With lockdown restrictions gradually lifting, we thought we would feature some of our guides to alternative travel solutions this week. Even if you have your own transport for work, there is clearly still some way to go before we see any form of economic recovery, as indicated by the government’s decision to extend the employee furlough scheme for another three months.
HMRC has now opened its Self-Employed Income Support Scheme (SEISS) and that is going well according to most people that I have spoken to. HMRC has also made announcements in respect of extending the deadlines for tax appeals and options to tax. All the coronavirus financial announcements are summarized in our tracker.
We feature an interesting range of tribunal and court decisions this week. These might provide a pleasant distraction from advising on furlough claims! If VAT and partial exemption is your thing then read the Royal Opera House case. We also have a topical Income Tax case on motor expenses too.
As focus shifts from the ‘R rate’ (where R is the reproduction rate of the virus) to the ‘r word’, as in recession, it is very difficult to guess what the future will hold. People do seem to be coming up with some really exciting and innovating things whilst on lockdown, so do have a look at our Starting in Business guides.
If you have any tax-specific queries, please post them up to our sister site, details are here: www.VtaxP.co.uk.
Nichola Ross Martin FCA, CTA (Fellow)
Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick news & guides (Freeview)
Starting in Business? Start here
This 'At a glance' guide takes you through the key steps in getting started for tax, with links helping you drill down for more detail.
Research into tax avoidance scheme users
HMRC have published a research report that considers why people use tax avoidance schemes, how they find the settlement process, and how it shapes their attitude towards tax avoidance.
COVID-19: Furlough scheme extended to October 2020
The Chancellor has extended the Coronavirus Job Retention Scheme (CJRS) by four months to the end of October 2020 alongside a proposed relaxation of some of the scheme rules.
COVID-19: Tax appeal deadlines extended
HMRC have announced that they will extend the deadlines for appealing tax penalties and decisions by up to three months where the taxpayer or their business has been affected by COVID-19.
Coronavirus is a reasonable excuse
HMRC have issued updated guidance on when taxpayers have a reasonable excuse for the late filing of returns or late payment of tax to specifically include being affected by Coronavirus.
UPDATE: Start here to track the latest government measures and announcements aimed at supporting businesses and individuals.
Claim a grant under the Self-Employed Income Support Scheme
COVID-19: How to make a claim under the Self-Employed Income Support Scheme (SEISS). HMRC's claims portal for the Self-Employed Income Support Scheme (SEISS) went live on 13 May 2020.
COVID-19: Coronavirus Job Retention Scheme
Coronavirus Job Retention Scheme: a cash grant that is designed to allow employers to retain staff who would otherwise be laid off.
COVID-19: Company directors & shareholders
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?
Editor's Pick (subscribers)
Motor expenses (self-employed)
There are two ways of claiming motor expenses if you are self-employed. You can claim your actual expenses, adjusted for any disallowed private expenses or a mileage allowance based on business mileage.
UPDATE: a summary of the complex rules with a focus on FAQs the write off of intercompany debt and unallowable purpose rules.
Cycles & cyclist's safety equipment
What tax breaks are available to you and your staff if you provide your workforce with alternative travel solutions?
Assets made available without transfer
Special rules apply to calculate the taxable benefit in kind (BIK) when an asset is made available to a director or employee without transferring ownership to them.
Company car tax
How do you work out car benefit? How do you work out car fuel benefi? Are there savings for low emissions vehicles? How do you reduce car benefit? Cars and the tax tribunals and Top Tax Tips.
Vehicles (2 or 3 wheels): allowances
What capital allowances are given for a motorcycle?
Focus on Scotland (subscribers)
Scottish Income Tax: Trusts & Estates
UPDATE: Scottish Income Tax has applied since April 2016 and is payable by Scottish taxpayers on non-savings income only. The residence status of Trusts and Estates is not affected by the introduction of the Scottish Income Tax.
LBTT: Additional Dwelling Supplement
UPDATE: The Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax (SDLT) for properties in Scotland. Effective since 1 April 2016, SDLT now only applies to properties in England and Northern Ireland.
Case Update (Freeview)
UK domiciled taxpayer denied closure and must provide information
In Evert Henkes v HMRC  TC7645, the First Tier Tribunal (FTT) found it had jurisdiction to determine a person’s domicile status before it decided if closure notices (CNs) must be issued or information notices (INs) were valid; Mr Henkes was UK domiciled, the INs were valid and HMRC had reasonable grounds not to issue CNs.
FTT helps care worker by reducing penalties on mileage claims
In Amara Akhtar v HMRC  TC7646, the First Tier Tribunal (FTT) found that a mobile care workers' mileage allowance relief claims were inaccurate but that the penalties charged should be reduced and suspended.
Referees self-employed: No mutuality of obligations
In HMRC v Professional Game Match Officials Limited  UKUT 0147 (TCC) the Upper Tribunal found that certain football match referees were self-employed and dismissed HMRC’s arguments on mutuality of obligation.
VAT News & Cases
COVID-19: Option to tax deadline extended
HMRC have announced that they are extending the deadline for notifying them about a VAT option to tax land and buildings to 90 days due to the coronavirus pandemic.
No VAT recovery: Opera not directly linked to catering
In HMRC v Royal Opera House Covent Garden Foundation  UKUT 0132 (TCC), the Upper Tribunal (UT) rejected a claim for the input VAT attribution of opera production costs to the taxable supply of catering & ice-cream to visitors. There were two separate supplies and no direct link to the cost of one to the other.
VAT & Partial exemption
Making exempt and taxable supplies? How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules? A topical review of the rules and current case law.
Virtual Tax Partner Toolkits (freeview)
Virtual Tax Partner © Tax Toolkit
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.
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?
SME Tax Monthly Summary April 2020
Missed any of our SME Tax Web-updates in April? Here is a summary of the month.
- Tax Agents unable to access SEISS claim portal
- Trust Registration Service: Online amendments finally available
- Claims and Elections Review: Call for evidence
- Small Brewer's Relief
- Zero-rating of e-publications moved forward to 1 May 2020
- COVID-19: Self-Employment Income Support Scheme (SEISS)
- Coronavirus Self-Employment Income Support Eligibility Check Tool
- COVID-19: Coronavirus Job Retention Scheme
- COVID-19: Company directors & shareholders
- COVID 19: Pension tax changes for retired public sector staff returning to work
- Covid-19: Relief on the destruction of beer and cider
- 2019/20 Self Assessment Tax Return toolkit
- Employee tax-free benefits and perks
- COVID-19: Temporary zero-rating for PPE
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