Another bumper edition this week with lots of updates, plus we have added some new guides for Landlords and Working from Home.

We have had some interesting comments posted to the site in the last few days, most, unsurprisingly, relate to the Coronavirus Job Retention Scheme. Three issues caught our attention, and it would be useful if HMRC could provide us with some clarification.

First, why is it that those people who run annual payrolls are not able to make a claim? Surely, if you have always been on an annual payroll, you are ‘on’ the payroll for the whole year, it is simply that you have a single annual reporting requirement and not 12?

Secondly, quite a controversial idea is being promoted by a leading money (not tax) expert. If you are a sole director company can you furlough yourself and get around the problem of not being able to work by then conducting your business as a self employed freelancer?

That leads on to the final hot issue. If you have furloughed yourself as an employee, can you spend time in your capacity, say as a director, in making sales quotes or, is that activity working? It's a big issue for small companies.

More guidance on these points would be very helpful.

Top tips this week:

  • Making Tax Digital for Income Tax, remember that? Well, if you are finding your self with time to spare between helping employers make their furlough claims, why not sign up for the service and get a few of your clients engaged. I was thinking of starting with the easy ones, landlords. 
  • Don’t cut the dandelions, the bees love them. 

If you have any tax-specific queries, please post them up to our sister site, details are here: www.VtaxP.co.uk

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)

Fuel scale charges (VAT)
If a business recovers VAT on road fuel, it will have to account for output VAT when a car it has provided to an employee (or the sole proprietor or partnership) is put to private use. New rates apply from 1 May 2020.

Making Tax Digital for Income Tax
If you have time on your hands, why not sign up for the MTD Income tax pilot? As this system will definitely commence at some stage, be prepared.

Coronavirus Support

COVID-19: Landlords and tenants
What support is out there for this sector?

COVID-19: Future Fund convertible loan scheme
A new scheme to offer convertible loans to high growth innovative companies.

COVID-19: Working from home
Can you claim expenses if your employer is not reimbursing you?

COVID-19: Tracker
UPDATE: Start here to track key government measures and announcements aimed at supporting businesses and individuals.

COVID 19: Deferring Income Tax payments
UPDATE: Income Tax payments on account due in July 2020 under the Self Assessment system may be deferred to January 2021.

COVID-19: Coronavirus Job Retention Scheme
UPDATE: Changes to eligibility criteria and update on NMW.

COVID-19: Company directors & shareholders
UPDATE: Many small companies are run by just one or two directors and have no other employees. What government financial support is available to directors/shareholders during the coronavirus crisis? Contains board minutes.

Editor's pick (subscribers)

Furnished Holiday Letting (FHL)
UPDATE: With most FHL business closed due the coronavirus lockdown, it's a good time to revisit the rules on losses, period of grace elections as well as deductions if you are spending the Spring doing more repairs and maintenance

Adviser guide: Property profits and losses
UPDATE: A property business is largely treated in the same way as trading activity for accounting purposes however there are some significant differences in tax treatment. Start here.

Tax Guides and Updates (subscribers)

Trusts: how to tax a trust
UPDATE: This guide deals with the taxation of UK trusts. See our separate guide to Non-Resident Trusts

CGT: Entrepreneurs' Relief
UPDATE: there are six different versions of this relief. This guide is continually updated as we answer your FAQs.

CGT Relief: Loans to traders
UPDATE: what counts as a loan, how and when to obtain tax relief when a business fails

R & D Zone
START here for practical guides in making successful R & D claims.

Case Update (freeview) 

IHT rules do not discriminate against UKIP supporters
In Arron Banks v HMRC [2020] UKUT0101, the Upper Tribunal (UT) upheld the decision to deny Inheritance Tax relief for gifts made to UKIP. There was no discrimination under EU law, the party did not meet the relevant criteria for relief.

Virtual Tax Partner Toolkits (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkits
NEW: be a winner with our game-changing tax diagnostics tools. Sign up 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.

Tax Queries?

Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more. 

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 April 2020

  • COVID-19: Tracker
  • Changes to CGT reporting: Soft landing period for penalties
  • HMRC's Agent Update for April/May 2020
  • COVID-19: Employee Job Retention Scheme
  • COVID-19: Company directors & shareholders
  • Finance Bill 2020 tax update and rolling tracker
  • Do I pay a salary or dividend? 2020/21
  • Sole trader v. limited company: Tax differences & savings 2020/21
  • CGT: Payment of tax More...

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