We have quite a lot to say this week. HMRC's latest Agent Update is horribly long but it duplicates much in the earlier Employer Update. We have weeded out the highlights for you.

HMRC have also issued a briefing on the off-payrolling rules. The note provides personal service companies (PSCs) with the assurance that HMRC are unlikely to go back 20 years in investigating employment status if, under the new rules from next April, your end-client determines that you should have always been its employee. Note that no assurance is given that HMRC will not go back 4 or 6 years if they judge that you have been careless in not checking IR35 earlier.

We have had a rash of queries over past months on what you can do to alter an existing trading structure. We have updated our guides for both partnerships' tax changes and company share schemes. I hope these prove helpful.

We have a mini-update on Stamp Taxes, worth a read. First-time buyers who purchased via a shared ownership scheme have a deadline of 29 October 2019 to backdate claims to November 2017.

On cases, the Upper Tribunal has produced some interesting decisions. The VAT on crowd-funding case is one worth keeping in the back of your mind. Most people who are applying for crowd-funding probably have never heard of the VAT voucher rules.

If you have tax queries contact the Virtual Tax Partner support portal at www.VtaxP.co.uk, but do check for guidance on www.rossmartin.co.uk first.

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)

Tax cuts for high earners get the chop
All change, as the chancellor says that he is planning to scrap promised tax cuts in next month’s budget.

HMRC issue briefing: Reform of off-payroll working rules
HMRC have issued a new briefing ‘Reform of off-payroll working rules’ about the extension of the rules to the private sector from April 2020.

Agent update October/November 2019
HMRC have issued the Agent Update for October/November 2019. We have summarised the key content for you with links to our detailed guidance on the topics covered.

Ofgem proposes new audits for energy suppliers
A consultation, 'Supplier Licensing Review: Ongoing requirements and exit arrangements' proposes energy suppliers to provide the regulator with 'living wills' and independent financial audits. 

What are the different variations of Brexit?
What form might the eventual Brexit look like? We compare the latest deal with how other countries have structured their relationship with the European Union. 

Editor's pick (subscribers)

Stamp Duty Land Tax & Stamp Duties: what's new?
NEW: First time buyers have until 29 October 2019 to make a claim for repayment. Cases and new guidance: residential and dwellings, anti-avoidance changes, stamp duty changes for purchase of unlisted securities, taxpayer common errors.

Partnerships: rolling update 
UPDATE: A summary of recent developments and changes to partnership tax.

Partnerships: tax planning guides
UPDATE: Links to options for planning using partnerships and the anti-avoidance you need to watch out for.

Tax Guides (subscribers)

Which trading structure is best for me?
UPDATE: At a glance handy guide for start-ups

Employment related securities (share scheme basics)
What are the tax consequences when a company gives shares to an employee or director?

ABC or alphabet shares: directors & employees
Why create different share classes? What are the advantages and pitfalls?

ABC or alphabet shares: family companies
Do you need different share classes what are the issues?

Off-shore receipts: Intangible property
New measures are unlikely to affect SMEs, they are aimed at multinational corporations with the ability to hold certain types of income producing property in low tax jurisdications. 

Case Update (freeview)

Late evidence was inadmissable and merely hearsay
In Harold Wiesenfeld and Alex Strom v HMRC [2019] UKUT 0301 the UT upheld penalties for carelessness. The taxpayers failed to provide timely evidence as to the nature of their business venture in Poland and the tribunal ruled that verbal evidence amounted to hearsay.

Gift to Jersey charity eligible for IHT exemption under EU law
In Routier and Anor v HMRC [2019] UKSC43 the Supreme Court found that a Jersey trust qualified for IHT exempt charitable status despite it not being governed by UK law; to deny the relief would contravene EU law.

VAT Cases

Crowdfunding reward was VATable
In Lunar Missions Ltd v HMRC [2019] UKUT 0298 crowdfunding with the offer of a reward to those who made pledges triggered VAT registration: there was a supply for VAT purposes.

Making VAT more Digital (freeview)

MTD: VAT blog
Making Tax Digital 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. Sign up at Tier 1 prices now.

      • 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.

CPD for lunch 

Byte sized chunks of CPD for subscribers

Allowances: Trading and Property

Reasonable Excuse

see also: CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 18 October 2019

      • The Queen's Speech: SME highlights
      • Employer Bulletin: October 2019
      • Probate fee hikes are finally dropped
      • EU tax haven blacklist shrinks as cooperation increases
      • Selling the business: where do I start?
      • IHT valuation: HMRC approach is right but amounts are wrong
      • No legitimate expectation that HMRC manuals were correct
      • and much more..


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