Scotland has set income tax rates for 2018-19, there will be 5 tax bands with a basic rate of 19% and an additional (higher) rate of 46%.

Presumably the long term goal will be to create a simpler system using tax rates rather than complicated allowances as we suffer for dividends and savings. Let's hope so.

HMRC have published the result of some 2016 research ahead of Making Tax Digital. It suggests that whilst small businesses and landlords want to be compliant, they would not be rushing to embrace quarterly reporting and are very reliant on external advisors to help them through the process. At the time of the research MTD had been expected to commence in April 2018, and advisers might note that of the small number who were aware of the forthcoming changes, few had achieved this awareness via their agents and advisors, with the software providers seemingly leading the charge in educating taxpayers. 

Of other news this week:

The trusts registration deadline has moved back again.

We have been updating our Finance Act 2017: tax update and rolling planner, as well as adding a new planner for 2018/19. We have suffered a record number of changes and announcements in tax in 2017/18, this is as result of having two finance acts and then moving the budget back to Autumn and also because government is consulting in so many areas. My editor's picks this week reflect areas of tax where we often are asked the most questions.

Don't miss our Christmas Advent tax and accounting calendar to bring a little sparkle to your cold offices. Click on a new door each day and all sorts of wonderful delights await 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. 

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)

Christmas Advent Calendar
Open a door in our calendar every working day in December and add a little sparkle to your tax and accounting day. We have covered, tax relief and Christmas decorations, how to tax all sorts of gifts, parties and entertaining customers, your staff and yourself. Today we look at working at home when you are snowed in!

Scottish Budget: Income tax rates
New rates between 19% and 46% with 5 tax bands

More GAAR advisory panel opinions in HMRC's favour
In July 2017 the General Anti-Abuse Rule advisory panel (GAP) gave its first opinion in respect of ‘Employee rewards using gold bullion’; it has now released three more opinions, all in HMRC’s favour.

Trust registration extended
Due to the delays in opening the new online trust registration service for agents, HMRC have yet again extended the deadline for filing information about existing trusts.

Making Tax Digital: research
HMRC have published Making Tax Digital for Business: Survey of small businesses and landlords, the results of research conducted in 2016 with 2,900 businesses and landlords, regarding Making Tax Digital (MTD) for business.

Autumn 2017 Consultations
If you are not caught up in the annual self-assessment race then you might like to review our round-up and summary of all the new consultations. Our highlights include: Non-residents CGT, Bringing offshore landlords into corporation tax, company car and salary sacrifice.

Case Update (freeview)

No Freestanding right to amend
In HMRC v Benham (Specialist Cars) Limited [2017] UKUT 0389 (TCC) the Upper Tribunal (UT) confirmed that HMRC needed to issue a discovery assessment (allowing losses to be utilised) when a provisional claim to rollover relief lapsed.

Reliance on an incompetent adviser: a reasonable excuse
In Muhammed Hafeez Katib v HMRC [2017] TC06149 the First Tier Tribunal permitted an out of time appeal due to the taxpayer’s reliance on an incompetent adviser.

Editor's Choice (subscribers & freeview)  

CGT: different ways of taxing UK property
UPDATE: a handy guide to a complicated topic

Offshore company holding UK residential property: tax issues
UPDATE: following consultation its all change from 2019 and then again in 2020.

Finance Acts 2017: tax update and rolling planner
What's hot for the 2017/18 tax year.

Tax Guides and Updates (subscribers) 

Rent A Room relief
UPDATE: with the government looking to reform this relief, take a fresher on how the relief can be used. 

Company Cars
UPDATE: HMRC have published the draft changes to PAYE regulations confirming what information will need to be reported through RTI for payrolled company cars.

DOTAS: Disclosure of tax avoidance schemes
UPDATE: For consultation response above and case references.

National living wage rates /National minimum wages rates
UPDATE: 2018/19 rates added

Non-resident CGT: residential property
UPDATE: following Autumn Budget and new consultations

Personal Service Company Tax
UPDATE: what options are available if the contractor disagrees with a decision made by the public body that engaged them?


Simple invoice insufficient for iPhone VAT reclaim
FREEVIEW: In Scandico Ltd v HMRC [2017] UKUT 0467, the Upper Tribunal (UT) agreed that a simple invoice for the purchase of an iPhone costing more than £250 was insufficient to enable VAT recovery.

New EU VAT legislation and Mini One Stop Shop
FREEVIEW: The EU have released draft changes to the VAT Directive which simplify VAT for micro businesses, introduce Mini One Stop Shops for distance sales, and brings further changes for online market places.

What constitutes a valid VAT invoice
UPDATE: following the Scandico case and the EU's draft new rules, check our guide to ensure you know what a valid UK VAT invoice is and what you need to recover VAT incurred. 

Place of supply: goods
UPDATE: refamiliarise yourself with the place of supply rules on goods and understand how the new EU rules might affect you.

Place of supply: services
UPDATE: place of supply of e-services which were changed in January 2015 will bw relaxed under the latest EU changes.

Place of supply: Mini One Stop Shop
UPDATE: the new EU rules will change the deadlines for VAT MOSS returns and extend the rules to all services from non-EU businesses as well as distance sales of goods.

CPD Webinars

New CPD click here

Missed last time's update?

Nichola's SME Tax w-update to 8 December


  • Autumn Budget 2017: rolling tracker (freeview)
  • Personal Service Company (PSC) update 2017/18
  • Property profits and loss toolkit (2017/18 on)
  • VAT update: What's New: Nov 2017 

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