The week the House of Commons published its own FAQ on both the coronavirus Job Retention Scheme (JRS) and the Self Employment Income Support Scheme (SEISS), both of these are definitely worth reviewing.

On the topic of COVID-19 support, judging by the number of comments on our website, many people either have not yet made their relevant claims for both the JRS and the SEISS, or are having difficulty in making them. The JRS closes to new entrants on 30 June 2020, this made 10 June the start of the period to furlough someone for the first time. The deadline for claiming under the first round of SEISS is 13 July 2020.

A late addition to this update: new parents, whose profits in 2018/19 were affected by childcare committments such that they cannot make the profits proportion eligibility condition in that year under the SEISS, are given an olive branch in the form of SEISS modified eligibilty rules

The constant trickle of Capital Gains Tax (CGT) Private Residence Relief (PRR) tax appeals coming before the First Tier Tax Tribunal (FTT) appears to indicate that many property owners are not sourcing the now vast amount of online guidance on this topic. Strange that. We review the case of yet another serial property developer who bought and sold a property three times in three years and tried to claim PRR. The unsurprising aspect of the case was that despite the frequency of transactions, HMRC did not argue that there was a trade.

We have not seen any tax appeals on tax relief and employee travel for a while. The one featured this week may strike a chord with many workers who live in temporary accommodation. It considers that often argued point as to whether a change in a workplace in the Greater London area really has any substantial effect on the actual daily journey in and out to work and its cost. 

Don’t miss our summary of HMRC’s Employer Bulletin which contains lots of useful stuff and reminders. We have two new CPDs for subscribers too. Our CPD is included in the annual subscription to our website, how about that for fantastic value? 

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

Employer Bulletin: June 2020
HMRC have published their Employer Bulletin for June 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered. 

FAQs: Coronavirus Job Retention Scheme
The House of Commons has published a briefing paper, ’FAQs: Coronavirus Job Retention Scheme’ which answers 48 common questions on how the scheme works, who is eligible, how to deal with different circumstances and the employment law aspects of furloughing employees.

FAQs: Coronavirus Self-Employment Income Support Scheme
The House of Commons has published a briefing paper, 'Coronavirus: Self-Employment Income Support Scheme’ which provides answers to 19 common questions on how the scheme works, who is eligible, and how to claim.

COVID-19: NAO publishes guide for audit and risk committees
The National Audit Office (NAO) has published ‘Guide for Audit and Risk Committees on Financial Reporting and Management during COVID-19’.

COVID-19: Tracker
UPDATE: Start here to track the latest government measures and announcements aimed at supporting businesses and individuals during the pandemic. Key action areas: Employee Job Retention Scheme and Self Employed Income Support Scheme.

COVID-18 Self Employed Income Support Scheme: SEISS
UPDATE: Parents, including adoptive ones, who took time out of trading to care for new children will now be able to use either their 2017-18 or both their 2016-17 and 2017-18 self-assessment returns as the basis for their eligibility for the SEISS.

Editor's Pick

Tax & Travel: At a glance
UPDATE: How do you obtain tax relief on travel, subsistence and accommodation? The employed and self-employed each follow different rules for income tax and Self Assessment this page links to guides covering the different treatments and contain examples and tax tribunal decisions.

Finance Act 2020: Tax update & rolling planner 2020-21
UPDATE: Coming out of lockdown and need a quick refresher on what's new in tax this tax year? This guide covers all the key changes for SME owners.

Tax Guides and Updates (subscribers)

PRR: Private Residence Relief
What is Private Residence relief (PRR)? What are the qualifying conditions? Can you claim relief on two homes? How do you claim PRR? Can you claim PRR if you develop your garden? 

CGT: Deductible expenditure
What expenditure is allowable for CGT? What about loan interest, early redemption fees etc?

Profits from dealing in or developing UK land
A guide to the rules which replaced the old transactions in land provisions and extended UK taxation to all profits from trading in and developing UK land, regardless of residence.

Travel (employer's guide)
UPDATE: When can travel be reimbursed tax free? When can an employee claim tax relief on their travel? The concept of a 'temporary workplace' is not at all what it seems.

Case Update (Freeview) 

Three in a row, serial mover denied private residence relief
In Aqeela Hashmi v HMRC [2020] TC7715, the First Tier Tribunal (FTT) dismissed claims for Private Residence Relief for three properties sold in three consecutive years.

Travel around greater London was ordinary commuting
In Narinder Sambhi v HMRC [2020] TC7717, a construction worker's claim for tax relief on travel and subsistence allowances were rejected by the First Tier Tribunal (FTT). 

VAT Update

VAT: Land and property 
Treatment of VAT at a glance table

VAT: Buy-to-lets (VAT section)
VAT issues on a buy to let, including claiming back input VAT under partial exemption rules with fully worked example and issues for joint property owners.

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.

AML beta test guides (subscribers)

AML: Identification and Verification, Individuals
A subscriber guide to Anti-Money Laundering (AML) identification and verification for individuals. What checks are required under AML rules for identification and verification? What is covered in identification? How do you verify ID?

AML: Risk Assessment (Entities)
A checklist for Anti-Money Laundering (AML) purposes to risk assess prospective clients operating in the Accountancy sector.

AML: Risk Assessment (Accountants)
A checklist for Anti-Money Laundering (AML) purposes to risk assess prospective clients operating in the Accountancy sector.

AML: Risk assessment (Individuals)
A flow chart and decision matrix to assist with determining the level of risk to assign to new clients (individuals) when completing your client take on procedures.

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 18 June 2020

  • COVID-19: Tracker
  • COVID-19: Early Corporation Tax repayment
  • Inquiry into the Management of Tax Reliefs
  • Trusts and Estates: What’s New? June 2020
  • R&D Relief: Preventing abuse of the R&D tax reliefs for SMEs
  • Professional Conduct in relation to Research & Development (R&D)
  • Not negligent for failing to advise on CGT: It was not in the LOE
  • Unbelievable: Directors liable for PAYE and NIC on own earnings
  • Gig workers' challenge to gov's coronavirus support fails
  • VAT partial exemption and hire purchase agreements
  • AML Beta test guides


Nichola's SME Summaries for May 2020
Links to all of May's newswires...More

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