Nichola's SME Tax W-update 31 May 2019

Hello

It's been a quiet, half-term week and we've finally come to terms with the finale of the 'Game of Thrones', but 'Oh' what a huge number of 'first world problems' tax has been throwing up.

This week I tried (for the second time) to set up our own companies for Making Tax Digital for VAT. Yet again I managed two instant fails. This is getting embarassing, for some inexplicable reason I am not receiving HMRC email verification of my email. Not only is that frustrating; worse-still no one ever replies when I report the error message. My messages are getting ruder. I am sorry, I can only assume that this is an ongoing problem.

The Agent Services Account is also misbehaving. When I ask to login it takes me to a screen where it requests our company details and then tells me I have an account set up. Yes, I know that...please let me in. I might try the helpline again later when I feel I can muster a smile and a cheery tone, however I can't sit listening to recorded messages all day, waiting for an answer when I have other work to do. VAT is becoming extremely tedious. The other trouble is that we need to keep a record of these things because in the event of a penalty for a compliance failure you need to provide evidence that you have acted reasonably and it was the 'IT' and not merely operator error.

Meanwhile, the Court of Appeal has been busy solving some 'first world problems' of their own in the world of VAT by considering parking fees and time-share, although that is now renamed as 'ownership of fractional interests'. 

The new president of the Chartered Institute of Taxation (CIOT), Glyn Fullelove has made it clear that that there is no place in the institute for advisers who are promoting tax schemes. This is possibly a case of closing the stable door long after the horses have vanished. The problem, however, is not unique to the CIOT (other tax and accounting institutes are available). It is clear from my inbox that promoters are still very active abroad, as far away as Ireland. That's worth a debate all on its own.

On a brighter note we have the most amazing range of guides and tax tools on the site now. Take a look and Subscribe now!

If you have tax queries contact the 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)

Advisory fuel rates from 1 June 2019
HMRC have published new advisory fuel rates for company car drivers which will apply from 1 June 2019.

Self-Assessment 2018-19 returns: online filing exclusions
As for the past two years there is a long list of online filing exclusions for Self-Assessment returns for the year ending 5 April 2019. If your case is on the list you cannot file online and must complete a paper tax return.

Trust Registration Service: Consultation on Fifth Money Laundering Directive
HM Treasury have launched a consultation “Transposition of the Fifth Money Laundering Directive”, which could increase the number of trusts that need to be registered with the Trust Registration Service to over a million.

The Role of Professional Bodies in the regulation of tax agents
HMRC have published a new third-party research report on "The Role of Professional Bodies in the regulation of Tax Agents".

No place in CIOT for tax advisers who promote avoidance
The new president of the Chartered Institute of Taxation (CIOT), sends a clear message to CTAs.

Editor's Choice (subscribers)

Reorganisations Case Study 5: Management Buyout
It's Week Five in our tour through our new Reorganisation Zone. How to buy out your fellow shareholders. A series of super practical tax guides provide an outline of the tax treatment together with step guides and tax clearance templates.

Making VAT Digital Zone
UPDATE: Who has to join? How to join? Issues for agents? Your FAQs answered.

R & D Zone and R & D Zone Extra
UPDATE: How to make an R & D claim, What can you claim? Report templates. Sample tax computations and much more

Tax Guides & Updates

2018/19 Self-Assessment Tax Return toolkit
NEW: A summary of top tips for dealing with last minute tax returns; what not to forget, and how to protect against enquiries and our toolkit for completing 2018/19 self assessment returns including changes since April 2018.

Property tax: different ways of taxing UK property
UPDATE: What's new? How do you tax income, gains or ownership? What are the different issues for UK residents and non-residents? What is the different treatment if you are an individual, a trust or a company? 

Index to capital gains tax reliefs
UPDATE: Which relief? For what and why? Start here.

Case Update (freeview)

CIS appeal fail: no evidence of penalties
In ESE Rendering Solutions Limited v HMRC [2019] TC07137 an appeal against 33 late filing CIS return penalties was allowed. HMRC failed to provide any evidence that penalty assessments had ever been issued.

VAT cases

Overpaid parking fees are taxable
In National Car Parks v HMRC [2019] EWCA Civ 854 the Court of Appeal found that when a customer overpays a car parking fee, and the operator does not give change the whole fee paid is subject to VAT.

Fractional interest in property taxed as hotel
In Fortyseven Park Ltd v HMRC [2019] EWCA Civ 849 the Court of Appeal has ruled that the sale of a fractional interest in a residential property was subject to VAT. The integral supply of concierge services was not the passive supply of a property landlord but more similar to that of a hotel.

Expensive: Late VAT Registration fee
In Peter Hartigan T/A Striking Iron Ltd [2019] TC7109 a trader who claimed to misunderstand the VAT registration rules received a £30,000 penalty for his failure to notify.

VAT 

Fuel scale charges (VAT)
UPDATE: New rates apply for accounting periods beginning on or after 1 May 2019.

Flate Rate Scheme (FRS)
UPDATE: Should you be on the FRS? How do you join or leave?

CPD for lunch

Capital Taxes Update - May 2019
NEW: a webinar looking at what's new in the capital taxes arena including recent case law.

Reasonable Excuse
NEW: What is reasonable when it comes to filing failures?

Missed last time's Web-update?

Nichola's SME tax W-update 23 May 2019

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