Happy New Tax Year!

The start of the new tax year often provides the impetus for new business start-ups. This year, it may be more a case of re-starting if you have been forced into COVID-19-induced hibernation. If you are re-starting or just planning, the government has just published details of its new range of restart grants and recovery loan funding.

To celebrate the start of the tax year we have a new 2020/21 Self Assessment return guide. This also contains a very handy section which tells you ‘what’s new’ on the latest version of the tax return.

Other innovations this week include our latest tax tool. If you are thinking of a move out to a larger property in the country you might like to come and test out our new Stamp Duty Land Tax (SDLT) tool. This works out whether you will be eligible to claim Multiple Dwellings Relief when you buy two or more properties in one transaction. It also calculates whether you will pay the Higher Rate Charge or not. The outcomes are based on case law and, like all of our tools, this was a devil to write, but it should save you all a lot of research time. 

Moving to world events, some folk will be interested to hear that US President Biden has plans for a new sales tax on multi-nationals. This leak comes after the US has mooted plans for a global minimum rate of Corporation Tax, and has already threatened trade tariffs on the UK for introducing its own sales tax, the Digital Service Tax.

On to tax cases. The Christmas before last I wrote a fairy tale inspired by the 'Build-a-Bear' customs tariff case. The real-life case did not involve Paddington or his girlfriend, Maisie, but it did go to the Upper Tribunal on appeal. We have a more serious summary which reveals what happened next and provides some guidance to ensure that you correctly identify the relevant tariff.

If you have any queries do post them on our sister site, the Virtual Tax Partner advice service at www.VtaxP.co.uk scroll down for more news and updates.

More news and updates below.

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

Restart Grant Scheme opened 
The Restart Grant Scheme supports businesses in reopening safely as COVID-19 restrictions are lifted. Grants are available from 1 April 2021.

Recovery Loan Scheme launched 
HM Treasury has announced the opening for applications to the Recovery Loan Scheme. This is part of Government-guaranteed finance throughout 2021, primarily in response to COVI-19.

Notification of uncertain tax treatments by large businesses: consultation responses  
The government intends to have large businesses notify HMRC when uncertain tax treatments have been adopted within a tax return. The consultation is now closed and a summary of the responses has been published.

US calls for a global minimum rate of corporation tax
US President Joe Biden's new tax administration has shown its hand on the future of the taxation of multinational companies: a minimum international corporate tax rate in exchange for a national sales tax.

Editor's Pick  

2020/21 Self Assessment Tax Return toolkit 
NEW: A tax return toolkit for the year ending 5 April 2021. 

SDLT: Multiple Dwellings Relief for Annexes Tool
NEW Stamp Duty Land Tax (SDLT): You are about to purchase two properties in a single transaction. Perhaps this is the purchase of a larger property with an annex, a granny flat, or some other kind accommodation, such as a cottage within the grounds of the larger property.

Short-life assets
What is a short-life asset? How to plan for short-life assets, what can be included and what are the exceptions?

Woodlands: Overview
Woodlands and forestry ownership carry significant tax reliefs, including Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT). This is a guide to those reliefs.  

Guides and Updates (subscribers)

Accelerated Payments & Follower Notices
What action is required? What are the penalties for non-compliance? Is there a right to appeal?

Tax-free savings income
UPDATE: What types of savings income are exempt from Income Tax? What savings income can be received tax-free? What are the limits? 

How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
UPDATE: 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. 

Tax Cases

Follower notice penalty upheld 
In HMRC v Comtek Network Systems (UK) Ltd [2021] UT 008, the Upper Tribunal (UT) allowed HMRC’s appeal against the FTT decision allowing an appeal against Follower Notice (FN) penalties.

Build-a-Bear: FTT erred in law 
In Build-A-Bear Workshop UK Holdings Limited v HMRC [2021] UKUT 0067, the Upper Tribunal (UT) heard both the appeal and cross-appeal, finding that the First Tier Tribunal (FTT) erred in law when applying Customs Duty classification rules.

VAT Guides and Updates (subscribers)

Input VAT claims: Pre-registration
UPDATE: When can pre-registration input VAT be recovered? What are the time limits and restrictions? 

VAT News & Cases 

Simplification of partial exemption and the Capital Goods Scheme: Summary of responses
HMRC have published a summary of responses to their 2019 consultation 'Call for evidence: simplification of partial exemption and the Capital Goods Scheme'. HMRC are changing internal processes and will engage further with stakeholders, on this topic, in the future.

HMRC loses Cowdenbeath Taxi case after contradictory arguments 
In Cowdenbeath Taxi Services Limited v HMRC [2021] UKFTT 43 TC/2018/01656, the First Tier Tribunal (FTT) concluded VAT was not due on services between the companies and the Error Correction Notice submitted was sufficient to make a claim for the repayment of VAT.

Tax Toolkits 

Tax Tools
Be a winner with our game-changing 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 1 April 2021

  • R & C Brief 4: Partially exempt VAT registered businesses affected by Coronavirus
  • ‘The Taxation of Trusts: a review’: Consultation response
  • Starting in Business? Start-here
  • SDLT: land attached to property taxed at residential rates
  • No capital allowances for leased satellites
  • No VAT on goods in transit to Spain
  • Direct link between consideration and supply
  • Place of supply rules and investment services
  • Personal Service Company (PSC) Update: 2021/22
  • Tax planning for income at marginal tax rates
  • Tax Planning for the 2020/21 year-end
  • SDLT: Residential properties and dwellings   
  • Trusts & Tax Planning
  • Family Investment Companies  ...More


SME Tax Monthly Summary March 2021

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

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