My pick of this week’s freeview news is HMRC’s Employer Bulletin, it covers a wide range of issues. In terms of subcriber guides, we have a veritable feast for you. 

As we drift towards the end of yet another chaotic week in terms of world events and politics, we are told that the prolonged agony of the patient known as the Brexit Deal will cease on Sunday. Will the ‘oven ready’ outcome be more palatable than the charred remains of something long-forgotten and left in No.10’s aga or are we in for a more pleasant surprise in time for Christmas? 

We want to draw your attention to the changes to the qualifying conditions for the Self Employed Income Support Scheme (SEISS) third grant. Anecdotal evidence suggests that some traders think that the grant is automatically due whatever your circumstances. That is not the case and we need to spread the news.

HMRC has also issued an alert this week about the Coronavirus Job Support Scheme (CJRS) to say that you cannot furlough for what would normally be paid holiday. It has also issued a new press release to warn taxpayers about tax avoidance schemes.  

In terms of cases covered this week, your inner ‘tax geek’ might like the SDLT higher rate appeals, particularly the one that involves looking into the close company control tests. You may also like our guide to the SDLT higher rates. This provides a really practical summary of what is now quite a complicated tax.

On a positive note, HMRC confirms that the 100% First Year Assessment for zero-emissions cars will be extended after March 2021. No one doubted that this would not happen; it was just perplexing to find that this measure had been omitted from the last finance act.

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


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

Quick News

£1,000 Christmas grant for 'wet-led pubs'
Prime Minister Boris Johnson has announced a one-off £1,000 grant for ‘wet-led pubs’ within Tiers 2 and 3 in lieu of Christmas trade.

CJRS claims not valid for Christmas shutdowns 
HMRC have issued a reminder as to what can be claimed under the Coronavirus Job Retention Scheme (CJRS) in light of the upcoming holiday season.

Watch out! SEISS new criteria may catch you
Self-employed individuals claiming the third coronavirus grant under the Self-Employment Income Support Scheme (SEISS) may be unaware of important changes made to the qualifying criteria for the grant.

100% FYA extension for zero-emission cars
HMRC's latest Agent Update confirms that the 100% FYA for business cars, zero-emission goods vehicles and equipment for gas refuelling stations will be extended from April 2021 until April 2025 after all. 

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

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

Editor's Pick (subscribers)

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

Stamp Duty Land Tax: Higher rates
What Stamp Duty Land Tax (SDLT) rate applies for the purchase of a second home? What is the SDLT higher rate? Are there any reliefs from the SDLT higher rate?

Structures & Buildings Allowance (SBA)
A guide to the Structures and Buildings allowance, who can claim, what expenditure is eligible and how to make a claim.

IHT: Main Residence Nil Rate Band (RNRB)
What is the Main Residence Nil Rate band? When was it introduced? How does it work? Who can claim it?

Guides and Updates (subscribers)

Trivial benefits
UPDATE: What are trivial benefits? What is included? What are the caps?

Pensions: tax charge for excess contributions
UPDATE: When does a tax charge arise for excess pension contributions? What are taxpayers' responsibilities under Self Assessment?

Appeals: Late
UPDATE: When can you make a late tax appeal? What conditions must be met?

CGT: Chattels
What are chattels? Is it a wasting or non-wasting chattel? How are capital gains on chattels taxed? 

Tax Cases

Property landlord caught by both SDLT and SLP
In Waterside Escapes Ltd v HMRC [2020] TC7881, Stamp Duty Land Tax (SDLT) relief was clawed back on the purchase of a high-value residential property from a partnership due to its occupation by a director. It proved a challenge in determining how to attribute the control tests and calculate the Sum of the Lower Proportions.

No relief from 15% SDLT following owner occupation
In Forest Commercial Services Ltd v HMRC [2020] TC7944 a company narrowly escaped a £20k tax penalty when it inaccurately claimed relief from the Stamp Duty Land Tax (SDLT) 15% higher rate charge on a dwelling it developed that was subsequently occupied by its owners.

Late appeal denied: taxpayer had the right tools to self-assess
In Hans Solvkjaer v HMRC [2020] TC07933, the First Tier Tribunal (FTT) dismissed the taxpayer’s application for permission to make a late penalty appeal.

Failure to remedy negates reasonable excuse  
In Ryden Contractors Limited v HMRC [2020] TC07937, the First Tier Tribunal (FTT) rejected an appeal against Corporation Tax late filing penalties. Whilst there had been a reasonable excuse, this did not explain the still outstanding return.

VAT news & cases

R & C Brief 20 (2020): Repayment of VAT to overseas businesses not established in the EU and not VAT registered in the UK
The new brief outlines HMRC's response to businesses seeking to use the overseas VAT refund scheme where they have had difficulties obtaining a certificate of status.

VAT (subscribers)

Post-deregistration VAT recovery
UPDATE: When can VAT be recovered following deregistration? How is such VAT recovered?

Fuel scale charges (VAT)
UPDATE: What is the VAT fuel scale charge? What alternatives are there to the VAT fuel scale charge? Does the VAT fuel scale charge apply to vans?

An Inspector Calls (freeview)

Spot the signs of tax avoidance
HMRC's new campaign 'Spot the signs of tax avoidance' aims to raise awareness of tax avoidance schemes and highlights how to spot one and the negative effects of using one, in an effort to curb take up and promote reporting.

Virtual Tax Partner Toolkits (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkits
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 3 December 2020

  • Kids Company directors: responsible for unsustainable business model?
  • Companies Act: action by a liquidator
  • COVID-19: HMRC compliance round up
  • COVID-19 not reasonable excuse
  • Boathouse fails to obtain zero-rating
  • R & C Brief 19 (2020): Repeal of the VAT (Treatment of Transactions) Order 1992
  • Subway franchisee under-declared output VAT
  • Is voluntary VAT registration worthwhile?
  • Holding company was trading for VAT purposes
  • Client guide: Reasonable care and tax penalties 
  • Furnished Holiday Letting
  • Trusts & Tax planning...More


SME Tax Monthly Summary November 2020

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

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