This time we have a summary of the proposals for Finance Bill 2013, together with news and our latest Tax Adviser Update.

Most of the new measures announced by the Chancellor will apply from April 2013, however an increase in the Annual Investment Allowance applies from January 2013. The transitional rules are quite mad if your accounting period spans any period in which the allowance changes, so no one is spared. If you have a 31 March 2013 year end you will benefit from a maximum allowance for expenditure of up to £81,250.

We will be summarising the details of the new "Simpler" tax system for small business, the new Disincorporation relief and the new Employee share scheme in future weeks. In the meantime don't forget that any high earners facing the prospect of a claw back in their Child Benefit payments can reduce their net income through the use of personal pension contributions.

For details of all the above mentioned items and more, please scroll down. Click here to launch your browser.

Best wishes


Nichola Ross Martin FCA
Tax Director
Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients

News round up:

Advisory fuel rates (company car drivers)
New rates from 1 December 2012

Finance Bill 2013 for SMEs
Freeview version

Advisers' Tax Update & Finance Bill 2013
Subscribers click on this version - with points of interest, measures pre-announced and a general update

UK/Swiss Agreement
From January 2013 Swiss banks will operate withholding tax on UK resident account holders unless disclosure of Swiss assets is made to HMRC. Most account holders must respond to their banks by December.

Don't miss


Tax planning for income at marginal tax rates
Strategies to avoid unexpected tax charges: from 2012/13 following the introduction of the High Income Child Benefit Tax Charge (HICBC) many tax payers have to navigate the effects of several different tax bands when tax planning. Marginal tax rates can be as high as 70% of income.

Directors' loan accounts: toolkit
HMRC's instruction to its staff is that they examine directors' private expenditure during the course of an enquiry into a close company's books and records.

Essential reading

Subscribers only (locked content)

Editor's choice

Private client tax planning for the 2012/13 year-end
UPDATE: more topical tips on dealing with proposed changes in 2013. This is pending any surprises announced by the Chancellor in his Autumn Statement.

Directors' tax planning toolkit 2012-13
UPDATE:read this in conjunction with the Private client tax planning checklist above.

Property profits & losses: toolkit
UPDATE: our toolkit covers the points made in HMRC's version but adds a great deal more information about what you can and can't claim.

Controlled Foreign Companies (CFC)
NEW: an introductory summary for SME owners and advisers.

VAT Update

How to claim back VAT on business expenses incurred in the EU
NEW: HMRC updated its guidance in October.

VAT Restriction of non-established taxable persons
From 1 December 2012 business visitors from abroad will have to register for VAT before making taxable supplies in the UK. We say "likely to affect French and German markets held in the UK in the run up to Christmas".

Reverse charge & place of supply
NEW: don't forget to account for reverse charge services when considering taxable turnover for registration. This is important for UK businesses with exempt turnover who are sourcing services from abroad.

Transfer of a Going Concern - properties
HMRC announces a change of practice where a seller grants a new interest in a land and property business, this follows the Robinson Family Company case. Some scope for repayments of VAT and SDLT.

VAT: trading in the EU and abroad
UPDATE: a mini-guide to explain the basics.

Recent guides and updates

UPDATE: what's what with side-ways loss relief and update on anti-avoidance measures.

Finance Act 2012: index & summary
What's new and where to find it.

Clothing and work wear - self employed
HMRC recently re-wrote some of their Business Income Manual - we explore 'what's new'.

PAYE late payment penalties buster
UPDATE: this guide is essential reading if you are having cashflow problems or do not understand these penalties.

Tax masterclass: running an LLP & Co structure
Sample our Masterclass guide to business combinations. This one is ideal for trading companies and professional practices.

NICs on dividends
Key issues for those in tax schemes.

How do you tax ABC or alphabet shares?

For share awards outside family companies, see:

For a run down on the basic rules on taxing awards of shares and securities see:

If you are dealing with family companies and shares are being issued to family members, see:

Furnished Holiday Letting
Including examples on Averaging and Period of Grace reliefs.

Retirement: purchase of own shares
Menu and summary.

Capital reduction: tax treatment
This guide examines the position where a capital reduction is used to return excess share capital or capital reserves to shareholders and trading is ongoing. Not to be confused with a purchase of shares out of distributable reserves.

Valuation (of goodwill) on incorporation
Guidance and examples, including for small & lifestyle businesses.



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