In this time's web-update we look at the latest statistics on Making VAT Digital, we review HMRC's Brexit guide, and also take a close look at HMRC's powers to obtain information.

HMRC have released some further statistics on Making Tax Digital for VAT. Making a rough calculation I estimate that at least a third of VAT registered businesses have not yet managed to successfully navigate the new system. I am surprised that the failure rate is so high. Of course this is just looking at the mechanics of filing. Once everyone is signed up, the the key question will be whether the newly functional compatible software is producing meaningful and accurate VAT returns.

Onto HMRC’s information gathering powers. Are taxpayers aware of HMRC’s powers? Should we worry about the extent of HMRC's powers? We look at a couple of cases where the tribunal has been asked to limit those powers. We have some really useful guides on this topic which we'll update whenever we find some interesting discussion from the tribunals.

We met quite a few people at the Professional Accountancy exhibition over the last few days. It is great to meet you all and also to have time to chat to existing subscribers and prospective ones. 

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: you cannot get better value elsewhere!

Back soon 

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)

A third of business not yet compliant with Making Tax Digital for VAT
Its all in the stats: we analyse what we know about compliance with the new VAT regime.

Agent Update: Brexit Special
HMRC have issued a Brexit Special version of their regular Agent Update. We have summarised the key content for you with links to our detailed guidance on the topics covered.

Freeview updates 

Domicile and the remittance basis: At a glance
A new at a glance guide to domicile and using the remittance basis of taxation.

Tax Guides (subscribers)

Sch 36 Third Party Information notices
When can HMRC require a third party to provide information or produce a document in relation to a taxpayer? Who can appeal a notice? What rights does the taxpayer have when a third party is involved?

Sch 36 information notices
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued?

Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? What are your rights of appeal and defences?

How to appeal an HMRC decision
What type of a decisions are appealable? What are your different options when you disagree with HMRC? What are the key steps in making an appeal?

What expenses can you claim A-Z for different trades & professions
We summarise the key direct tax and VAT treatments for different types of self employed sole trader, or partnership.

Case Update (freeview)

Information Notice request too broad 
In Havannah Quay Land Limited v HMRC [2019] TC7177 the FTT varied an information notice issued by HMRC to exclude a broadly drafted request for correspondence.

Detailed Information Notice was valid: HMRC needed the information 
In Jupiter Online Limited v HMRC[2019] TC7281 the FTT confirmed that HMRC may use an information notice to check how a company operates when checking its tax position.

Third Party Information & Non-residents  
In Mr and Mrs PQ v HMRC [2019] TC71999 the FTT decided that HMRC was able to issue a third party information notice to non-UK residents.

No loss relief for Yacht Charter business kept afloat by partners
In Roulette V2 Charters LLP v HMRC [2019] TC07331 the First Tier tribunal refused sideways loss relief for a yacht charter business: the possibility that the business would make a profit was remote and initial profit expectations were wildly wrong.

Making VAT more Digital (freeview)

MTD: VAT blog
This time: evidence of a light touch by HMRC, tips on browsers and observations that software is not always following HMRC's guidance. 

VAT & VAT cases

Lawn repair product is not animal feed
In Westland Horticulture Ltd v HMRC [2019] TC7283 the First tier tribunal decided a product to repair lawns could not be zero-rated as animal feed and should be standard rated.

A day planner is a book
Thorsteinn Gardarsson v HMRC [2019] TC7255, the First tier tribunal held that a day planner was a book and therefore zero-rated for VAT.

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

NEW: Transactions in securities, see: CPD Index

Missed last time's Web-update?

Nichola's SME W-update 13 September 2019

  • Review of the loan charge
  • MTD for VAT planning service downtime
  • CIS VAT change postponed for a year
  • Directors' Loan account toolkit and Close company loan toolkits
  • Cases: company tax late filing + director duties
  • Case: tribunal limits fishing trip into director's spending
  • Case: no tax relief for shareholder compensation
  • VAT: PPI not insurance
  • VAT: penalties and director liability
  • VAT: Making Tax Digital: more tips and feedback
    and much more..


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