Hello 

Some good news, this week. During the course of the parliamentary debate on the 2019 Finance Bill, HMRC have made modifications to the proposed changes to the qualifying conditions for Entrepreneurs' Relief. 

Another Finance Bill 2019 item that I thought was positive is the new relief for investment in intangibles. A look at the small print reveals that this turns out to be more restrictive than most are reporting.

The 6 April 2019 disguised remuneration loan charge seems to combine a Brexit-type stand-off with marmite. Some people agree with HMRC: this is a sensible measure that will now tax income that may well otherwise avoid tax. Others hate it: they think it is punitive charge; that HMRC is being unfair and it should be postponed. As with IR35, this measure affects a lot of IT contractors and personal service company owners, the former being a particularly vocal group! Like IR35 it may also apply to a lot of low paid agency workers and these are the ones who are likely to be victims of the loan charge measure. We have a disguised remuneration zone which tells you all about the loan charge and how to avoid it. We also report news that HMRC is still willing to settle with you if you have a loan. 

On self assessment, I use one of the newer and popular tax filing softwares (trying not to advertise). I have noticed that some returns and accounts are not always submitted and the system is not always sending me back error messages. Maybe there is a glitch or two, it's hard to tell. Similar problems in trying to submit VAT on the cloud. Hard to tell if this is caused by bad internet. My top tip: check thrice!

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. 

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)

The loan charge: settlement with HMRC is still an option
HMRC have advised that where a settlement has not been reached on a disguised remuneration loan scheme by 5 April 2019, they will still give consideration to reaching an agreement under the existing terms.

Entrepreneurs' relief: change to new definition of personal company
Proposed changes to the definition of a personal company for Entrepreneurs' Relief have already been amended as Finance Bill 2019 goes through parliament, to offer an alternative, less stringent test.

Goodwill and intangibles: a new type of relief
Following a consultation in 2018, Finance Bill 2019 provides for a fixed rate writing down allowance for goodwill and other intangibles created or acquired by companies on or after 1 April 2019 where they are acquired alongside qualifying intellectual property (IP) assets.

Making Tax Digital (freeview)

Slow take-up for Streamlined Company Registration Service
Fewer than a third of company incorporations took advantage of the new joined HMRC and Companies House 'Streamlined Company Registration Service' last year.

Editor's Choice (subscribers) 

2017/18 Self Assessment Tax Return Toolkit
A summary of top tips for dealing with last minute tax returns; what not to forget, and how to protect against enquiries.

What expenses can I claim?
Guides for the self employed and specific trades and professions

What expenses can I claim?
Topical guides dealing with issues affecting directors.

Tax Guides and Updates (subscribers) 

Non domicile status, deemed domicile & tax
UPDATE: for the latest view on protected foreign source income and how it affects 2017/18 returns.

Disguised remuneration zone
UPDATE: This zone is all about 'Disguised Remuneration' and the Loan Charge. Many of our guides have been updated recently in preparation for the loan charge taking effect on 5 April.

Christmas Quiz

Quiz answers
Did you have a reasonable excuse for failing to attempt our seasonal quiz? It was moderately VAT-y so we will suspend the penalty and let your off provided that you read your VAT and comply next year. Here are the answers. Congratulations to the winner and runner up!

Case Update (freeview)

20% penalty for failure to report capital gain
In Shareen Booth v HMRC [2018] TC6904 the FTT agreed on a 20% tax penalty for the careless failure to report a capital gain on the disposal of her renovated property. 

VAT (freeview)

Clubhouse fails to secure zero rating however failing to contact HMRC was reasonable
In HMRC v Greenisland Football Club [2018] UKUT 0440, the upper tribunal (UT) overturned the FTT decision to allow a club to zero-rate construction of a clubhouse however it agreed that the wording on VAT notice 708 meant that no penalties were due.

VAT (subscribers) 

VAT Flat Rate Scheme: limited cost traders
UPDATE: links to HMRC's online tool that calculates whether you are a limited cost trader.

VAT Flat Rate Scheme
UPDATE: links to HMRC latest online guidance on choosing the right %

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 4 January 2019

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  • Private Clients What's On January 2018
  • Self assessment toolkit
  • Tax Updates and Rolling Tax Planner CPD
  • VAT: option to tax
  • and much more..

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