Hello
The weather seems to be warming up at last, but that doesn't mean things are cooling down in the world of tax.
There has been a flurry of decisions from the First Tier Tribunal (FTT) and the higher courts this week as judges look to clear their desks ahead of the summer recess. Of particular interest is the Court of Appeal's decision in Donaldson: it turns out that HMRC have been correctly imposing daily penalties all along. Originally FTT found against HMRC and this led many taxpayers to appealed their own penalties. The Upper tribunal (UT) then found in favour of HMRC and the taxpayer appealed. This decision is most probably the final outcome and we do not expect a further appeal.
We understand that the deadline to qualify for transitional relief on disguised remuneration schemes has been extended: good news if you have clients who have used these schemes but not yet settled with HMRC.
Now that the dust appears to have temporarily settled in Westminster we have drawn up a quick guide to who's who in the Treasury. If work is getting you down then a look at their many and varied responsibilities may make you feel a little better!
Finally, don't forget that the second income tax payment on account is due on 31 July. To help you keep track of the various compliance obligations over the year we've pulled together a handy guide to what is due when for companies and individuals, together with the penalties that can apply.
Scroll down for new guides and updates, including a new guide to answer your FAQs on FRS and goodwill.
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)
HMRC begin issuing 2015/16 tax calculations
HMRC have begun issuing their end of year tax reconciliations for 2015/16, and are expected to have sent around 6 million of these forms P800 to taxpayers by the end of November.
Disguised remuneration: transitional relief extended
The deadline for settling with HMRC in order to get transitional relief on investment returns to be extended to 31 March 2017.
New Treasury ministers
A look at who the current Treasury ministers are following the post-referendum reshuffle.
Deadlines: compliance (individuals & companies)
NEW: A handy summary of compliance deadlines for individuals and companies and the penalties payable if they are missed.
Case Update: Higher Courts
Daily penalties: HMRC victory in Court of Appeal
In Donaldson v HMRC [2016] EWCA Civ 761 the Court of Appeal confirmed that HMRC had correctly imposed daily late filing penalties under Schedule 55 FA 2009. There are a number of cases which were put on hold awaiting this decision.
Losses do have to be streamed on transfer of trade
In Leekes Limited v HMRC [2016] UKUT 0320 the Upper Tribunal (UT) held that losses do have to be streamed following a transfer of trade from one company to another.
EIS: share rights mean no relief
In Flix Innovations Limited v HMRC the Upper Tribunal (UT) upheld the previous FTT decision that EIS relief was not available as ordinary shares carried a preferential right to assets on a winding up.
Partner Payment Notices can be issued to LLPs
In Sword Services Limited & Others v HMRC the High Court held that PPNs can be issued to LLPs. The PPNs issued were also valid as the relevant partners were aware of enquiries being opened even though official notices were not sent to them.
Case Update: First Tier Tribunal
Property disposal: does a change in plans matter?
In R Stayton v HMRC the First Tier Tribunal (FTT) found that a property developer’s wife who sold a house she never lived in was not trading.
SEIS: wrong form means no relief
In GDR Food Technology Limited v HMRC investors were denied SEIS relief after the company's advisors submitted an EIS compliance statement to HMRC instead of an SEIS one.
Overpaid PAYE can't be refunded to employee
In Robert Ward v HMRC the FTT held that excess PAYE deductions should be repaid to the employer and not the employee.
Practical Tax Guides & Updates
Investors' Relief
UPDATED: A new section added on company reconstructions and takeovers.
Discovery assessment and time limits
UPDATED: New cases added.
Goodwill & Tax: changes under the new GAAP - FRS 102
NEW: A summary of the transition from FRS 10 and FRSSE 2008 to FRS 102 and FRSSE 2015 to include examples and a review of the impact of the changes.
CPD 'for lunch'
Bite-sized chunks of structured CPD
Trivial benefits
NEW: a run through of the new statutory exemption together with worked examples.
Savings income 2016/17
NEW: our webcast takes you through the new allowances with worked examples
VAT essentials for start-ups
NEW: this is part of the talk from Accountex. Don't ignore VAT when you start in business, you may regret it in later years.
Editor's choice
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.
Incorporation of a buy-to-let business
This guide looks at why you might wish to incorporate and then examines cross-tax as the different factors to consider when incorporating a property rental business.
Adviser's tax penalty planner
A guide to the main direct tax penalty regimes: what penalty will apply, when, where and why.
How to appeal a tax penalty (freeview)
Grounds for appeal and how the process works.
Missed last time's update?
Nichola's SME Tax Update 15 July
Features:
- Transactions in securities
- Disputed partnership profit shares
- Profits from trading in and developing UK land.
- When can a company be reinstated?
- Incorporation of a buy to let business
- National living wage / minimum wage checks
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