With just a couple of days left until the major tax filing deadline of the year, we have last minute guides for sole traders grappling with self assessment.

We have noticed that many people get confused by the rules on disposal values on capital allowances, particularly when it comes to selling assets to a connected party or an employee. They are not helped by the legislation which contains a slightly confusing table. My top tip for this week's Essential Reading is our new guide on this topic.

Another area of tax that confuses people is when and how non-residents can claim a UK personal allowance. I have had a very frustrating time of late grappling with HMRC's Form R43 (claiming personall allowances for non-residents). Despite updating Adobe, it makes no difference which browser I use; the interactive forms don't work. This makes tax needlessly difficult, however it got me wondering, perhaps not so much a cock up but more of a conspiracy. A deliberate ploy to make the personal allowance more difficult to claim? I've noted some very odd mixed messages coming out from HMRC on non-residents and tax, more on this next week.

Can't stop: still have last minute tax returns to file!

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

p.s. If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk

Quick news (freeview)

Consultation: Scottish Limited Partnerships
The government have launched a call for evidence ‘Review of limited partnership law’ on the use and potential abuse of partnerships, in particular Scottish Limited Partnerships.

ATED: new HMRC online service
HMRC's new ATED online service is now open for registration ahead of the 30 April filing deadline. 

Optimistic expense claims
Ahead of the 31 January filling deadline HMRC have released a list of the most outlandish expense claims they saw in 2014/15. 

Case Update (freeview)

Lorry drivers were employees
In RS Dhillon and GP Dhillon Partnership v HMRC [2017] TC 05583 the First Tier Tribunal (FTT) found that lorry drivers were employees and not self-employed. 

VAT on tax advice is recoverable
In Doran Bros (London) Limited v HMRC [2017] TC 05554 the First Tier Tribunal (FTT) found that input VAT on tax advice which also benefitted a director was recoverable.

Editor's Choice (subscribers) 

Capital allowances: disposal values & rules
NEW: This week's Essential Reading. A guide to what counts as a disposal and what value you need to bring into account.

Self assessment: late filing and payment penalties
It's that time of year: a handy guide if you fail to meet your deadlines

Accounting: Simpler Income tax (cash basis) / fixed expenses
Small unincorporated businesses have two choices of accounting system and three choices for claiming expenses in order to arrive at their profits for tax purposes. Which one is best for you?

Which system for me? See Cash or accruals accounting toolkit

Which expenses for me? See Flat rate expenses or actual cost toolkit

Personal allowance: who is allowed to claim
Who can claim and how

Practical Tax Guides and Updates (subscribers) 

Penalties: Enablers of Tax Avoidance (subscribers)
NEW: A new updated guide to the new penalties which are introduced this year.

Penalties: Errors in Returns and Documents (subscriber version)
UPDATED: our guide has been refreshed, with a new case on suspension and details on Finance Bill 2017 proposals added.

Client guide to 'Reasonable care and tax penalties'
UPDATED: details added on the Finance Bill 2017 proposals which affect the defence of reasonable care.

Termination, redundancy and leaving payments
UPDATED: HMRC updated their manuals on negative earnings following the decision in Martin v HMRC

Employment status
UPDATED: information on potential impact on VAT registration and the case of Dhillon & Dhillon added.

CPD Webinars

Small Companies Update

Missed last time's update?

Nichola's SME Tax Update 20 January 2017


  • Making Tax Digital: changes needed.
  • Cases on EIS, sideways loss relief and the dangers of paying HMRC by cheque.
  • The requirement to correct offshore evasion.
  • Non-domicile status and tax
  • IHT: business investment relief, main residence nil rate band and gifts with reservation.
  • Non-residents' CGT on UK residential property.
  • Museum and Gallery Exhibitions tax relief.
  • ATED CGT filing and payment.
  • Gift Aid.
  • Accelerated payments and follower notices.

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