employee share owner are interesting for all sizes of companies. Our guide explains all.
Disincorporation relief
A summary of the new relief. You may also sign up for our new Masterclass.
ABC or alphabet shares: directors & employees
UPDATE: essential reading for directors.
Essential basics
Will I pay less tax if I trade via an LLP?
Despite recent changes?
Will I save more tax if I trade through a company?
It depends on whether you have a choice about salary/benefits and dividends
Purchase (repurchase) of own shares
Step-by-step guide to ensure Companies Act and tax compliance is met to allow a repayment to be treated as capital in the hands of the outgoing shareholder.
Working from home (directors)
UPDATE: the same rules apply to home working directors as other employees. However, a directors is more likely to be able to charge rent and there may be some additional issues and complications by virtue of their office.
Can I charge my company rent for use of my home?
- Recharging the company, on the same basis as a conventional home working employee for a proportion of your bills and running costs. This is explained in Working from home (directors) or
- Formalising a licence agreement with your company in order to allow it to occupy part of your property. It then pays you rent and service charges and you then claim all your expenses under self-assessment...More
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