Hello,

We cover a broad range of topics this week, from Airbnb to freeports, as COVID-19 continues to dominate the news. A massive apology for the earlier link failures in this piece. They all work now.

You may have heard on the radio that HMRC is using its data-gathering powers to investigate Airbnb landlords. We presume that it will be after 'superhosts' who have failed to register for tax. 

While on the subject of online platforms for business, we have been looking at a non-tax case that is potentially going to have some very expensive outcomes. A string of online tutor-finding platforms have discovered that they are actually employment agencies.

WIth COVID-19 at the forefront of all our minds, we review the chancellor's latest announcements, and their likely impacts, and we feature a new Employer Bulletin.

And of course Brexit is rumbling on. Have you heard of 'freeports'? Maybe now is the time to start to specialise in excise duty?

We also look at HMRC's latest review of approved shares schemes and we feature some guides on that topic and explore some of the pitfalls of ABC or alphabet share schemes.

Finally, we have a new guide on a type of rollover relief that we don't see too often.

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

Self Assessment 2018-19 daily filing penalties waived by HMRC
Daily tax penalties will not be charged for taxpayers who have been late in filing their 2018-19 tax returns due to the effects of the pandemic.

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

Top Slicing Relief (TSR): Update
Following Marina Silver v HMRC [2019] TC07013, HMRC has been recalculating TSR claims. Some taxpayers now need to submit an amended 2018-19 tax return to benefit from these changes.

Freeports consultation response
Maybe worth a read: development of flagship policies on the creation of new customs and excise duty freeports in England.

Are Employee Tax Advantaged Share Schemes still relevant?
HMRC considers the issues in a new research report on the uptake of Employee Tax Advantaged Share Schemes (ETASS).

Editor's Pick

Share Schemes & Employment Related Securities
What are the tax consequences when a company gives shares to an employee or director? How do you design a share scheme for a smaller company?

Enterprise Management Incentive (EMI) scheme
What is the Enterprise Management Incentive (EMI) scheme? What's the difference between EMI and an unapproved share scheme? 

ABC or alphabet shares: directors & employees
Is it worth issuing shares of different classes? What are the advantages and what are the potential problems for SMEs and their owners?

Guides and Updates (subscribers)

Rollover Relief: Exchanges of joint interests in land
NEW: A little known and often underused Capital Gains Tax relief exists where joint owners of land exchange their interests. When does it apply? How does it work? 

Rent-a-room Relief
UPDATE: Rent-a-room relief can reduce or even eliminate Income Tax liabilities when an individual rents part of their only or main residence.

Land & Property Update 2020
Airbnb hosts and advisers: start here.

Disguised remuneration loan charge (subscriber guide)
UPDATE: HMRC have advised that anyone who missed the 30 September deadline to report and pay the loan charge should do so as soon as possible as interest and penalties are now accruing.

COVID-19

COVID-19: Support for businesses in lockdown
The new extension to the new Job Support Scheme plus increased cash grants for businesses forced to close under local or national lockdown rules.

COVID-19: Package to support and enforce self-isolation
From 22 October 2020 the £500 payments made under the Test and Trace Payment support scheme will be exempt from NICs.

Case Update (Freeview)

Self-employed tutor agencies are employment agencies
In Simply Learning Tutor Agency & Others v BEIS [2020] EWHC 2461 the High Court found that online tutor introduction agencies are employment agencies although they only supply self-employed tutors. 

VAT

Changes to VAT return filing from March 2021
HMRC is making a system change. Action is now required by VAT registered not already registered for Making Tax Digital for VAT (MVD) from March 2021.

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.

  • Business Asset Disposal Relief: Sole traders: sale of a business, incorporation, sale of assets
  • Business Asset Disposal 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 8 October 2020

  • COVID-19: Deadlines approaching for key support schemes
  • Self Assessment 2019-20 returns: Online filing exclusions
  • CIS: Fraud in the UK Construction Sector
  • POS clearance voided: Shares overvalued
  • Joint income: Splitting income within the family
  • Criminal director must pay VAT appeal costs
  • R & C Brief 15 (2020): Input VAT and non-owners
  • R & C Brief 14 (2020): Opticians and sellers of hearing aids...More

 

SME Tax Monthly Summary September 2020

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

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