Nichola's SME Tax Update 3 February 2022

Hello,

Having filed the last set of outstanding Self Assessment returns, February is a time to get 'tax fit' with our Virtual Tax Partners' Tax Workouts.

We are launching our new season's workouts with a run-through Business Asset Disposal Relief (BADR), a well-known tax relief that is deceptively tricky by nature. If you have used our Virtual Tax Partner Tax Tools (available on subscription) you might have noted that we have BADR tools for sole traders and company owners. These are still my favourite tax tools of all time!

We have picked out some useful tax cases of interest. One caught my eye concerning a claim for VAT educational exemption on the supply of dog grooming courses. The claim did not succeed because the taxpayer was unable to demonstrate that it was a subject ordinarily taught in schools or universities. You may well scoff at the thought of making such a claim, however, as the tribunal noted, some 88 further education colleges in England offered these courses and 57 of those provided a qualification of some sort. Furthermore, the centre was City & Guilds approved and the courses offered were Level 2 and Level 3 which are equivalent to GCSE and AS/A level respectively. If the chancellor is looking at post-Brexit VAT reform then surely, there must some scope for expanding VAT relief beyond its current scope.

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.

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VAT Cases & Guides 

Dog grooming courses: Not VAT exempt 
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Tax Toolkits 

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CPD for lunch 

Byte-sized chunks of CPD for subscribers

• CPD: Business Asset Disposal Relief
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More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 27 January 2022

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