Hello
This time we feature our latest SME Company topical update. With a quite staggering number of changes in both tax and accounting, this is essential CPD for anyone advising or running a company.
It is rare to report that a land-based business has managed to qualify for IHT Business Property Relief, and horse owners will be interested to see in our case reports that a DIY livery yard has been distinguished from a serviced office. It may be the worming treatment that makes a difference! This decision may be subject to appeal by HMRC of course.
We also look at a case where the Supreme Court has punished HMRC for not following the Tribunal's directions and being continually late with information. Many appellants will have experienced HMRC’s delaying tactics during tribunal proceedings and so a decision by the courts to bar HMRC from taking further part in proceedings is hopefully a lesson learned.
The Office of Tax Simplification (OTS) has been given further instructions on simplification of the corporation tax computation by the chancellor. The OTS are to look at giving tax allowances via depreciation rather than by capital allowances. This sounds interesting, however I would have thought that capital allowances are the least complicated aspect of running a company. Given the future demands of both Making Tax Digital and a falling workforce perhaps a better idea would be to re-think all tax in the round. Income tax could be abolished and replaced by 'social media usage levies', and a 'disruptive technology tax' for high-tech companies that don't employ a certain ratio of staff to turnover. Post-Brexit we could add VAT to financial services. I always thought that 'mouse tax' would be good too: pay per click, that would really disrupt a lot of models.
Back in the real world, the new company loss rules run into nearly 150 pages. We have totally re-written our guide to losses and now you can see the before and after rules for all types of loss or deficit. If you happen to have any free time this weekend, I am doing a talk on the new rules at the CIOT's Autumn Residential Conference in Warwick.
We have also featured our ever popular buy-to-let incorporation guides, updated on ATED and a new guide to Crowdfunding.
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)
Finance Bill 2017-19
The new finance bill has been published: it contains all the clauses that were dropped from the first finance act of 2017 following the decision to call a June general election.
Advisory fuel rates
New advisory fuel rates for company car drivers apply from 1 September 2017. These can be used for reimbursing employees for business fuel on company cars, for avoiding a fuel benefit charge and for claiming VAT on business fuel.
OTS to explore replacement of capital allowances with depreciation
The OTS have been asked by the Chancellor of the Exchequer to conduct further reviews of the impact of replacing capital allowances with tax deductible depreciation.
New draft Anti-Money Laundering Guidance for accountants, advisers and auditors
Essential reading: guidance prepared by the professional bodies, this is being sent for Treasury approval
Case Update (freeview)
Director liable for company's NIC
In Charles O’Rorke v HMRC [2017] TC6008, the First Tier Tribunal (FTT) upheld an assessment that a director was negligent so personally liable for the company’s NIC bill.
Tardy HMRC barred from proceedings
In BPP Holdings & Ors v HMRC [2017] UKSC 55, the Supreme Court (SC) dismissed HMRC’s appeal and agreed that they were not entitled to take part in the case proceedings due to a failure to provide information by the agreed due date.
If it looks like a business it is a business
In The Estate of Maureen W. Vigne (deceased) v HMRC [2017] TC06068, a livery business qualified for business property relief; to the lay person it looked and felt like a business therefore it was.
Editor's Choice (subscribers)
Company Tax Update: September 2017
NEW: CPD and topical update covering all the new developments in company tax and accounting with links to our guides and recent case decisions.
Crowdfunding
NEW: what is the tax position for funder and recipient?
Buy to let: incorporation
UPDATE: step by step know-how: our guide provides details of the reliefs available and applicable tax charges.
Buy to let: SDLT on partnership incorporation
UPDATE: want to know more about SDLT relief when you incorporate a partnership? Read our guide with details of how to calculate SDLT on partnership incorporation.
Practical Tax Guides and Updates (subscribers)
Bank account cashback and reward payments
NEW: useful guide on when and how bank account cashback and reward payments are taxed.
Annual Tax on Enveloped Dwellings (ATED)
UPDATE: enveloped properties owned on 1 April 2017 will need to be revalued to see if they will be within ATED for 2018/19. An ATED return or Relief Declaration form is required if you operate a buy-to-let business.
ATED CGT: UK residential property & non-natural persons
UPDATE: caught by ATED on a property you are disposing of? What CGT will you pay?
Making Tax Digital
Making Tax Digital: the index
Our tracker on MTD
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update to 25 August
Features:
- Penalties for SAO
- Vat: errors and unjustment enrichment
- Valuations: companies and business
- Selling a business? Start here
- Personal service companies: tax and travel update
- Giving your home to your children
- Share valuation cases
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