There is a lot in this week's web-update. My highlight is our new Director Tax Planning Toolkit for 2016/17, which together with our reworked rolling tax planner for 2015/16, allows you to see at a glance what is new for each area of tax; this links off to more detailed guides. 

The Low Incomes Tax Reform Group (LITRG) has suggested simplifying the new savings band and allowance and so we have created examples across our guides to show how these interact with the dividend allowance. Finally, we also have updates for employers, companies and private clients.

Back soon

Nichola Ross Martin FCA Tax Director


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Quick News

LTRG: why is the Savings Allowance so complicated?
The Government’s new savings allowance is an excellent idea but needlessly complex in its implementation says the Low Incomes Tax Reform Group (LITRG).

Self-employment review    
Taxation was not part the remit of a self-employment review commissioned by David Cameron, and made by Julie Deane, CEO of the Cambridge Satchel Company. However, she does recommend that the government should look in detail at taxation which is an administrative burden, a barrier to growth, and an issue that could benefit from improved simplicity and better advice.

HMRC: Employer Bulletin February 2016
A summarised version with useful links to our guidance on the different topics covered. 

An inspector calls

Company Distributions: consultation for 2016/17
UPDATED: to include information from HMRC as to the wording it will be using in granting clearance for transactions which might be affected by the proposed changes to legislation. This chiefly affects transactions such as striking off a company where there is a tax avoidance motive. 

Employee Bonus Scheme: Contracts for difference
HMRC Spotlight no 28 highlights the Growth Securities Ownership Plan as a tax avoidance scheme that it thinks that does not work. This has potential penalty implications. HMRC will seek to tax "gains" made by employees as income and not capital gains.

Case Update

CIS: reliance on accountant not a reasonable excuse
In David Crossman v HMRC [2016] UKFTT TC04811 the First Tier Tribunal (FTT) denied a claim for reasonable excuse when an accountant failed to notify a bathroom fitter of his obligations under the CIS scheme.  The FTT also reviewed the payments he had made and agreed that some were not within the CIS scheme.

HMRC's decision "outrageous": special relief allowed
In Dr Montshiwa v HMRC [2015] FTT TC04701 where special relief was granted against determinations of £17,000 when the actual liability was £325. 

Practical tax guides, updates and toolkits

(Paid subscribers only)

Directors and their companies

Directors: tax planning toolkit for 2016/17    
NEW: Our annual tax planning checklist for directors for the 2016/17 tax year.

Directors: tax planning toolkit for 2015/16
UPDATE: our tax planning checklist for the current year.  Includes reference to changes proposed for 2016/17 which should be considered now.

Dividend income (subscriber guide)
Detailed guidance on the new tax regime.

Pensions planning for directors
A guide to the current rules and upcoming changes affecting pensions and tax planning for directors, including the tapered annual allowance and reduced lifetime allowance.

Small Company Tax: What's new?
From dividend tax to proposals to restrict tax relief on liquidation. The latest changes and proposals for 2016/17 affecting small company taxation.

Private client

Savings income: tax on interest
UPDATE: we have included detailed working to show how the new 2016/17 savings allowance and savings band will interact with the new dividend allowance and other income.

Private Client: Tax planning for the 2015/16 year end
Our unique year-end and new tax year tax checklist for "Private Clients", it can be used in conjunction with our checklists for Directors, Employers and Self-employed individuals.

Buy-to-let ownership: personal or via a company
What works better, considering the above changes? Holding a buy-to-let property investment personally or via a company? 

Trusts & Estates: What's new 2015/16 
NEW: now we are getting toward tax return preparation time, here is a review of changes to inheritance tax implemented this year.


Staff Suggestion Schemes
NEW: How to make tax free cash awards to employees

Tax-free benefits and perks
UPDATE: if you an existing employer, or considering taking on new staff, this practical tax checklist will help you build a tax-efficient pay package. Links to all key benefits including the newly updated guidance to Trivial Benefits.

Employers: What's on from April 2016
A comprehensive guide to the major changes affecting the processing and taxation of employee benefit and expenses from April 2016, including voluntary payrolling of benefits, exemption for paid and reimbursed expenses and the trivial benefits exemption.

Share schemes: employment related securities
With the changes to the dividend rules, why not make your employee a shareholder?  Here we compare EMI with ESS with an unapproved scheme. Which one is best, can we combine them? This guide explores the different schemes. If you have a query give us a call to talk it over.

Auto enrolment: workplace pensions
This Practical Tax Guide looks at the key features of auto-enrolment, who is affected, what employers need to do, the relevant timescales and who is affected.

Essential reading

Stamp Duty Land Tax: proposals for 2016/17
Increased rates of duty from April 2016

Enhanced Capital Allowance: energy saving plant
UPDATED: with details of the tax credit available for loss making companies.

Self-employed: Digital Tax Accounts
NEW a closer look at HMRC's plans to transform the tax system with quarterly reporting and a simpler payment system. Includes the proposed timeline for consultation and implementation.

Editor's choice

Sole trader v. limited company: tax differences & savings (2016/17 on)
NEW: is it more tax efficient to trade as a sole trader or via a company. This handy guide and client briefing compares one trading structure with another and provides an excellent set of crib notes for discussion with any start up or sole trader.

Finance Acts 2015/16: rolling tax planner
UPDATE: this is our favourite place for staying up to date with what's new across all the taxes.

Missed last time's update?

Nichola's SME Tax Update 15 February 2016

Features updates for:

  • Pensions planning
  • Direct recovery of debts
  • Voluntary payrolling of benefits
  • Register of Persons with Significant Control 
  • Planning for the 2015/16 year end
  • Planning ahead for 2016/17

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