This time we have amended and expanded our examples on the new dividend tax regime. HMRC have now produced some examples which explain what happens to the basic rate band.

We have news of new tax disclosure opportunities and we have a new note on VAT transfer of going concern (TOGC) following a rash of tribunal decisions on this topic. Its very easy to overlook VAT in a commercial transaction as the cases all demonstrate, and the concept of a TOGC is a difficult one: HMRC have had to twice change their guidance following the decisions.

We have updates on the new Plastic Bag Tax.

My pick of this week's reading (if you are not interested in VAT and have taken on board all the dividend changes) is our updated Directors' Tax Planning Toolkit for 2015/16. It is only when you see all the recent changes to small business taxation summarised that you realise just how many changes there have been. I hope you like the updates and new guides.

Back soon

Nichola Ross Martin FCA Tax Director


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

Quick News

How dividends are taxed in 2016/17
UPDATE: HMRC have now published examples and this clears up all the confusion.

Salary sacrifice: Reed scheme fails
Reed Employment have lost their £158 million appeal: the Court of Appeal agreed with the findings of the tribunals: their salary sacrifice-travel scheme was ineffective for tax. The workers did not understand the scheme and it made no difference to their pay.

VAT penalties and proportionality: a blow for the taxpayer
In HMRC v Trinity Mirror PLC The Upper Tax Tribunal (UTT) has overturned the previous decision of the First Tier Tribunal (FTT) to set aside a late filing surcharge of £70,900 on the grounds of proportionality, concluding that whilst it might be considered harsh, it cannot be regarded as plainly unfair.

Plastic Bag Tax

VAT on plastic bags
A 5p charge on single-use carrier bags will be introduced in England from 5 October 2015, bringing the country into line with the rest of the UK, and HMRC have published details confirming how VAT should be accounted for on the new "bag tax"

Carrier bag tax
Till operators will have to become tax experts, Baker Tilly take a look at the small print

Disclosure Opportunities

National Minimum Wage Opportunity
HMRC have launched a new disclosure opportunity for employers who may not have complied with National Minimum Wage (NMW) requirements in the past.

Sideways Loss Relief Opportunity
HMRC have announced a disclosure window for users of sideways loss relief schemes. These involve the creation of a loss used to reduce taxable income.

Editor's choice

Director's tax planning toolkit 2015/16
UPDATE: this year's toolkit, like all our maintained guides, is a rolling planner and is updated throughout the year. 

VAT and Transfer of a Going Concern
NEW: a practical tax guide, featuring the landmark ruling on groups and property companies and topical case law.

A note on changes to Online filing

Online filing using HMRC's software: HMRC have announced the Pre-population of its Self Assessment (SA) online returns. The pay, tax and P11D details will start to be pre-populated onto the HMRC version of the online SA return from August. Once processed these details will be shown on the SA return under ‘Information we hold about you’, meaning you will no longer need to contact HMRC for this information.

HMRC is changing its corporation tax software. From December 2016 agents will no longer be able to use HMRC's software. This means of course, that an agent may file for a company using the company's own gateway credentials if the company agrees. This is contrary to HMRC's T & Cs. Alternatively the agent may use third party software.

Missed last time's update?

Nichola's SME Tax Update 13 August 2015

Updates on:

  • Goodwill and intangibles
  • Tax on interest
  • Buidling your own workplace

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