I was interested to hear on the radio this morning that at least one employer has already found a way to minimise its costs under pensions Auto-enrolment.
Apparently you simply reclassify their pay as something that is "not pay" and then you do not explain that to the worker! This rather reminds me of the recent case involving Reed which did something similar with a salary sacrifice scheme: the only beneficiary of the planning was the employer.
We are back with a pick of interesting cases from the Upper and First Tier Tribunal. In the first one, a taxpayer, a Managed Service Company successfully appealed an information notice: it was not the right notice. A pyrrhic victory no doubt as presumably HMRC will now issue a correctly drafted one.
We have new guides and a new index to "Exit Strategies" for OMBs. If the prospect of a new dividend tax is too much maybe this is the time to move on.
We also have quite a few VAT cases this week. If you look down the main menu of the website we also have a new VAT case section. Last but not least we have split the Private Client menu into three new categories: CGT, IHT and Income, claims & reliefs.
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
Information Notice issued to company was invalid
In PML Accounting Limited v HMRC a company successfully appealed a Schedule 36 Information Notice. It was invalid as it did not relate to the tax position of the company but to the tax position of its clients.
Employer liable for PAYE failure
In Chapter Trading Ltd v HMRC an employer was held liable for its PAYE failure: its software failed to deduct any tax from an employee's wages and the employer thought it was a coding issue did not investigate further.
Share loss relief allowed: taxpayer was still ordinarily resident
In Mark Carey v HMRC, the taxpayer successfully claimed share loss relief after HMRC had doubted his intentions over residency.
VAT Case round-up
VAT: Rugby clubhouse can be a village hall
In Caithness Rugby Football Club v HMRC the FTT agreed that the construction of a clubhouse qualified for zero-rating as it was intended for use as a village hall or similar.
VAT: Charity undertaking business activities denied relief
In the Trustees of the Institute for Orthodox Christian Studies v HMRC the FTT confirmed that output tax was due on the sale of a property to the appellant as it was not used solely for a relevant charitable purpose.
VAT: reasonable excuse claim successful
In Intrinsys Ltd v HMRC the FTT allowed an appeal against a default surcharge, holding that the appellant had a reasonable excuse for missing the bank cut-off time for same day transactions.
VAT: Clubhouse bar is an intrinsic part of golf club membership
In Bedale Golf Club v HMRC, the FTT found that costs relating to the clubhouse bar and lounge were not incurred exclusively for the purpose of making taxable supplies.
Practical Tax Guides (for subscribers only)
Exit Strategies: Index
NEW: what are the main options available for company owners planning for their retirement from the company?
- We have extended our guidance in this area with a step-by-step checklist for striking off a company and a guide to succession planning using buyouts.
- We have also created a useful summary index with links to all of our topical articles.
Married couple v. unmarried couple (tax differences at a glance)
NEW: The Low Income Tax Reform Group (LITRG) recently published a report entitled "Couples in the tax and related welfare systems – a call for greater clarity" in which they identified and commented upon a number of inconsistencies in treatments for married couples and civil partners as opposed to unmarried or same-sex couples who are not civil partners. They have summarised the differences in this handy table.
Tipping and Troncs
NEW: a practical tax guide for restauranteurs detailing the tax and national insurance implications for tips and gratuities in their various guises.
VAT: pre-registration input tax on goods
UPDATE: advisers disagree as to whether HMRC's new stance is correct.
Employers' What's On: Sept/Oct 2015
NEW: what's up for employers so far this year? We also have a full briefing on the new measures for benefits and expenses scheduled for 6 April 2016 together with an employer action point checklist to ensure that everyone is prepared for the changes next year.
Updates from last month:
Land & Property: an Adviser's Update September 2015
The latest news, announcements and topical cases
Capital Taxes round-up - September 2015
This features updates on both this year's budgets, latest news and topical cases
Capital Gains Tax Index
Do you know your Hold-Over Relief from your Entrepreneurs' Relief? This guide shows you which relief applies, for who, and in what situation. With links to our detailed guides to each relief.
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.
Restricting mortgage interest relief
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
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?
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?
With also updates on:
- Scottish Income Tax
- Land Transaction tax
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