Hello

An interesting take on ADR and a look at take-aways and HMRC best judgement assessments this week, the close company case is overturned and the Budget is set for October.

HMRC undertake surveillance on different businesses from time to time in order to test that they are correctly recording their sales. From the case below it looks as if the Subway franchise has been under scrutiny. The result of the case reveals HMRC's officers were not working evenings and weekends, and so the results of the observation were insufficient to result in a best judgement VAT assessment. What a waste of time for everyone.

Alternative Dispute Resolution (ADR) is a mediation process designed to resolve disputes without recourse to the tribunal. We note that HMRC often deny ADR where a case is technically difficult. The Serpentine Trust  case, below, shows that is not a bad policy, as if you reach an agreement that is incorrect in law then it is not possible to enforce it.

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Enjoy the guides and updates and the news is below. 

Back soon

Nichola Ross Martin FCA CTA (Fellow) Tax Director

www.rossmartin.co.uk

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

Quick news (freeview)

2018 Budget date announced
The Chancellor has announced that the 2018 Budget will be held on Monday 29 October 2018. 

Record breaking Corporation Tax receipts
In 2017-18 companies paid the highest amount of Corporation Tax ever with receipts topping £56bn.

SDLT surcharge for overseas purchasers of UK property?
The government has announced plans to introduce a Stamp Duty Land Tax (SDLT) surcharge for foreign buyers of UK property.

Making Tax Digital (freeview)

Making VAT Digital tool: who has to join
Take the test and see if you are in

Editor's Choice (subscribers)  

CGT Private Residence Relief (PRR)
A topic we see a lot in case law and Virtual Tax Partner queries and which can be complex to unravel depending on the facts of the case.

Tax Guides and Updates (subscribers) 

Residential property: Personal ownership v Company?
UPDATE: with Brexit on the horizon and property prices falling in the UK is this a good time to invest in a buy-to-let? If so, then what form of ownership is most suitable to you? There is a cut-down freeview version of this guide Here.

Disguised remuneration final settlement opportunity
UPDATE: The voluntary restitution side of these settlements can be confusing so we have updated our guide to help you better understand how it should work.

Case Update (freeview)

Alternative Dispute Resolution: FTT decision has a sting in its tail
In The Serpentine Trust Ltd  v HMRC [2018] TC06719 the First Tier Tribunal (FTT) held that an agreement reached with HMRC under Alternative Dispute Resolution was ultra vires; it was contrary to the law and could not be enforced by the taxpayer.

PRR: offplan purchase
In HMRC v Desmond Higgins [2018] UKUT 280, the Upper Tribunal (UT) found that the period between exchange and completion of an off-plan property acquisition could not be ignored and would not get private residence relief.

Holdover relief denial breached Human Rights
In William Reeves v HMRC [2018] UKUT 293, the Upper Tribunal (UT) concluded that a non-resident taxpayer can gift a UK trading asset to a UK company he owns and claim holdover relief.

VAT (freeview)

VAT take-away observation of Subway insufficient
In Golden Cube Limited v HMRC [2018] TC06666, the First-Tier Tribunal (FTT) concluded that HMRC’s 3 day invigilation of a Subway franchise was not representative of the zero-rated supplies made in the preceding VAT periods.

Church building is an annexe and zero-rated
In Roman Catholic Diocese of Westminster v HMRC [2018] TC06692, the First-Tier Tribunal (FTT) concluded that a new hall built at a church was an annexe that could function independently and the costs could be zero-rated.

Input VAT on Single Farm Payment Entitlement units can be claimed
UPDATE: HMRC granted permission to appeal the decision of the Court of Session.

VAT (subscribers) 

Partial exemption & input VAT
UPDATE: more case law added to our guide.

Land & Property: Dwellings
UPDATE: further information relating to parking facilities added to our new guide.

CPD Webinars

New CPD click here

Missed last time's update?

Nichola's SME Tax w-update 28 September 2018

Features:

  • Errors on R40
  • R & D and Patent Box stats
  • Last minute Requirement to Correct 
  • Late filing penalties HMRC calculation errors
  • Making Tax Digital: VAT
  • More VAT
  • and much more..

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