This week we have a slightly employer-oriented edition. HMRC are sending out fines for late filing of what was the old Form 42 and there is a new Employer Bulletin. We also have a guide to the Apprenticeship levy and also apprenticeship funding.

Breaking news is that the EU has ordered Apple to pay up to £11 billion in back taxes. According to the EU, Ireland's deal with the online giant broke state aid laws. Both company and country are appealing.

Of other news, HMRC are now offering an online tax refund service for those who have Personal Tax Accounts set up and there is quite an interesting case for not-for-profit companies. 

We have updates for subscribers on quite a range of different guides this week. If it all seems too much to absorb then don't forget our Finance Acts rolling tax planner, this shows you 'what's hot and what's not' for any of the different taxes with sections on employers and small companies too.

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Back soon

Nichola Ross Martin FCA Tax Director


Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers

Quick news (freeview)

HMRC online tax refunds
HMRC have announced that taxpayers with Personal Tax Accounts can now make online claims for tax refunds.

Employment securities: penalty notices
HMRC have started issuing penalty notices for late filing of the online employment securities annual return. Deadline for 2015/16 was 6 July. This replaces the old paper Form 42 and should be used whenever a company issues shares to a director or employee.

HMRC: Employer Bulletin August 2016
HMRC have published their Employer Bulletin for August 2016. We summarise the key content for you, with links to our detailed guidance on the topics covered.

VAT & mutliple building dwellings: HMRC policy change
HMRC will now accept that a single dwelling can be formed from more than one building, and are allowing retrospective claims for overpaid VAT as a result.

More consultations

Consultation: offshore evasion
HMRC have launched a consultation which would require anyone with undeclared UK tax liabilities relating to offshore matters to correct the situation by September 2018 or face stiff penalties.

Consultation: reforms to the taxation of non-domiciles
HMRC have released a follow up consultation on their proposals for changes to the taxation of non-doms.

Case Update

Assessment repayments: watch the time limit
In Mr XYZ v HMRC [2016] TC05157 a repayment claim was rejected as returns were filed more than four years after a VAT assessment.

Payment / transfer services exemption
In DPAS Limited v HMRC [2016] UKUT 0373 questions have been referred to the European Courts regarding the VAT exemption for services relating to payments and transfers. How the timing of this will fit in with Brexit is another matter for the UK to negotiate with Brussels.

VAT exemption & fiscal neutrality
In L I F E Services Limited v HMRC [2016] TC05197 the First Tier Tribunal (FTT) found that excluding welfare services provided by a non-charitable company from the same VAT exemption as charities breached the principle of fiscal neutrality. Interesting for not-for-profit organisations.

Practical Tax Guides & Updates 

Divorce / separation: tax issues
NEW: A summary of the tax considerations where a marriage or civil partnership fails.

Sch 36 information notices
UPDATED: for the Upper Tribunal decision in Telng Limited v HMRC that an information notice requiring documents to be sent by either post or email was valid.

Buy to let incorporation
UPDATE: impact for ATED purposes, and use as a VAT planning tool.

SRT: split year treatment
NEW: A summary of split year treatment under the Statutory Residence Test and where it can apply.

Non-domicile status & tax
UPDATED: more details added on HMRC's latest consultation.

Employer Special 

Apprenticeship levy - a guide for employers  
NEW: review of the government's latest guidance, Apprenticeship levy: how it will work and funding consultation, Apprenticeship Funding, detailing how it will affect all employers.

Tax-free benefits in kind and perks
A Practical Tax Checklist covering the wide range of tax-free “staff perks”.

Company cars
Our comprehensive guide to the tax implications of company cars.

Employment related securities: designing share schemes
A guide to explain the tax consequences when a company gives shares to an employee or director and assist you in designing share schemes.

Salary sacrifice schemes
A practical overview together with topical updates.

Editors' Choice

Finance Bill 2016 and rolling tax planner
UPDATE: links to all the new condocs, the apprenticeship levy, VAT change of policy and Making Tax Digital, as well as summarising all the 2016/17 and later changes across the taxes.

Missed last time's update?

Nichola's SME Tax Update 18 August


  • Making Tax Digital Consultations and our new Index.
  • Condocs: disguised remuneration, termination payments, salary sacrifice, SDLT and Gift Aid.
  • Updated guides to ISAs and Employment Related Securities.
  • Featuring Property profits and losses toolkits for 2015/16 and 2016/17.

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