There is quite a lot of news to report this week. The 2020 Finance Act is now law. The government has published a batch of new policy papers covering measures proposed for Finance Act 2021, as well as updating its guidance on Making Tax Digital (MTD).

The good news for many overworked advisers is that MTD for business will not commence until 2022 with the start date for landlords and the non-VAT registered self-employed deferred until 2023. There is more bad news for non-residents purchasing UK residential property, the rate of Stamp Duty Land Tax (SDLT) will be raised for you next year. 

Land and property taxes are relatively easy things to tweak and recent changes in Capital Gains Tax (CGT) and SDLT apply also to UK taxpayers. We have a quick recap of these and much more in this time’s Land and Property Tax adviser’s update. That is my pick of the week.

My favourite case of the week features company car or van benefits. The so-called ‘man on the Clapham omnibus’ (is he still relevant anymore?) might be amused to find that it took the judges of the Court of Appeal to decide whether a Volkswagen Kombi and a Vauxhall Vivaro are cars or vans for the purposes of the Benefits In Kind (BIK) legislation. My local council seems to have reached that conclusion years ago: it treats all vans as cars (when it comes to parking), except for camper vans. Don’t whatever you do convert your Kombi or Vivaro into a camper!

This week we launch our AML: Anti-Money Laundering Zone. This is packed full of really useful and practical guidance on taking on and reviewing existing clients. Very topical given that the UK parliament’s Russia report suggests that lawyers and accountants have played a role, wittingly or unwittingly, in the extension of Russian influence and that British companies are being used for money laundering. 

One final word on tax compliance, the government is now going ahead with its plan to link up certain licence applications with tax registration. This is most certainly the thin end of this particular wedge and it is only a matter of time before tax compliance links up with many more areas of business and asset acquisition. All these changes and more can be found in our unique Finance Act 2020 rolling tracker and planner.

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

Making Tax Digital (MTD): Index & NEW timeline
VAT-registered businesses commence MTD for business from April 2022 and other self-employed taxpayers and landlords join in April 2023.

Finance Bill 2020: Royal Assent
Finance Bill 2020 received Royal Assent on 22 July 2020 and became Finance Act 2020, a day after the government issued the next draft Finance Bill for 2020-21. 

Finance Bill 2021: Summary of first batch of policies
The government has published the first batch of its new policies and consultations ahead of a draft Finance Bill for 2021. 

Licence renewals to come with a new tax check
The government has published a policy paper, 'New tax checks on licence renewal applications', proposed for inclusion in Finance Act 2021. The new measure will require individuals and businesses applying to renew licences to drive taxis and private hire vehicles.

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

AML: Anti-Money Laundering Zone 
Anti-Money Laundering (AML) Zone takes you to our supporting AML guides, checklists and articles.

Editor's Pick

Land & Property: an Adviser’s Tax Update July 2020
Land and Property taxes: an update for paid subscribers.

Finance Act 2020: Rolling planner and tracker
Stay ahead of the game and follow key tax announcements in real-time.

Guides and Updates (subscribers)

Company Cars
Company car tax: How do you work out car benefit? How do you work out car fuel benefit? Are there savings for low emissions vehicles? How do you reduce car benefit? Cars and the tax tribunals and Top Tax Tips.

Vans and Commercial vehicles
What is the benefit in kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emissions vans? A guide for subscribers.

Car or Van for VAT
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements? 

Penalties: Late Filing
Late returns can be subject to a mix of fixed and tax geared penalties. What penalties apply for late filing? Which penalty will apply and when? What relaxations apply?

Case Update (Freeview)

Penalty upheld; don’t rely on the Scottish Revenue’s LBTT reminder
In Foodwood Limited v Revenue Scotland [2020],  the First Tier Tribunal (FTT) for Scotland Tax Chamber was held that a reasonable excuse against a £100 penalty does not include relying on a reminder from Revenue Scotland to submit a three-year LBTT Lease Review Return (LBTT return). 

Court of Appeal: VW Kombi and Vauxhall Vivaro are cars not vans
In Payne & Ors v HMRC [2020] EWCA Civ, 889 the Court of Appeal found that two VW Kombis and a Vauxhall Vivaro were cars and not vans for the purpose of assessing employee car benefits.

VAT Update

Input tax disallowed on stocks taken in discharge of debt without enough documentation
In Stonypath Developments Ltd v HMRC [2020] TC7735, an appeal was dismissed against disallowance of input VAT connected to a related company and without a VAT invoice.

Is a car hire with children’s car seat a single composite supply or multiple?
In Europcar Group UK Ltd v HMRC [2020] TC7733, the First Tier Tribunal (FTT) found that the supply of a car seat was separate to the supply of a car and should be charged at a reduced rate of VAT.

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 July 2020

  • Millionaires plan to deal with the costs of COVID-19
  • Capital Gains Tax Review: Call for evidence
  • £100 penalty trumps ignorance of Scottish LBTT
  • No trust between family members makes property transfer taxable
  • Bonuses paid to partners are earnings from previous employment
  • VAT: Bad Debt Recovery
  • Tax and employment status: director or non-executive director
  • Property profits & losses toolkit 2020/21...More

Nichola's SME Summaries for June 2020

Links to all of June's newswires...More 

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