In this web-update we look at HMRC's powers when it comes to issuing third party information notices to accountants, we feature our all new toolkits for non-residents with offshore property, non-UK domiciled taxpayers and much, much more.

A couple of cases caught my eye this week, both feature accountants. Ex parte Accountant considered HMRC's options as to how they could discretely apply to the tribunal for details of advice given to a company on clearing its overdrawn director's loan account before insolvent liquidation. Well worth a read.

Stanley concerned share loss relief claims for failing companies. The accountant was confused by the, well, confusing rules surrounding share loss, EIS etc and made loss claims apparently without the knowledge of his client. The claims were out of time and failed in detail. The client received tax geared penalties which were downgraded to being 'careless' as his delay in providing information was not blameless. 

Finally there was another one of those penalty cases where the appeal succeeded on the basis that the penalty was not issued by a human. That's something to mull over.

If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk: subscribers you are entitled to free quick queries so do ask.

Enjoy the guides and updates, note the VAT updates, and the new SEIS guide too. 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)

Certificate of residence
HMRC have published a new online form for companies and partnerships who was to apply for a certificate of residence.

ATED relief forms withdrawn on 31 March 2018
HMRC have confirmed that the current Annual Tax on Enveloped Dwellings (ATED) Relief Declaration Return (RDR) forms will be withdrawn on 31 March 2018.

Trust registration: late filing penalties
HMRC have now issued details of late filing penalties in respect of the new online trust registration service.

Case Update (freeview)

Sch 36 Notice: What was the Accountant's PAYE advice?
Ex parte A Taxpayer v HMRC [2018] TC6330 considered HMRC's options in serving a third party information notice in respect of a PAYE/NIC enquiry on the accountant of a company that had gone into liquidation. The answer was to treat the company director as the taxpayer.

P11D(b) penalties: no evidence to show human determination
In Trent Personnel Ltd v HMRC [2018] TC06319 FTT overturned penalties charged for a late form P11D(b) return. The judge deduced that penalties were appealable and made via a s100 TMA determination. HMRC failed to provide any evidence that the penalty was made by a human.

Agent's share loss advice was not taxpayer's fault
In Roy Stanley v HMRC [2018] TC6199, a taxpayer was regarded as careless for supplying delayed and incomplete information to his agent. His agent also made share loss and negligible value claims out of time, despite being told that they were out of time by HMRC. The FTT decided not to penalise the taxpayer penalised for his agent's actions.

Editor's Choice (subscribers)  

Offshore Income Toolkit
NEW: HMRC have issued a guide “Ten things you need to know about offshore assets and income”, this client guide covers those and it explains much more: the new rules, the new penalties and, it adds many more practical tips and planning points.

Non-residents' tax toolkit
NEW: This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property.

SEIS: Seed Enterprise Investment Scheme
NEW: this is the subscriber version of our SEIS guide, it contains worked examples and contains a new FAQs section which deals with topics such as timings of cash loans and subscription, dis-qualification and connected parties.

Tax Guides and Updates (subscribers) 

IHT Business Property Relief
UPDATE: passing shares to children can cause the loss of BPR on property owned personally and used by the company. Gifts to companies can trigger an immediate IHT charge.

IHT: estate planning checklist
UPDATE: our checklist covers some of the essential planning points that taxpayers should know about.

EMI: Enterprise Management Incentives
UPDATE: valuations can be agreed with HMRC and these last 60 days. They can be extended by agreement with HMRC where there have been no significant events.

High Income Child Benefit Tax Charge
UPDATE: even if the HICBC applies or an election not to be paid a child benefit is made, a low income earning partner may still benefit from completing the claim form as they get NI and State Pension credits.

Tax-efficient extraction of profits: toolkit (2018/19)
NEW: This toolkit is designed to help a company and its owner decide how company profits are to be extracted for the 2018/19 tax year.

Director's:tax planning toolkit 2018/19
NEW: his year's toolkit, like all our maintained guides, is a rolling planner and is updated throughout the year. It  looks at a range of director tax issues, including company profit extraction in conjunction with our extraction of profits toolkit. 

Transactions in securities
UPDATE: the Targeted Anti-Avoidance Rule has to be considered each time a distribution is made during a winding up and the conditions can cause complications when filing Tax Returns. 

VAT (freeview)

DIY VAT reclaim cannot be blocked due to post-construction events
In Richard Akester v HMRC [2017] UKUK 0404, the Upper Tribunal (UT) set aside the First-Tier Tribunal’s (FTT) dismissal of a DIY VAT refund claim. Breaches of planning conditions after construction, should be ignored.

VAT (subscribers)

Registering for VAT
UPDATE: voluntary VAT registrations can be backdated to a date where the business or intention to start the business began. This can result in additional VAT being recovered in some cases.

Capital Goods Scheme
UPDATE: how to deal with errors made on initial reclaims of VAT on CGS assets.

DIY Housebuilders scheme
UPDATE: our new guide on the DIY VAT reclaim scheme, updated for the latest case law.


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Nichola's SME Tax w-update 2 March 2018


  • Land and property update
  • PSC update
  • Tax Appeal: new form
  • GAAR: employee reward schemes
  • Disguised Remuneration and the 61% tax charge
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