Nichola's SME Tax W-update 13 January 2022

Hello,

We have some really exciting new guides for you this week which we trust will assist in adding value to your services. 

I was surprised to find, when chatting to a group of entrepreneurs, that they had no idea how their pensions were treated on death or whether there were any inheritance tax issues. This fact has inspired the creation of our new guide, 'Pensions: what happens when you die'. Please do send in your feedback on this one. 

HMRC has just updated its guidance on reasonable excuse: broadly, it expects you to put your house in order and file or pay within two weeks of the end of whatever caused your delay compliance. The two weeks is just an indication of what HMRC thinks is a reasonable period, it is not set in stone as our article explains.

The House of Commons' Public Accounts Committee (PAC) has been busy in its scrutiny of government and it is not mincing its words when it comes to the government's plans for replacing farming subsidies following Brexit; something to watch if you are advising an agri-business. The PAC is also highly critical about the government's record in digital transformation. Here at the 'coal face' of tax, we all know about the problems HMRC has with its legacy systems, notably in the ancient machinery that ran PAYE (this has been largely updated due to real time information reporting) together with the on-going issues with payment allocation.

On a much more positive note, we can report that 2021 has been our best year ever and that many professional firms have been moving to us from some of the bigger publishers which is great. Thank you for your on-going support. This webservice stared as an experimental project and there was never any aim to compete against anyone or anything.  You may have noticed over the last few months that there were some pretty horrible advertisements on the site, care of a search engine. This was part of an exercise, the surprising results of which we are going to report next week.

Back soon

Nichola Ross Martin FCA CTA (Fellow)
Tax Director

www.rossmartin.co.uk

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

Quick News (Freeview)

New COVID-19 support package for businesses affected by Omicron
UPDATE: Chancellor Rishi Sunak has announced a new £1billion grant support package for those businesses most impacted by the Omicron COVID-19 variant.

Changes to IHT reporting & increases to probate fees
Following changes to the excepted estates rules from 1 January 2022, certain Inheritance Tax (IHT) forms can no longer be used for deaths after 31 December 2021 where the estate is non-taxpaying and a different process must be followed.

Post-Brexit farming subsidy plan 'blindly optimistic'  
The Public Accounts Committee (PAC) have released a report covering the Department for Environment, Food & Rural Affairs' (DEFRA) proposals to replace farming subsidies following Brexit.  The removal of existing EU subsidies will reduce English famers income by more than half from 2024-25.

Government IT: dysfunctional, damaging & sometimes dangerous
A new report by MPs on the Public Accounts Committee on “Challenges in implementing digital change” pack some hard punches.

HMRC updates guidance on reasonable excuse
HMRC have updated their guidance on what constitutes a reasonable excuse as grounds for appealing a tax penalty.

Budget & Spring Statement 2022
The 2022 Budget is due to be held on Wednesday 23 March 2022. 

Editor's Pick 

Pensions: What happens when you die?
NEW: What happens to your pension when you die? What tax is due by your estate? Will your family have to pay Income Tax if they receive your pension going forward? What can you do to mitigate any tax charges?

A new business? Start here...
UPDATE: Starting in business? Our comprehensive FREEVIEW guide takes you through choosing your trading structure and style, looking at the advantages and disadvantages or each and details the key steps in getting started for tax

Electric Vehicles
UPDATE: what are the tax issues and benefits businesses and their employees should consider when acquiring or providing an electric vehicle.

Guides and Updates (subscribers)  

Self Assessment 

A new partnership? Start here...
This freeview 'At a glance' guide is essential reading for anyone thinking about starting up a new partnership.

Land and Property

Goodwill: trade-related properties
What are the tax and accounting issues when valuing goodwill in connection with the purchase or sale of a trade-related property? What are HMRC's views? What does case law tell us?

Directors and Companies   

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

Recovery Loan Scheme
UPDATE: The Recovery Loan Scheme has been extended until June 2022. Announced in the Autumn Budget 2021, the extension scheme has minor eligibility changes.

Private Client and Estate Planning 

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

Employers 

Company Cars
Company car tax. How do you work out car benefit? How do you work out car fuel benefit? Are there savings for low-emissions vehicles? How do you reduce car benefit? Cars and the tax tribunals and Top Tax Tips.

Salary sacrifice & optional remuneration schemes (OPRA)
What is a salary sacrifice or optional remuneration arrangement? How is it taxed?

Capital Allowances

Enhanced Capital Allowances: Energy saving plant (inc. vehicles)
UPDATE: What are Enhanced Capital Allowances (ECAs)? What is energy-saving plant and machinery? What allowances are available?  

VAT Cases and Guides 

Agents and principals
UPDATE: Where someone is acting as agent for a principal, it is possible that the income received by the agent on behalf of the principal is outside the scope of VAT for the agent. What is an agent for VAT purposes? When do these rules apply? 

Groups
UPDATE: What are the conditions for forming a VAT group? What rules apply once a VAT group is in place?

Cars & Vans: VAT 
UPDATE: What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements? 

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

• CPD: Business Asset Disposal Relief
• CPD: Appeals: How to Appeal a Tax Penalty
• CPD: VAT: Land and Property

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 6 January 2021

• What a year! Top tax hits of 2021
• 30-day penalty waiver for 2020-21 tax return filing & payment
• HMRC collects over £1bn from criminals and tax offenders
• Call for evidence: Additional Dwelling Supplement 
• OECD publishes 15% global minimum tax rate details that will raise $150 billion
• COVID-19: taxing coronavirus support payments
• Partner's criminal charge legal fees allowed
• Class 3 NICs were paid in error 
• How to claim back import VAT and duties 
• Revenue and Customs Brief 15 (2021): Repayment of VAT to overseas business not established in the EU and not registered in the UK  
• Personal allowance: who is entitled to claim?
• Basis Year Reform
• Property Profits & Losses Toolkit 2021-22
• Dividend taxation for non-UK residents
• CGT: Loans to traders relief
• Joint Property: legal v beneficial ownership
• CPD: VAT: Land and Property  ...More 

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