Hello,
Employers may appreciate changes as to how advance payments on salaries and wages will be treated from 6 April 2024 under Real-Time Information Reporting (RTI). New rules simplify payroll reporting.
We have been spending the week updating and expanding our Spring Budget 2024 coverage and updating tax guides, many of which we are featuring this week. There may be more updates, as ‘Tax Administration and Maintenance Day’ (TAMD) is being held on 18th April.
We anticipate that the government will use TAMD to publish responses and outcomes of the various consultations not mentioned in the Spring Budget. We are keen to hear the outcome of the payroll Umbrella company compliance consultation. If you are advising a business owner on succession planning, you may be interested to see whether there will be any modification to the rules for Employee Ownership Trusts (EOTs). Perhaps we'll also learn whether HMRC’s change of view on proprietor’s training costs (as noted last week) will result in any change to legislation or whether this will operate as a concession.
In our review of cases this week, we have a failed claim under the COVID-19 Self-Employment Income Support Scheme (SEISS) and a failed attempt to hide details of an offshore company’s ownership. In the time it took that appeal to be heard, the legislation creating the Register of Overseas Entities (the ROE) was introduced thus forcing the company to disclose its beneficial ownership.
In my Editor's choice this week I have picked some useful guides for directors and company owners. If you have been viewing our site for some time and not committing to subscribing then why not? Come and join us! Contact us for a free trial.
Back soon
Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News (Freeview)
Tax Administration and Maintenance Day
What was left out of the budget? The government will provide updates on and publish the details of further tax measures on 18 April 2024 during 'Tax Administration and Maintenance Day'. It assures us that 'None of these announcements... have an impact on the government’s finances at this stage.'
Spring Budget 2024: At a glance
The Chancellor used the 2024 Spring Budget to announce some wide-ranging reforms including a 2% reduction in the rate of NICs, the abolition of both MDR and the Furnished Holiday Lettings regime and an increase in the VAT registration threshold.
UK ISA consultation
HM Treasury has opened a consultation seeking views on how to design and implement a UK-focused ISA.
Change to reporting of salary advances
The reporting requirements for employers providing salary advances to employees will change from 6 April 2024.
Cryptoassets: views sought on new domestic reporting
A new consultation considers how the UK will implement the OECD Cryptoasset Reporting Framework and amendments to the Common Reporting Standard. It seeks views on extension to domestic reporting.
Raising Standards in the Tax Market: Tax Registration
HMRC's new consultation on raising standards in the tax advice market and strengthening the regulatory framework, focuses on automating tax registration for agents. It also outlines proposals for strengthening the regulations, its administration and enforcement. The new rules will affect 85,000 tax advice firms.
Tax Cases (Freeview)
COVID SEISS Claim Rejected
A claim under the Self-Employment Income Support Scheme (SEISS) was denied by the First Tier Tribunal (FTT). Despite receiving invitations to apply for SEISS from HMRC, the taxpayer was never entitled to claim under the scheme.
Not fishing: information was reasonably required
In a case with a twist, HMRC used their Schedule 36 Information Powers to request the relevant data of an opaque offshore entity. This sort of request should become less frequent since the UK introduced a Register of Overseas Entities.
February's Case Round-up
Our round-up returns with our pick of useful cases for accountants and advisors including a £6m unfair dismissal payment found taxable, a military defence fails HCBIC attack and 'clever' schemes to avoid tax on properties fail and fail again.
Editor's Choice
A tax planning index: directors (our top picks)
FREEVIEW: Editor's choice: some of our favourite tax guides, toolkits & checklists for directors.
Succession or Management Buyout? (subscribers)
UPDATE: a handy summary of tried and tested routes in passing on the company
Guides & Updates (subscription content)
Self-Employed
Checklist: Year-end Accounts & Tax (self-employed)
This is a checklist to assist you in preparing accounts and completing the Self-Employed section of a Self Assessment tax return and highlighting key areas of discussion with your sole trader clients.
