Now that the election is over, we can look forward to a mini-budget and another finance bill to legislate all those things that were missed off the last Finance Act. We expect the undoing of what was originally billed as a triple lock on income tax, VAT and NICs and also more 'stealth taxes' (penalties).

This time we have a Capital Taxes update. As you may have noticed there were very few changes to capital taxes in the 2017 Finance Act, there is, however, a veritable feast of case decisions and updates to our guides which are all worth a quick read.

We have updates on some of the slightly more obscure elements of tax this week, and further cases added on special reduction and a review of a case where special reduction could have applied. 

Never forgetting VAT, we have two new VAT CPD webinars for you.

Penalties are the new black! Not so good if you are on the receiving end, but I note that the Pensions Regulator is doing extremely well out of non-compliance in pensions auto enrolment. Given the awful compliance statistics for employers under PAYE Real Time Information, Making Tax Digital stands to be quite a revenue raiser. Perhaps we need to be honest about penalties and think of them as taxes, after all car parking penalties fund many local authorities.

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

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)

Record fines for auto-enrolment failures
Employers have paid fines of over £6million

Uber's VAT bill
Will HMRC be investigating Uber now that its VAT planning probably does not work?

P11D penalties
Its P11D time: don't forget.

Case Update (freeview)

Tax treaty: self employed or employed
A useful case in interpreting double tax treaties: in HMRC v Fowler [2017] UKUT 0219 (TCC) the UTT overruled the FTT in deciding whether a diver was self employed or employed for tax treaty purposes.

No VAT on subcontracted MOT
In Ellon Car Clinic Limited v HMRC [2017] TC05813 the FTT allowed the taxpayer’s appeal finding that the fee for a supply of motor services which included a subcontracted MOT, was standard rated only on the excess over the cost of that MOT.

Editor's Choice (subscribers)  

Capital Taxes Round-up: June 2017
What's hot and what's new in CGT and IHT this tax year.

Sch 36 Information Notices
When are private bank statements statutory records? What makes a notice invalid? Whe can you appeal? All the latest cases summarised with careful analysis.

Practical Tax Guides and Updates (subscribers) 

Penalties: failure to notify
UPDATE: new case added Errol Almond v HMRC [2017] TC05889  concerned discovery assessments covering 13 years and associated penalties for failure to notify.

APNs and Follower Notices
UPDATE: new case added Graham Pitcher v HMRC [2017] TC5870 on invalid APN penalty and insufficiency of funds.

How to appeal a tax penalty
UPDATE: further cases on special reductions.

NEW: Woodlands and forestry ownership carry significant tax reliefs, including income tax, capital gains tax and inheritance tax relief. 

Scottish Income Tax
UPDATE: Non-UK residents should tell HMRC that they are not Scottish taxpayers if HMRC hold a Scottish correspondence address.

NEW: your FAQs solved. What are chattels? Is it a wasting or non-wasting chattel? How are capital gains on chattels taxed? What about plant and machinery?


VAT penalties
UPDATE: new case late registration and penalties.

Making Tax Digital

Making Tax Digital: toolkit for accountants
UPDATE: what's hot and what's not in MTD. Planning for MTD for you and your clients.

Making Tax Digital: index
UPDATE: the latest news

CPD "For Lunch" Webcasts

These are CPD webcasts for paid subscribers. Each one is between 10–30 minutes long and so ideal to watch while you eat your sandwiches!

New CPD click here for VAT Update and VAT Flat Rate Scheme


Missed last time's update?

Nichola's SME Tax w-update 2 June 2017


  • Penalties
  • QCBs v Non-QCBs
  • Offshore company toolkit
  • Sch 36 Information Notices
  • Pricing guides for accountants
  • New CPD

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £365 (+ VAT). 

What do you get?

  • We keep YOU up to date in SME tax.
  • FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 2,500 actively maintained tax guides, briefings, toolkits and checklists.
  • Want to know more? Commission your own articles and checklists.
  • Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
  • Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
  • Nichola’s regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
  • You can also commission guides and checklists for your own practice, post comments and upload your own articles.
  • Access to the Virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.