This week we have a new Agent Update, we open more of our Christmas Selection box and we have a good look at goodwill and valuations.

Intangible assets are strange things because of their lack of physicality. Goodwill is made more curious by the fact that HMRC’s Share and Asset Valuation (SAV) appears to only recognise its existence when it suits them. This ensures that we can end up with some very odd results. We have summarised the full extent of these in our guides.

We look at VAT and business-splitting again this time. The £85,000 VAT registration threshold poses a real problem for many people in the catering sector and careful VAT planning is required when a couple trade alongside each other.

Can I also draw your attention to the tribunal's VAT decision on directors' tax planning fees? Worth a read over your cuppa.

As the year draws to a close we know three things: the issue of Climate Change is unlikely to go away, Brexit may continue to dog us and the next budget will not be until February. At least that give us all time to file those Self Assessment returns before the 31 January deadline.

Back soon

Nichola Ross Martin FCA CTA (Fellow) Tax Director


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Quick news & Guides (freeview)

Agent update December 2019/January 2020
HMRC have issued the Agent Update for December 2019/January 2020. We have summarised the key content for you with links to our detailed guidance on the topics covered.

H is for...
As we begin the count down to Christmas, this is the second gift from our Festive Selection Box of different tax reliefs and exemptions.

Next Budget likely to be held in February 2020
Following the scrapping of this year’s main budget statement due to the general election the two main parties have both stated their intention to hold the next budget in February 2020.

The loan charge: 31 January tax return requirements
After the announcement that the loan charge review report is not expected until after the general election, HMRC have issued more guidance on how taxpayers in the process of reaching a settlement should deal with it in their 2018/19 tax returns.

Editor's self assessment pick (subscribers)

 2018/19 Self Assessment Tax Return toolkit
We hate to remind you but the deadline is now just 50 days away...! Check out our top tips for last minute returns.

Agency Workers: At a glance (freeview)
UPDATE: What is the tax treatment of workers supplied through UK based agencies, employment businesses or other staff supply intermediaries?

Tax Guides (subscribers)

Goodwill & incorporation: tax issues
UPDATE: What are the tax issues in respect of goodwill on incorporation? What tax reliefs apply if you buy and sell goodwill? What are the valuation and clearance procedures? This guide also contains a summary of nearly every published case decision to feature goodwill.

Valuation of goodwill
UPDATE: What valuation methods are suitable for valuing a business? What are the issues with goodwill and other intangibles? What does HMRC suggest? What do the courts think?

Goodwill and the company intangibles regime
UPDATE: How does the corporation tax intangible regime work? What is the treatment of goodwill for corporation tax? Do company's account for goodwill differently?

Valuation: companies
A guide to the main principles in valuing an unquoted company for tax purposes.

Case Update (freeview)

Loans to traders: no evidence, no allowable loss
In Mr Steven Flashman v HMRC [2019] TC7419, the First Tier Tribunal found that a loss on a ‘loan’ to a trader was not allowable. There was no evidence that a loan ever existed.

Invalid rollover claim allowed: discovery was stale
In Oriel Developments Ltd v HMRC [2019] TC7306, the First Tier Tribunal allowed an appeal despite an invalid rollover relief claim. The discovery assessment raised was stale, so was not valid. 

VAT Cases (freeview)

Business-splitting to avoid VAT: one or two businesses?
In Charles John Caton v HMRC [2019] UKFTT 0549 TC07343, the First Tier Tribunal (FTT) found that a café run by Mr Caton was separate from a restaurant run by his wife.

Input VAT allowed on directors' remuneration planning scheme
In Taylor Pearson (Construction) Ltd (TPCL) v HMRC TC07464, the First Tier Tribunal (FFT) concluded that input tax incurred on services provided by tax advisors for the company's directors was deductible.

VAT Guides (subscribers)

Discounts, Reward Schemes & Vouchers: VAT
Loyalty and reward schemes come in various shapes and sizes and the VAT implications may vary depending on the type of scheme offered. A relevant topic for this time of year!

Business splitting and VAT (single business directions)
UPDATE: When a business is artificially split into two in order to avoid VAT registration and HMRC may treat both as a single business for VAT purposes. We find this is an issue which comes up quite a lot.. 

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

New: Stamp Duty Land Tax

Recent additions:

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 5 December 2019

  • C is for...
  • Employers' Bulletin December 2019
  • Christmas Parties: 2019 Advent Special
  • IR35 again: DWP contractor not a deemed employee
  • PRR: "complete absence" of evidence
  • R & D claim: no evidence
  • No transfer of losses to successor
  • Joint property ownership: legal v beneficial ownership
  • More...


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