Hello

We thought that it was looking quiet on the news front this week, however, there are one or two really useful things, so do read on.

Following the late filing chaos caused by the badly publicised introduction of the Capital Gains Tax (CGT) for Non-residents tax return, HMRC has undertaken research in order to plan how best to inform this group of taxpayers about the introduction of a 30-day payment window next year. The solution? Tell them by post, failing that, make a video, and failing that, rely on tax agents. It is funny how things go full circle. No mention of apps, no Twitter, no email: I quite like the way that the world has gone TV/video crazy. All those people worrying about the dangers of children staring into screens and now multi-generations of adults are all 'binge watching box sets' and now the government is actively encouraging us to watch videos too. If I were redesigning the system I might be really nasty and propose a reverse charge. It would work in some cases but not all: the buyer accounts to HMRC for 28% CGT as well as stamp duty and the seller would then be so polarised by the potential of overpaying tax that they would complete my super-easy-to-understand return and to correct the CGT position. Not such a good plan if you are selling at a loss or nil gain and luckily for non-residents it is not being proposed by the law makers.

If you are advising people who are having debt crises, the government is introducing new measures to allow individuals some breathing space and sort themselves out. These do not apply to business debts if you are trading above the VAT threshold. Definitely worth reading through that item.

More on VAT below with some top tips. Thank you again for your invaluable feedback, both the ICAEW and CIOT have been able to talk about this directly with HMRC. I am sure MTD for VAT will be OK in the end, we just need to get through this first year. We also have 'breathing space' on some penalties so bear that in mind.

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. Subscribe now!

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)

HMRC statistics: Share option schemes remain popular
HMRC have published statistics on the use of tax-advantaged employee share schemes, such as Enterprise Management Incentives (EMI) for the 2017/18 tax year.

CGT payment dates: taxpayers tell HMRC not to leave it too late
HMRC has published the conclusions of their research into how best to communicate the introduction of a 30 day payment window for CGT on UK residential property from April 2020.

Breathing space scheme: consultation on a policy proposal
HM Treasury has published its policy conclusions on proposals for a ‘Breathing space scheme’ for individuals suffering from problem debt together with proposals for a statutory debt repayment plan.

Making VAT more Digital

Copy your VAT registration certificate!
The ICAEW Tax Faculty has obtained clarification from HMRC on the availability of agent and business access to digital VAT services after a business has signed up to Making Tax Digital (MTD) for VAT.

MTD: VAT blog
Work-arounds: the latest instalment on trying to sign up for Making Tax Digital for VAT.

Editor's Choice (subscribers)

Share schemes for SMEs: employment related securities
Thinking about offering shares to an employee or director? EMI or what other options are available. What are the tax issues, how do you designing share schemes?

ABC or alphabet shares: directors & employees 
Start here for a checklist and discussion on the numerous taxing issues that have potential to arise when you create different share classes and special rights for employee shares.

EMI: Enterprise Management Incentives (freeview)
The Enterprise Management Incentive (EMI) scheme is an employee share option scheme. It is not to be confused with the Enterprise Investment Scheme (EIS) which is a scheme where investors receive tax relief on their investment. 

Stamp Duty: share for share exchanges
We are in our final week of our tour through out new Reorganisation Zone. A series of super practical tax guides provide an outline of the tax treatment together with step guides and tax clearance templates.

Virtual Tax Partner Toolkit (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkit
NEW: be a winner with our game-changing tax diagnostics tools:

  • Entrepreneurs' Relief: Sole traders: sale of a business, incorporation, sale of assets
  • Entrepreneurs' Relief: Company owners: rules for sales pre 29 October 2018, sales between 29 October 2018 and 5 April 2019 and after.
  • TAAR: closing your Personal service company? Will your final dividends be taxed as income?
  • Salary or dividend, or a mixture of both. Better to claim the Employers' Allowance?
  • Making Tax Digital for VAT: when do you need to join.

TaxKeep Apps
NEW: these Apps are currently free for subscribers. For a small fee they can be customised with your logo and then distributed to your clients. Complete the form to sign up for your own App.

Case Update (freeview)

No requirement to disclose Mutual Agreement Procedure documents
In Kevin McCabe v HMRC [2019] TC7145 the FTT held that HMRC was not required to disclose documents relating to a “mutual agreement procedure” with the Belgian tax authorities; they were not sufficiently relevant to establishing his tax residency position.

Tax rebate company should have ID checked its customers
In Online Tax Rebate Ltd v HMRC [2019] UKUT 0167 the Upper Tribunal held that a company obtaining tax rebates for employees was a tax adviser under the Money Laundering Regulations; it should have undertaken customer identity checks.

VAT (subscribers)

Reverse charge: cross-border services
We often get asked about VAT and trading within the EU. This is our guide to how the reverse charge works. Useful reading for all MPs.

CPD for lunch 

Byte sized chunks of CPD for subscribers

Understanding PAYE tax codes
NEW: what, why and how

Structures and Buildings Allowance (SBA)
NEW: Will the SBA prove to be a useful allowance?

Extracting Profits from an Owner-Managed Business
NEW: How can an owner extract profits from a company?

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

Missed last time's Web-update?

Nichola's SME tax W-update 21 June 2019

Features:

  • Employer Bulletin
  • Stamp Office delays
  • Loan charge settlement
  • Blog: Trying to sign up to Making Tax Digital for VAT
  • Virtual Tax Partner © Toolkit 
  • TaxKeep Apps
  • Costs order for taxpayer wasting tribunal time
  • VAT and international goods
  • and much more..

Catch up with last month in tax 

May 2019: the month in summary
NEW: a summary of the newswires for the last month

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