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This week we have news 'hot off the press' on the Chancellor's 'windfall' tax measures, the third in our series of guides about selling a company, a Capital Taxes round up, and a selection of updates and interesting case reports.

The Public Accounts Committee (PAC) report on IR35 Off-Payroll Working reforms reveals its concern as to whether the reforms are actually costing more than they are bringing in. They make several recommendations to HMRC on how to improve the system.

Essential reading for accountants in practice is our summary of this month’s Agent Update and an update to our guide covering the finalised Consultative Committee of Accountancy Bodies (CCAB) Anti-Money Laundering (AML) guidance for the accountancy sector which incorporates recent changes to the AML rules.

This week’s cases include a second failed attempt by a partner in a Limited Liability Partnership to claim Entrepreneurs’ Relief (now BADR) for a trade that had not yet started and a look at the VAT treatment of the sub-contracted supply of services in connection with the installation of burial vaults! HMRC seemed to think they were not made ‘in connection with the disposal of the remains of the dead’. It’s fair to say that some of the strangest cases come out of the VAT legislation.

One of our updates this week relates to our guide to Electric Vehicles (EVs). With government plans for us all to drive EVs by 2030, and much discussion this week about the cost of living and windfall taxes, it has got us thinking about the loss to the treasury if we all stop buying petrol and diesel and go electric. How will the government make up the tax shortfall? Will Vehicle Road Fund Licence simply go up? Will the current incentives to have an electric company car be replaced with high benefit in kind rates? Or will we have to ‘pay as we go’ to use certain roads or drive a certain number of miles? It will be interesting to see which routes the government chooses to take.

Lots more exciting content and updates below. 

Back soon, 

The Team 

www.rossmartin.co.uk

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

Quick News (Freeview) 

Windfall tax measures
The Chancellor, Rishi Sunak, has today announced a raft of support measures to deal with the rising costs of living including a temporary windfall tax for oil and gas companies and extra payments to low-income families.

Agent Update: May 2022 
HMRC have issued their Agent Update for May 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.  

PAC slams IR35 implementation
The Public Accounts Committee (PAC) has released a report 'Lessons from implementing IR35 reforms'. It is highly critical of HMRC and government bodies in their implementation of IR35 and said it was “not acceptable” that central government was paying out to cover tax owed for individuals who had been wrongly assessed as self-employed.

Reclaiming tax deducted at source on PPI interest
Interest received on Payment Protection Insurance (PPI) claims is taxed at source at the basic rate meaning non-taxpayers have to submit a repayment request to HMRC. Due to the level of claims received, HMRC is developing a new automated process for dealing with these requests.

Advisory fuel rates from 1 June 2022
HMRC have published new advisory fuel rates for company car drivers which apply from 1 June 2022. 

Editor's Pick (freeview)

CCAB update their Anti-money laundering and terrorist financing guide
Following Treasury approval, this guidance must be followed by accountants (including tax advisers and insolvency practitioners) in order to comply with their obligations under UK legislation to prevent, recognise and report money laundering.

Editor's Pick (subscribers)

A sale of the company's trade & assets? Start here...
UPDATE: Part three of four of our series of planning aids for selling your business. You are selling a company's trade and other assets. What next? 

Capital taxes update 2022
NEW: A round-up of developments in capital taxes for 2022 including some topical Capital Gains Tax (CGT) and Inheritance Tax (IHT) cases.

Guides & Updates (subscribers)

Self-employed

Partnerships: Losses
UPDATE: How are losses treated for partnerships? What loss reliefs are available to partners and what restrictions are there? 

A to Z Index for different trades, professions & vocations
What expenses can you claim if you work in a certain type of business? These subscriber guides summarise the key tax treatments for different types of self-employed sole trader or partnership. 

Companies 

R&D Tax Relief: Overview
UPDATE: What is R&D Relief? How does it work? Why does the size of the company matter? What is sub-contracted R&D? How do I write an R&D Report?

Overseas

Overseas Workday Relief (OWR)
UPDATE: What is Overseas Workday Relief (OWR)? When does it apply?

Non-resident Tax Toolkit
UPDATE: This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.

Land and property

Non-Resident Landlord Scheme
UPDATE: What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction? 

Employers 

Electric Vehicles: Update
UPDATE: With the increased recent focus on climate change and the government’s plan to ban new petrol and diesel car sales by 2030, we provide an update of the tax issues businesses and their employees should consider when acquiring or providing an electric vehicle.

Pecuniary Liabilities
UPDATE: Where an individual incurs a liability personally but it is paid by their employer special rules apply. This is referred to as settlement of a Pecuniary Liability.

Private Client & Estate Planning 

Dividend taxation for non-UK residents
UPDATE: This guide considers how the introduction of the dividend taxation legislation from 6 April 2016 affects non-UK residents who are in receipt of dividends from UK companies.

IHT: Main Residence Nil-Rate Band (RNRB)
UPDATE: What is the Main Residence Nil-Rate band? When was it introduced? How does it work? Who can claim it?

Tax Cases (freeview)

Ignoring Follower Notices was reasonable in the circumstances
In David Andreae v HMRC [2022] TC08473, the First Tier Tribunal (FTT) allowed appeals against Follower Notice penalties. It was reasonable given the circumstances that the taxpayer did not take corrective action within the time limits. They had actively sought and relied on advice from the promoter and sought a second opinion once confidence in the promoter had been lost.

Discovery valid due to careless agent  
In Timothy and Alison Johnson v HMRC [2022] TC08483, the First Tier Tribunal (FTT) found discovery assessments were validly raised as the appellant’s tax agent had been careless in omitting compensation payments from their tax returns.

ER claim fails again due to lack of trading activities  
In John Douglas Wardle v HMRC [2022] TC08485, the First Tier Tribunal (FTT) upheld HMRC's decision to deny Entrepreneurs' Relief as the appellant's LLP had yet to start trading. Mr Wardle was appealing the decision less than a year after losing an appeal on similar grounds for another partnership disposal.

VAT Cases & Guides 

Reverse Charge: Domestic
UPDATE: Domestic reverse charge VAT is a mechanism designed to prevent VAT fraud. When does it apply? How does it operate? 

Death and taxes: installation of burial vaults exempt from VAT 
In Hodge and Deery Limited v HMRC [2022] TC08484 the First Tier Tribunal (FTT) found that a company installing pre-formed burial vaults was making an exempt supply for VAT purposes.  

Tax Tools 

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 19 May 2022 

 

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