This week we have a mixed bag after another busy week. Following the end of the registration period for the disguised remuneration settlement opportunity it seems that HMRC are keeping this open for the time being and we have been receiving lots of queries about contractor loan schemes and EBTs.

We have the next in our A-Z guides which deals with farmers and have updated some of our CGT guides dealing with reliefs and part disposals after some interesting queries through our Virtual Tax Partner service.

If you have children starting university this year have a look at our topical guide on tax planning for funding the costs and if you are too impatient to wait for 2020, you might want to join HMRC's Making Tax Digital pilot which has now been extended to landlords.

As always we have interesting developments in VAT with HMRC having now published draft legislation for the new reverse charge that will apply to the construction industry. The way the legislation is worded will result in some businesses having a higher turnover for VAT registration threshold purposes than they might think.

We also had the Upper Tribunal confirm the First-Tier Tribunal's earlier decision that planning permission restricting tenants to only students is not enough to stop zero-rating from applying to construction costs.

Finally, for those that missed it last week, we have our latest VAT What's New.

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 CTA (Fellow) Tax Director


Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers

Quick news (freeview)

Disguised remuneration settlement registration still open
Registration for the disguised remuneration final settlement opportunity was due to end on 31 May 2018; HMRC have amended their guidance to remove this deadline, asking those interested in reaching a settlement to register ‘as soon as possible’.

MTD pilot extended to landlords
HMRC have now extended the Making Tax Digital (MTD) pilot for income tax to landlords.

Case Update (freeview)

Losses & transfer of trade: profits must be streamed
In Leekes Ltd v HMRC [2018] EWCA Civ 1185 the Court of Appeal agreed that corporation tax losses brought forward from a transferred trade could not be used against the future profits of the successors enlarged trade. 

Tax Guides and Updates(freeview)  

Ceasing trading: overview
UPDATE: each time you make a distribution during liquidation that is a disposal for CGT and you must consider the TiS, the TAAR and whether ER applies.

Editor's Choice (subscribers)  

Farmers: what expenses can I claim?
NEW: this guide outlines what expenses farmers can claim for tax purposes, it covers topical case law, VAT and planning ideas. 

Tax Guides and Updates (subscribers) 

Main residence nil rate band (RNRB)
UPDATE: more details added in respect of transfers between spouses and the £2 million restriction. 

Tax planning for university (parents guide)
UPDATE: a topical guide that we have updated ahead of the new term starting in September.

CGT reliefs: disposals of a business or its assets
UPDATE: holdover relief cannot be claimed on a transfer to a trust where it is settlor-interested. This includes where a minor child is a beneficiary.

Sch 36 information notices (subscriber version)
UPDATE: with latest case law.

CGT: deductible expenditure
UPDATE: more information added for part disposals, including A / A + B apportionment and special part disposal rules for small disposals of land.

VAT (freeview)

Construction industry reverse charge: consultation
HMRC has published ‘Draft legislation: VAT reverse charge for construction services’, which will bring in a new reverse charge for supplies between construction businesses in order to combat VAT fraud.

Student accommodation is still a dwelling for VAT
In HMRC v Summit Electrical Installations Limited [2018] UKUT 0176 (TCC), the Upper Tribunal (UT), dismissed HMRCs appeal, finding that student accommodation could still qualify as a dwelling despite planning restrictions on eligible tenants.

VAT (subscribers)

A VAT Update: What's New? 2018 May
If you missed our VAT update last week, have a look at what has happened in the world of VAT in the last six months. 

CPD Webinars

New CPD click here

How to run the most tax efficient accounting practice...ever Part 3
Slides from a talk by Nichola Ross Martin from Accountex 2018

Missed last time's update?

Nichola's SME Tax w-update 1 June 2018


  • Accountants: what expenses can I claim?
  • Subcontractors: what expenses can I claim?
  • IR35 update
  • s8(1) Notice to file a tax return
  • A VAT update: What's New 2018 May
  • How to run the most tax efficient accounting practice ever! Part 3
  • and much more..

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