Hello

This week we have an interesting new guide: the DIY Small Self-Administered Scheme (SSAS). This will be of great interest to owner managers, so read on for links.

Included in our round-up of topical case law are two VAT assessment cases, one involves the reprogramming of a till and the other a business ecomomics calculation.

We have also updated our:

  • Property Letting Toolkit: this summarises the many different options, quirks and reliefs that landlords need to consider when self-assessing property income
  • Directors' tax planning toolkit for 2014/15
  • Statutory Resident Test guide

We also have another new 'back-to-basics' guide - Gifting your company shares to your family

Scroll down for news and updates.

Best wishes

Nichola Ross Martin FCA Tax Director

www.rossmartin.co.uk

Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients

News and freeview

EIS and acquisition relief
In Averil Finn & Gregory Finn & Robin Morris & Andrew Cornish v Revenue & Customs [2014] TC03555, a group of EIS investors lost their relief when their company was acquired by another company. The issued shares of the acquiring company at the time of the acquisition were not subscriber shares. 

Full time working abroad: lack of evidence
In Paul Daniel v HMRC TC 03312, an investment banker failed to provide sufficient evidence to show that he was full-time working abroad and non-resident for CGT purposes. 

VAT: assessments
Two cases of suppressed takings which fooled the accountantsDawn Owens t/s Bizar Hair Salaon [2014] TC03544 and Kenan Guzel t/a Can Supermarket v Revenue & Customs [2014] TC03560 .

CGT Private Residence relief: temporary homes 
In Dr S Iles and Dr D Kaltsas v HMRC [2014] TC03565 the taxpayers were denied CGT Private Residence relief. The couple occupied a flat for just 25 days while it was on the market.

RTI: Annual Schemes
An employer may wish to set an Annual Scheme for PAYE under Real Time Information (RTI) reporting. 

HMRC Direct Recovery of Debts consultation
A 'terrifying' prospect? HMRC wants to be given powers to dip into taxpayers' bank accounts. The move has alarmed MPs from the Treasury Select Committed and the tax bodies appear united in their calls for proportionate safeguards to added to those proposed.

Subscribers: new guides and updates (paid content)

DIY SSAS
NEW owner managers can create flexible pension arrangements and cut the cost of scheme charges by setting up their own Small Self Administered Schemes.

How to gift your shares to the family
NEW "back to basics guide"

Property profits & losses: toolkit 
UPDATE: a handy summary if you are a landlord or advising one on self assessment.

Director's tax planning toolkit 2014/15
UPDATE: like all our maintained guides a rolling planner so we keep updating it when we find practical points that will interest you.

Statutory residence test
The new rules with tips and planning points

Wear and tear allowance and renewals basis
UPDATE: HMRC has clarified the wear and tear allowance in relation to residential rental property. Freestanding white goods as not trade tools however when fixed into fitted kitchens they may be treated as fixtures, otherwise they are plant and so there is no tax relief on cost or replacement.

P11Ds: top tips for employers
Essential reading: we have pulled together the combination of HMRC's employer tips with links to areas where we have seen particular difficulty

Building an office at home or converting part of a home into an office
UPDATE: how to create a tax-efficient home office (and amongst other things avoid unexpected PAYE and NICs). 

Penalties update

Tax penalties: CIS (Construction Industries Scheme)
We have updated this guide to penalties, reasonable excuse and relief from double taxation

Tax penalties: P11Ds
Late filing penalties apply if returns are not submitted by 6 July 2014. Don't over look penalties for error and mistake.

Share awards: filing and tax penalties
More complications: file Form 40 (unapproved share issues/options) or form EMI40 etc by 6 July on paper, however employers must also go online and set up their  scheme details there too. HMRC is proposing a new and onerous penalty regime for you in the Finance Bill and you will be penalised if you don't file online. 

Capital allowances update

Annual Investment Allowance (AIA)
UPDATE: take a refresher on the AIA. It is set to increase from 1/6 April 2014 (assuming no changes to the Finance Bill) not all expenditure qualifies for relief and not all businesses my claim it either. 

AIA & WDA: rules where there is a change of rate
Capital allowances: the note explains the hybrid rates used when there are change in the rate of writing down allowances (WDA) and the rules where there is a change in the rate of Annual Investment Allowance (AIA). 

Editor's choice

Close company loans toolkit
This guide takes a detailed look at the corporation tax treatment when a close company makes a loan to a participator (director-shareholder). It also provides links to our guides for individuals on the making of loans to companies.

Director's loan account toolkit
HMRC instructs staff to examine directors' private expenditure during the course of an enquiry into a close company's books and records. In most cases the company will be expected to produce a transaction history of any director's loan or current account.

Legal or unlawful dividends
Start here for our guides on getting dividends right and the tax consequences when formalities are not adhered to.

Travel (self-employed)
Updated for different types of doctors, following the decision in Dr Samadian v HMRC we have examples of cases which are not on all fours with that decision and where it is more likely that home to work travel will be allowed.

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