Hello

This is probably our last Web-update of the year. We are rounding off with some good news: HMRC have changed their guidance for directors.

You no longer have to notify HMRC to submit a tax return if all your income is taxed at source and you have no adjustments to make, such as the Higher Income Child Benefit charge. 

Although Brexit has dominated the national news this year, in tax, a key issue for me is the increasing complexity of our every-increasing UK direct tax legislation. There is no denying the fact that a lot of this tax-mess is due to the rise of an aggressive tax avoidance industry. The new rules for Professional Conduct in Relation to Taxation should in theory prevent most high street firms mass marketing tax schemes and the Disguised Remuneration Loan charge sweeps up remaining EBTS. Off-payrolling in the private sector could be the next decent revenue raiser, and a statutory employment status test would simplify, well employment. Folks may winge, however a government decreed that we had to bail out all those banks bank in 2008 and voting Brexit might have been a good protest but it's not going to bring in any more tax.

In passing, HMRC have decided some of their policy on cryptoassets, which might have a few people frantically worrying about what to put on their tax returns. S104 pooling is allowed. Untraceable drones may be disrupting Gatwick but it seems that HMRC have noted that fraudsters are also deliberately reprogramming digital accounting systems. Making Taxes Digital is all set to be an interesting adventure.

Don't miss our Quiz and Advent Calendar.

If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk.

Enjoy the guides and updates and the news is below. 

Finally, a huge 'Thank you' to everyone who works so hard behind the scenes to create this amazing webservice.

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)

Agent update December 2018/January 2019
HMRC have issued the Agent Update for December 2018/January 2019.

HMRC agree not all directors have to file a tax return
After several recent tribunal cases on the subject HMRC have amended its guidance about whether a director has to file a tax return.

Lords question scope of HMRC's powers
The House of Lords' Economic Affairs Committee has issued its report “The Powers of HMRC: Treating taxpayers fairly” dealing with HMRC powers and taxpayer safeguards.

Trusts and Estates: What's new December 2018
HMRC's latest Trusts and Estates newsletter contains some useful information. This is our enhanced version.

Making Tax Digital (freeview)

Consultation: Electronic Sales Suppression
The government has launched a call for evidence ‘Electronic Sale Suppression’ (ESS) to understand more about the exploitation of modern technology for the purposes of ESS, what the potential scale of tax evasion is, and how the electronic point of sale (EPOS) industry can help prevent it. 

Editor's Choice (subscribers) 

How do you tax Bitcoin gains or gains or losses on cryptoassets?
UPDATE: HMRC guidance indicates CGT treatment with share pooling rules. Assets given as employment reward and incentive may be readily convertible assets for PAYE.

On Festivities & Christmas

Advent Calendar
NEW: Our Advent Calendar is designed to add sparkle to December. We look at Christmas for tax and accounting and this year we have added a few not necessarily pleasant surprise topics, as we open a 'door' in our calendar to count down the working days until the Christmas holiday in the UK.

I am sorry I haven't got a reasonable excuse: a Christmas Quiz
NEW: something to totally distract you.

Making Ambridge Digital 'its M-A-D'
HMRC's leaked plans to mandate digital accounting in a small fictional village 

Case Update (freeview)

No penalties: guidance complex and invisible
In Tarrant Howl Ltd v HMRC [2018] TC06788, the FTT concluded that it was unreasonable to expect an employment intermediary to realise that it was required to file a nil return: HMRC's webpages on the topic were complex and invisible and the appellant would not have understood them.

No penalties: not actually an employment intermediary
In Leverton Search Ltd v HMRC [2018] TC06786 a company successfully appealed late filing penalties: no employment intermediaries returns were actually due as the company was not a specified employment intermediary.

Tax Tools for Self Assessment

Do I need to file a tax return? (Directors) 
Do you need to file a self assessment tax return? What if you are a director? Can HMRC make directors file tax returns? 

Do I have to file a tax return? 
A guide setting out when you should  file a self-assessment return if you are not a director.

Penalties: failure to notify
What happens if you fail to notify liability to tax

Requirement to correct (undeclared offshore income and gains)
29 December 2018 deadline

Statutory Residence Test Toolkit
Resident or non resident? Take the test

Statutory Residence Split Year Treatment
Do I qualify for split year treatment?

 VAT (freeview)

Simple mistake cost a subcontractor more than £200,000
In J & B Hopkins Ltd [2018] UKUT 0382, a subcontractor was held liable for VAT on work to a contractor who did not have to charge VAT. The subcontractor could not later recover the VAT because the contractor had gone into liquidation.

No excuse for incorrect VAT certificate
In Marlow Rowing Club [2018] TC 6803, a tribunal held that the club did not have reasonable excuse when it incorrectly issued a certificate for zero-rating a building for a charitable purpose. it had not taken adequate steps to contact HMRC over a decision that it knew was contrary to HMRC policy.

VAT (subscribers) 

Lost deposits and retained payments
NEW: HMRC has announced a change in policy in respect of lost deposits for goods and services.

VAT & Land & Property
UPDATE: a handy to guide to assist you to decide the correct VAT treatment.

CPD & Webinars

Budget 2018: subscriber guide & CPD
UPDATE: key announcements at a glance

See CPD for Lunch

Missed last time's Web-update?

Nichola's SME tax W-update to 14 December 2018

Features:

  • Advent Calendar
  • Scottish Budget
  • Employer Bulletin
  • Pensions fixed protection
  • VAT, agents or principals?
  • and much more..

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