This time, amongst other things, we report a self-employed travel expenses case which is guaranteed to perplex and confuse.

The decision in the case David Jones v HMRC (there are links below) represents an interesting extension on the Dr Samadian theme. We have seen quite a few cases in recent years that we have been able to win despite Samadian, however this taxpayer seems to have been very unlucky. Although HMRC have been taking a particularly hard line against members of the medical profession in recent years, I note from enquiry cases that travel is one of the expenses that taxpayers are most likely to get wrong; we feature our travel guides this time for subscribers.

Last week I discussed the latest condoc on employee travel and subsistence and I noted that there was no mention of Personal Service Companies. My bad: we mixed up our links. The new discussion does in fact note that there will be new rules to restrict travel expenses for employment intermediaries. I imagine that the chancellor will tell us all about these in next month's Autumn Statement - although I am sceptical that they will simplify the tax rules.

We have summarised HMRC's latest Agent Update, amongst other things it highlights the continued promotion of Contractor Loan schemes. 

Happy weekend

Nichola Ross Martin FCA Tax Director


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Quick News

Business Record Checks scrapped
In a move described by the Chartered Institute of Taxation (CIOT) as a "victory for common sense" HMRC have announced that they are phasing out the contraversial checks.

Contractor loan schemes
HMRC warns that the new generation of employment income tax avoidance schemes simply don't work. We look at what they offer as they moves loan schemes into their Spotlights.

Top up now?
People reaching State Pension age before 5 April 2016 have the chance to top up their state pension by up to £25 per year by making class 3A voluntary contributions before 5 April 2017

Property occupied for just 7 weeks is a PRR
In James Dutton-Forshaw v HMRC [2015] the FTT accepted a PRR claim for a property occupied for only seven weeks. It was a residence of the taxpayer, and his only residence in that time.

Home to work travel disallowed again
In David Jones V HMRC [2015] a self employed consultant anaesthetist with an established private practice at his home was denied tax relief for travel to two of the hospitals at which he visited for work: the number of his visits made his attendance "regular and predictable". Travel to and from home to other hospitals was allowed.

Reasonable excuse for late filing: taxpayer relied on HMRC's advice
In Mary Walker v HMRC [2015] the First Tier Tribunal reduced the penalties for late filing of a P35 on the grounds of reasonable excuse as HMRC had advised the appellant that they would accept the information submitted on paper.

Content for subscribers only

Essential reading

HMRC's latest Agent Update: At A Glance
A summarised version for you with useful links to our and HMRC's guidance on the different topics covered. 

Featured Practical Tax Guides 

Travel expenses: self employed
UPDATE: case added and updated commentary on what expenses can I claim? Breakdown of the leading cases and analysis of the different tax treatments for taxpayers in different trades, profession and vocations.

Travel expenses: employer guide
The current rules at a glance and explained in detail.

CGT Private Residence Relief
UPDATE: case added, and updated commentary.

Editor's Choice: most popular 

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?

Directors: tax planning toolkit for 2015/16
This year's toolkit, like all our maintained guides, is a rolling planner and is updated throughout the year. We will notify you when we make updates.

Restricting mortgage interest relief
Our practical guide with detailed examples

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


Our Capital Taxes Update webinars (are coming soon) on:

  • Part 1: Entrepreneurs' Relief  & topical cases
  • Part 2: CGT and UK Residential Property

Missed last time's update?

Nichola's SME Tax Update 16 Oct 2015

Updates on

  • Bonds
  • Tax on dividends
  • Creative Industries Relief
  • Land and property update
  • Restricting mortgage interest relief

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