We are taking a break from reporting cases this week, as we have picked out quite a diverse range of news items and we also have a bumper capital taxes update.
This week some Welsh employed taxpayers found that they had been put on a Scottish PAYE code by accident. The Welsh Assembly blamed HMRC and HMRC blamed employers.
Working out your PAYE code when taxes are devolving is a real challenge for taxpayers and employers, and there is nothing to beat clear online guidance. It would also assist agents if they could see the same screens as clients' personal and business tax accounts. Both of these are themes discussed in the latest report by the Office of Tax Simplification (OTS) which has been looking at the lifecycle of the small business. The quality of the content on the GOV.UK website is also criticised by the OTS.
The government is considering some big changes in what is reported to and checked by Companies House, all with the aim of increasing transparency. One of the critical issues is how you can verify ID. HMRC have been told that they cannot keep recordings of taxpayer's voices and if you cannot keep voice data, then can you keep a photo instead? What is the difference, in terms of data collection between facial data and voice data?
We are in the third week of introducing our new Reorganisation Zone. Last week we looked at how to demerge investment properties from a trading company. This week we discuss how to split up a group and separate out an investment subsidiary from a trading company.
If you have any tax queries contact the Virtual Tax Partner support portal at www.VtaxP.co.uk.
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Nichola Ross Martin FCA CTA (Fellow) Tax Director
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Quick news (freeview)
Who dunnit? Welsh & Scottish PAYE code mix-up
Some employers have been applying Scottish PAYE codes to Welsh taxpayers in error. The Welsh Assembly have blamed this error on HMRC. HMRC's Jim Harra has responded to say that HMRC is not at fault.
OTS: Tax and small business
The Office of Tax Simplification (OTS) has published a report ‘Simplifying everyday tax for smaller business’, It suggests that there is much the government can do to make life easier for small and micro business.
BEIS consults on Corporate transparency and register reform
The Department of Business, Energy and Industrial Strategy (BEIS) has opened a consultation on ‘Corporate transparency and register reform’. This considers wide ranging and radical reforms.
Further delay to plans to increase probate fees
The introduction of a new probate fee banding structure, which was originally proposed in 2017 and revived at the end of 2018 to take effect from April 2019, has been delayed as the relevant legislation has not yet been passed by parliament.
HMRC breaches GDPR and must delete Voice ID data
Following a recent review by the Information Commissioners Office (ICO) HMRC have been found to have breached the General Data Protection Regulations (GDPR) by the use of voice authentication for customer verification on some of their helplines.
Environmental tax: Consultation on the future of UK carbon pricing
The government has opened a consultation on the UK's approach to carbon pricing after Brexit, to consider various options to enable the UK continue to meet its carbon reduction targets after we leave the EU.
Editor's Choice (subscribers)
Capital taxes round-up: May 2019
NEW: what's hot, what's not? A round-up of developments in capital taxes including some topical CGT and IHT cases.
Tax Guides & Updates
UPDATE: From April 2019 NRCGT applies to Direct disposals of UK land and property, i.e. both commercial and residential and Indirect disposal of an interest in a 'UK property rich' entity. Read up on the new rules for repatriating and rebasing.
UPDATE: From 1 June 2019 interest will apply to all DOTAS related penalties.
Reorganisation Zone: Start here
NEW: You can reorganise or separate company activities and different subsidiaries using a variety of different methods. This series of super practical tax guides provide an outline of the tax treatment together with step guides and tax clearance templates.
Reoganisations Zone Case Study 3: Tradeco demerger of investment subsidiary
NEW: What are the steps for a demerger of an investment subsidiary from a trading company? This guide includes a template for tax clearance and case study.
Tax Guides: Special sub-menus
Starting in business: Start here
Follow these guides to help you set up the right kind of business for your needs.
How and what you need to do to process and tax a dividend
R & D Zone
Debunking the tricky stuff in R & D with worked examples covering the different types of claim.
When you have had enough of being an entrepreneur!
Employer guide to PAYE RTI
All about the tax filing obligations if you are taking on staff.
An Inspector calls
Spotlight 52: Disclosure of Tax Avoidance Schemes: tax avoidance using offshore trusts
HMRC have released Spotlight 52: Disclosure of Tax Avoidance Schemes: tax avoidance using offshore trusts, following two recent FTT cases where it was held that disguised remuneration arrangements should have been notified under DOTAS.
Correcting VAT errors
UPDATE: What are the time limits? Can you do it through the MTD VAT return? Do you have to notify HMRC?
Making Tax Digital for VAT
Start here for joining instructions, exclusions and digital record keeping requirements.
CPD for lunch
NEW: What is reasonable when it comes to filing failures?
Finance Act 2019
NEW: A webinar covering the latest legislative changes.
Missed last time's Web-update?
- TAAR Tool
- More on what is an ordinary share?
- Exit Strategies
- Reorganisation case study
- VAT agent and principle
- and much more..
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