Happy New Year,

The year has kicked off with the welcome announcement by HMRC that there will be a penalty waiver for late-filing and payment of Self Assessment returns.

HMRC notes that some taxpayers are having difficulty in reconciling and reporting their coronavirus support payments. This is not surprising given that the system was set up so quickly, and consequently does not link properly to other visible records from the taxpayer’s end. A problem has been noticed this week with a commercial software package, ‘Taxfiler’. Its programmers have shortened the wording in a key box in the Self-Employment section of the return, leading many people to reporting the Self Employed Income Support Scheme (SEISS) grant in the wrong place. This has resulted in HMRC's rejection of returns. There may well be similar issues with other software. We have made our guide ‘Taxation of coronavirus support payments’ freeview this week in the hope that this might assist people in filing their returns.

Anyone who is dealing regularly with HMRC can see that there are some big on-going issues for the department which, like so many businesses, appears to be creaking under the strain of staff sickness and self isolation. In addition, the ‘working from home’ aspect does not apparently always work so well. We have been noting incredibly long delays in investigation and settlement cases. This is also indicated by a further announcement that HMRC is suspending its online chat facility.

We have reviewed the hits of 2021 this time. What a year!

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)

What a year! Top tax hits of 2021
What a year! 2021 saw the government make many significant tax announcements as it aimed to revive the economy in the wake of the COVID-19 pandemic and the handing out of unprecedented levels of financial state aid. It was a year of total contrast for businesses and their owners.

30-day penalty waiver for 2020-21 tax return filing & payment
To ease COVID-19 pressures HMRC have announced that they will waive penalties for late filing and payment of 2020-21 Self Assessment returns and tax liabilities as long as returns are filed by 28 February and payments made by 1 April 2022.

HMRC collects over £1bn from criminals and tax offenders 
In a recent press release HMRC have confirmed that their Fraud Investigation Service (FIS) has collected over £1 billion from the proceeds and crime and tax offenders since it was established in 2016.

Call for evidence: Additional Dwelling Supplement 
The Scottish Government have launched a call for evidence ‘The Land and Buildings Transaction Tax Additional Dwelling Supplement’ which seeks views on the operation of the Additional Dwelling Supplement (ADS).

 OECD publishes 15% global minimum tax rate details that will raise $150 billion
The OECD has published further details for the Global Anti-Base Erosion (GloBE) rules that form part of Pillar Two of its ongoing work against Base Erosion and Profit Shifting (BEPS). 

Editor's Pick (freeview) 

COVID-19: taxing coronavirus support payments
READ THIS: some tax software may mislead you into reporting SEISS grants in the wrong box. 

Calendar of tax deadlines
UPDATE: A freeview 'At a glance' rolling calendar of common recurring tax deadlines. 

Guides and Updates (subscribers)  

Self Assessment 

Personal allowance: who is entitled to claim?
UPDATE: Am I entitled to the UK personal allowance? Are there circumstances when the Personal allowance is not available?

Basis Year Reform
What is basis year reform? Who is affected? What is the new basis year for tax? What are the transitional rules?

Making Tax Digital: Index & timeline
When does Making Tax Digital (MTD) apply? What does Making Tax Digital really mean? How will it affect you? Does MTD mean quarterly reporting? Is my business exempted from Making Tax Digital? 

Land and Property

Property Profits & Losses Toolkit 2021-22
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual or partnership.

Avoid property fraud using Land Registry Property Alerts
How do I protect my property from fraud?  How to set up a property alert? The Land Registry are encouraging people to set up a property alert in order to warn them if someone attempts to alter key details of their property online.

Directors and Companies   

Dividend tax
How do you tax dividend income? An at glance guide to the dividend allowance and dividend tax rates.

Dividend taxation for non-UK residents
This guide considers how the changes to dividend taxation legislation since 6 April 2016 affect non-UK residents who are in receipt of dividends from UK companies.

Company tax claim checklist
UPDATE: What are the time limits for Corporation tax claims and elections? How are claims and elections made? 

Private Client and Estate Planning 

CGT: Loans to traders relief
UPDATE: What is loans to traders relief? When can it be claimed? What are the conditions of the relief?

CGT: Reporting, how to report and pay capital gains
This is a freeview 'At a glance' guide about how to report capital gains. How do you report your capital gains? What return do you use?

Joint Property: legal v beneficial ownership
Are you reporting joint income correctly under self assessment? Start here.

Tax Cases

Partner's criminal charge legal fees allowed
In TR, SP and SR Rogers v HMRC [2021] TC08342, the First Tier Tribunal (FTT) found that legal expenses incurred by a partnership in defending a partner against a specific criminal charge were incurred wholly and exclusively for the purpose of the partnership’s trade.

Class 3 NICs were paid in error 
In Christine Bradley v HMRC [2021] TC08344, the First Tier Tribunal (FTT) found that Class 3 National Insurance Contributions (NICs) paid in error should be refunded by HMRC.

VAT Cases and Guides 

How to claim back import VAT and duties 
Buying goods from Europe? Post-Brexit you may well now be liable for VAT and customs duties. If these items are returned or import taxes have been applied in error you can claim a refund. We explain how.

Revenue and Customs Brief 15 (2021): Repayment of VAT to overseas business not established in the EU and not registered in the UK  
HMRC have released Revenue and Customs Brief 15 (2021): Repayment of VAT to overseas business not established in the EU and not registered in the UK.  Certificates required from non-UK authorities by HMRC to authorise refunds can now be provided after the normal due date in exceptional circumstances relating to COVID-19.

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 December 2021

  • Christmas planner
  • Warning! Gremlins hit HMRC's Making VAT Digital
  • Future of insolvency regulation includes independent oversight
  • HMRC increase late payment interest rate
  • Welsh Budget 2022-23: Summary 
  • Consultation: Land Transaction Tax, second homes and holiday lets 
  • New COVID-19 support package for businesses affected by Omicron
  • Trusts and Estates: What’s New December 2021 
  • Starting in business? Start here
  • Entrepreneurs' Relief available on disposal of partnership assets
  • Director escapes high tax penalties due to ignorance of tax law
  • Share sale was actually a fundraising activity for taxable supplies 
  • Freeports: Tax breaks 
  • Plastic Packaging Tax
  • Different ways of taxing UK property
  • Training and course fees
  • How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?  ...More 

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £425 (+ VAT).

What do you get?

  • We keep YOU up to date in SME tax.
  • FULL access to www.rossmartin.co.uk: your firm's favourite TAX INTRANET containing over 3,500 actively maintained tax guides, briefings, toolkits and checklists.
  • Want to know more? Commission your own articles and checklists.
  • Structured CPD our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes our webcasts provide you with structured CPD at your desk.
  • Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.


Squirrel ad

Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter