This time we have an off-payroll working special, with a great new freeview guide. We look at the latest consultation outcomes, review some topical cases, there is more useful feedback on MTD for VAT and I have found that I was not operating my accounting software properly, were you?

'Off-payroll working', in case you were unsure about the term, is HMRC's latest catch-all description for supplying your services via an intermediary when your end client does not want to employ you directly. From next April there will be four different variations of the rules to tax off-payrolling: IR35, the managed service company (MSC) regime, the public sector rules and the new large or medium-sized private entity rules. Thanks to the passing of time coupled with fact that HMRC used to refer to employment via intermediaries, there are now thousands of out-of-date internet pages around these topics. Jolly confusing for just about everyone and I hope our new freeview on this guide helps.

The drama (or is it a sit-com?) that is Making Tax Digital for VAT drags on. This week in our feedback we have a great new tip on how agents can now change a client address. Meanwhile, my first attempts to file a June quarter VAT return early were instantly thwarted when we discovered that the accidental use of the client login by a colleague when linking up software to HMRC is enough to unlink us as agents on all other clients.

My 'revelation' this week could affect anyone who uses Xero software but does not use it to file with HMRC, which is about 85% of users (based on HMRC's statistics for online filing). The software contains a pre-ticked box: had I realised that there were other options, (such as unticking it!) I would have found a whole new pop-up, a new place that would then then allow me to 'publish' a VAT return. But what on earth does publish mean and why is it so significant to VAT? After muitiple emails to their helpline I was granted a phone call and I finally found out. Not a new accounting or tax term, publishing in this context actually means 'Saving your data in the system'. This is done automatically if you had filed with HMRC via the software. If you did not file that way then you need to know that this is where you untick from within the 'File' box. Of course I did not go to that box as I was not filing with HMRC. Had I published my old style VAT returns I would not now be seeing any 'Late claims' on my new MTD VAT report. A mystery solved. I also found that the software is declaring that my figures are 'Adjusted' when I have not touched them. All this and more in our MTD Blog.

If you have 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


Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers

Quick news (freeview)

Latest tax avoidance litigation results
HMRC has published a summary of its results in tax avoidance litigation over the past year. In general it has been very successful, but there is  always more behind the headlines. 'Kipper Scale' score = 4.

Condoc response: Off-payroll working for the private sector
HMRC published Off-payroll working rules from April 2020 Summary of Responses in response to its second consultation on the introduction of the new off-payroll working rules for workers working in the private sector.

Condoc response: CGT: Private Residence Relief: changes to the ancillary reliefs
HMRC have published response to the consultation, 'Capital Gains Tax: Private Residence Relief: changes to the ancillary reliefs' together with draft legislation as part of Finance Bill 2020.

Protecting your taxes in insolvency: consultation response
The government has published a summary of responses to the consultation “Protecting your taxes in insolvency” alongside draft legislation to be included in Finance Act 2020.

The Loan charge: How to report your loans
HMRC have released additional information via their agent webinars about how to report disguised remuneration loans for the loan charge.

Making VAT more Digital

MTD: VAT blog
Reader comments: more useful work arounds, a problem with Xero and the answer as to why clients become mysteriouly unlinked.

Editor's Choice (freeview)

Off-payroll working: at a glance 
New rules apply from April 2020. This mini-guide explains the existing and proposed different versions of the rules.

Ceasing trading: at a glance
Index to the different options available

Reorganisations and Demergers
At a glance guide and index 

Tax Guides & Updates (subscribers)

Off-payroll working & Public Sector engagements
NEW: from April 2020

Personal Service Companies PSCs
UPDATE: is there a future for PSCs? What's new?

Exit strategies & index
UPDATE: if you wish to close your PSCs you need to know the anti-avoidance rules

Case Update (freeview)

Derelict bungalow was not a dwelling
In P N Bewley Ltd v HMRC [2019] TC6951, the first tier tribunal found that a derelict bungalow was not suitable for use as a dwelling and was subject to the lower rate of stamp duty land tax for a non-residential building.

Incompetent advice did not justify late appeal
In HMRC v Mohammed Hafeez Katib [2019] UKUT 189 the Upper tribunal (UT) held that the incompetence of an adviser did not justify a late appeal; they overturned a decision of the First tier tribunal allowing the late appeal.

Aggregation of class 1 national insurance
In Louise Willmott v HMRC [2019] TC6789, it was held that class 1 national insurance contributions from two associated employments could be aggregated, and class 3 contributions could be paid after the usual time limit.

VAT (subscribers)

VAT: place of supply 
The place of supply (POS) of a service determines whether the supply is within the scope of UK VAT and whether VAT is payable on that supply. 

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.

CPD for lunch 

Byte sized chunks of CPD for subscribers

CPD Index

Missed last time's Web-update?

Nichola's SME W-update to 12 July 2019

  • Draft Finance Bill 2020
  • OTS on IHT
  • HMRC VAT helpline statistics look bad
  • Making VAT Digital when to join tool updated
  • Entrepreneurs Relief tools
  • IHT and giving
  • VAT deliberate and concealed 
  • VAT wrong flat rate
  • 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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