This time we have a bit of a mix: some topical cases, updates on land and property, loan relationships and VAT.

Before you jet off on your summer holidays, don't forget that:

  • The second income tax payment on account for 2017/18 is due on 31 July 2017.
  • There is a new notification procedure for clients with offshore bank accounts and investments.
  • You must notify a share scheme and file a share scheme return if you gave anyone shares during 2016/17, there is an exemption for 'friends and family', the filing deadline has moved back to August.

We have new company loss rules from 6 April 2017, and we will feature new guides on these shortly. In the meantime, to get you in the mood for horribly complicated tax we have new loan relationship toolkits.

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)

Self assessment: late payment and filing penalties
Next deadline is 31 July 2017

Employment related securities: reporting issues
Share schemes: the deadline for reporting has been extended to 24 August 2017 (it was 7 July 2017).

Case Update (freeview)

Workers' rights to paid leave will not expire
In C King v The Sash Window Workshop Ltd [2017] EUECJ C214/16 the Advocate General of the European Court’s preliminary ruling indicates that workers entitlement to annual leave will carry over indefinitely, until such time they have been given the opportunity to take it.

Discovery: two bites at the cherry
In G Clark v HMRC [2017] UKFTT 392 the First Tier Tax Tribunal (FTT) drastically extended the scope of discovery assessments. The case concerned a replacement assessment for a pensions unauthorised payment charge.

Editor's Choice (subscribers)  

Client notification (offshore bank accounts and investments)
Failure to notify clients in the prescribed form, on or before 31 August 2017, will result in a penalty of up to £3,000.

Loan Relationships
UPDATE: Finance (No 2) Bill

Loan relationships toolkit: when is a balance within the rules?
NEW: is it a loan relationship

Loan relationships toolkit: director's loans
NEW: is a loan from a director within the rules or not?

Practical Tax Guides and Updates (subscribers) 

Property Profits and Losses: toolkit
 UPDATE: all the changes from 6 April 2017.

Investment bonds: a tax guide
UPDATE: Accrued Income Scheme rules added to show how you will be taxed if you buy or sell a security during the tax year 

Discovery assessments and time limits
UPDATE: new cases and topical tips 

Unauthorised Payment Charges
Minor updates to reflect recent case law.

Advisers' Tax Penalty Planner
Extended to include LBTT and general updates.


Cases (freeview)

Pill salesman liable for VAT
In Peter Tomlinson v HMRC [2007] UKVAT V20059 the VAT tribunal agreed with HMRC that an internet salesman was carrying on a business of buying and selling performance enhancing pills and was not acting as disclosed agent for a Doctor.

Letter box address valid for VAT invoices
In RGEX GmbH v Finanzamt Neuss (C-374/16) and Finanzamt Bergisch Gladbach v Igor Butin (C-375/16) the Advocate General of the CJEU preliminarily ruled that a letter box address is sufficient for VAT invoice purposes.

Farmers allowed to benefit financially from agricultural FRS
In Shields & Sons Partnership v HMRC [2017] C262-16 the Advocate General of the European Court gave a preliminary ruling confirming that HMRC cannot withdrawn a farmer from the scheme merely because they would be substantially better off than if they registered for VAT. 

VAT: subscribers

Flat rate scheme: farmers
NEW: How does the special flat rate scheme for farmers work? 

NEW: When is a recharged cost outside the scope of VAT? How do you account for VAT if you are acting on behalf of someone else? 

What constitutes a valid VAT invoice?
UPDATE: For recent European case law, confirming validity of invoice containing a letter box address.

Bad debts: VAT recovery
UPDATE: When can you claim bad debt relief for VAT?

VAT: deregistration
UPDATE: When joining the Agricultural Flat Rate Scheme the stock and assets in hand rules on deregistering for VAT do not apply.

Making Tax Digital

MTD Index
New staging dates and responses to condoc on penalties.

CPD Webinars

New CPD click here

Missed last time's update?

Nichola's SME Tax w-update 14 July 2017


  • The New TAAR on phoenixing
  • MTD new staging dates
  • Personal service companies
  • Persons with significant control
    and much more 

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