Hello

This time: have you managed to file all your new Making Tax Digital for VAT returns for the June quarter? As more new tax schemes are featured in HMRC's spotlights, the Treasury sub-committee asks for HMRC to report on use of avoidance schemes. We also have a pick of interesting cases, consultations and much more.

We have had a 50% success or fail rate, depending on whether you are a glass half full or half empty type of person for our MTD for VAT June returns. In the end I confess that I gave up trying to do it properly. On failing to obtain agent authorisation, I cheated and filed as a client and not as an agent. There is only so much you can do. I feel a little nervous as to whether HMRC's ambition to become 'one of the most digitally advanced tax administrations in the world' is realistic.

We are keeping it light on chat this week.

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)

Recommendations on Disputing Tax
The Treasury Sub-Committee's new report 'Disputing Tax' makes new recommendations to HMRC and to the professional bodies in respect of tax avoidance scheme reporting and bench marking and dispute resolution.

Digital Services Tax: consultation response
HM Treasury have published a response to ‘Digital services tax: consultation’, regarding the design and implementation of the proposed new tax to be introduced from April 2020.

Spotlight 53: tax avoidance using capital advances and share ownership agreements

HMRC have issued Spotlight 53: Disguised remuneration: tax avoidance using capital advances, joint and mutual share ownership agreements about schemes to avoid Income Tax and NIC using capital advances and offshore share ownership arrangements.

Making VAT more Digital (freeview)

MTD: VAT blog
How was it for you? Reader comments: more useful feedback: the answer as to why some client authorisations have failed.

Tax Bait (freeview)

A more light-hearted look at tax and the news

8 things I wish I had know about Making Tax Digital for VAT
(Number 8 is a shocker)

Editor's Choice (freeview)

Starting work: employed or self employed?
Week 1 of a new series of guides, designed to help anyone who is contemplating working in the UK.

Tax Guides & Updates (subscribers)

Self employed: converting part of your home into an office or business premises
UPDATE: Home working may well shape your plans for home improvements. It is useful to know the tax outcomes.

Directors: creating an office or work space at home
UPDATE: Many company owners work from home, this note looks at how you may obtain tax relief on the cost of converting the spare room, or building a deluxe summerhouse to serve as an office in the garden.

Wholly and excusively toolkit
UPDATE: Your FAQs answered. What are the rules that govern what you can and can't claim and what is capital expenditure?

Case Update (freeview)

Contracts for differences were not trading 
In Ernest Thomson & Ors v HMRC [2018] TC 6598 the First tier tribunal decided three taxpayers who dealt in contracts for difference were not trading; they were not able to offset losses against income from other sources.

No closure notice without an assessment of tax due
In Executors of Mrs R W Levy v HMRC [2019] TC07233 the First tier tribunal held that HMRC did not have the power to issue a closure notice where the amount of tax due had not yet been determined.

No deduction for expenses not part of trade
In Gordon Lim v HMRC [2019] TC07158 the FTT held no deduction could be claimed for forfeited property deposits and payments for breach of contract; the taxpayer had not incurred the costs as part of his property dealing trade.

 

VAT (freeview)

Partial Exemption and the Capital Goods Scheme
HMRC have published Call for evidence with a view to simplification of partial exemption and the Capital Goods Scheme rules.

Revenue and Customs Brief 6: Changes in accounting for VAT after prices are altered
Following a consultation HMRC have published ‘Revenue and Customs Brief 6: Changes in accounting for VAT after prices are altered’ to explain new rules for adjustments to VAT after changes in the price of goods or services.

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 26 July 2019

  • Plastic Packaging Tax
  • Register of beneficial owners of overseas entities owning UK property
  • 8 new promises on Boris' tax list
  • The Lords further question the Loan Charge
  • Virtual Tax Partner Entrepreneurs Relief Toolkit
  • Cases
  • IR35 and Talkradio presenter
  • HICBC penalties upheld by UT
  • Sch18 enqury does allow a late CA claim
  • Married co-habitant qualifies for pension
  • VAT on free Wine deals
  • and much more..

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