This time we have new guide to family investment companies, they offer a flexible wrapper for investments as well as a means of controlling assets and distributing wealth. Obviously, the "elephant in the room" at this stage of this government's term is that we don't know what exactly will be happening to small company taxation over the next few years. I have done you a summary of "What's Up for Small Companies" so you can see what is currently under consideration.
We also review cases on EIS relief, a rare case on R & D relief, and then a case on Special Relief. On the compliance and investigations front we look at Accelerated Payment notices and Schedule 36 information notices.
Deadlines over the summer: setting the first deadline for the new system of Employment Intermediaries quarterly reporting to fall into the middle of the Summer holidays was never a good idea. Leaving it until the start of the holidays to publish a template to use for reporting is leaving things a tad late. HMRC have announced that "being on holiday" will be a reasonable excuse if you have not filed your employment related securities returns on time, so perhaps they will be as lenient with Employment Intermediaries reporting.
I hope you enjoy it.
Nichola Ross Martin FCA Tax Director
Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients.
Update on approaching deadlines: 5 August 2015
- Employment Intermediaries first quarterly return of gross payments is due
- Extended deadline for reporting employment related securities. Being on holiday is a reasonable excuse for late filing, given the technical problems with this service.
Termination payments: changes ahead?
The government have published a consultation on employee termination payments. Its called Simplification of the Tax and National Insurance Treatment of Termination Payments.
NIC's employer update 2015/16
NEW: a handy table to summarise the changes
Topical tax cases
Sch 36 Notice: no further appeal to UT
Just one bite at the cherry: in Carmel Jordan v HMRC  UKUT 0218, the taxpayer’s appeal to the Upper Tribunal against an information notice was struck out on the basis that the earlier decision on the notice by the First Tier Tribunal against her was final, and therefore specifically non-appealable as set out in schedule 36.
In Monitor Audio Limited v HMRC (2015) TC04541, the tribunal considered whether for purposes of the R & D relief SME tests, whether a “partner enterprise” was an institutional investor.
Special relief claim: taxpayer had special needs
In J Clark v CRC (2015) TC04509, the First Tier Tribunal allowed an appeal against HMRC’s refusal to grant Special relief to a tax payer in relation to years where he had not submitted returns: it found that HMRC’s responses to correspondence were not satisfactory given the particular needs of the individual and it would unconscionable to collect the tax due.
CGT: lost property deposits
In Anthony Hardy v HMRC (2015) TC04444, a taxpayer failed to claim capital gains tax (CGT) loss relief on a lost property deposit. The sale did not go ahead and so there was no disposal.
Small and personal service company tax briefing
UPDATE: the OTS review small company tax AND the merger of tax and NICs. An HMRC discussion on IR35 and a consultation on travel and subsistence. We add commentary on the new proposals for dividend tax (that may not be necessary if the other measures are also introduced).
Family investment companies
NEW: directors and their families may find that running their own investment company provides far greater flexibility and planning opportunities than a trust, with the added advantage that unlike a trust, even the beneficiaries might understand how their income is taxed. Non-domiciled families may also find that the use of corporate structure, despite recent changes is to their advantage.
Buy-to-let ownership: personal v company
NEW: it's official the property boom combined with expensive and poor-performing pensions have made us a nation of buy-to-let nuts. What is the most efficient way to hold your property following the latest budget changes?
Restrictions on loan interest relief and the increased Rent a Room relief
Loan interest relief: a staggered introduction from 2017/18
Accelerated Payment and Follower Notices
UPDATE: new HMRC guidance, HMRC reports that the regime is more successful than anticipated, members of a film partnership have been given leave to apply to the court for judicial review.
Employment Intermediaries reporting
UPDATE: what you need to report, HMRC publishes a spreadsheet template for quarterly reporting. Don't forget: the first return is due by 5 August 2015
Summer Budget 2015: at a glance
A summary with links to all the key announcements, and news on the new dividend tax.
Focus on EIS:
Enterprise Investment Scheme (EIS)
UPDATE: the latest changes to EIS, relief together with summaries of couple of cases that worth a mention:
- No EIS relief without an income tax claim: In R Ames v HMRC  TC04523 an EIS investor failed to secure any tax relief: he had failed to make an income tax relief claim, having no taxable income in the year in which he had made his investment.
- No EIS relief: company failed to use funds for a qualifying purpose In East Allenheads Estates Ltd v CRC (2015) TC04513 expenditure incurred by the company was held to have been incurred mainly for the purpose of conferring a personal benefit on the sole director and shareholder.
Missed last time's update?
- property tax
- owner-managed business taxes
- a briefing on offshore issues.
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