You may have thought that the Autumn Budget was a bit dull, but this week we aim to brighten up your professional life with some really useful new tax guides.

New this week:

  • Plastic Packaging Tax: will the UK's new tax make any impact on our production and consumption of single-use plastics and will it affect your clients, or will they be able to claim one of the very many exemptions? We have made this handy new tool to explain the key rules.
  • Reduced rate VAT and energy savings materials is an ever evolving area of tax law. New products come on the market on a daily basis. Our new guide sets the legislation in a manageable form for you and your builder and residential property owning clients to explore.

We also have another Agent Update, new advisory fuel rates for employers and a rather specialist consultation on SDLT. 

HMRC has created a 'tool' which you can use to check if you have accidently become part of an employment agency's illegal tax avoidance scheme. We have incorporated this into a new freeview starting in business guide.

Finally onto tax cases, Mark Dunsby was unfortunate to use a tax scheme that ticks all the boxes that you really don't want to tick from a tax anti-avoidance perspective. If you are a fan of the settlement and transfer of assets abroad provisions, you will enjoy our case write up.

More fascinating tax cases and updates for you, so do please read on.

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 (Freeview)

Agent update: November 2021
HMRC have issued their Agent Update for November 2021. We have summarised the key content for you with links to our detailed guidance on the topics covered. 

Advisory fuel rates from 1 December 2021 
HMRC have published new advisory fuel rates for company car drivers which apply from 1 December 2021. 

HMRC analyse commercial impact of SDLT increase
HM Revenue & Customs have released a paper entitled 'Research and analysis: Responsiveness of commercial transactions to Stamp Duty Land Tax (SDLT)'. This paper evaluates the impact that changes to the SDLT rates has on non-residential transactions.

Editor's Pick 

Plastic Packaging Tax: do I need to pay it?
NEW: Help your clients navigate the new rules with our new easy to follow guide.

Super-deduction & First Year Allowances
UDPATE: What is the new Super-deduction allowance? When does it apply and what is the rate of allowance? What other First Year Allowances (FYAs) are available?  What is the SR Allowance?  What if I dispose of an asset on which the Super-deduction or SR allowance has been claimed? 

Woodlands: Overview
UPDATE: Woodlands and forestry ownership carry significant tax reliefs, including Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT). How does this all work?

Guides and Updates (subscribers)  

Self Assessment 

Starting Work 5. Agency or umbrella tax-avoidance risk
If you obtain contract work via an employment agency you could find yourself accidentally caught up in an illegal tax avoidance scheme. If you are not a tax expert you might have little idea how agencies should be accounting for tax and National Insurance on their payments to you.

Land and Property  

De-enveloping property
UPDATE: A company may wish to transfer its residential property to its shareholders, this is known as ‘de-enveloping’. There is no specific tax relief for de-enveloping: the result is that it needs to be carefully planned in order to mitigate tax charges.

Directors & Companies   

Directors' loan accounts: Toolkit (subscribers)
HM Revenue & Customs (HMRC) do a director's loan accounts toolkit for advisers. This is our enhanced version with planning points.

Management Buyout: What are your options?
UPDATE: What are the simplest options for a management buyout? E.g. Two current director/shareholders wish to retire and sell to the manager. 


Tips, gratuities and troncs
How are tips, gratuities and troncs taxed? What are the rules for National Insurance Contributions (NICs)?

Recovering underpaid NICs from an employee
The general rule is that an employer has a right to deduct underpaid NICs from an employee but there are exceptions. What are they?

Private Client & Estate Planning 

How to set up a UK trust
UPDATE: What are the tax implications of setting up a trust? What do I need to do as a settlor? What do the trustees need to do? 

Trusts & Estates: Ten-year charge reporting requirements
What is the ten year charge (or principal or periodic charge) and when does it apply?

Tax Cases   

National Minimum Wage: Driver can deduct car rental costs
In Mr W Augustine v Data Cars Ltd: EA-2020-000383-AT the Employment Appeal Tribunal (EAT) held that in calculating the National Minimum Wage of a cab driver deductions could be made for the vehicle and uniform rental costs. They were incurred in connection with his employment.

Tax-free dividend scheme fails, income is taxable on company owner
In Mark Dunsby v HMRC [2021] UKUT 0289 the Upper Tribunal (UT) found that dividends paid through a trust under a scheme to transfer tax-free cash to a company owner were still taxable on the owner, and would also be caught by the Settlements and Transfer of Assets Abroad anti-avoidance rules.

VAT Cases & Guides 

Company’s supplies were not made outside of the EU 
In Mandarin Consulting Limited v HMRC [2021] UKUT 0292 (TCC) the Upper Tribunal (UT) found that a company supplying career coaching services was unable to demonstrate that all of its students were usually resident outside of the EU, meaning that UK VAT applied.

Conservatory roof boards still not insulation for VAT
In Greenspace Limited v HMRC [2021] UKUT 0290, the Upper Tribunal confirmed that insulated roof panels were roof and not insulation: unlike insulation that could be separately attached to a roof, the panels formed the roof. The supply of panels did not qualify for a reduced rate of VAT.

Online Marketplaces: Selling goods in the UK
UPDATE: When do you have to register for UK VAT? When is UK VAT payable? What amount is VAT payable on? What information do you have to give the marketplace provider? What will it do with that information?

Energy Savings Materials
NEW: The supply of and fit of energy savings materials in residential accommodation attracts a reduced rate of VAT. What does it apply to? What are the qualifying conditions? What case law is there on this topic?

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 18 November 2021

  • New limit to flat fees on pensions 
  • Economic Crime (Anti-Money Laundering) Levy
  • Late appeal: taxpayer failed to provide evidence
  • Lack of documents did not invalidate Schedule 36 Notice 
  • FTT has no jurisdiction if there is no appealable decision 
  • No EIS relief for non-commercial trade  
  • Best VAT Flat Rate error leads to HMRC 'best judgement' assessments  
  • Estates: Income Tax and CGT
  • Plastic Packaging Tax
  • Freeports: Tax breaks
  • EIS: Enterprise Investment Scheme (Subscriber guide)
  • Profits from dealing in or developing land
  • Incorporation of an existing business
  • PAYE Codes: Starters/leavers & 0T code
  • Estates: How to deal with Income Tax and Capital Gains Tax 
  • Penalties: Late Filing (deliberately withholding information) ...More 

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