This time we have an interesting case featuring spouses and family joint bank accounts. Definitely worth a read if you are advising on the taxation of joint bank accounts.

We also have new guidance for employers who are considering offering employees shares under the new employee shareholder provisions. Leading on from this I will be interested to see what if any guidance we have from HMRC on the tax treatment of dividends from these employee shares. I would make an educated guess that the government does not expect such dividends to be taxed as employment income but this raises some complex issues for employers and HMRC alike.

Please read on for news, toolkits, briefings, and updates.

Best wishes


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


News headlines

P11D forms online
Two forms are now available online - No Return of Class 1A NICs and Notification of payrolled benefits.

Employee owner status
New briefing note to chat over with clients, with links to detailed guidance.

NIC holiday for new employers
Last chance to claim for new businesses however this scheme ends in September 2013.

Editor's choice

Joint income: splitting income within the family
A family tax planning exercise involving joint bank accounts went very wrong when HMRC invoked the Settlement provisions. The tax tribunal seems to have had sympathy with a taxpayer who struggled over the interaction of income tax and trusts anti-avoidance.

Investigations: the presumption of continuity
When the `presumption of continuity' is made during the course of a tax investigation HMRC will take the view that an under-declaration made in one year will have been repeated in other years. The onus of proof is on the taxpayer to disprove this.

Guides and toolkits

Employee Shareholder Status - tax & planning
NEW: the new measures introducing a new category of employee share owner are interesting for all sizes of companies. Our guide explains all.

Cash or accruals accounting toolkit
UPDATE: we have added "Adviser Alerts" to warn you about certain aspects of cash accounting that may catch you out. Further guidance on transitional measures of changing accounting method.

Flat rate expenses or actual cost toolkit
UPDATE: new introduction to help explain this new systems to clients with added tips for advisers.

Employment related loans
NEW: anti-avoidance measures were announced in the 2013 Budget which may inadvertently catch out some close company owners with partnership interests. Additionally, the exempt limit rises next year.

Directors' loan accounts: toolkit
UPDATED: following Budget 2013

IR35: changes from 2013
From April 2013 under measures introduced in the 2013 Finance Act office holders will become within the scope of IR35.

Simpler income tax accounting and fixed expenses
Introduction to the new regime

NICs on dividends
UPDATE: review of the circumstances (based on case law) in which we would expect HMRC to classify dividends as employment income and commentary on the PA Holdings case.

Employment Allowance: NICs £2,000 relief
The NICs holiday ends in September 2013, this relief applies to all employers from April 2014

Finance Acts rolling planner
UPDATE: baffled by the constant changes in tax? Our rolling planning tells you what is new in each tax year for each different topic.

What expenditure qualifies for plant & machinery allowances?
UPDATE: added some examples from HMRC

Close companies: tax planning and pitfalls
UPDATE: s455 tax charge on loans to participators. New measures to counter tax avoidance via use of loans with partnerships, trusts, transfers of value and "bed and breakfasting"

High Income Child Benefit Tax Charge
Only two new questions to go on the 2012/13 tax return & HMRC is making a new calculator

Mansion tax(es) - at glance
Plans to tax individuals (and unsettle the coalition) may have been thrown out, but new annual tax charges apply on higher value property for corporate owners and other non-natural persons from April

Fees and subscriptions (professional bodies)
HMRC updates List 3: have all employees claimed tax relief yet?

CGT Top tips: losses & connected persons
Think twice before selling property to your company at a loss; a cautionary tale of clogged losses.

Essential reading

for paying subscribers only


Repairs and renewals
UPDATE: another case on resurfacing and explaining the interaction between the rules for residential property letting, integral features and repairs.

Adviser planning update: losses
Navigating the new losses minefield in 2013/14

Annual Investment Allowance
NEW: a handy summary with planning points

Investigation news

Property Sales campaign
Top tips on HMRC's latest disclosure opportunity


Do I pay a salary or dividend? 2013/14
UPDATE and re-write of last year's highly popular guide and is designed to save you having to do all these workings yourself

Tax masterclass: running an LLP & Co structure
UPDATE: this guide is for trading companies and professional practices: we see many different structures

Disincorporation relief
New: a summary of the proposed rules. You may also register now for new Masterclass

ABC or alphabet shares: directors & employees
UPDATE: essential reading for directors

ABC or alphabet shares: family companies
UPDATE: issues for the family


Distributions & striking off
NEW: this guide explains the rules now that ESC C16 has been legislated and notes potential planning points and pitfalls

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 is not

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
Tax reliefs that are disappearing in April 2013

Tax planning for income at marginal tax rates
Strategies to avoid unexpected tax charges such as the High Income Child Benefit Tax Charge (HICBC)

Property profits & losses: toolkit
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

Editor's favourites

AIA: rules where there is a change of rate
Worked examples

Dividends: index
Guides to dividends: minutes, warrants and tax on unlawful distributions

Salary 2013/14
What is the minimum level before NI becomes due?

Tax-free benefits in kind and perks
UPDATE: last chance for a cyclists breakfast!


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

Most popular

Here is a small selection of our guides (there are now over 900 guides and checklists available to paid subscribers)

Tax Data

PAYE late payment penalties buster

Overpayment Relief (formerly error or mistake)

What expenses can I claim?

Goodwill & incorporation: tax issues

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