A number of new consultations have been published in the last couple of weeks although they are often now referred to as "discussion papers". The latest one to catch my eye concerns employee travel and subsistence.

Parliament has expressed "concerns" over the perceived abuse of the temporary travel rules by Personal Service Companies and there was a consultation earlier this year on amending the rules for Employment Intermediaries. The Office of Tax Simplification has also reviewed travel: the current rules are too tricky for some people to understand. The net result appears to be that HMRC are now considering reworking the rules. Potentially there will be no more tax relief on subsistence and the current temporary travel rule will be replaced by the novel concept of "the detached duty". This is basically the same rule but it does not rely on interpretations of the term "temporary purpose" and so is meant to be simpler. It appears that PSCs will be subject to further restrictions to restrict their tax relief and this consultation talks of abuse of the rules. It is open for comment until mid December.

Otherwise this time we feature HMRC's latest Employer Bulletin, we have a couple of tax cases, and we have subscriber updates on Buy-to-let ownership: personal or company? and Creative Industries Tax Reliefs. We have new guides to Bonds and on the Alcohol wholesalers' registration scheme, and we also have an online form for holdover relief that we are trialling.

Our new CPD webcasts should be available from next week.

Back soon

Nichola Ross Martin FCA Tax Director


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Quick News

Voluntary Payrolling of benefits: online registration open
Employers wishing to include employee benefits in the payroll for 2016/17 will need to register online before 5 April 2016 using HMRC's online facility.

Alcohol Wholesaler Registration Scheme
All traders involved in the production, wholesale or retail of alcohol will be affected by the Alcohol Wholesaler Registration Scheme.  All existing alcohol wholesalers must apply online to HMRC by 31 March 2016 to be registered under the scheme.

HMRC Employer Bulletin October 2015
HMRC have issued their Employer Bulletin for October 2015, and we have summarised all of the key content for you, including a number of misconceptions about RTI which HMRC have identified from feedback they have received from employers.

Employment related securities & online filing
3,200 returns are still outstanding: follow our steps to close schemes set up in error.

Latest consultations

Travel and subsistence: all change?
HMRC's latest consultation proposes an end to tax relief for subsistence and a new concept of "detached duty" to replace the temporary workplace rule.

IHT Main residence nil rate band 
HMRC have published a discussion paper outlining their proposals for the application of the new residence nil rate band to those who downsize their properties.

Tax Enquiries: Closure Rules
Back to the drawing board: HMRC have published responses to their consultation on a proposal that would enable them to refer matters to the Tribunal, with a view to achieving early resolution of one or more aspects of an enquiry into a tax return. Respondents are concerned that HMRC will "cherry pick" and want to have the same power for taxpayers.

Reforms to the taxation of non-domiciles; HMRC consultation
Following the proposed changes to the tax treatment of non domiciles in the Summer Budget 2015 HMRC have launched a consultation revealing additional details and inviting views as to how some of the changes should be implemented.

Case review

Closure notice appeal: application to strike out HMRC's argument refused
The First Tier Tribunal found that HMRC could rely upon an argument before the tribunal that was not specifically referred to in the enquiry closure notice. 

VAT Case round-up

Signing an incorrect form was not careless
The adviser sent the wrong form for signing: no penalty for the taxpayer

Request to backdate de-registration refused
The First Tier Tribunal found that de-registration could be effective only from the date that HMRC received the application, and not backdated to the date when turnover fell below the relevant threshold. 


Practical Tax Guides (for subscribers only)

Investment bonds: a tax guide
NEW: our guide explains the tax treatment and tax pitfalls of bonds.

Grounds for appeal: case summaries 
UPDATE: advisers make mistakes from time to time and often there is little reason for the client to prevent such an error or spot that one has been made. We have added three more cases to this rolling case tracker.

Hold Over Relief: Form H295
You can complete this online via our new form 

Buy-to-let ownership: personal or company? 
UPDATE: this extended guide now includes a case study showing the effects of incorporation

Creative IndustriesTax Relief
UPDATE: we have updated and extended our guidance on the five existing types of creative industries tax reliefs, and reviewed the changes to the proposed Orchestra Tax Relief following the consultation earlier this year.

Editor's Choice 

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

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.

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. 

Scottish Income Tax
Our guide to the new tax which will be introduced from April 2016 and affect an estimated 3 million taxpayers


Missed last time's update?

Nichola's SME Tax Update 1 October 2015

Updates on:

  • Exit strategies
  • Tipping and troncs
  • Married v unmarried couples
  • Land and property update
  • Restricting mortgage interest relief

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