Hello

We are trying to keep it light this week as so many folk are away on their holidays. We do feature a really interesting VAT case which is also useful if you are one of many of those advisers who ask what can my employment agency client do to remain more competitive?

HMRC does not like employment agencies using expense models to reduce taxable pay, particularly when there is a some kind of scheme involved. The case we report relied on a salary sacrifice scheme to reduce taxable pay, it was relatively straight forward and not illegal in terms of what parliament has intended employees to be allowed to claim: i.e. travel and subsistence. Salary sacrifice and optional remuneration schemes are no longer quite so easy to operate following a change in the rules in 2017 however it remains a fact that an employer can save thousands of pounds in National Insurance and an employee in tax if they line up the rules correctly. From a really geeky point of view the VAT aspect of the case is more exciting, the question for the tribunal was whether the operation of a remuneration scheme amounts to a VATable supply. Read on and you can see the arguments.

The weather has meant bad news for the cauliflower harvest but its not all doom and gloom! Continuing our Tax Bait series, we have found some exiting opportunities for tax advisers in the ongoing Brexit uncertainties...

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Nichola Ross Martin FCA CTA (Fellow) Tax Director

www.rossmartin.co.uk

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Nichola's SME W-update 8 Aug 2019 8 Aug 2019

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