I don't know how we have ended up with the proposed rules on restricting mortgage interest relief for buy-to-let businesses. What an extraordinary mish-mash they are.

What basic rate tax payers don't appear to realise is that the new rules WILL affect them. After one of our subscribing firms phoned up in distress about the amount of time it takes to work through the changes we have created new and detailed case studies to illustrate the new workings for both basic rate and higher rate taxpayers.

HMRC have published statistics indicating that according to information obtained up to 30 June 2015, the number of Research & Development relief claims made and the amount of relief claimed continues to increase, largely driven by a 23% increase in SME claims from 2012/13 to 2013/14. We note that people are having particular problems in certain areas and so we have extended our R&D guidance for subscribers to include more detail in respect of staffing, subcontractor costs and software, as well as that all important R & D report.

We have a new selection of CPD modules for subscribers this week, so please scroll down the page to read more.

Back soon

Nichola Ross Martin FCA Tax Director


Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers

Quick News: Case round-up

Special Relief allowed: HMRC was acting unreasonably 
In JR Scott v HMRC [2015] TC04597 the First Tier Tribunal (FTT) has allowed an appeal against HMRC’s refusal to accept a claim to special relief on the basis that HMRC had not addressed the appellant’s argument that determinations raised were unreasonably excessive.

Reliance upon a third party can be a reasonable excuse in VAT penalty cases
In Morrisroe UK Ltd v HMRC [2015] TC04577 the First Tier Tribunal (FTT) concluded that reliance upon a third party could be a reasonable excuse for failure to make a payment of VAT on time. This is a first for VAT, please note our comments at the end of this though.

When does a business cease? 
In David Alexander Keyl v HMRC [2015] FTC/97/2014, the Upper Tier Tribunal (UTT) udenied an Annual Investment Allowance claim for the final period of trade. This highlights the importance of planning ahead when ceasing or incorporating your business.  

The importance of valid VAT invoices 
In Deadoc Construction Ltd & Anor v HMRC [2015] TC 04610 the First Tier Tribunal allowed in part an appeal against HMRC’s refusal to allow input tax due to the relevant invoices not being compliant with the VAT regs.

VAT: stallholders's pitches
In Craft Carnival v HMRC [2015] TC04428, the First Tier Tribunal (FTT) agreed with the taxpayer that the supply of pitches to stallholders at craft fairs is an exempt supply of a licence to occupy land.

CGT: when further consideration is not enhancement expenditure  
In HMRC v Julian Blackwell [2015] UKUT 0418 (TCC) the Upper Tier Tribunal (UTT) overturned a decision by the First Tier Tribunal (FTT) and concluded that a payment of £17.5 million claimed as a deduction from consideration received on a disposal of shares was not enhancement expenditure.

Practical Tax Guides (for subscribers only)

Restricting mortgage interest relief
NEW: this practical guide introduces the proposed restriction on interest relief, it come with detailed examples to assist landlords in making the right choices in restructuring their property businesses.

Buy-to-Let Ownership: personal v Limited Company
UPDATE: with all the changes to tax relief on interests and the changes to dividend tax, which is the best way to run your property rental business?

Penalties for error in returns and documents (and how to appeal suspension)
NEW: guide features useful case law and recent developments in suspension of penalties.

What constitutes a valid VAT invoice?
NEW: and also when can you claim back VAT without one...

R & D Relief: Software
NEW: Is software development activity qualifying R&D? Read on...

R & D Relief: staff costs and subcontractors
NEW: How to obtain relief on staffing costs and avoid the common pitfalls.


Land & Property: an Adviser's Update September 2015
The lastest news, announcements and topical cases

Capital Taxes round-up - September 2015
This features updates on both this year's budgets, atest news and topical cases

Tax Masterclass: Disincorporating an existing business
Disincorporation has been unpopular: who would wish to forgo limited liability? This guide explain the statutory CGT relief

Editor's Choice

How dividends are being taxed from 2015/16
Full worked examples to explain the increased tax charge.

IHT: the additional nil rate band for home owners 
A new relief from 2017 will apply to any main residence that it is left to linear descendants.

Finance Act and Bill 2015: rolling tax planner
UPDATE: want to know what's new in any tax and what's expected in future years? Bookmark this planner. 

Missed last time's update?

Nichola's SME Tax Update 10 September 2015

Updates on:

  • Appealing tax penalties
  • New dividend tax
  • VAT & pre-registration input tax
  • Tax news

Next time:

  • Statutory Residence: our new and improved guide
  • CPD: the Employer Update

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  • Regular client 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 regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
  • You can also commission guides and checklists for your own practice, post comments and upload your own articles.
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