This time: where now for travel and accommodation claims? Top tips on furnished letting, purchase of own shares and CGT relief, and a briefing on HMRC's current stance on "wholly and exclusively".
I was interested in reading over the case of Dr Samadian (reported below) that the First Tier Tax Tribunal has taken the view that some self-employed people who work at home should have to treat their outward travel expenses differently than others. We saw something similar in the case of actor Tim Healy v HMRC and his accommodation costs (this case is being heard on appeal in April, you can follow links below). As these cases head off to the Upper Tier Tax Tribunal spare a thought for any taxpayer trying to get it right! It is absurd to find out that currently no one knows the answer to a really basic question such as "Can I claim tax relief on travel and accommodation". If the Office of Tax Simplification is looking for a new topic, I would like to suggest this one.
To assist you we also have a briefing for advisers on "where now for wholly and exclusively?" noting that whether it is accommodation, travel or clothing that HMRC is taking a harsher view on expense claims for the self-employed.
We have top tips for company owners and property landlords as well as case updates on travel, Business Property Relief and Furnished Holiday Letting.
Please read on for news, new toolkits, briefings, and updates, or click this link to read this online.
Nichola Ross Martin FCA
Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients
Not more travel mix-ups?
The First Tier Tax Tribunal continues to bamboozle self-employed taxpayers over the travel rules - Samad Samadian v HMRC
Tax-avoiders to be excluded from government contracts
Probably bolting the door long after the horse has made off with the silver: proposed rules may be difficult to apply.
CIOT: increase RTI penalty free period
Quite why there is not to be a "soft-landing" on Real Time Information penalties is really difficult to understand. Those who are likely to be penalised probably just need help.
ATT: thumbs down to proposed rules
Tax simplification measures have been skewed by HMRC and will distort decision making - the ATT lists the "horrors".
Travel and tax
Start here: guides for employers and the self-employed.
Guides to dividends: minutes, warrants and tax on unlawful distributions
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
Tax penalties: RTI (Real Time Information)
Tax penalties: SA late filing & payment
Guide plus examples: don't overlook the late payment provisions
Avoiding marginal rates of tax
Tax planning tips and examples
Tax-efficient profit extraction checklist (companies)
A new checklist and briefing too for companies and their owners
Relevant earnings for pensions purposes
A useful page to bookmark
for paying subscribers only
Wear & Tear and replacements basis
NEW: last chance to maximising claims for the Wear and Tear allowance AND renewals relief?
Time limit traps
NEW: own share purchase? Check your timings to ensure that you qualify for both capital treatment and Entrepreneurs' Relief.
Wholly and exclusively…where now?
NEW: briefing for advisers on HMRC's new stance on expenses of the self employed.
IHT Business Property Relief & Furnished Holiday Letting
CASE UPDATE: HMRC v Nicolette Vivian Pawson (Deceased) HMRC's appeal was successful ordinary furnished holiday letting is regarded as an investment activity for IHT. Guidance on how to make a business qualify for BPR.
Furnished Holiday Letting
UPDATE: additional guidance on qualifying for IHT Business Property Relief.
Distributions & striking off
NEW: this guide explains the rules now that ESC C16 has been legislated and notes potential planning points and pitfalls.
Joint property: legal v beneficial ownership
UPDATE: we have added a case on the pitfalls of combining joint bank accounts and gifts for IHT.
High Income Child Benefit Tax Charge
The new charge explained with helpful flow charts to decide who pays and when.
Accountancy & tax fees
What is allowable and what you need to add back
Employer pension contributions
Last chance for income tax and NICs relief for pension contributions made on behalf of an employee's family
Disappearing tax reliefs
Last change saloon! Tax reliefs that are disappearing in April 2013
Tax planning for income at marginal tax rates
UPDATE: strategies to avoid unexpected tax charges such as the High Income Child Benefit Tax Charge (HICBC)
Private client tax planning for the 2012/13 year-end
UPDATE: topical tips on dealing with proposed changes in 2013
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
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.
Employment status checklist
UPDATE: three new cases add some dimension to the existing tests
Capital Gains Tax: Entrepreneurs' Relief
UPDATE: comparing the disposal of part of a business and its assets
Furnished Holiday Letting
UPDATE: a major rewrite to include 2011 FA provisions including examples on Averaging and Period of Grace reliefs
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