Hello
This time: how did Entrepreneurs' Relief become quite so complicated? Company cars, gifting shares, capital allowances and VAT and special offers.
First off: a warning to anyone using the Dropbox file storage App. If you want to restore deleted files for one reason or another, Dropbox will re-date every file as 'modified' to the date of restoration. Their technical advisers say nothing can be done to restore files with the date they were last modified. Can't even begin to express how angry we are: what a totally daft policy.
We have some interesting cases this week especially the capital allowances one; a handy result. As other main news is a bit heavy going, so we have created a Tax Bait zone.
Our new Virtual Tax Partner Entrepreneurs' Relief (ER) toolkit is up and running and you can sign up for the tools online. Our aim being to make life a lot easier when it comes to to trying to answer tricky tax queries. I did not expect to find that the sole trader rules are quite as complicated as they are. The sole trader toolkit took three weeks to develop, and we have worked out 50 possible outcomes using the rules.
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!
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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)
Plastic Packaging Tax
HM Treasury has published responses to consultation on a new tax.
Company car tax to go down then up
The government has released the response to ‘Review of WLTP and vehicle taxes’ which sought evidence on the impact of a proposed change to the method of measuring CO2 emissions for Company car tax from April 2020.
Lords question the Loan charge
In a recent meeting of the House of Lords Economic affairs committee the Financial Secretary to the Treasury Jesse Norman MP was quizzed about the disguised remuneration loan charge.
Technical and procedural amendments to the General Anti-Abuse Rule
HMRC have issued a policy paper ‘Technical and procedural amendments to the General Anti-Abuse Rule’ on proposals for HMRC to issue notices to taxpayers refusing to co-operate with them by withholding information about tax arrangements.
Draft Registration of Overseas Entities Bill: Government Response
The government has now released its response to the draft legislation issued in 2018 for the creation, to take effect from 2021, of a register of beneficial owners of overseas entities owning UK property.
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.
Tax Bait (freeview)
A more lighthearted look at tax and the news
8 new tax promises on Boris' list
Number 5 will be of a lot of interest to SMEs
Editor's Choice (freeview)
Virtual Tax Partner Toolkit: Entrepreneurs' Relief Business disposals (sole traders)
NEW: Who would have thought it possible? 50 different permuatations of the rules.
Virtual Tax Partner Toolkit: Entrepreneurs' Relief Share disposals
NEW: What does this toolbox cover? What are its limitations?
Tax Guides & Updates (subscribers)
Share scheme basics for company owners
UPDATE: This guide explains the tax consequences when a company gives shares to an employee or director and will assist you in designing share schemes.
Enterprise Management Incentives
UPDATE: introducing the share option scheme which is ideal for SMEs and start-ups
Case Update (freeview)
IR35 did not apply to radio presenter
In Kickabout Productions Limited v HMRC [2019] TC7230 the First Tier Tribunal (FTT) narrowly decided that for the purposes of the hypothetical employment contract requirement of IR35, that radio broadcaster Paul Hawksbee would not have been an employee of TalkSPORT.
High Income Child Benefit Tax Charge: no excuse as penalties upheld
In HMRC v James Robertson [2019] UKUT0209 the Upper tribunal held that failure to notify penalties were valid where the high income child benefit charge applied; the charge counted as potential lost revenue.
HMRC own goal on late capital allowance claims
In HMRC v Dundas Heritable [2019] UKUT0208 the Upper tribunal agreed with the FTT; Schedule 18 of FA 1998 does allow a taxpayer to make late capital allowance claims if there is an open HMRC enquiry into the relevant tax return.
Married cohabitant gets death benefits from partners pension scheme
In Langford v Secretary of State for Defence 2019 EWCA Civ 1271 the Court of Appeal ruled that a cohabitant could claim her partner’s RAF pension death benefits despite being married to someone else.
VAT (subscribers)
No free wine for VAT
In Marks and Spencers PLC v The Commissioners for HM Revenue and Customs: [2019] UKUT 0182 (TCC), the Upper Tribunal decided that free wine, supplied in a dine for two £10 with free wine offer was a standard rated supply and the £10 should be apportioned to the supply of both wine and food.
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
Missed last time's Web-update?
Nichola's SME W-update to 19 July 2019
- Off-payroll working special
- How to report your loan charge
- CGT PRR condoc responses
- HMRC litigation statistics
- HMRC special status on insolvency consultation
- OTS simplifying IHT
- Cases
- ATED and derelict building
- Incompetent advice did not justify late appeal
- Aggregation of Class 1NICs for different employments
- and much more..
Come and join our Cloud
Subscribe (and UNLOCK the whole site) A single user annual subscription is £399 (+ VAT)
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's favourite TAX INTRANET containing over 3,500 actively maintained tax guides, briefings, toolkits and checklists.
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- Structured CPD our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our webcasts provide you with structured CPD at your desk.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
