Hello,

This week we briefly stray away from tax to summarise the government’s five-year review of the Women in Finance Charter as it’s such an important topic. Although more women are being employed at the executive and board level than in 2016, with an average 50% increase, the review estimates that it is still going to take until 2033 for financial services to achieve gender parity. On the government’s timetable, we will all be driving electric cars before there is a gender balance in financial institutions.

Going back to tax, HMRC has released a new tool, ‘Check if you might need to pay Inheritance Tax’. On testing it we discovered that it doesn’t actually calculate the potential tax due and omits several key reliefs and exemptions. Still, it’s a useful place for executors and personal representatives to start when dealing with an estate.

We have a Private Client update for subscribers and a reminder about reliefs and allowances for those who are still Working From Home (WFH). For the duration of the pandemic, if your employer doesn’t pay you a WFH allowance you can claim tax relief even if you only spend one day WFH during the tax year.

We also have a couple of interesting VAT cases this week. It seems VAT group membership can never be backdated, as an international group found out to the tune of £4 million. VAT best judgements are rarely successfully challenged and this case is no exception. The Upper Tribunal were not prepared to disturb the findings of the First Tier Tribunal (FTT) who in turn had agreed with HMRC’s figures.

Finally, when considering whether IR35 applies in the private sector, HMRC’s Employment Status manual now contains voluminous guidance on just about every possible occupation you could think of. There is particular emphasis on the entertainment industry with numerous new examples being recently added for TV and radio presenters. Useful for anyone with clients in the sector given that recent tribunal decisions have gone both ways, but it is worth remembering that their manuals are only HMRC's interpretation of the law.

More news, views and updates below. 

Back soon 

The Team 

www.rossmartin.co.uk

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

Quick News (freeview)

Responses to clampdown on tax avoidance promoters consultation  
The government has released a summary of the responses to their 'Clamping down on promoters of tax avoidance 'consultation and has issued draft legislation enacting the provisions.

HMRC tool: Check if you might need to pay Inheritance Tax
HMRC have released a new tool ‘Check if you might need to pay Inheritance Tax’ to allow those dealing with deceased estates to work out the approximate value of the estate to help decide whether any Inheritance Tax (IHT)  is likely to be due or not.

Responses to stamp taxes call for evidence
The government has released a summary of the responses to its 'Modernisation of stamp taxes on shares: Call for evidence'. 

Women in Finance Charter: Five-year review
A five-year review of the Women in Finance Charter estimates that it is still going to take until 2033 before financial services achieve gender parity at the board and executive level.

Working from home: Update 
As taxpayers continue to work from home due to Coronavirus, we provide an update on tax relief available for the costs of homeworking. 

HMRC give clarity on employment status within the entertainment industry  
In the light of recent high profile cases concerning the employment status of media personalities, HMRC have updated the Employment Status Manual (ESM) to include examples of different types of engagements and whether or not the individual would be considered to be employed in those circumstances.

Editor's Pick  (subscribers)

SRT: Statutory Residence Test
UPDATE: Finance Act 2020 has introduced changes to day counting where days are spent in the UK for coronavirus related work.

Private client: What’s on? July 2021 
NEW: A Finance Act 2021 Private Client update for advisers and their clients.

Self Assessment

COVID-19: Self-Employment Income Support Scheme (SEISS)
UPDATE: Self-Employment Income Support Scheme (SEISS): support for the self-employed during the Coronavirus crisis. The fifth SEISS grant covering May to September 2021 is now open for claims. 

Motor expenses (self-employed)
UPDATE: What expenses can you claim for motor and travel if you are self-employed? Why are there different versions of the rules? 

Grounds for appeal: Reasonable excuse (freeview)
What is a 'reasonable excuse' in terms of making an appeal against a tax penalty for late filing, late payment or error?

Directors

Creating an office at home or in your garden
UPDATE: Many more company owners now work from home. Can you obtain tax relief on the cost of building or conversion? What are the VAT issues? Are you taxable on any employment benefit?

Directors: Tax planning toolkit for 2021/22
This planner looks at a range of director tax issues, including company profit extraction. 

Companies

Loan relationships
UPDATE: How are loans made to and by a company taxed? What are the rules when loans are written down? What is the difference between a trading and non-trading loan relationship? What are the rules for connected party loans?

