Hello
This time, we feature some useful new guides to assist you in planning for the end of the tax year as well as making a review of topical cases.
Modern accounting software allows you to produce a set of accounts for any accounting period. When you set up the package it normally requests an accounting period end and this usually works quite well unless of course you want to vary your accounting period. Some software is easier to change than others. If you modify an accounting period it is advisable to be wary as to how the tax rules interact. In the Rupert Grint case, reported below, we note a further issue for self-employed persons. If you change your accounting date, then you need to ensure that the final versions of the accounts (for tax) are the ones approved as the accounts of the business. Do not simply rely on your client approving a tax return declaration which specifies accounting dates. I note that some accounts preparation software allows you to print off sole trader accounts without the business owner approval page, that's interesting.
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
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
The loan charge: more HMRC settlement news
Following recent discussions with the Treasury sub-committee, HMRC have updated their guidance on the settlement terms being offered for disguised remuneration and contractor loan schemes ahead of the loan charge in April 2019.
Spotlight 47: Attempts to avoid an Income Tax charge when a company is wound up
HMRC have released Spotlight 47: Attempts to avoid an Income Tax charge when a company is wound up, warning about tax avoidance schemes that try to avoid an Income Tax charge on distributions when winding up a company
Making Tax Digital (freeview)
MVD tool: who has to join?
Use our MVD tool to check whether you have to join, whether any exemptions apply and whether you are eligible for deferral.
Editor's Choice (subscribers)
Salary 2019/20 (avoiding NICs)
What is the optimal monthly or weekly salary that can be paid by an employer without incurring a liability for the employer or employee for National Insurance (NICs)?
Do I pay a salary or dividend? 2019/20
NEW: Guide as to whether it is better from a tax perspective to extract corporate profits as salary or dividend.
Tax Guides and Updates (subscribers)
Non-domicile status, deemed domicile & tax
UPDATE: The deadline for cleansing mixed funds is 5 April 2019. With that in mind we have added to this section of our guide.
Tax planning for income at marginal tax rates
UPDATE: With the tax year drawing to a close now might be a good time to review planning for clients at marginal rates.
New: TAAR Tool Beta
Distributions on winding up? Our new tool helps you work out when distributions should be taxed as income and not capital.
How to avoid paying top rate tax
Planning ideas to mitigate the top rate of tax.
Case Update (freeview)
Horizontal silo is plant
In Stephen May v HMRC [2018] TC6928 the First Tier Tribunal (FTT) held that a horizontal silo was plant for capital allowance purposes.
Actor's tax accounts were not accepted as actual accounts
In Rupert Grint v HMRC [2019] UKUT 0028 the Upper tribunal upheld the decision by the FTT that the Harry Potter star Rupert Grint did not meet the requirements for a change of accounting date for tax; his accounting period was too long.
VAT (freeview)
VAT: Let them eat Raw Choc brownies
In Pulsin’ Ltd v HMRC [2018] TC 6909 the First tier tribunal (FTT) decided that a product called Raw Choc Brownies was held to be a VAT zero-rated cake and not standard-rated confectionary.
VAT (subscribers)
Land & Property VAT (notes)
UPDATE: We often get asked about VAT on property and construction works. This guide provides an outline of the VAT treatment of some of the more common supplies of land and property.
Single or multiple supply?
Where a transaction comprises several different elements it is important to consider whether, for VAT purposes, it is a single supply or several distinct supplies bundled together. This guide sets out how to go about it.
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 1 February 2019
Features:
- Tax planning for the 2018/19 year-end
- The Loan charge: another point of view
- Pop-up shops: What expenses can I claim
- Pension contributions: personal or company?
- Penalties (VAT)
- and much more..
Come and join our Cloud
Subscribe (and UNLOCK the whole site) A single user annual subscription is £365 (+ VAT).
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 3,500 actively maintained tax guides, briefings, toolkits and checklists.
- Want to know more? Commission your own articles and checklists.
- Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.