Hello

This time: new facts and figures on the loan charge. Fluctuating income is no excuse for being late in paying your Self Assessment bill and check out our new TAAR tool.

HMRC are clearly feeling under pressure from protest groups about the loan charge and so have published some statistics. They make interesting reading. There are some 50,000 cases yet to settle, on average avoiding £20,000 of tax for, on average 2 years, so that comes to £2billion in tax. If you are using the American version of a billion. You can see why HMRC are keen to keep up the pressure on those who have yet to settle. That kind of cash will go a small way to settling the potential Brexit bill of £39 billion. I am quite interested to know if the Brexit bill is the American billion or the old UK one!

As the saying goes, two things are certain, death and taxes. No surprises then to find that a barrister was unable to convince the Upper Tribunal that his cashflow problems amounted to a reasonable excuse. The UT decided that while there is no legal requirement to save tax, the self employed do need to manage their financial affairs. One of the so-called benefits of the now deferred Making Tax Digital for business (self assessment) is that the self employed can pay tax quarterly, perhaps that is not such a bad idea.

This time we also soft launch our new Targeted Anti-Avoidance Rule (TAAR) tool for beta testing. At the same time issue a reminder about the rule. There is evidence to suggest that in the flurry to wind up their companies, many people (professionals included) do not realise that this rule exists.

If you have ever tried to calculate the National Minimum Wage when the employer is making deductions from pay and hours vary you will have an idea of how complicated the rules are. You might, if you have time, care to review the BEIS consultation on NMW, salaried workers and salary sacrifice schemes.

We have new Private Client CPD for lunch. You can also watch it while you have a cuppa.

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: HMRC presents news facts and figures
HMRC have released more facts and figures about those taxpayers who will be affected by the Disguised Remuneration loan charge, including a pictorial factsheet which makes interesting reading.

Online marketplace liability notices raise over £200m
HMRC have advised that over 4,600 overseas businesses have been issued with joint and several liability notices for not paying the right amount of VAT on online marketplace sales in the past 2 years.

Did you check the TAAR when preparing your tax return?
Since 2016 a Targeted Anti-Avoidance Rule (TAAR) applies to certain distributions on winding up. When caught your liquidation dividends do not qualify for CGT treatment. 

National Minimum Wage: consultation on salaried workers and salary sacrifice schemes
In December the Department for Business, Energy and Industrial Strategy (BEIS) has launched a National Minimum Wage: consultation on salaried workers and salary sacrifice schemes. Responses by 1 March 2019.

Making Tax Digital (freeview)

Making Tax Digital: index & timeline
UPDATE: new online filing obligations. Where are we now? VAT: more can join the MVD pilot

Editor's Choice (subscribers) 

Rent-a-room Relief
UPDATE: new example features an airbnb 'superhost'

Divorce & separation: toolkit
UPDATE: More information about the additional dwelling surcharge for SDLT when there is a court order in place dealing with the marital home. Often a popular topic for January!

Self Assessment late filing and penalties
UPDATE: what penalties apply if you can't file or pay on time.

Tax Guides and Updates (subscribers) 

Ceasing trading (companies) Overview
UPDATE: what options are available once you cease trading?

TAAR: distributions on winding up
UPDATE: a distribution of cash or assets on winding up a company will not receive CGT treatment if the TAAR applies.

New: TAAR Tool Beta testers wanted
Need to check that you have correctly completed your tax return? Apply to beta test a new tool.

Case Update (freeview)

Barrister should have taken steps to save for Self assessment bill
In Timothy Raggatt QC v HMRC UKUT 0412, the upper tribunal held that a barrister with fluctuating income does not need to provide a reserve to pay his or her income tax but must still make adequate provisions to pay income tax as it falls due.

Failure to keep up with Time to Pay agreement for PAYE
In UBI Ltd v HMRC [2018] TC06771, the FTT agreed that a company with a poor compliance record was reasonably required to provide HMRC with security for PAYE liabilities. It failed to keep to a time to pay agreement.

PIID late filing: reasonable excuse, no acknowledgement sent
In Munro Sawmills Limited v HMRC [2018] TC 6645, the tribunal held that a company had reasonable excuse in its belief that it had filed its P11D(b) return on time.

Scottish LLBT: penalties under the new regime
In Ernold Ltd v Revenue Scotland [2018] FTSTC insufficiency of funds was held not be a reasonable excuse for a failure to file a Scottish land and buildings transaction tax return. 

VAT (freeview)

Late VAT registration assessment was best judgement
In Neil Edgell v HMRC [2018] TC 6853 HMRC was successful in catching an eBay trader, assessing him for VAT back to 2008. Assessments were found to be both within time and made best of its judgement despite the difficulties for both parties in extracting information from the online platform.

VAT (subscribers) 

Registering for VAT
When do I need to register for VAT? When do I need start charging VAT? What penalties might HMRC issue for late notification?

Deregistration
When do I have to deregister for VAT?  What penalties might HMRC issue if I am late notifying them of a mandatory deregistration? Important if you are ceasing trading and something we get asked about a lot.

CPD & Webinars

Private Client Update - January 2019

NEW: A webinar covering private client news, legislative changes and interesting cases from the past few months.

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 11 January 2019

Features:

  • Disguised remuneration: the loan charge
  • Entrepreneurs' Relief changes
  • New IP relief
  • Non-doms
  • Self Assessment toolkit
  • VAT: UT decides clubhouse not zero rated
  • and much more..

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