Valuation: Companies
UPDATE: When might a tax valuation be required? What are the main principles in valuing unquoted companies?

Employers

Employment status & detailed checklist
UPDATE: Why is it important to check my employment status? What tests should I use? What is the recent caselaw? 

Employers' NICs allowance
UPDATE: The Employers' National Insurance Contributions (NICs) allowance is an allowance given to small and medium-sized employers to offset against their annual Employers' National Insurance liabilities.

Private Client & Estate Planning

ISA guide
UPDATE: Where compensation from the London Capital & Finance Compensation Scheme has been received in respect of an ISA subscription, it can be contributed to an ISA without it counting towards the annual subscription limit.

IHT: Estate planning checklist
This checklist covers some of the essential planning points that taxpayers should know when planning for their estate and Inheritance Tax (IHT).

Land & Property

SDLT: Amending returns
How do I amend an SDLT return?  When can I amend an SDLT return?

Freeports: tax breaks
UPDATE: The government has provided details of new tax breaks, confirmed in Finance Act 2021, for business seeking to locate and operate in a Freeport. Tax breaks cover Stamp Duty Land Tax (SDLT), Capital Allowances, National Insurance and business rates. 

Tax Cases 

Claim for relief on offshore trust distributions is out of time 
In Murphy & Anor v HMRC [2021] EWHC 1914 (Admin) the High Court, on judicial review ruled that UK source income distributed to UK resident beneficiaries of a Non-resident discretionary trust must be paid within six years if credit is to be given for UK income tax paid by the trustees.

Schedule 36 appeal does not extend to underlying tax issue  
In Robert Perlman v HMRC [2021] TC08168, the First Tier Tribunal (FTT) dismissed the taxpayer's appeal against Schedule 36 information notices finding that the information requested was reasonably required to check his tax position.

VAT News, Cases & Guides

VAT group membership cannot be backdated 
In Dollar Financial UK Ltd v HMRC [2021] TC8199 the First Tier Tribunal (FTT) struck out an appeal regarding the backdating of VAT Group membership. The legislation did not provide for backdating and there was no HMRC decision to appeal so the tribunal did not have jurisdiction.

VAT best judgement assessments upheld by UT  
In Kingsley Douglas v HMRC UKUT 0163, the Upper Tribunal (UT) dismissed the appeal against ‘best judgement’ VAT assessments upheld by the First Tier Tribunal (FTT).  The UT found all the evidence had been properly taken into account by the FTT.

Groups
UPDATE: Following responses to a Call for Evidence HMRC have decided no changes are required to the VAT grouping rules at this time.

Management re-charges (holding companies)
When are intercompany charges subject to VAT? What rate of VAT applies to an intercompany charge? Is an intercompany charge a supply for VAT? Is there VAT on an intercompany payment for group relief?

COVID-19: VAT deferred payments
UPDATE: COVID-19 VAT payment deferral measures for VAT registered businesses.

Assessments: Best judgement
What is a 'best judgement' assessment for VAT? When can HMRC raise one? What are your rights of appeal? How do you displace a best judgement assessment?

Tax Toolkits 

Tax Tools
Be a winner with our game-changing tax diagnostics tools for Business Asset Disposal Relief, SDLT & annexes/subsidiary properties, Company reorganisations, R & D Zone and TAAR on winding up. 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 22 July 2021 

  • Finance Bill 2022
  • Agent update: July 2021
  • Consultation: Income Tax Basis Period reform 
  • New £375m Future Fund open to R&D companies 
  • Third-party information notice hearing must remain private
  • Upper Tribunal upholds £1 million NIC liability on bonus payments
  • Failure to notify VAT option to tax not acceptable
  • VAT and value shifting: Summary of responses
  • GAAR Panel concludes loan arrangements unreasonable course of action 
  • HMRC focuses on debt as winding-up moratorium ends 
  • Capital allowances: What's new 2021 
  • Directors' Tax Planning Toolkit 2021-22
  • Ceasing trading: What are your options?
  • Top Slicing Relief: How you slice it
  • Tax Returns: To-do list before/after 5 April 2021
  • SDLT: First-time buyers' guide to Stamp Duty Land Tax  ...More

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