Hello
This time, we have some updates for the self-employed, employers, agents and anyone with outstanding loan charge issues. For parents, we look at more 'reasonable excuses' for failing to declare High-Income Child Benefit Charge (HICBC) and we have our usual review of topical tax cases.
The self-employed may like to note that the second and final round of applications for the government's COVID-19 Self-Employment Income Support Scheme opened on 17 August.
HMRC have also just published a new Employer's Bulletin and Agent update, and we have summarised this for you. HMRC say that there is no more debate on the Disguised Remuneration Loan Charge: they will not be changing it again. The deadline for reporting your loans and paying the charge is the end of next month. There is a new settlement opportunity available however this only applies to those loans not affected by the loan charge. If in doubt you should check our guide on the subject as there are a couple of differences between the new settlement terms and those available under the 2017 settlement opportunity.
The First Tier Tax Tribunal (FTT) continues to hear a steady trickle of HICBC late notification penalty appeal cases ever since the introduction of the chargeback in 2013. Many claimants continue to plead ignorance of the law. We review whether the FTT considers that to be a reasonable excuse for compliance failure.
There is also the cautionary tale of Mr Kharadi who relied on his accountants to sort out his affairs, only to discover that they misunderstood the appeals' process. If you have never tried to make a tax appeal the process can be quite confusing. Our appeals guide takes you through the different steps and should avoid this happening to you.
Finally, an interesting consultation on the regulation on cryptoassets promotion has opened. This seems long overdue.
If you have any tax-specific queries, please post them up to our sister site: www.VtaxP.co.uk.
Back soon
Nichola Ross Martin CTA (fellow) FCA
Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Employer Bulletin: August 2020
HMRC have published their Employer Bulletin for August 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered.
Agent update August/September 2020
HMRC have issued the Agent Update for August/September 2020. We have summarised the key content for you with links to our detailed guidance on the topics covered.
HMRC issue final guidance on the loan charge
HMRC have updated their policy paper ‘HMRC issue briefing: settling disguised remuneration scheme use and/or paying the loan charge’. Alongside new settlement terms for loans not subject to the loan charge, they make it clear no further changes will be made to the charge.
Consultation on cryptoassets promotion
HM Treasury has opened a consultation, ‘Cryptoasset promotions’ into a government proposal to bring the promotion of certain types of cryptoassets within the scope of financial promotions regulation.
COVID-19: Self-Employment Income Support Scheme (SEISS)
Another round of applications is now open for a second support grant from the government. Our guide outlines who is eligible, the amounts available and the process.
Editor's Pick
Disguised Remuneration 2020 settlement opportunity
HMRC have issued guidance for agents on a new settlement opportunity for disguised remuneration loans which are not subject to the loan charge. This is detailed guidance for our subscribers.
FAQs for Disguised Remuneration Settlements
We have updated our Frequently Asked Questions for settling Disguised Remuneration schemes under HMRC's 2017 settlement opportunity.
How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments.
Finance Act 2020 Tax Update & Rolling Planner
UPDATE: Our unique at a glance summary of everything that is new this year and next for small and medium-sized entities, owner-managed business and their owners which we are constantly updating.
Guides and Updates (subscribers)
Structures & Buildings Allowance (SBA)
UPDATE: This is a guide to the Structures and Buildings allowance, who can claim, what expenditure is eligible and how to make a claim.
Disposal values & rules
When an asset is disposed of for capital allowances purposes the disposal value is deducted from the tax written-down value of the relevant pool.
SDLT: Leases
What Stamp Duty Land Tax (SDLT) rates do I pay on leases? When do I notify HMRC?
How to appeal a decision of HMRC
What type of decision can you appeal? What are your different options when you disagree with HMRC? What are the key steps in making an appeal
Case Update (Freeview)
HICBC: Can ignorance ever be a reasonable excuse?
In Leigh Jacques v HMRC [2020] UKFTT 311, Bachir Mohamed Belloul v HMRC [2020] UKFTT 312 and Vivian Hill v HMRC [2020] UKFTT 316, penalty appeals concerning the HICBC were allowed.
Illness no excuse in RTI payment delays
In Legends Leisure Ltd V HMRC [2020] TC07795, the First Tier Tribunal (FTT) held that the three penalties totalling £600 and issued for failure to file three PAYE Real-Time Information (RTI) returns on time were valid.
VAT Update
Accountants’ error costs taxpayer money
In Abdul Vahab Kharadi v HMRC [2020] TC 07686, the First Tier Tribunal (FTT) granted permission to appeal out of time for the penalty but denied the appeal in respect of VAT registration in part due to a misunderstanding of the appeals' process by the appellant's accountants.
DIY claim date decided by certificate of completion
In Carl Sansom v HMRC [2020] TC07684, the First Tier Tribunal (FTT) held that HMRC cannot refuse to accept the certificate of completion as primary evidence of the property’s completion and the appeal was allowed.
Were loan fees VAT exempt supplies?
In Newmafruit Farms Ltd v HMRC [2019] TC 7254, the First Tier Tribunal (FTT) decided that a farm could not claim back input tax on professional fees relating to a loan.
Current vacancies
Tax writer and editor job opportunities
We have new vacancies for tax writers and editor focusing on SME and OMB tax including VAT, and we are also looking for an SME tax adviser, the two roles can be combined. We would love to hear from you...More
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
NEW
- CPD: The High-Income Child Benefit Charge
- CPD: Transfer of a Going Concern
- CPD: CGT Private Residence Relief
More at CPD Index
Missed last time's Web-update?
Nichola's SME Tax W-update 13 August 2020
- Job Retention Bonus
- HMRC step up investigations of football industry
- Probate: Consultation on mandatory online filing
- Consultation on zero-emissions performance standards
- Company Tax: What’s New? August 2020
- Goodwill amortisation disallowed, conditions for relief not met
- Disallowable interest: Loans to partners are not partnership loans
- Student essay writing agency was principal and not agent for VAT ...More
Nichola's SME Summaries for July 2020
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