Hello
This time we look at what happens if you do not declare your ebay account, and we consider more topical cases on the Higher Income Child Benefit charge, whether an introducer commission paid can be an unauthorised payment out of a pension fund and why and when HMRC can try and assess these things.
We also take a look at Cycle to Work; did you know that you can provide your employees, tax-free with a cycle and safety equipment? A cycle includes a peddle-powered go-kart. I remember those from when I was little; very dangerous on steep hills, however as you can also provide safety equipment a crash helmet is also tax free. We look at P11D expense exemptions and have a reminder on company cars.
In terms of the self employed we add Dentists and Doctors to our new set of tax guides to provide a handy summary of what you can claim for different types of client.
We also have the latest version of our TaxKeep App. This is designed to assist the most digitally inept client. They might need assistance in downloading but try it out and see.
Next Wednesday and Thursday we are at the Accountex Show, at London Excel. Do come and visit us. On Wednesday I am giving a talk: Part 3 of How to run the most tax efficient accountancy practice...ever!
Finally, a great new guide on VAT on discounts, rewards and vouchers, fascinating even if you loath VAT.
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. Its easier for us if you summarise them in writing.
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)
EU gives EMI State Aid approval
The European Commission approved the UK's 'Enterprise Management Initiative' (sic) scheme under EU State aid rules. The EMI rules lapsed in April and employers had been urged not to grant any further EMI options until approval was reconfirmed.
Extension of benefits for Childcare voucher schemes
The childcare voucher scheme was due to close to new entrants in April 2018; in March the deadline was extended, but some employers had already closed schemes to new entrants and the tax-free status of those schemes was lost.
Reform on Limited Partnerships: a consultation
The Department for Business, Energy & Industrial Strategy (BEIS) has issued a new consultation looking at the potential misuse of limited partnerships and reforming the law in this area.
Case Update (freeview)
HICBC: discovery assessment is possible, late notification penalties apply
In David Lau v HMRC [2018] TC6463 the FTT decided not to follow the Robertson decision and decided that penalties did apply for failure to notify the HICBC on the basis that potential lost revenue is not confined to assessments. Ignorance of the law on the HICBC was not considered a reasonable excuse.
Enquiry into voluntary returns was not valid
In Patel & Anor v HMRC [2018] TC 6426 the FTT found that HMRC could not open valid enquiries into returns which had been submitted voluntarily without any notice to file being issued.
No Discovery possible for pensions unauthorised payment
In Andrew Monaghan v HMRC [2018] TC06408, a commission received by a pension scheme's member was not a pensions unauthorised payment and in any case, the legislation did not permit HMRC to make a discovery assessment.
Editor's Choice (subscribers)
Free Tax Apps
Come and try out our TaxKeep App. This is designed for those clients who can just about
P11Ds: Exemption for paid and reimbursed expenses
Update: From April 2016 the PAYE dispensation rules are abolished. They are replaced by a new exemption for qualifying business expenses provided that the expenses are incurred personally and then reimbursed by the employer.
Tax Guides and Updates (subscribers)
Company cars
UPDATE: details on the new exemption for the provision of workplace charging facilities for electric vehicles
Cycles and cyclists safety equipment
UPDATE: are you providing tax free cycles for you and your staff?
Doctors and Dentists: what expenses can I claim?
NEW: Part of our new series on the A to Z of what different trades and professions can claim, our checklist for subscribers outlining what expenses doctors and dentists can claim for tax purposes.
Partnerships: changes to tax rules since 2013/14
UPDATE: a number of changes were made in Finance Act 2018 and others were dropped in December 2017 before they could become law. Check our guide to ensure you understand all the changes.
VAT (freeview)
eBay account with £278k turnover did not register for VAT
In P Kaur v HMRC [2016] TC06210, the First-Tier Tribunal upheld HMRC’s penalties, finding that Ms Kaur was subject to VAT on her eBay business and had failed to notify HMRC of her obligation to be registered.
VAT (subscribers)
Loyalty schemes, vouchers and VAT
NEW: our new guide looks at various loyalty and voucher schemes and how the VAT differs, as well as looking at the upcoming changes to face-value vouchers.
Penalties ( VAT)
UPDATE: VAT surcharges are not tax deductible.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update to 11 May 2018
Features:
- A to Z for different Trades, Professions & Vocations
- Disguised remuneration: Start here
- What expenses can I claim? Hairdressers
- Opting to tax land and property
- and much more..
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