As we approach the Self Assessment (SA) filing deadline, we are featuring some key guides to answer your last-minute tax queries. We feature our latest Private Client Update which is packed full of essential reading and recent cases.

This year's SA filing deadline seems more frantic than usual. Has the introduction of Making Tax Digital for VAT last year pushed us all back, time-wise? HMRC, as you may be aware, are providing a soft landing on VAT penalties for those filing under the new system. This is just as well, as I understand that record numbers of VAT correction claims have been made to HMRC. Now that the horse is bolting, I am wondering why the VAT error correction process was not updated at the same time as MTD for VAT was introduced. It was certainly something that the tax bodies had suggested. 

Our prime minister did not attend the World Economic Forum in Davos this week. Presumably, this was so as not to impact future trade deal negotiations, however, there is a lot going on behind the scenes. The UK maintains that it is still planning to introduce its Digital Services Tax in April while the French, under threats of new trade tariffs from America, have decided not to introduce their version of the tax. The reason that countries are introducing their own local 'tech' tax follows the failure of the Organisation for Economic Co-operation and Development (OECD) to reach a consensus on taxing digital companies. As the OECD is due to meet at the end of the month, two things could happen: 1) The OECD agrees a way to tax tech, and so the UK climbs down, or 2) The OECD yet again fails to act and the UK goes ahead with its own tax, albeit suffering from massive external pressure from the US. Let's wait and see.

Have a good week.

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)

Update: recent changes to the loan charge
Following the release of the report on the review of the loan charge in December, HMRC have now issued draft legislation to implement the proposed changes to the charge and updated guidance notes. 

Trading and Property Allowances: At a glance
Last minute tax returns: What are the trading and property allowances? Who can claim them? What are the restrictions? 

Self Assessment (SA) tax penalties
What penalties are due for outstanding tax returns? What penalties are due for late payment? What penalties apply for failure to notify liability?

Editor's hot topics self assessment pick (subscribers)

Private Client: what's on January 2020
A round up for subscribers of the latest developments in tax for private clients, covering income tax, CGT, and IHT.

Directors: tax planning toolkit 2018/19
Last mintue tax returns? Take a look back and check down the list to ensure that you have not missed any basics.

Directors: tax planning toolkit 2019/20
Planning for the current tax year end? Start here.

Self employed

Repairs and renewals
UPDATE: what can you claim? How do the different variations of the rules interact for different types of business? Property owners/landlords/trades.

What expenses can I claim for Working from Home?
You can claim any costs that wholly and exclusively incurred for business purposes, this guide explores the different types of claim that may be possible, depending on your business activities.

Cash or accruals accounting toolkit
Unincorporated businesses can elect to use one of two different methods of accounting for tax. Why does it matter? How does it affect your tax claims.

Flat (fixed) rate expenses or actual costs
What types of expenses can I use fixed rate expense deductions for? Which is better, fixed rate deductions or actual cost? 


Adviser guide: Property profits and losses
This guide should be read with our Property profit & losses tax toolkits: 

Property profits & losses: toolkit (2019/20)
Our toolkit is an enhanced version of HMRC's, we add tips and planning points too.


Partnerships: losses
How are losses treated for partnerships? What loss reliefs are available to partners and what restrictions are there

Will I pay less tax if I trade via an LLP?
Different types of trading structure all have their own tax advantages and disadvantages: what are the key issues if you run a LLP?

Salaried members: when is a partner taxed as an employee?
When are partners taxed as employees? What are the rules?

VAT Cases (freeview)

Holiday camps are a single composite supply for VAT
In RSR Sports Limited vs HMRC [2019] UKFTT 678, TC07450, the First Tier Tribunal (FTT) found that the provision of a holiday camp was a childcare enterprise, even though sports activities were an important element of the services provided. 

VAT Guides (subscribers)

VAT errors and mistakes
With new that taxpayers are making record numbers of VAT correction claims, have you checked that your software is calculating your VAT correctly? This guide explains how correct errors in returns.

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

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 16 January 2020

  • Index to CGT reliefs
  • Scottish budget date set for week after Brexit
  • HMRC's 2019 Top Prosecutions
  • Penalties: SA late filing and payment
  • Discovery Assessment allowed: agent was careless in advising on tax scheme claim
  • No 'flesh and blood' officer required to issue a s8 notice to file
  • Employment intermediary return: penalties charged on wrong person
  • Taxpayer suffers as HMRC changes views
  • More...

Catch up on last month's Web-updates

SME Tax Monthly Summary Dec 2019 


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