Nichola's SME Tax W-update 23 April 2019

Hello

Just a short update this week. Due to the Easter holiday there is very little in terms of 'latest tax news' and so we have picked our selection of new Private Client case decisions. We also feature a really useful VAT decision.

In terms of the cases, in the past few weeks we have had several cases testing different elements of the CGT Loan to traders tax relief. I thought that the one about pensions and divorce was one that is handy to know, and the Supreme Court has also ruled on when a share loss relief claim is treated as made on a return. Check out the bare trust case, it really should never have gone to a tribunal. 

The deadline has just passed for employers to settle the disguised remuneration loan charge by electronic payment. Those taxpayers who are self assessing their loan charges have until 31 January 2020 to make the payment.

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 and tax advisers

Quick news (freeview)

EBT’s and EFRBS: Deadline for paying the loan charge
The deadline for paying the loan charge for employment related schemes such as Employee Benefit Trusts (EBT’s) and EFRBS is 19 April 2019 for cheque payments or 22 April for electronic payments.

HMRC increase Money Laundering Supervision fees
From 1 May 2019: a 300% increase in premises fees and a new small busuiness reduction.

Making Tax Digital

Making VAT Digital Zone
START here for guides to the different aspects of the new record keeping and filing requirements

Editor's Choice (subscribers)

Trusts: how to tax a trust
UPDATE: This guide deals with the taxation of UK trusts. See our separate guide to Non-Resident Trusts

CGT: Entrepreneurs' Relief
UPDATE: there are six different versions of this relief. This guide is continually updated as we answer your FAQs.

Tax Guides and Updates (subscribers)

CGT Relief: Loans to traders
UPDATE: what counts as a loan, how and when to obtain tax relief when a business fails

R & D Zone
START here for practical guides in making successful R & D claims.

Disguised remuneration final settlement opportunity
UPDATED: For HMRC's latest guidance now that the 5 April loan charge deadline has passed.

Case Update (freeview)

Indemnity was not a guarantee
In Ron Dennis v HMRC [2018] TC 6868 an indemnity clause in a shareholder’s agreement was held by the First Tier Tribunal not to be a guarantee that qualifies for Loans to Trader capital gains tax (CGT) relief.

No tax relief for pension payments on divorce
In Sean Kirby v Revenue & Customs [2019] TC07054 the First Tier tribunal (FTT) held that pension income paid to Mr Kirby’s ex-wife remained taxable on him as there was no pension sharing order in place.

Out of time loss relief enquiry was not valid
In R (on the application of Derry) v HMRC [2019] UKSC 19 the Supreme Court dismissed HMRC’s appeal; HMRC had opened the wrong type of enquiry into a share loss relief carry back claim.

Trust existed without documentation
In Lily P Tang v HMRC [2018] TC 6965 the FTT decided that a bare trust for a family member can exist without formal documents if that is supported by other evidence.

VAT Cases

Input VAT claim allowed on director's legal fees
In Praesto Consulting UK Limited v HMRC [2019] EWCA Civ 353 the Court of Appeal allowed an input VAT claim in respect of legal fees invoiced to the director and not to the company. 

CPD for lunch

Finance Act 2019
NEW: A webinar covering the latest legislative changes.

Missed last time's Web-update?

Nichola's SME tax W-update 12 April 2019

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