Just a short update this week. My highlights: don't forget to pay remaining SA tax by 1 March and HMRC's Agent update is out. 

You may notice in the Agent Update that HMRC is changing its bank accounts again. It does not appear to have changed the account details on the You Gov website and it says that it you are paying tax electronically you can use the old bank details. I am sure all will become clear in due course.

Also this time we feature an interesting case on tax penalties. No penalties where a form was correctly completed even though the figures that it contained were themselves incorrect. Work that one out! We had a similar one last year for a VAT DIY builder claim.

Back soon,

Nichola Ross Martin FCA Tax Director


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Quick news

Self-assessment: late payment penalties
Leap year reminder: if you have not paid your 31 January tax bill by 1 March 2016, a 5% penalty will apply.

HMRC: Agent Update
HMRC have issued their Agent Update for February 2016: we have summarised the key content for you with useful links to our detailed guidance on the topics covered.

Gift Aid donor benefits: consultation
HMRC have opened a consultation, Simplifying the Gift Aid donor benefits rules, proposing changes to the current limits and concessions allowed for donor benefits.

Advisory Fuel Rates
New rates applicable from 1 March 2016

Case Update

Appeal against penalty for inaccurate PAYE return allowed
In Fab Cleaning Management Limited v HMRC [2016] TC04824 the First Tier Tribunal FTT cancelled penalties for inaccuracy in PAYE returns, agreeing that the forms must record amounts actually deducted from employees, not the amounts which should have been deducted.

Payment made under TUPE only partially taxable
In A G Reid v HMRC [2016] UKFTT TC04872 the First Tier Tribunal (FTT) found that part of a payment made to an employee on a TUPE transfer was non-taxable: it was compensation for loss of pension rights.

An inspector calls

Spotlight 29: don't fall for it - misleading claims made by tax avoidance scheme promoters
Despite the anti-avoidance rules in Part 7a ITEPA (disguised remuneration) and the expensive litigation in the Rangers' EBT case scheme promoters are still claiming that SME owners can use loan schemes to avoid tax. 

Practical Tax Guides & Updates 

Striking off a company: step by step
UPDATE: guide to making final distributions and striking off unwanted small companies prior to the proposed changes to the Transactions in Securities rules in 2016/17.

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.

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.

Tax planning for income at marginal rates
As the end of year approaches, a guide to the income thresholds to watch out for in 2015/16.

Dividend income (subscriber guide)
Detailed guidance on the new tax regime, updated to include the new rules on the application of the £5,000 nil-rate band taken from the draft legislation.

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.

Employers: What's on from April 2016
UPDATE: 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.

Editor's choice

Tax Planning for directors
UPDATE: an index to our tax guides, toolkits and checklists for directors and companies.

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.

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. 

Missed last time's update?

Nichola's SME Tax Update 22 February 2016

Features updates and guides for:

  • Tax planning for directors and companies
  • Savings income: tax on interest 
  • Pensions auto-enrolment
  • Stamp duty proposals for 2016/17 
  • Digital tax accounts

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