Hello

The Chancellor gave his Spending Review this week. The UK's borrowing is heading towards 100% of Gross Domestic Product (GDP). It sounds as if taxes may well be going up. Although not for a year or two.

HMRC published their first Statement of Practice for 2020 (SP1/2020). This is all about a new tax, covering the Disguised Remuneration loan charge settlement election.

On a lighter note, HMRC has updated their guidance on staff parties confirming that tax relief will be given for virtual office parties. The thought that a virtual party might not qualify for tax relief had not crossed my mind. Looking at the legislation on parties there is nothing to say that a party has to be held in any particular location, real or virtual. What matters is that, if you are party planning, you are not excluding certain employee groups.   

We have lots of other news and many updates to our guides for subscribers.

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

Statement of Practice 1 (2020): Disguised remuneration loan charge election
HMRC have published Statement of Practice 1 (2020) (SP1/2-20). It sets out HMRC's approach to the loan charge and spreading elections. 

COVID-19: the virtual office party 
HMRC have updated their guidance to include virtual events within the annual party exemption when assessing Benefits In Kind.

COVID-19: Self-Employment Income Support Scheme (SEISS)
Detail of the third SEISS grant which can be claimed from 30 November 2020 has been released. 

Advisory fuel rates from 1 December 2020
HMRC have published new advisory fuel rates for company car drivers which apply from 1 December 2020. Most remain unchanged.

Digital signatures allowed for Holdover Relief
Updated guidance regarding the joint election required for Capital Gains Tax (CGT) Holdover Relief in light of the current COVID-19 restrictions.

COVID-19: Government Support Tracker
We try and keep this updated in real-time for you.

Spending Review 2020: the Highlights
The Chancellor, Rishi Sunak has made his Autumn review. The UK's spending on the Coronavirus has reached £280bn to date.

Editor's Pick

Joint property: legal v beneficial ownership
What are the tax rules for joint property? What are joint property elections? What is the difference between legal and beneficial ownership? Our guide provides different examples with step by step analysis and considers Inheritance Tax issues.

Business Asset Disposal Relief (BADR): Disposal of a business
When does BADR apply? What is the rate of BADR? How to claim BADR. Case law on BADR (as previously called Entrepreneurs' Relief).

Guides and Updates (subscribers)

Travel and Tax: At a glance
UPDATE: How do you obtain tax relief on travel, subsistence and accommodation? A short refresher summarising all the different rules depending on whether you are a self employed or an employed taxpayer.

Employee & director shares
UPDATE: What are the tax consequences when a company gives shares to an employee or director? What are employment related securities? What is best: shares or share options?

Employment status: Partners
UPDATE: What is the employment status of partners in a partnership and LLP? What are the exceptions to the norm? 

Value shifting
NEW: Where value passes from one person to another in such a way that a disposal does not occur for Capital Gains Tax purposes, specific rules can apply to deem a disposal to occur.

Cases

Accountant's death: reasonable excuse
In Kamran Qurban v HMRC [2020] TC07935, appeals against late filing penalties for five tax returns were partly successful. Of the three different accountants engaged by the taxpayer over the five year period, only the death of one was found to be reasonable excuse.

VAT

Partial exemption & input VAT
How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?

Registering for VAT
When do I need to register for VAT? When do I need to start charging VAT? What penalties might HMRC issue for late notification?

Deregistration
When do I have to deregister for VAT? When can I voluntarily deregister? What penalties might HMRC issue if I am late notifying them of a mandatory deregistration?

VAT news & cases

COVID-19: VAT payment deferral measures for VAT registered businesses
VAT payments deferred between 20 March 2020 and 30 June 2020 can be paid by up to eleven interest-free instalments before 31 March 2022. 

Supply of football and netball pitches exempt from VAT
In Netbusters (UK) Ltd v HMRC [2020] TC07915, the First Tier Tribunal (FTT) allowed the taxpayer’s appeal finding that a single exempt supply of football and netball pitches was made.

VAT on hot food & coffee sales by a student union
In University of Southampton Students’ Union (USSU) v HMRC [2020] TC07896, the First Tier Tribunal (FTT) held that the USSU’s sales of hot food and coffee did not fall within the exemption for the provision of education and VAT was payable.

Virtual Tax Partner Toolkits (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkits
NEW: be a winner with our game-changing Business Asset Disposal Relief tax diagnostics tools. Sign up now.

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 19 November 2020

  • Five Common Errors in Coronavirus Job Retention Scheme (CJRS) claims
  • AIA spending limit extended
  • Tackling CIS fraud consultation & new policy
  • R&D Relief: new cap rules
  • Consultation: Making Tax Digital for Corporation Tax
  • Raising standards in the tax market: next steps
  • R & C Brief 18 (2020): VAT liability of school holiday clubs
  • PRR for just eight weeks
  • Late claim for pension enhanced protection allowed
  • Meal replacement juices are zero-rated food: Upper Tribunal...More

SME Tax Monthly Summary October 2020

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

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