The draft Finance Bill 2022 was published today; this follows last week's Budget announcements. We continue our evaluation of Autumn Budget 2021 materials and we review consultation outcomes.

We also feature a news item which looks at HMRC's views as to whether foreign workers who come over to the UK on temporary work visas are entitled to tax relief on their costs of living accommodation. HMRC appears keen to class the whole of the UK as a single workplace for lorry drivers. It seems that this could have serious consequences for UK-based workers who remain subject to the same legislation.

Although there were many announcements concerning large company Corporation Tax at the Autumn Budget, there was little said about Digital Services Tax (DST). We now learn that the UK is going to abandon DST following the global deal on corporate tax reform from the OECD. What though of Online Sales Tax (OST)? We know very little about OST, although we understand that such a tax is being considered by the chancellor to make up for the decline in Business Rates tax receipts. We anticipate that the treasury will publish a consultation in due course.

Lots more news, updates and CPD 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)

No accommodation tax relief for temporary HGV drivers
HMRC's interpretation of the employer travel rules for foreign workers appears to provide a limited scope for any workers who come to the UK on temporary work visas to obtain tax relief on the costs of living accommodation. 

File a 2019-20 return or repay SEISS grants 
HMRC are writing to taxpayers who received one of the first three grants under the COVID-19 Self Employment Income Support (SEISS) scheme and have not filed a Self Assessment return for 2019-20, urging them to do so within 30 days or face having to repay the grants.

IHT reporting requirements to be eased  
HM Revenue & Customs have released a policy paper extending the circumstances where information can be provided to HMRC in place of full Inheritance Tax (IHT) accounts.  Certain definitions have also been clarified and time limits extended. 

Residential Property Developer Tax consultation responses  
HM Treasury (HMT) have released their response to their consultation covering the proposed Residential Property Developer Tax (RPDT) which is to be introduced from April 2022.  The tax is aimed at raising funds for building safety remediation works.

Autumn Budget 2021: Extensions to Creative Tax Reliefs  
The Finance Bill 2022 introduces a number of measures that will extend or increase the reliefs available to businesses in the creative sector, including museums, theatres, galleries, orchestras and film production companies.

UK abandons Digital Services Tax
As part of the new global deal on corporate tax reform from the OECD, the UK has agreed a means of transitioning out of the newly implemented Digital Services Tax (DST). It will be replaced with the new minimum global Corporation Tax rate of 15%.

Editor's Pick 

Sole trader v Limited company 2021/22
UPDATE: This guide considers whether, from a tax and legal point of view, it is more efficient to run your business as a sole trader or as a company.

Finance Bill 2022: tax update and rolling planner 2022-23
This rolling planner tracks Autumn Budget 2021, Finance Bill 2022 and other the key tax announcements that affect the 2022-23 tax year and beyond. This is updated in real time.

Guides and Updates (subscribers)  

Self Assessment 

Influencers: what expenses can I claim?
What expenses can online influencers claim for tax purposes? Are there special rules? What are the rules for VAT for online influencers? From Accountancy to selfie-sticks.

Accounting periods and tax basis periods
Which date do I choose? Does it matter? Can I change my accounting date?  What changes are proposed as a result of the reform of basis periods?

Land and Property  

Adviser's Guide: Property Business, profits and losses
UPDATE: What is property income? How is it taxed? How are profits calculated? How are losses relieved? Is NI paid on property income? Is property income classed as a business activity?

Directors & Companies   

Do I pay a salary or dividend? 2021/22
UPDATE: This guide explores the tax-planning points and pitfalls of using dividends to create a tax-efficient pay package. 

Directors Tax Planning Toolkit 2021/22
This planner looks at a range of director tax issues, including company profit extraction.

R&D Tax Relief: Overview
UPDATE: What is R&D Relief? How does it work? Why does the size of the company matter? What is sub-contracted R&D? How do I write an R&D Report?

Losses: Trading and other losses
UPDATE: When can a company offset its losses? What restrictions are there? How are loss claims made?


Apprenticeship levy (employers' briefing)
UPDATE: Extension of new apprenticeship grants and shortening of 'reserve' period.  What is the apprenticeship levy? Who pays it? How much is it? 

Vans and Commercial vehicles
UPDATE: What is the benefit in kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emissions vans.

Private Client & Estate Planning

Non-resident CGT: UK property
How and when does Capital Gains Tax apply to non-residents owning UK property?

Tax Cases  

SDLT avoidance scheme fails 
In Michael & Bridget Brown v HMRC [2012] TC08158, the First Tier Tribunal (FTT) concluded a Stamp Duty Land Tax (SDLT) avoidance scheme did not work.  That the property was transferred to the Appellants by way of capital reduction did not avoid an SDLT charge.

SME R&D relief allowed: Investor was a Venture Capital company 
In DNAE Group Holdings Limited v HMRC [2021] TC08227, the First Tier Tribunal (FTT) found that the claimant company was a Small or Medium-sized Enterprise (SME) for R&D relief. Its main investor was a Venture Capital company.

Dishonest agent prevents Discovery assessments 
In Stuart A Cormack v HMRC [2021] TC08289, the First Tier Tribunal (FTT) struck out the appeal in part, finding that SEIS and EIS had been incorrectly claimed but in light of alleged agent fraud, HMRC had failed to prove that the discovery assessments issued were valid.

VAT Cases & Guides 

Supply was of medical staff, not medical care, and was not exempt
In Mainpay Ltd v HMRC [2021] UKUT270, the Upper Tribunal found that the taxpayer was supplying staff not medical care. The supplies were not exempt and were taxable at the standard rate.

Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?

Other Taxes

Consultation on the new alcohol duty system 
The government has published its proposals in 'Consultation: The new alcohol duty system'. Also announced in the Autumn Budget 2021, it outlines a new structure of alcohol duty, including new rates and reliefs and is seeking views on the proposals.

Business Rates Review: Final Report 
HMRC have published their final report on the March 2020 Business Rates Review Call for Evidence which launched a fundamental review of business rates, aiming to reduce the burden on business and improve the business rates system.

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 28 October 2021

  • Autumn Budget 2021: At a glance
  • Autumn Budget 2021 Zone
  • PAYE RTI reporting: exception to the rules 
  • Call for evidence: Implementation of Off-Payroll Working rules in the private sector
  • Consultation: tax conditionality regulations
  • No duty of care for accountant who introduced tax scheme promoters  
  • Parent unaware of child benefit claims had a reasonable excuse 
  • Accommodation costs were wholly, exclusively and necessarily incurred 
  • Care home: Input VAT blocked and output VAT due 
  • 2020/21 Self Assessment Tax Return toolkit
  • Running a LLP in tandem with a company
  • Property profits & losses: Toolkit (2021-22)
  • Dividends: Formalities for companies
  • ABC or alphabet shares: directors & employees
  • IHT: Loans and restrictions on liabilities against the estate
  • Capital Goods Scheme
  • CPD: Appeals: How to Appeal a Tax Penalty ...More 

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