Just a short news update this week. We feature a new guide that will answer many of your FAQs: Gardens: selling or developing, CGT or Income Tax treatment?
We have put this together from FAQs received via our Virtual Tax Partner service. This also includes a handy flowchart to help you decide the more straighforward cases easily.
Broadly there is little news this week from an owner-managed business perspective. The Queen's Speech was mainly on Brexit and although this could impact all taxes, we will not know what until the negotiations are complete. There remains the ever-present question as to how we fund all the social changes that everyone seems to be demanding at all times. It seems obvious that an extra penny or two on basic rate income tax would solve the current spending issues, however, the political parties that propose such increases usually poll badly, so it looks as if the impasse will continue!
We have some useful case summaries, lots of CPD for you. 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. Finally Happy 18th Birthday Mia.
Nichola Ross Martin FCA Tax Director
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
Trust tax returns
Anyone who has tried to complete a Trust and Estate Tax Return will have seen Question 20 - "If there have been any changes or additions to the people associated with the trust, have you provided the updated details on the Trust Register?" This cannot be done as such register does not exist. HMRC have now issued guidance: the taxpayer should leave the box blank. You then ensure the correct details are on the register when it is up and running (currently expected for October).
Filing deadlines on 6 July 2017 for:
Case Update (freeview)
Puppies are not second-hand goods for VAT
In Little Rascals Pets Limited v HMRC  TC05811 the First-Tier Tribunal (FTT) agreed with HMRC that puppies bought-in by the company are not second-hand goods for VAT.
Related company tax planning to avoid PAYE and NICs by using dividends backfires
In James H Donald (Darvel) Limited v HMRC  TC05908 the First Tier Tax Tribunal (FTT) considered whether tax self assessed by related companies could be offset against a liability incurred by a different company following an enquiry.
Dividend and LLP profit schemes fail: income is from employment
In James H Donald (Darvel) Ltd and others v HMRC  UKUT 0514 (TCC) two schemes to avoid PAYE and NICs using dividends and partnership profits failed.
Should all directors file tax returns?
HMRC think they should without a notice or a prompt. In Mohammed Salem Kadhem v HMRC  TC05929 a director successfully appealed a late fiing penalty: there was insufficient evidence to show that HMRC had sent him a notice to file a return and he was unaware that he had any obligatons under self assessment.
Editor's Choice (subscribers)
NEW: Virtual Tax Partner FAQs
Gardens: selling or developing your garden
NEW: Will your gan be covered by PRR? If not what happens? What about self developers? What are the income tax issues?
Buy to lets: personal v company?
UPDATE: What is the most tax efficient option given recent developments, between owning a buy-to-let property personally or via a company, this note considers the income and corporation tax, CGT, IHT, ATED, SDLT, VAT, together with profit extraction and planning points, with case studies links to further guidance.
Dividend tax index
UPDATEs: HMRC's guidance new says that you may allocate you personal allowances as you like. Start here for details on how to vote a legal dividend and how to tax a dividend
Land & Property: an Adviser's Tax Update June 2017
What's new in land and property tax.
Capital Taxes Round-up: June 2017
What's hot and what's new in CGT and IHT this tax year.
Practical Tax Guides and Updates (subscribers)
Stamp Duty: share for share exchanges
UPDATE: new examples and illustrations on the s77a anti-avoidance provision
Accelerated Payments & Follower Notices
UPDATE: See our guide for details of making representations to HMRC regarding APNs and appealing APN penalties
Tax-free savings income
UPDATE: updated for maximum amounts that can be earned in 2017/18
UPDATE: for recent case law and referring to the importance of prior use of the asset in order to qualify
Making Tax Digital
Confused or bemused by HMRC's Making Tax Digital (MTD)? What does Making Tax Digital really mean? How will it affect you? Does MTD mean quarterly reporting? Is my business exempted from Making Tax Digital?
Manageable chunks of practical and relevant tax CPD to go with your lunch or afternoon cuppa
Latest webinars on:
- Employer's update
- VAT Update
- Flat Rate Scheme
- Making Tax Digital: Practical issues for tax agents
- How to Run the Most Tax Efficient Accounting Practice... Ever!...More
Missed last time's update?
- Tax guides for advisers in 2017/18
- VAT and business separation
- Terminal losses
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