Happy New Year.

We start the new decade with lots of exciting news and developments.

Personal Service Company (PSC) owners may be interested to hear that the government is reviewing its planned changes to the 'Off-payroll' working rules. We think that this is unlikely to mean a radical policy change to the new version of these rules that are due to be applied to PSC contractors by their large and medium-sized end-clients from April 2020, we might simply end up with better guidance. It appears that the review could include looking at IR35, the original intermediaries rules. Somewhat confusingly, IR35 is now also called off-payrolling too. It could be that we at last receive a full government response to the Employment Status consultation that mysteriously closed in 2018 and has not been heard of since. Being the sort of person who does like a checklist, I have always thought that we need a statutory employment status test. HMRC's Check Employment Status Test (CEST) tool is certainly paving the way for one.

A new Anti-Money Laundering Directive applies this month. This means that we will all need to be more proactive in checking the beneficial ownership of corporate clients. A quirk of the new rules means that in future months we will also have a requirement to report discrepancies identified in the Persons of Significant Control register. We have made a checklist for you to highlight the changes.

In case you missed it just before Christmas, the Government announced some important changes to the rules for settlement of Employee Benefit Trust (EBT) and disguised remuneration loans.

Lots of fascinating tax cases this week too.

If you are new to us, and wonder what we do: we run a Practical Tax Database for accountants which aims to provide you with value of money access to answer your tax FAQs and we keep our site updated in real time too. Check out the main menu on our website to peruse what we offer.

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 & Guides (freeview)

2020 Budget set for March 11
The Chancellor of the Exchequer, Sajid David, has set Wednesday 11 March 2020 as the date for the first budget of the new parliament.

Agent update: Self-Assessment Special January 2020
HMRC have issued a special Agent Update Self Assessment edition to help you prepare for the 31 January filing date. We have summarised the key content for you with links to our detailed guidance on the topics covered.

Treasury announces review of Off-payroll rules
The Treasury has announced a review of the Off-payrolling rules to determine what can be further done to ease implementation in April 2020.

Anti-Money Laundering: New Directive focuses on Beneficial Ownership
The Fifth EU Anti-Money Laundering Directive (5MLD) imposes new duties on accountants not only check beneficial ownership of client companies and trusts for both direct and indirect tax advice but also to report any discrepancies found at Companies House.

Tax Hits of the Decade: 2010 to 2020
As we enter the twenties, which may or may not be roaring, we take a look back at the last decade and the changes it has brought to the UK tax rules.

Government makes changes to Disguised Remuneration Loan Charge
The government has announced a package of changes to the Disguised Remuneration Loan Charge, follows the conclusion of Sir Amyas Morse’s independent review of the loan charge policy and its implementation.

Festive hangover news (freeview)

Happy New Year: A Quiz!
Happy New Year to one and all. We thought that we would kick things off with a quiz.First prize is a year's subscription to the Virtual Tax Partner© Tax Toolkit of your choice.

T is for...
Transferable nil rate band under Inheritance Tax. Our Christmas Selection Box of different tax reliefs and exemptions offers titbits even for the New Year.

M is for...
Marriage Allowance and other spouse exemptions.

A is for...
Agricultural property relief or APR, another relief from Inheritance Tax.

And finally...S is for...
Stamp duty - not only on property but also on shares.

Editor's self assessment pick (subscribers)

2018/19 Self-Assessment Tax Return toolkit
A summary of what’s changed since 2017/18 and top tips for 2018/19 tax return completion. 

Case Update (freeview)

Self Assessment penalties: HMRC assessments valid but not notified correctly
In HMRC v Duncan Hansard [2019] UKUT 0391, the Upper Tribunal (UT) dismissed a late filing and late payment penalty appeal by HMRC, re-calculated penalties that had been assessed but had not been properly notified.

Brexit is not a reasonable excuse
In Caris Properties Limited v HMRC [2019] TC7481, the First Tier Tribunal (FTT) upheld tax-geared penalties for a late filed corporation tax return. Brexit was not a reasonable excuse.

VAT Cases (freeview)

VAT: E-newspapers should be zero-rated
In News Corp UK & Ireland Limited v HMRC [2019] UKUT 0404 (TCC), the Upper Tribunal (UT) found that electronic editions of newspapers should be treated in the same way as printed newspapers for VAT, and zero-rated.

Dixons loses £1.8 million VAT claim on bounced cheques
In Dixons Retail Plc v HMRC [2019] TC07486, the appellant failed at a First Tier Tribunal (FTT) appeal in a bid to reclaim £1,876,141 of overpaid VAT on cheques which had been dishonoured, on the basis they were out of time for a refund.

VAT registration: when does the 12-month rolling turnover start?
In Dorset Trimming Company v HMRC [2019] UKFTT708 TC07480, the First Tier Tribunal (FTT) dismissed the appellant’s argument that HRMC’s interpretation of registration rules as incorrect and that it was not obliged to register for VAT.

VAT Guides (subscribers)

Making Tax Digital: VAT
What is Making Tax Digital (MTD) for VAT? What is VAT 'functional compatible' software? What do you need to report for VAT? Are there penalties for making mistakes? 

VAT: Time of supply
The time of supply of goods or services determines the date on which VAT becomes due. There are a number of different rules which must be considered.

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

Recent additions:

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 19 December 2020

  • Government makes changes to Loan Charge
  • MTD: Update for Agents December 2019
  • UK regulator tightens rules for audit firms
  • The Queen's post-election speech
  • Appeal v Discovery: whose proof is it anyway?
  • The Phantom of the… property results in capital losses
  • Supply of services or staff - Medacy Ltd VAT case
  • More...


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