Hello
Just a short update this week, and we feature an item that deserves special attention. Accountants: are you MSC Providers?
The Managed Service Company anti-avoidance rules contain an exemption for accounting services. Many MSCs have therefore become accountants. Conversely, in the rush to "add value", accountants are offering more and more pre-packed services, and it is evident that many modern practices do not always fall into the description of a traditional accountancy firm. Aside from invoicing for your clients and offering various packages to create wealth (I think 'tax schemes'...), some practices are virtually running their clients' business administration. Judging by some accountancy websites there is a risk that what many firms are offering may make them an MSC Provider.
Why does this matter? Well, if you are a MSC Provider and you have failed to operate PAYE, you client's liability may transfer to you. One hopes that HMRC will apply the MSC legislation sensibly as the digital age progresses, however software allows us to do more and more for our clients and we all want to do more. We already take over bank accounts and we can process payments as well receipts. I think it is time to update the MSC rules to reflect the digital age otherwise expect a messy case or two before the tribunals.
Also in this week's case reports a SEIS claim fails.The trouble with SEIS is that the rules are fiendishly complicated and it really pays to obtain a second opinion if you decide to DIY.
Scroll down for more news and updates,
Back 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)
Tax experts urge people to use their P60s to reclaim tax
The Low Incomes Tax Reform Group (LITRG) is urging people to claim back tax deducted from savings income in past years now that they have received their P60s.
Accountants: are you an MSC provider?
Following the decision in Christiauyi Limited and Others, the first case to consider the MSC rules, we review the possible implications for accountants who offer additional services to their clients.
HMRC open disclosure opportunities June 2016
A summary of HMRC's voluntary disclosure campaigns including details of those which are still available for taxpayers to use.
Input VAT: importance of a valid invoice
In Gradon Construction Limited v HMRC [2016] TC04935 input tax credits were refused as invoices were not valid for VAT and there was insufficient additional supporting evidence.
Clerical error leads to loss of SEIS income tax relief
In X-Wind Power Limited v HMRC [2016] investors in the company lost out on tax reliefs after the company submitted an EIS compliance statement to HMRC instead of the intended SEIS compliance statement.
MSC rules finally considered by the courts
In Christianuyi Limited & Others v HMRC [2016] a Managed Service Company (MSC) Provider was found to be ‘involved’ with the taxpayers' personal service companies and so the MSC rules applied.
Practical Tax Guides & Updates
Managed Service Companies (MSCs)
NEW: Our guide to MSCs detailing the impact and scope of the MSC regime, including details of the accountant exemption and examples of practices that may fall foul of the regime.
Non-resident landlord scheme (subscribers)
NEW: Our guide to the NRL scheme with details of when it applies, what the tenants' obligations are, and how to calculated the tax deduction.
Non-resident companies: permanent establishment
NEW: Our at a glance guide to the meaning permanent establishment, fixed places of business and dependent agents.
Employment Related Securities: designing a share scheme
This is a guide explains the tax consequences when a company gives shares or share options to an employee or a director and will assist you in designing share schemes. It examines the differences between EMI, ESS and unapproved schemes: ideal for creating reward structures for smaller companies.
Editor's choice
Which relief: IR, EIS, SEIS or EMI?
What is the difference between Enterpreneurs' Relief and Investors' Relief? How do they compare to investments in Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS)?
Finance Bill 2016: tax update and rolling planner
Keep up to date with all developments and announcements for the 2016/17 tax year and beyond with our rolling planner.
Land & Property: an Adviser's Tax Update May 2016
A summary of all the latest news and updates from all areas of property taxation with links to our detailed guidance on each topic.
Capital Taxes round-up May 2016
NEW: A summary of recent capital taxes announcements, developments and cases.
Missed last time's update?
Nichola's SME Tax Update 3 June 2016
Features:
- Directors' loans: new UK GAAP
- Land: future consideration
- Disguised remuneration
- HMRC consultations: SSE and IR35
- Summary of reliefs: IR, ER, EIS or SEIS
Come and join our Cloud
Subscribe (and UNLOCK the whole site) A single user annual subscription is £349 (+ VAT).
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 2,500 actively maintained tax guides, briefings, toolkits and checklists.
- Want to know more? Commission your own articles and checklists.
- Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
- Nichola’s regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
- You can also commission guides and checklists for your own practice, post comments and upload your own articles.
- Access to the Virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.
