Hello
This time we have some top tips on P11Ds and PAYE reporting, a couple of new consultations, lots of updates to guides and a useful VAT option to tax/TOGC case.
PAYE dispensations were phased out back in 2016 and so employers no longer need to worry about reporting paid and reimbursed employment expenses provided that these are paid according to the new rules. It is probably worth going over these with clients in reviewing last year as well as for setting them up for the new year.
As we reported last time, state aid for EMI has lapsed and so it is best not to issue any EMI options until you hear more as they will be automatically disqualified. A new year is a good time to consider an EMI scheme. The decrease in the dividend allowance from £5,000 to £2,000 from 6 April 2018 plus the increase in the rate of employer pension contributions under auto enrolement means that dividends EMI or share schemes are not quite as an attractive method of rewarding employees as they were last year. If you are looking for value for money (i.e. low cost to set up) I have always liked the US concept of a phantom share scheme, this is basically a bonus scheme based on share price. However, we have new rules on salary sacrifice schemes which also apply from 6th April 2018 and those can dent opportunities for imaginative bonus arrangements. Is it any wonder that businesses and employers are looking to see what tax breaks they can find offshore? Probably not, and we now have a new consulation that considers what, if anything the UK can do to prevent businesses moving their UK profits outside the UK tax charge.
We also have a new guide on termination payments from April 2018; this comes with a handy flowchart so that you can work out what is taxable and what is not and many further updates.
On VAT and option to tax, if you are buying a property and opting it, what is the relevant date: when the deposit is paid or completion? The case below explores whether you need to consider the chicken or the egg!
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 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)
CGT: Payment window for residential property gains: a consultation
HMRC have published a new consultation “Capital Gains Tax: Payment window for residential property gains” which looks at reducing the CGT payment time for residential property to 30 days from April 2020.
Consultation: Tax avoidance involving profit fragmentation
A new consultation has been opened “Tax avoidance involving profit fragmentation” which sets out proposals to tackle tax avoidance schemes which move UK profits outside the UK tax charge.
Spotlight 43: SDLT avoidance: misleading advertising
HMRC has issued Spotlight 43, Stamp Duty Land Tax avoidance: misleading advertising. This followed a ruling by the Advertising Standards Authority (ASA) that a promoted SDLT avoidance scheme was misleading.
PAYE and P11D: tips and links
Index to guides on year end PAYE, late filing and payment penalties and reporting benefits and expenses.
Case Update (freeview)
VAT: option To Tax effective date causes loss of TOGC
In Clark Hill Limited v HMRC [2018] UKFTT TC06368, the First-Tier Tribunal (FTT) found that three of four properties sold did not meet the conditions for TOGC as the options to tax were not in place before the deposit.
Loyalty bonuses are not annual payments
In Hargreaves Lansdown Asset Management v HMRC [2017] TC6368 the First Tier Tribunal (FTT) agreed that loyalty bonuses paid to investors were not annual payments; tax did not have to be deducted at source.
Editor's Choice (subscribers)
How to gift your shares to the family
UPDATE: regular gifts of shares below the CGT annual exemption can be made to members of the family but they may have IHT implications.
Family Investment Companies
UPDATE: how FICs can help pass on wealth to the next generation.
ABC share schemes for SMEs
UPDATE: overview on setting up bespoke share schemes or share option schemes for smaller employers.
Tax Guides and Updates (subscribers)
P11Ds: Exemption for paid and reimbursed expenses
UPDATE: expenses dispensations were replaced by this new measure as from April 2016.
Termination, redundancy and leaving payments (from 6 April 2018)
NEW: guide to the new rules for 2018/19
Disguised remuneration
UPDATE: For details of the penalties which may be charged for late provision of loan charge information (£300) and inaccuracies in that information (up to £3,000 per error).
Sole trader v limited company: key tax and legal differences
UPDATE: for 2018/19.
Will I pay less tax if I trade via an LLP?
UPDATE: new 2018/19 illustrative examples added.
Sideways loss relief: restriction for uncommercial trades
UPDATE: the start and the end of the tax year are good time to review constantly loss making businesses.
Capital Gains Tax
Entrepreneurs' Relief
UPDATE: if you make a distribution during liquidation following cessation of a trade, all of those distributions must be considered individually to assess whether the TAAR applies and to check it is made within 3 years of the cessation of trade.
CGT Private Residence Relief (PRR)
UPDATE: if a holdover relief claim has been made under s260 TCGA 1992, that relief may affect future PRR claims.
Non-domicile status, deemed domicile & tax
UPDATE: We have added more information about cleansing relief including new examples.
VAT (freeview)
Fuel scale charges (VAT)
UPDATE: the fuel scale charge rates for 1 May 2018 onwards have been released, with only a few, very small changes.
VAT (subscribers)
Staff and VAT
NEW: a guide to when there is a supply of staff subject to VAT and how joint employments, employment bureaux, and secondments may be treated.
VAT: land and property (notes)
UPDATE: where a property builder temporary lets a property before sale, a VAT adjustment may be required, subject to partial exemption de minimis rules.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update to 6 April 2018
Features:
- Trusts and Estates: What's new?
- Property buy-to-let: personal ownership or limited company?
- Practical Tax toolkits
- Expiry of state aid approval for EMI schemes
- Welsh Land Transaction Tax
- and much more..
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.
