Hello,

There are widespread rumours that the chancellor is planning tax rises. I would guess that everything is very much at the planning stage and any increase could yet affect all the main taxes. Conversely, some commentators suggest that a tax increase is possibly the worst thing one can do to stimulate the economy.

One tax increase that has just been announced is a doubling of tax on single-use plastic bags. Perhaps there is the optimal scope for tax increases in the area of the new taxes and activities such as sugar tax and of course on certain digital services, although we hope not to online publishing!

People are back at work this and next week. Perhaps now that so many people are self-isolating again it is a good time to reconsider business structures and planning. With that in mind we have updated several guides this week on this topic. 

If you have any tax-specific queries, please do post them up to our sister site: www.VtaxP.co.uk

Back soon 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director

www.rossmartin.co.uk

Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.

Quick News

New Kickstart Scheme open for applications
The government’s new ‘Kickstart’ job creation scheme to help young unemployed people is now open for applications but is not as straight forward as was initially thought.

Trusts and Estates: What’s New? August 2020
HMRC's latest Trusts and Estates newsletter contains some useful information. Here is our enhanced version.

Tax increase on single-use plastic bags
HMRC have doubled the levy on single-use plastic bags to 10p following the results of the consultation 'Single-use carrier bags: extending and increasing the charge'.

HMRC upgrades online report and pay CGT facility
HMRC have now upgraded the system to enable reports of second and additional disposals of UK residential property to be made online. 

Editor's Pick

Is it worth restructuring to save tax?
Creating a new or improved business structure may be attractive to a business for any number of reasons. This is a mini-guide exploring what business combinations are popular for tax efficiency in 2020/21

Demergers: what are your options?
What are the different types of demergers that are available when you want to reorganise your business? What are the situations where they are typically used?

Purchase of own shares?
When can a company repurchase its own shares? What are the tax consequences for company and shareholder?

Guides and Updates (subscribers)

De-enveloping property
A company may wish to transfer its residential property to its shareholders, this is known as ‘de-enveloping’. What are the tax consequences? Are there any advantages for companies subject to the ATED?

Tax-Free Childcare
UDPATE: There are some temporary changes to the tax-free childcare rules to take account of reduced incomes and working hours whilst parents are furloughed or having to take sick or unpaid leave during the coronavirus pandemic.

Brewers: What expenses can I claim?
This guide outlines what expenses brewers, microbrewers and distilleries can claim for tax purposes.

Case Update (Freeview)

The articles are definitive: No voting rights, no relief
In Guy Holland Bosworth v HMRC [2020] TC7811, the First Tier Tribunal (FTT) refused a claim of Entrepreneurs' Relief where the B shares sold did not meet the personal company conditions. 

A compromise agreement bonus payment is not a termination payment
In Thierry Lucas V HMRC TC07809,  a salary bonus, forming part of a compromise agreement, was not found to be part of any termination payment.

VAT

Place of supply of services
The place of supply (POS) of a service determines whether the supply is within the scope of UK VAT and whether VAT is payable on that supply.

Place of supply: Mini One Stop Service
For sales made on or after 1 January 2021, UK traders will no longer able to use the UK’s VAT Mini One Stop Shop (VAT MOSS) service to declare sales and pay VAT due in EU member states.

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

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 28 August 2020

  • COVID-19: New payment for people self-isolating in highest risk areas
  • COVID-19: HMRC contacts 3,000 employers about CJRS compliance
  • COVID-19: Delays for CJRS claims if the data are not right
  • HMRC penalty warning letters for forms P11D and P11D(b)
  • Advisory fuel rates from 1 September 2020
  • Brewers: What expenses can I claim?
  • Ill-health pension transfer not subject to IHT ...More

Nichola's SME Web-Updates for August 2020

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

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