Hello
We are rather top heavy on cases this time, however they are all freeview, so read on. One that really caught my eye is Power Adhesives. The High Court applied 'the Hastings Bass principle' (that allows the correction of a fiduciary's mistake) to a company's board's decision to allow a director's loan to be converted into shares.
We all see company directors doing some daft things with share capital from time to time, generally because they have failed to take professional advice, however in this case, professional advice was taken (it was a B share IHT planning type idea), but the actual transaction went disastrously wrong as the directors allotted the wrong number of shares. The result was that they accidently diluted the share capital and created a transfer of value. The court allowed this to be reversed.
We have updates to various guides for subscribers including a new update to our highly popular Directors' Tax Planning Toolkit. This is an incredibly useful guide that will keep you up to date in topical tax for directors.
Also we have now launched our new R & D Zone, this comes as either a DIY version or with assisted claims (via the Virtual Tax Partner service). Half the problem with R & D is working out whether your have qualifying expenditure. Our guides aim to allow you to plan ahead and then make the appropriate claim, be that the small company scheme or the RDEC.
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)
SA CGT nil gain/nil loss workarounds
HMRC has applied a fix for some of the Self Assessment online filing software specification errors relating to income tax allowances. There is now also an issue on the Capital Gains Tax (CGT) pages which is unrelated to the other problems.
HMRC: Employer bulletin October 2017
HMRC have published their Employer Bulletin for October 2017. We summarise the key content for you, with links to our detailed guidance on the topics covered.
Case Update (freeview)
Share issue overturned
In Power Adhesives Limited v Stephen James Sweeney & Others [2017] EWHC 676 the High Court set aside the decision by a company’s directors to convert a loan into shares: this accidently created a transfer of value and it amounted to breach of the directors’ fiduciary or common law duties.
Unpaid salary is salary
In Ventura UK Ltd v HMRC TC06028, the First Tier Tribunal (FTT) considered whether a credit to the director’s loan account in respect of salary had been paid and so should be subject to PAYE.
SEIS: wrong forms again
In Innovate Commissioning Services Limited v HMRC TC 06152, the First Tier Tribunal (FTT) followed the precedent in X-Wind Power to deny SEIS relief where the incorrect forms were filed.
Fit and proper
In Munatsi Logistics Ltd v HMRC TC0653, the First Tier Tribunal (FTT) rejected an appeal against HMRC’s decision to refuse the appellant registration under the Money Laundering Regulations 2007.
Editor's Choice (subscribers)
Directors' Tax Planning Toolbox 2017/18
UPDATE: key guide for company directors and advisers
Entrepreneur's Relief
UPDATE: ER and IIP trusts: a new conflict between HMRC's view and the legislation.
Company losses
UPDATE: summary of the old and new rules for each of the different type of loss together with group relief
Tax Guides and Updates (subscribers)
Money laundering regulations: accountants registration
Guide updated to reflect above cases Munatsi and Hunt.
Shares and shareholders
Key guides for company owners and advisers
How to gift your shares to the family
Employment related securities: share scheme basics
Enterprise Management Incentives (EMI)
An Inspector calls...
EBTs: where are we now?
NEW: essential reading if you still have unsettled EBT loans.
Research & Development tax reliefs
We have:
- R & D guides and answers to FAQs for our regular paid subscribers.
- Our R & D Zone (premium content) contains fully worked through case studies together with practical know-how, R & D report templates & our R & D hotline...Read more
VAT
Partial exemption
UPDATE: How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?
Registering for VAT
UPDATE: How to register as executor of a deceased during a period of administration.
Opting to tax land and property
UPDATE: How is it made? When must it be made and notified? Can a belated notification be made? When does it cease? When can it be revoked?
VAT cases (FREEview)
Bridge is not a sport after all
In a surprise u-turn, the Court of Justice of the European Union (CJEU) have judged against the Advocate General’s opinion and concluded that Bridge is not a sport after all for VAT purposes.
Members' sports club VAT recovery sea change
In Queen’s Club Limited v HMRC [2017] TC06119, the FTT allowed full VAT recovery on refurbishments to a members only bar and restaurant, dismissing HMRCs view that the costs were directly linked to the exempt membership fees.
Prohibited use and specific occupation conditions are synonymous
In Duncan Lichfield v HMRC [2017] TC06040, the FTT clarified that where a planning condition contains a specific ‘occupation’ condition, this is synonymous with a prohibition on use restriction as envisaged by legislation.
Making Tax Digital
For sale
Tax and accounting fees for Sale
1. Block of fees for sale: London area: 90 tax returns, 100 corporation tax returns.
2. Small business accounting and compliance work.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update to 20 Oct 2017
Features:
- MTD secondary legislation gives the wrong start date
- Private Client: what's on Oct 2017?
- Dividends and savings: the new rules
- Agent Update
- Self employed: what expenses can I claim?
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.
