Hello
Welcome to our bumper bank holiday weekend edition. We have a Private Client update which covers all the changes since 6 April with links to topical cases that cover just about everything that you have never thought about in tax.
We have an updated guide on the TAAR covering the new anti-phoenixing rules; definitely worth a read as it will be quite easy to get caught out by the rules if you stop one business and start a new one.
We are also taking a closer look what you need to do now if you still have a disguised remuneration loan, a contactor loan or an EBT loan. I can see from online that there are a number of companies offering you ways to 'dispose of' your loans and I would urge utmost care as you may well not get what you pay for. We have prepared some FAQs on this topic, and more useful material to assist settlement will be published next week.
HMRC have noted that their ATED online filing system went wrong on the 11 April, and I note also that their new 'Simple Assessment' portal is down until the 14th May. Hopefully HMRC's IT glitches are not as awful as the TSB.
We have some positive IT news. Our latest version of the TaxKeep App is up and running and subscribers will be able to download it from next week.
Did you know that you can submit articles on our site? Simply login as a subscriber and you will see your user menu on the bottom left. This is a good way of promoting your practice.
And finally, not quite all tax. Autonomous (driverless) vehicles have been in the press for all the wrong reasons in recent months thanks to a couple of fatal accidents and a shocking video. We can report some more positive things. A new record was set last Sunday by our sister company AutoRD Limited and its autonomous BMW motorcycle. Eleven different passengers were all successfully driven around a course in Devon, the aim being to test passengers' reactions. I was one and I have got to say that it was great, the computer was a very, very good and smooth driver at low speeds. I can't wait to own one, ideal for town travel. We are using this company as a case study for R & D - follow the links below to our R & D zone.
If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk: subscribers 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)
ATED Tax returns: systems failure
HMRC say that if you submitted Annual Tax on Enveloped Dwellings (ATED) return on 11 April your return may be lost.
Diguised remuneration: FAQ and last chance for settlement opportunity
NEW guide and update: register by 31 May.
The UK's first Autonomous Motorcycle: an R & D hit
Wendy ‘Amelia’ Poole made history last Sunday by becoming the first woman in Europe to take a ride on an autonomous motorcycle.
Aligning the tax treatment of Islamic finance: CIOT submission
The Chartered Institute of Taxation (CIOT) have submitted a proposal to the government intended to level the playing field from a tax perspective between Islamic finance and conventional finance.
Case Update (freeview)
Personal representative personally liable for IHT
In Glyne T Harris as personal representative of Helena Norma McDonald (deceased) v HMRC [2018] TC06448 a personal representative was held liable for the estate IHT; assets were transferred to a beneficiary who had returned overseas without settling the tax as promised.
EIS rules disqualify limited by guarantee subsidiary
In Hunters Property PLC v HMRC [2018] TC06354 shares issued failed to qualify for EIS as the company controlled a company limited by guarantee, it was a subsidiary but the lack of share capital meant it was non-qualifying under the EIS rules
Injury to feelings compensation tax free until April 18
In Krishna Moorthy v HMRC [2018] EWCA Civ 847, the Court of Appeal allowed the taxpayer relief from tax to the extent that the redundancy package covered injury to feelings.
High Income Child Benefit Charge: no Discovery possible
No penalties for failure to notify, HMRC were unable to make an assessment and so there was no potential lost revenue for the penalty calculation.
Editor's Choice (subscribers)
Private Client: what's on May 2018
NEW: a round up of the latest developments in tax for private clients, covering income tax, CGT and IHT.
2017/18 Self-assessment tax return toolkit
NEW: An essential summary of 'what’s changed since 2016/17' and top tips for 2017/18 tax return completion.
Tax Guides and Updates (subscribers)
Penalties: Enablers of Tax Avoidance
UPDATE: The latest HMRC guidance has now been incorporated into this guide.
Non domicile status, deemed domicile and tax
UPDATE: For a recent case about how a taxpayer with an Indian domicile of origin was found to have a UK domicile of choice despite retaining some ties with India.
Disguised remuneration (FREEVIEW)
NEW: We have condensed our detailed subscriber guide into a handy freeview guide summarising the key points on disguised remuneration.
Ceasing trading: overview
UPDATE: how striking off and winding up differ for tax, and when distributions will be taxed as income.
TAAR: distributions on winding up (anti-phoenixing rules)
NEW: separate detailed guide on the targeted anti-avoidance rules including HMRC examples and case studies.
Termination, redundancy and leaving payments (from 6 April 2018)
UPDATE: example added demonstrating new rules.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update to 27 April 2018
Features:
- Land and Property update
- Agent update
- IHT/probate and valuations
- SDLT no relief for B & B
- VAT on Land and Property
- and much more..
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