Farming: Tax Overview
What is farming? What are the tax consequences and tax considerations of farming? What are the features of agricultural tenancies? What expenses can farmers claim for tax purposes? Are there special tax and accounting rules for farmers? What are the VAT rules for farmers?
Partnerships
Tax Planning for the 2023/24 year-end: Business Owners
A checklist of key deadlines and topical issues to consider for SMEs and their owners. What tax returns and claims are due before the end of the tax year? What are my tax filing requirements?
Directors & Companies
Year-end tax planning & compliance review
A year-end tax planning and compliance review checklist for a company and its owners.
How to gift your shares to the family
How can you gift your private company shares to members of your own family? What are the tax implications? What reliefs apply?
Employers
Construction Industry Scheme (CIS)
UPDATE: What's New: A payment from a landlord to a tenant to complete construction work on the property occupied by the tenant is not a contract payment, and is outside the scope of the CIS. New CIS gross status compliance measures extend to direct and indirect compliance. Correct any errors now!
Private Client & Estate Planning
High-Income Child Benefit Tax Charge
UPDATE: How will Spring Budget 2024 affect your bill for the High-Income Child Benefit Charge? What is it? Can you appeal against an assessment? Are there any useful cases from the tax tribunals?
Tax Planning for the 2023/24 year-end: Private Clients
UPDATE: This is our 2023-24 year-end and new tax year checklist and toolkit for private clients. It can be used in conjunction with our checklists for directors, employers and self-employed individuals.
Land & Property
Business Rates: What's New?
UPDATE: Business rates continue to evolve. There are new rules for the Empty Property Relief 'reset' period; abuse of the system is so bad that a General Anti-Abuse Rule (GAAR) is being developed. Rogue agents often tie businesses into expensive and onerous contracts.
Capital Allowances
What expenditure qualifies for plant & machinery allowances?
What is plant and machinery? What expenditure qualifies as plant and machinery? What is treated as part of a building?
Overseas & Residence
Non-resident trusts
UPDATE: When is a trust non-resident? What are the UK tax implications of a non-resident trust? What are the UK tax implications for any beneficiaries? What are the UK administrative requirements for a non-resident trust?
Non-domicile status, deemed domicile & tax
UPDATE: Who is non-UK domiciled? What does this mean for UK Income Tax, Capital Gains Tax and Inheritance Tax? What reliefs are available to non-doms?
VAT News & Cases
Opting to tax land and property
What is an option to tax? What do I need to do to opt to tax? What happens if I buy an opted property?
Tax Tools
Tax calculators
UPDATED for NICs changes: FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Tax Tools
FREE add-on for subscribers, or available separately
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- CPD: VAT Penalties Update
- CPD: CGT Reporting and payment deadlines
- CPD: Corporation Tax Part 1: Rates and Challenges
More at CPD Index
CPD Workouts
Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects
- VtaxP Tax Workouts 2023: AML Essentials update & IHT and Family Investment Company case studies
- VtaxP Tax Workouts 2023: Tax Update for OMBs & Taxing the Digital Nomad
Tax Queries?
UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed Last Time's Web-update?
Nichola's SME Tax W-update 7 March 2023
- Spring Budget 2024: At a glance
- Change of view on Training Costs
- Tax-free childcare statistics
- Taxation of environmental land management
- Was company investing or dealing in land?
- Eat Out to Help Out claim valid
- Nakd and Organix bars standard-rated for VAT
- R & C Brief 1 (2024): Live web streaming of funeral services
- EU VAT e-commerce package: From 1 July 2021
- Penalties: Electronic Sales Suppression
- Land & Property: DIY Housebuilders scheme UPDATE
- CGT: Rollover (Incorporation s.162) Relief UPDATE
- Gift Aid: How it works UPDATE
- Interest relief: Making a loan to a close company
- Partnerships: Capital Gains Tax
- Annual Investment Allowance (AIA): Related companies ...More
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