Hello
This week we have an Employer Special, mixed in with updates for Directors and other useful guides.
We feature a summary of HMRC's Employer Bulletin and look at what the Administrative Burdens Advisory Board thinks of HMRC's plans for digital reporting.
For subscribers we have guides on the new travel rules for personal service companies (PSCs), managed service companies (MSCs) and agency workers. We have updated our IR35 guide, the deemed payment being due now, if not paid already.
For directors and advisers we have expanded our guidance on the amended anti-avoidance rules for Transactions in Securities (TIS). I know that people's eyes tend to glaze over at the mention of "TIS" yet advisers need to get up to speed with these provisions. They are now even more widely drawn and they potentially affect any transaction involving a company's shares, including a purchase of own shares, a capital reduction and disposal to a third party.
Finally, I don't know what happened to the "plain English" campaign or the noble intentions of the tax re-write project, however some of the latest Finance Bill is almost totally unintelligible. By way of a small example, the new travel rules are contained in Clause 14. These rules are going to affect, who? I would guess close on 1/2 a million individuals. If you want to shock a client ask him to work out what subsection 5 means. They say "ignorance of the law is no excuse" however I guarantee that 99.99% of PSC owners would struggle with the double negatives thrown up by the sub-section and the government's explanation of the wording does anything but explain.
Scroll down for latest updates and the Editor's choice. Our close company profit extraction toolkit is out next week.
See you soon
Nichola Ross Martin FCA Tax Director
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
ABAB disappointed by quarterly digital reporting
The Administrative Burdens Advisory Board (ABAB) has submitted its third Annual Report to David Gauke MP, Financial Secretary to Treasury. The news of quarterly digital reporting took it by surprise and it is disappointed at the extra burdens imposed on the self employed.
HMRC Employer Bulletin
HMRC have published their Employer Bulletin for April 2016. We summarised key content for you, with links to our detailed guidance on the topics covered.
The curious drafting of FB 2016
Would a PSC owner, or "the man on the Clapham omnibus" be able understand this legislation?
FREEView
Dividend Tax 2015/16
Worked examples show how dividends are taxed from 6 April 2016.
Practical tax guides & updates
Travel: employer's guide
UPDATE: new guidance on the 6 April 2016 restriction on tax relief for the cost of travel for personal service company owners and agency workers.
IR35
Updated: new examples, new travel rules, RTI reporting concession. Deemed payment for 2015/16 due this month.
Agency Workers: employment intermediaries rules
UPDATED: A guide for employment intermediaries with links to HMRC's latest guidance on supervision, direction and control.
Employers: what's on 6 April 2016
A summary of the latest developments affecting employers.
Editor's choice
Directors: tax planning toolkit 2016/17
Do you pay a salary or dividend, what combination, what about the Employers' NICs allowance, the savings allowance and dividend allowance. What now for company purchase of own shares and company sales? This guide summarises the key issues for you.
Transactions in Securities
UPDATED: a repayment of share capital and share premium and a distribution on winding up are now subject to the anti-avoidance "transactions in securities" provisions. The changes follow the increase in dividend tax.
Dividends: formalities for companies
When is a dividend treated as paid? Do you vote a final or an interim dividend. Your FAQs answered.
Missed last time's update?
Nichola's SME Tax Update 8 April 2016
Features:
- Entrepreneurs' Relief: what's new
- Directors overdrawn loans: bed and breakfasting
- New penalties for offshore offences
- Dividend tax: trusts
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