Good morning

Well to be honest I am slightly gutted to find that even the Arctic Monkey's took part in a tax avoidance scheme (the Liberty scheme, as leaked by the Times), but I doubt that the effect of the newspapers naming and shaming celebrities will have any effect on downloads by my teenage daughter and her friends. What will change future tax compliance is HMRC's new Accelerated Payment regime. This is expected to be a 'game changer' in the words of Jim Harra, HMRC's Director General of Business Tax.

This time we have the low down on Accelerated Payments and Follower Notices, employer related news and a couple of case summaries with lots of new guides and updates. I have also been updating Furnished Holiday letting following some interesting queries on Entrepreneurs' Relief. 

Scroll down for news 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 (freeview)

Incorporation relief: swapping your business for shares
Another CGT incorporation relief case: a speculative landfill and land consultancy which had not registered for SA counts also as a business for capital gains tax (CGT) section 162 incorporation relief. Worth a read as there is an interesting angle for those interested in employment related securities too.

CIS company helpcard
HMRC have provided their top ten tips to assist companies make CIS repayment claims.

New Accelerated Payment regime
Freeview version

McClaren FI: no tax relief for cheating
Following a successful appeal by HMRC the Upper Tier tribunal finds that a fine imposed by a trade body for cheating fails the wholly and exclusively test.

Share awards: online filing and penalties
The annual deadline for filing paper EMI 40 and Form 42 was 7 July. Scheme reporting is now online.

New consultation on employee benefit reporting
Five new consultations include removing the £8,500 lower paid limit, a statutory exemption for trivial benefits and expenses currently subject to dispensation claims, optional payrolling of BIKs and a review of remuneration practices.

LLP Capital Contributions
LLP members @ 6 April who run the risk of being assessed as salaried members should have contributed capital by 5 July to avoid reclassification.

Subscribers: new guides and updates

Follower Notices Accelerated Payment Notices
NEW: clients who have used tax schemes or have ongoing tax enquiries may find themselves subject to a Follower Notice: comply now or face a fine. If you have taken part in any of the well publicised schemes that have failed in the courts then expect an Accelerated Payment Notice. There is an appeal process.

UK Agencies & Offshore intermediaries
NEW: At a glance guide: new provisions from 6 April 2014

Agency workers
NEW: changes to the agency rules from 6 April 2014 stamp out "false self employment". This guide contains both new and old rules.

Entrepreneurs' Relief
UPDATE: a re-write of this guide in order to clarify many of your FAQs.

Furnished Holiday Letting
UPDATE: new discussion on FHL held as either joint property or in a partnership and some potential tax traps for both Entrepreneurs' relief and IHT business property relief.

Employer tax penalties mini guide

  • PAYE late payment: no automatic penalties for 2014-15, HMRC will just write to you. Persistent late payers can expect penalties under the sch 56 FA 2009 regime, these will clock up with each missed payment throughout the year.
  • PAYE RTI late filing of FPS/EPS returns: no automatic penalties apply until returns due after 5 October 2014.
  • RTI penalty letters for 2013/14: HMRC says ignore these if you have filed and take no further action. The only problem with this advice is that each letter needs checking.

A selection of guides

Flat (fixed) rate expenses or actual cost toolkit
UPDATE: any size of unincorporated business may use flat rate expenses. There is a concessionary treatment for board and lodging adjustments for 2013/14.

Wholly and exclusively…update
UPDATE: following the decision in the Dr Samadian doctor's travel case,we explain why the tribunal came to different decisions for the different journeys.

Directors' tax planning toolkit 2014/15
UPDATED: our rolling planner for this year

Penalties: VAT
NEW: at a glance guide

Subscribe now

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £325 (+ VAT)

What do you get?

  • We keepYOUup to date in SME tax.
  • your firm's personalTAX INTRANETcontaining over 1,200actively maintainedtax guides, briefings, toolkits and checklists.
  • Want to know more?Commission your own articles and checklists.
  • Structured CPD:our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes.
  • Regularclient tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
  • Nichola’s regularSME tax news web-update:we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
  • A 20% discount on ourTax Masterclasses.
  • You can alsocommissionguides and checklists for your own practice, post comments and upload your own articles.
  • Access to the virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.