As COVID-19 lockdown measures are gradually relaxed and Brexit negotiations continue, now is the time to start planning for the future, whatever that holds.
Whereas before the Coronavirus outbreak many business owners were bemoaning the lack of certainty over Brexit, this has now been trumped by the far greater lack of certainty caused by the pandemic. How ironic to be looking back at Brexit with such fond memories!
With interest rates set low, and a whole set of new challenges to our existence, this really is the time for innovation and development. The British Business Bank opened up applications for the new Future Fund this week. This is a convertible loan that is aimed at assisting existing start-ups that have already raised equity funds and need more support. If you follow the links in our various COVID-19 trackers, there is plenty more funding on offer for those who cannot meet the Future Fund criteria. We have now created government support trackers for Northern Ireland, Scotland and Wales.
Our selection of case reports this time features two unsuccessful attempts to unwind tax planning that backfires. One case features an action to reverse an 'E shares' tax avoidance scheme. This was a scheme that claimed to convert company profits into tax-free directors' pay via a share scheme. No surprise at all to find that it was challenged by HMRC and equally unsurprising to learn that the court refused to undo it. The other case features trusts; how many trustees realise that they can be held personally liable for a trust's tax bill?
Do not forget that PIID and Share scheme reporting deadlines are creeping up.
More cases, news and updates below.
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) Tax Director
Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick news & guides (Freeview)
Government ignores Lords’ views on Off-Payroll rules
Off-Payroll Working in the Private Sector from April 2021 is added to Finance Bill 2020 despite the recent conclusions by the House of Lords' Economic Committee that the rules are flawed and need a re-think.
GAAR opinion: Inheritance Tax planning using shares
The General Anti-Abuse Rule (GAAR) advisory panel has issued a new opinion on ‘Reducing an estate's value for inheritance tax via subscription for shares in a new company and gifting shares to an employee succession trust’.
UPDATE: Start here to track the latest government measures and announcements aimed at supporting businesses and individuals during the pandemic.
COVID-19: Future Fund convertible loan scheme
UPDATE: The Future Fund scheme is now open.
Coronavirus Self-Employed Income Support Tool
Check whether you are eligible to make a claim
COVID-19: Employee Job Retention scheme
UPDATE: answering your FAQs questions on the scheme
NEW: Coronavirus measures from the Scottish government to support individuals and businesses.
New: Coronavirus measures from the Welsh government to support individuals and businesses.
COVID-19: Northern Ireland
New: Coronavirus measures from the Northern Ireland government to support individuals and businesses.
Editor's Pick (subscribers)
Tax planning for directors (Editor's choice)
Editor's choice: some of our favourite tax guides, toolkits & checklists for directors.
P11Ds: Top tips toolkit
Top Tips for employers on preparing form P11D together with a checklist. This guide combines HMRC tips, toolkits and various other resources.
Employment-Related Securities: Reporting issues
UPDATE: Our guide to common reporting issues and problems with Employment-Related Securities returns.
Tax Guides and Updates (subscribers)
Starting in business: Start here
Starting in business? 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.
Index to company start-ups
Essential reading for anyone thinking about starting up a new company.
Working from home (employee)
The rules for working from home are different if you are employed compared with being self-employed.
Working from home (self-employed)
What expenses can you claim for working from home, if you are self-employed? Are there special rules and precedents for certain types of trade or profession?
Case Update (Freeview)
E share tax scheme fails
In Chalcot Training Ltd v Ralph & HMRC  EWHC 1054 (Ch), a test case, an attempt to reverse an ‘E Shares’ tax scheme failed. HMRC can now fully challenge the scheme through the tax tribunal.
No relief for In Specie SIPP contributions
In HMRC v Sippchoice Ltd  UKUT 0149, the Upper Tribunal (UT) denied Income Tax relief for in specie contributions to a pension plan. Transfers of non-cash assets are not ‘contributions paid’.
The costly perils of being a trustee
In Mackay v Wesley  EWHC 1215 (Ch), a Court of Appeal decision highlights the significant costs of being a trustee when tax planning goes wrong and a trustee finds themselves solely liable for the trust's tax liabilities.
Late payment penalty for partner payment notice
In David Beadle v HM Revenue and Customs  EWCA Civ 562, the Court of Appeal dismissed an appeal against a late payment penalty relating to an underlying Partner Payment Notice (PPN). The PPN could not be challenged.
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.
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?
- COVID-19: Tracker
- Starting in Business? Start here
- Research into tax avoidance scheme users
- COVID-19: Furlough scheme extended to October 2020
- COVID-19: Tax appeal deadlines extended
- Coronavirus is a reasonable excuse
- Cycles & cyclist's safety equipment
- Vehicles (2 or 3 wheels): allowances
- Scottish Income Tax: Trusts & Estates
- UK domiciled taxpayer denied closure and must provide information
- FTT helps care worker by reducing penalties on mileage claims
- Referees self-employed: No mutuality of obligations
- No VAT recovery: Opera not directly linked to catering
- COVID-19: Option to tax deadline extended
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