This week we have a mini SME Web-Update for you:


CGT: Private Residence relief and intention to occupy
A taxpayer was lucky to obtain Private Residence Relief on a flat occupied for a matter of months - the mortgage deed provided crucial evidence of his intention to occupy the house as a main residence, and he did actually move in.

Advisory fuel rates (company car drivers)
All change: new rates from 1 June 2013. Authorised mileage rates for the self-employed are unaffected

RTI and PAYE Glossary
We have added RTINO - mainly for our amusement. On a serious note, we gather that people are finding that the inability to file amended RTI returns in period is not working. We confess it is leaving us all muddled here and we cannot find a cost effective work around to correct the month that was. Meanwhile, HMRC are sending out emergency NINOs (see Glossary) for students which our software will not accept. I don't know about your software but ours expects to find NINOs which end in a letter, so probably more time wasted in now writing back to HMRC to see what to do next.

Consultation on partnership tax avoidance
Wide ranging measures aimed at catching disguised employment (fixed profit share partners who carry no risk) and inappropriate allocation of profit (aiming to allocate profit to non tax-payers). HMRC says that this is not going to cover cases where family members use partnership structures to allocate profits efficiently, as in the Artic Systems case.

Accounting: Simpler Income tax (cash basis) / fixed expenses
Start here to decide which of the new measures to adopt.

For paid subscribers:

Directors' tax planning toolkit 2013/14
NEW our rolling planner which is updated throughout the year

Can I charge my company rent for use of my home?

UPDATE: you may consider:

  • Recharging the company, on the same basis as a conventional home working employee for a proportion of your bills and running costs. This is explained in Working from home (directors) or
  • Formalising a licence agreement with your company in order to allow it to occupy part of your property. It then pays you rent and service charges and you then claim all your expenses under self-assessment.

Working from home (directors)
UPDATE: the same rules apply to home working directors as other employees; however, a directors is more likely to be able to charge rent and there may be some additional issues and complications by virtue of their office.

Best wishes for the rest of the week

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