This is a very busy time for most of us. Have you done all you need to for this tax year? Are you getting ready for the new tax year?
Let's have a quick think about what you may need to do this month: calculate and run the final payroll of the year, ensure that your personal pension or employer pension contributions actually clear the bank by the end of the tax year or end of your accounting period, calculate, vote and pay dividends ahead of the change in dividend rates, purchase capital equipment, make charitable donations (under Gift Aid if you are an individual), and perhaps open/contribute to an ISA, if you have any change left after paying the gas bill.
In terms of the new tax year, there are well-publicised changes afoot including an increase in the tax rates which applies to dividends and distributions, National Insurance contributions, and s.455 tax on loans to directors and shareholders.
In terms of VAT, all VAT registered businesses move into Making Tax Digital for VAT from 1 April and have to start reporting using functional compatible software, unless they have a reasonable excuse for being unable to file.
The high-level fraud claims in respect of COVID-related support payments seem to have pushed the government into accelerating the need to clean things up at Companies House. We have a look this week at the proposed new measures that aim to ensure that UK registered companies operate on a more transparent basis and cannot so easily be operated by criminals working behind a wall of corporate directors. All change for small company accounts too.
We have also made a summary of forthcoming changes to Business Rates; a new requirement for a three-year reporting cycle means that clients may require your assistance in this kind of tax, in the future, too.
More news, views and CPD updates are below, read on!
Nichola Ross Martin FCA CTA (Fellow)
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Quick News (Freeview)
Avoid penalties: pay your tax or arrange time to pay by 1 April 2022
Taxpayers who have not yet paid tax due under Self Assessment for the 2020-21 tax year must either make payment in full or agree time to pay arrangements with HMRC by 1 April to avoid late payment penalties.
Employment-related securities: What’s New? March 2022
HMRC's latest Employment-Related Securities Bulletin contains some useful information. Here is our enhanced version.
Report a discrepancy about a beneficial owner on the PSC register
Accountants, professional advisers and other 'obliged entities' can now report a discrepancy about a beneficial owner on the Persons of Significant Control register online.
Wasteful: costly findings of MTD research
The methodology behind HMRC's latest research into the benefits of error reduction created by Making Tax Digital for VAT is pure 'hogwash'.
Editor's Pick (subscribers)
Companies House: What's New?
Small & Micro companies will have to file full profit and loss and balance sheets as part of reforms introduced in the Government's 'Corporate Transparency & Register Reform White Paper'. Further reforms give new powers to the Registrar including identity checks for directors and restrictions on corporate directorships.
Business Rates: What's new?
The government is exploring different methods for the reform of business rates. Proposals, including three-year rating valuations and have been set out in a number of different consultations as set out below.
Guides & Updates (subscribers)
Dividends & distributions
UPDATE: Are you ready for the change in the tax rate on 6 April 2022?
UPDATE: Employers and Self Employed both see a rise in the rate of Class 1, Class 1A and Class 4 National Insurance.
Directors & Companies
Year-end top tips for OMB's 2021/22
NEW: Last-minute year-end tax planning advice for owner-managed businesses and clients. What should you focus on as the 2021-22 tax year-end approaches? What should you do before 5 April and what could you leave until later?
Pension contributions: Personal or company?
Is it more tax efficient to pay pension contributions personally or via your own company?
Land & Property
Residential Property Developer Tax: At a glance
UPDATE: What is the Residential Property Developer Tax (RPDT)? What is residential property and who is a developer? Are there any allowances or exemptions?
Freeports: Tax breaks
UPDATE: What are Freeports? Where are they located? What are the tax advantages?
Private Client & Estate Planning
Private client: What’s on? 2021-22
It's been a year of two Finance Acts: this update includes measures from both documents as well as considering other topical private client issues for advisers and their clients.
SRT: Statutory Residence Test
UPDATE: What is the statutory residency test? Why is it important and how does it work?
UT: CIS Gross Payment Status removed eight years after compliance failures
In HMRC v RMF Construction Limited  UKUT 00067, the Upper Tribunal (UT) overturned the FTT decision allowing an appeal against the removal of CIS Gross Payment Status. The decision to remove the status was based on compliance failures and that these failures happened eight years before the status is to be removed did not make its removal disproportionate.
No reasonable excuse for DIY taxpayer
In Alastair Fergusson v HMRC  TC08415, the First Tier Tribunal (FTT) upheld penalties and interest caused by the late filing of SDLT returns and subsequent payment. The taxpayer had attempted to file the paperwork for the property purchase himself and not met the appropriate requirements and deadlines, he had no reasonable excuse.
Court of Appeal: Gas storage caves are not plant
In Cheshire Cavity Storage 1 Ltd & Anor v HMRC  EWCA Civ 305 the Court of Appeal agreed with the lower courts that underground gas storage cavities were not plant so were not eligible for plant and machinery capital allowances.
Closure Notice defects: no reasonable excuse
In William Archer v HMRC  UKUT 00061, the Upper Tribunal (UT) dismissed an appeal by Mr Archer against the penalty surcharge notice issued by HMRC for £1.4 million in relation to unpaid tax of approximately £14 million. There was no evidence to show that the belief that the Closure Notices were invalid was the reason for non-payment of tax.
Freedom of Establishment infringement was justified but disproportionate
In HMRC v Volkerrail Plant Ltd & Ors  UKUT 00078, the Upper Tribunal (UT) found that whilst the restriction to the group relief provisions, as previously set out in s403D ICTA 1988, did infringe upon the EU Freedom of Establishment, the restriction was justified as a matter of public interest.
VAT Cases & Guides
Revenue and Customs Brief 6 (2022): Lennartz mechanism and VAT accounting
HMRC have published Revenue and Customs Brief 6 (2022): ‘Lennartz mechanism and VAT accounting’. This explains what VAT registered businesses should do to avoid overpaying VAT where they continue to use the Lennartz mechanism in respect of arrangements entered into before 22 January 2010.
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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: IHT: Transferable Nil Rate Band
- CPD: The High-Income Child Benefit Charge
- CPD: Business Asset Disposal Relief
More at CPD Index
Missed last time's Web-update?
- Bulk filing for late filing penalties back for 2020-21
- Companies get a faster loss claim online
- Wales increases second home tax by 300%
- Film scheme QC eludes negligence claims
- Calendar of tax deadlines and new tax measures
- Despite FTT sympathy ADS not repaid
- No IR35 for broadcaster: it had wider business interests
- Revenue and Customs Brief 5 (2022): Revised guidance on dealing with VAT grouping registration
- Nursing agency falls foul of VAT changes
- Consultation on Welsh holiday lets and Business Rates
- PAYE: HMRC prioritise improvements
- OTS review of its approach to simplification
- UK owes EU over undervalued Chinese goods, says ECJ
- Finance Act 2021: Tax Update and Rolling Planner 2021-22
- Finance Act 2022: Tax Update and Rolling Planner 2022-23
- Conditionality: taxi, private hire vehicles and scrap licenses
- Patent Box
- Accelerated Payments & Follower Notices ...More
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