There have been a couple of interesting decisions in the VAT world which we have summarised for you. We've also produced a new guide on how to decide whether a transaction is a single supply or multiple supplies bundled up together. This can affect both the VAT treatment of the transaction and input tax recovery. As the rules have built up over time from case law the situation (as so often with VAT) is never clear cut.
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Nichola Ross Martin FCA Tax Director
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
Royal Assent delayed till after summer recess
Finance Bill 2016 will not receive Royal Assent until after the summer recess, with the remaining stages of the bill being considered in September.
Common Reporting Standard
The 30 April 2017 deadline for advisers to notify their clients about offshore disclosures, settlement opportunities and potential penalties will be extended: new deadline tba.
Pensions: protecting lifetime allowance
HMRC's online system for applications to protect the lifetime allowance is now up and running. Anyone who made a temporary application in April - July now has to make a full online application.
Case Update
CGT: lost deposit on property
The Upper Tribunal decision in Hardy v HMRC confirms that no allowable CGT loss where a property deposit is forfeited.
VAT: ESC can't be applied retrospectively
In ELS Group Limited v HMRC [2016] EWCA Civ 663 the Court of Appeal found that a VAT Extra Statutory Concession (ESC) relating to supplies of services by employment bureaux could not be applied retrospectively.
Apportion input VAT on overheads
In Vehicle Control Services Limited v HMRC [2016] UKUT 0316 (TCC) the Upper Tribunal (UT) has held that input VAT on overheads has to be apportioned where a business makes both taxable and outside of scope supplies.
Practical Tax Guides & Updates
Audit Thresholds
NEW: A handy summary of audit thresholds and exemptions for stand alone entities and groups.
Buy to let: SDLT on partnership incorporation
NEW: a guide to the potential SDLT relief available when incorporating a property business partnership.
Single or multiple supply?
NEW: what to look at when considering whether a transaction is a single composite supply or multiple supplies for VAT purposes.
Penalties (errors in returns and documents): subscriber version
UPDATED: New case Paul Ronald Steady v HMRC on suspension of penalties added.
Restricting mortgage interest relief (subscriber guide)
UPDATED: New example added showing carry forward of unused finance costs.
How to appeal a tax penalty (subscriber version)
UPDATED: New case A Stewart Martin v HMRC on late appeal where HMRC wrote to the wrong agent added.
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
Tax planning for directors
An index of some of our favourite tax guides, toolkits & checklists for directors
Directors: tax planning tool kit for 2016/17
A rolling planner looking at a broad range of director tax issues.
Tax efficient extraction of profits: toolkit
A toolkit designed to help a company and its owner decide how company profits are to be extracted
Missed last time's update?
Nichola's SME Tax Update 22 July
Features:
- Daily penalties
- Disguised remuneration transitional relief
- Compliance deadlines for companies and individuals
- Goodwill & Tax: changes under the new GAAP - FRS 102
- New Treasury staff
- EIS and SEIS cases
- Partner Payment Notices and LLPs
- Loss streaming for corporation tax
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