The seven main tax and accounting bodies have sent a rocket through the tax avoidance industry by introducing guidance to prevent their members from promoting or creating tax avoidance schemes.

Their new joint Professional Conduct in Relation to Taxation (PCRT) will be effective next March. I recommend that all accountants and advisers qualified or not read over the PCRT. 

We have a range of different cases from the FTT this week, all picked because we think that they are interesting and relevant. We also have updates to our guides on Private Residence Relief (PRR), together with new tax penalty planners for advisers, and a new guide to the Offshore Penalty Regime. This applies not only to undeclared assets and income but also applies to moving assets offshore.

Time is nearly up for responding to the Making Tax Digital (MTD) consultations. Whilst at this stage I am no longer entirely sure what MTD really means and can't wait to see what data HMRC wants us to send in, I can, however, see one positive aspect. Forcing people to start quarterly accounting and to use software will be great for the tax and accounting professions. Taxpayers are bound to get thoroughly muddled and will need your help!

Enjoy the guides and updates and the news is below. 

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)

Brexit: Parliament must have their say
The High Court has ruled that the UK Government cannot trigger Article 50 to leave the EU without reference to Parliament. An appeal, directly to the Supreme Court has already been allowed.

No tax avoidance schemes if you are a member of a professional body
Members of professional tax and accounting bodies will be prevented from promoting or creating tax avoidance schemes under a new code of Professional Conduct in Relation to Taxation, effective from March 2017.

Making Tax Digital CIOT and ATT survey results
95% of respondents consider that compulsory digital record keeping and quarterly reporting will place an additional burden on their clients.

Case Update (freeview)

RTI: micro employer has to file online
In Elite Hand Car Wash v HMRC [2016] TC05431 the First Tier Tribunal rejected a taxpayer’s claim that HMRC’s RTI reporting relaxation for micro employers meant it did not have to file online.

SDLT penalty: ignorance and Christmas not reasonable excuses
In Antony Phillip Brown v HMRC [2016] TC05423 the First Tier Tribunal  found that a taxpayer did not have a reasonable excuse for late filing of an SDLT return.

Martial Arts Instructor an employee not a partner
In Mr Remi Ashton v HMRC [2016] UKFTT TC05456 the First Tier Tribunal agreed that the taxpayer was an employee and not a partner of a partnership. 

Care home fees a BIK for spouse not child
In Sarah Baylis v HMRC [2016] TC 05454 the First Tier Tribunal (FTT) found that care home fees paid by a company were a benefit in kind for the patient's spouse rather than their daughter.

Practical Tax Guides and Updates (subscribers)

Private Residence Relief
UPDATED: a practical tax guide to a CGT relief that we all assume should be straightforward which in reality is nothing of the sort. We summarise the issues, planning points and case law. 

Advisers' Penalty Planner
UPDATES: an 'at a glance' guide to the key direct tax penalties for different kinds of tax returns and payments. This is designed to show to your clients on a tablet.

Penalties: offshore income and CGT
UPDATED: a guide to the various penalties that can now apply for offshore matters. 

Editor's Choice

Capital Gains Tax index
The Capital Gain Tax Act 1992 contains a number of very useful tax reliefs: this handy guide outlines which of the key reliefs applies when and where.

Starting in business: start here
A useful index of guides that take you through those important stages, now with new VAT guides and links.

Accounts healthcheck: self employed
UPDATE: This checklist provides you with a lot of pointers to key areas for discussion with clients. If a client sees the issues they might be more appreciative as to what it is you actually do.

Directors: what expenses can I claim
Guides and examples to show you what to claim and when, and discusses issues which are special to owner-managers.

CPD Webinars

Land and Property Update: Capital Gains Tax
NEW: A summary of the recent CGT developments for land & property

Land and Property Update: Inheritance Tax
NEW: A summary of the recent IHT developments for land & property


Missed last time's update?

Nichola's SME Tax Update 31 October


  • Penalties special: agents, advisers & accountants penalties, POTAS, Corporation Tax.
  • Money laundering: registration and FTT case.
  • Capital allowances on incorporation.
  • New Statutory Residence Test toolkits

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