Just a short newswire this week, we have some cases, we have some VAT and we also wonder why so many trusts are not reporting their ten year charges.
On cases, we look at RTI penalties: it seems that HMRC's systems are not producing a clear papertrail and I am wondering how on earth a new points based penalty system will work when that comes in.
On VAT we have new improved guides on VAT Place of Supply which we hope will now answer the majority of your FAQs on this topic.
More and more people are now asking what on earth is happening with Making VAT Digital? It is supposed to commence in April 2019 however we do not seem as yet to have a full list of all the software that is going to be 'functionally compatible' and there seems to be a lack of decent spreadsheet software. We shall have to wait and see what happens.
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.
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)
HMRC figures show trustees are failing to report ten-year charges
HMRC have released details of the value of assets held in UK taxpaying discretionary trusts at the ten year charge date, and confirmed that information for more recent years is deemed to be incomplete due to delays by trustees in submitting accounts to HMRC.
Tax Guides and Updates (subscribers)
2017/18 Self-Assessment Tax Return toolkit
UPDATED: for the self-assessment online filing exclusions for 2017/18 which include new exclusions for Scottish taxpayers and property allowance validation errors.
UPDATE: HMRC have advised that until changes to the trusts online register can be made online there are no penalties for failure to notify changes. The box on the SA900 tax return which asks if the TRS has been updated for the year should be left blank until changes may be made online.
Pensions: tax rules and planning
UPDATE: more information on tax exemptions for death benefits.
Case Update (freeview)
PAYE RTI penalties: garbage out
In J & L Benson Building Services Ltd  TC6545 PAYE RTI penalties were cancelled by the FTT: the specimen copy of an assessment provided to the tribunal by HMRC was rendered invalid..
HMRC too late for unapproved payment on QROPS
In Gerrard Gordon, Gary Connell, Nicola Martino and Ian Hills v HMRC  TC06537 the FTT found that HMRC was too late to raise a discovery assessment for an unauthorised payment charge. Despite knowing that the taxpayers had used the discredited Wenns non-qualifying overseas pension fund it delayed assessment for several years and the discovery became 'stale'.
Capital loss allowed for irrecoverable loan to a trading company
In Douglas Atherley v HMRC  TC06610 the First Tier Tribunal (FTT) found that the write off of a loan to a trading company did result in an allowable capital loss; the facts proved the loan was irrecoverable despite the taxpayer’s unrealistic hope that the remaining balance would be repaid.
Failed Direct Debit setup sufficient to avoid VAT surcharge
In Godolphin Management Company Limited v HMRC  TC06515, the First-Tier Tribunal (FTT), agreed that the taxpayer had despatched the VAT on time for one return but not the other.
Requirement for VAT payment to make appeal is fair
In Totel Ltd v HMRC  UKSC 44, the Supreme Court (SC) dismissed the taxpayer's appeal, agreeing that the requirement for the appellant to pay VAT on account before it can appeal was not discriminatory.
VAT: place of supply of goods
UPDATE: our flow chart is updated.
VAT: place of supply of services
UPDATE: more information on how to establish the place of supply, where a business belongs, and our new flowchart.
Reverse charge & missing trader fraud
UPDATE: for case law involving Director's personal liability notices held to be valid.
Place of supply: Mini One Stop Shop (MOSS)
UPDATE: the EU have requested that HMRC share the bank account details it has for all VAT MOSS registered businesses.
UPDATE: for latest case law finding that a representative member must make a VAT refund claim and it cannot rely on another ex-group member's claim.
Missed last time's update?
- How to appeal a tax penalty
- Discovery assessments
- Making VAT digital
- Social Media: FAQs on data, disinformation & being savvy on the net
- Employers' New Starter checklist
- and much more..
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