Hello
This week we have the latest HMRC Agent Update which focusses on Making Tax Digital and some practical issues around agent services accounts. We also have our latest Company Tax: What's New? guide which includes the latest cases involving companies and their directors plus a new VAT guide.
Our VAT Education special is a new guide to Education & VAT and some interesting cases.
Of other news, the OTS has confirmed that, for now at least, depreciation will not be replacing capital allowances.
With the consultation on reform of IR35 in the private sector ending in August we have an IR35 case where the taxpayer won. He was working in the public sector before April 2017,and the tribunal said that the level of control exercised by the DWP was not enough to demonstrate a contract of service.
We also have the usual mix of updated guides and interesting cases.
I am sorry to report that we had a technical glitch which means that the newswire did not send out for the last couple of weeks. Rather than blight your inboxes with content you can visit the past weeks from the summary newswire link below.
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)
Nichola's SMW Tax W-updates: 15 and 8 June 2018
If you missed the past couple of weeks (sorry this was our fault, a technical issue) then click here for the highlights.
Depreciation will not replace capital allowances
The Office of Tax Simplification (OTS) has published its review of ‘Accounting depreciation or capital allowances? Simplifying tax relief for tangible fixed assets’, which considered replacing capital allowances with depreciation.
Agent Update June/July 2018
HMRC have issued the Agent Update for June/July 2018. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Case Update (freeview)
IR35: Another taxpayer victory
In Jensal Software Ltd v HMRC [2018] TC06501 the First Tier tribunal (FTT) held IR35 did not apply to an IT contractor working for the DWP; the level of control fell far below the sufficient degree required to demonstrate a contract of service.
CIS gross payment cancellation the right decision
In JP Whitter (Water Well Engineers) Limited v HMRC [2018] UKSC 31, the Supreme Court (SC) agreed that HMRC did not have to consider the wider impact on the taxpayer’s business when cancelling its Construction Industry Scheme (CIS) gross payment status.
Tax Guides and Updates (freeview)
Crowdfunding: tax issues
UPDATE: our guide advises how tax affects crowdfunding, including donations, rewards, VAT considerations, debt, equity, and the pitfalls.
Editor's Choice (subscribers)
Company Tax: What's New? June/July 2018
NEW: topical update covering all the new developments in company tax and accounting with links to our guides and recent case decisions.
Tax Guides and Updates (subscribers)
Disguised Remuneration Zone
UPDATE: We have updated several of our guides in this zone with more information from HMRC about reaching settlement and the 2019 loan charge.
Patent box
UPDATE: for details about claims where there is a patent pending.
Non-resident trusts
UPDATE: We have added more details about how to deal with IHT charges on trusts which hold shares in offshore companies owning UK residential property.
Employment status and detailed checklist
UPDATE: We have added to this guide following the Jensal Software case.
VAT (freeview)
Partly funded courses are a business for VAT
In Wakefield College v HMRC [2018] EWCA Civ 952, the Court of Appeal decided that income from students who are partly subsidised and pay a small additional fee for courses, amounted to a business activity. This meant the construction of a new building could not be zero-rated.
Tuition & books: a single supply
In Essex International College Limited v HMRC [2018] TC06343, the First-Tier Tribunal (FTT) found that the College provided a single supply of standard rated education. It was not an eligible body providing exempt education and it could not separate the books into a zero-rated supply.
VAT (subscribers)
Education & VAT
NEW: Education is one of the more complex areas of VAT as it can fall within a variety of different rates and it must also be considered whether the supply is a single or multiple supply.
Reverse charge & missing trader fraud (MTIC)
NEW: our new guide on the domestic reverse charge which will apply to construction services from 1 October 2019.
Reverse charge: cross-border services
UPDATE: re-familiarise yourself with the reverse charge applying to EU cross-border supplies of services.
Land & Property VAT (notes)
UPDATE: for latest case law.
CPD Webinars
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 15 June 2018
Features:
- Employer Bulletin: June 2018
- Dividend tax (rules 2016/17 on)
- Artists: what expenses can I claim?
- Reverse charge & missing trader fraud (MITC)
- Capital taxes round-up: June 2018
- 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.
