Hello
We have a 'fun-packed' edition for you this week, lots of interesting cases, the new Employer Bulletin and a bunch of updated guides.
I would like to draw your attention to some new features of our service.
- You can now add comments to news articles. These are moderated as we are a gentle lot and we don't like trolls.
- You can also subscribe to individual zones such as R & D, Disguised Remuneration, Employee share schemes & Benefits, CPD etc if you are specially interested in just one or two topics. Please email
This email address is being protected from spambots. You need JavaScript enabled to view it. for further information. - We will soon be opening our new subscription module which will make signing up more of a streamlined affair.
We have a lot of other new features coming in the next couple of weeks. I cannot say more at this stage but the future is going to be exciting.
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)
Check your P800: Errors reported in HMRC’s annual PAYE reconciliations
The ICAEW has reported that errors are being found in HMRC’s annual reconciliation of taxpayers’ PAYE records for 2017/18.
Employer bulletin: August 2018
HMRC have published their Employer Bulletin for August 2018. We summarise the key content for you, with links to our detailed guidance on the topics covered.
Welsh income tax rates to be introduced in 2019
HM Treasury have now issued a commencement order to allow the Welsh Government to introduce income tax rates for Welsh taxpayers with effect from 6 April 2019.
HMRC announce advisory rates for all electric company cars
HMRC have published advisory rates for all electric company cars and now accept that if you pay up to 4 pence per mile when reimbursing your employees for business travel in a fully electric company car there is no profit for income tax or earnings for NI purposes.
Editor's Choice (subscribers)
This week we take a pick of our top guides to answer your FAQs:
Entrepreneurs' Relief (ER)
Complicated rules summarised in this invaluable guide to qualifying business disposals.
Giving shares to directors and employees?
Answering your FAQs on this horribly complicated topic
Disguised Remuneration Zone
Did you know that you can subscribe separately to this zone if you just want one off assistance on this topic?
Tax Guides and Updates (subscribers)
Plug-in car, van and motorcycle grants
UPDATE: on motorcycle and home charging and workplace vouchers
Offshore income toolkit
UPDATE: More details on disclosing undeclared offshore income ahead of the Requirement to correct deadline of 30 September.
SDLT & residential property (dwellings): higher rate
UPDATE: Clarification on how the rules work for the higher rate of SDLT on residential property.
Case Update (freeview)
Directors' loan account waiver scheme fails
A tax scheme that was supposed to wipe out directors' loan accounts by waiver did not work. The amounts waived were employment income. HMRC's Reg 80 determinations were upheld.
Tribunal allows appeals made nearly four years too late
In The Personal representative of Mark Collins v HMRC [2018] TC06597 the First Tier tribunal allowed executors to appeal discovery assessments issued to the deceased; the appeals were nearly four years late.
Upper Tribunal sets out how to consider a late appeal
In William Martland v HMRC [2018] UKUT178 the Upper tribunal refused permission for a late appeal against an excise duty assessment and penalties for wrongdoing but set out helpful guidance on the principles for dealing with a late appeal.
VAT (freeview)
Bicarbonate of soda VAT reclaims
HMRC have published Revenue & Customs Brief 8 (2018): VAT – liability of bicarbonate of soda, inviting taxpayers to make VAT reclaims if they have treated the supply as standard rated when it could have been zero-rated.
Agency temps: VAT payable in full
In Adecco UK Limited v HMRC [2018] EWCA Civ 1794, the Court of Appeal upheld earlier decisions, finding that temps were not providing services themselves, and Adecco were providing more than introductory services.
£1 billion Royal Mail VAT bill
In Zipvit Limited v HMRC [2018] EWCA Civ 1515, the Court of Appeal dismissed the taxpayer's appeal and found the supply by Royal Mail, treated erroneously as exempt was the VAT exclusive amount.
Input VAT on Single Farm Payment Entitlement units can be reclaimed
In HMRC v Frank A Smart & Son Limited [2017] ScotCS CSIH 77, the Court of Session upheld the Upper Tribunal (UT) decision and found the company was entitled to a repayment of VAT paid when acquiring Single Farm Payment Entitlement (SFPE) units.
Emergency ambulance services not zero-rated
In HMRC v Jigsaw Medical Services Limited [2018] UKUT 222, the Upper Tribunal (UT), overturned the First-Tier Tribunal (FTT), finding that emergency ambulance services cannot be zero-rated and were exempt.
VAT (subscribers)
Partial exemption & input VAT
UPDATE: how to calculate deminimis limit in first year of exempt supplies.
Abuse of rights: VAT
NEW: new guide on how HMRC look to apply the abuse of rights principle, and important case law on this area of VAT.
Time of supply
UPDATE: for recent case law on when a payment is a prepayment that changes the time of supply and when it is not.
Agents and principals
UPDATE: more case law added
Reclaims and unjust enrichment
UPDATE: more case law added on when and how the VAT time limit applies.
CPD Webinars
Missed last time's update?
Nichola's SME Tax w-update 9 or 10 August 2018
Features:
- 2017/18 Tax Return Toolkit
- Trustees failing to report ten year trust charges
- VAT: new place of supply of goods and services guides
- and much more..
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