Nichola's SME Tax W-update 4 August 2022

Hello,

This week we have a 'hybrid working' tax review, a call for evidence on tax reliefs, interesting statistics on Inheritance Tax (IHT), a look at some unusual global tax announcements and record fines for accountancy firms.

Hybrid working (working partly on an employer’s premises and partly from home) has the potential to become 'the norm' for many service businesses. It’s strange to think that just a few years ago our company was informed by a recruitment consultant that we were ‘totally unique’ as an employer in the tax sector in allowing our staff to work 100% from home. What a difference a global pandemic makes. We can no longer claim to be unique now that so many employers view home-working quite differently since COVID-19 lockdowns forced them to close their offices. The Office of Tax Simplification (OTS) has decided to look at the tax impacts of hybrid and distance working: I for one am very interested to see what they find. Of course, if you work from home, 'home' can be anywhere in the world. A point taken up by the government of Indonesia, which has just announced special tax breaks for all those 'digital nomads' who choose to base their businesses there.

Very tempting, but when you have a summer this warm in the UK, there is still no place like home!

News, cases and updates below.

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) 

OTS reviewing tax implications of hybrid and distance working
The Office of Tax Simplification (OTS) has published a scoping document examining the emerging trends and tax implications of hybrid and distance working.

HMRC’s statistics on non-doms and IHT 
HMRC have recently released annual statistical updates, one covering non-UK domiciled taxpayers and another covering Inheritance Tax (IHT) and associated reliefs. We summarise some of the key and interesting figures.

Call for Evidence: Tax Reliefs 
The Treasury Committee has issued Call for Evidence: Tax Reliefs.  This seeks vies on the reliefs available for individuals as well as businesses and seeks to review the benefits they provide to the economy.

Global tax with the good, bad and the ugly
A monthly side-ways look at tax news from around the world. This week we've got record national tax revenues, record billionaire tax avoidance, a Bali break and a lesson on how to get a Democrat to pay for a Republican tax cut.

ICAEW firms receive record fines
Professional services firm KPMG have played a pivotal role making 2021-22 a record year in terms of the level of fines and sanctions issued by the Finance Reporting Council (FRC) to firms of accountants. Total fines for the year amounted to £46.5million, of which over half related to KPMG. Fines in the previous 12 months amounted to some £42m. 

Editor's Pick (Freeview) 

Property profits & losses: Toolkit (2022-23)
UPDATE: Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual.

Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax significant events. 

Guides & Updates (Subscribers) 

Land & property  

Land: future consideration (overage)
UPDATE: A guide to the tax treatment of future consideration payable on the disposal of land.

Profits from dealing in or developing UK land
A guide to the rules which replaced the old Transactions in Land provisions and extended UK taxation to all profits from trading in and developing UK land, regardless of residence.

Penalties & Compliance

Client Briefing: How to avoid penalties for carelessness?
Client briefing: how do you avoid penalties for carelessness when preparing your tax return?

General Anti-Abuse Rule (GAAR)
This guide looks at the key features of the General Anti-Abuse Rule (GAAR) contained within the Finance Act 2013, what areas of tax it covers, and what you need to know about the provisions it contains when considering tax planning. 

Companies & Shareholders

Director's Tax Planning toolkit 2022-23
UPDATE: This planner looks at a range of director tax issues, including company profit extraction. 

Do I pay a salary or dividend?
UPDATE: a look at tax-planning points and pitfalls of using dividends to create a tax-efficient pay package

Employers 

ABC shares: setting up share classes with different rights for directors & employees
Can you set up different classes of shares? How do you create Alphabet or ABC shares? What are the rules in giving different classes of shares to directors and employees? 

Employment-Related Securities & Share Schemes
What are the tax consequences when a company gives shares to an employee or director? What are employment-related securities? What is best: shares or share options? How do you set up a share scheme?

Private Client & Estate Planning 

Gardens: selling or developing
UPDATE: What are the tax consequences of selling a garden for development purposes? What if the owner develops the garden?

Which investment relief: IR, BADR, SEIS or EIS?
What is the difference between Business Asset Disposal Relief (BADR) and Investors' Relief? How do they compare to investments in the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS)?

Overseas & Residence

SRT: Split Year Treatment
What is Split Year Treatment? When does it apply?

Capital allowances

Annual Investment Allowance (AIA)
What is the Annual Investment Allowance? What are the limits? What expenditure qualifies?

Time limits for making claims & adjustments
What is the time limit for making a claim for capital allowances? What is the time limit for amending a capital allowances claim?

Tax Cases (Freeview)

No CGT deduction for collective legal costs
In Jonathan Mark Slade & Jonathan James Slade v HMRC [2022] TC08548 the First Tier Tribunal (FTT) found legal expenditure incurred defending rights to a number of assets collectively was not an allowable deduction for CGT purposes when one of those assets was sold alone.

NTLR debits on $4 billion loan disallowed due to unallowable purpose 
In HMRC v BlackRock Holdco 5, LLC [2022] UKUT 00199, the Upper Tribunal (UT) held that loan relationship debits claimed as part of an intra-group financing arrangement were wholly attributable to the unallowable purpose of the lending and not the commercial purpose and were denied.

VAT Cases & Guides 

Opting to tax land and property
UPDATE: What is an option to tax? What do I need to do to opt to tax? What happens if I buy an opted property?

Online Marketplaces: Joint and several liability
UPDATE: Online marketplaces can be held jointly and severally liable for the VAT of an overseas business that is not established in the UK and which sells goods in the UK via their website. What do online marketplaces need to do? 

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

• NEW: CPD: MBOs: How should they be structured?
• NEW: CPD: Setting up a corporate group
• NEW: CPD: VAT update 2022

More at CPD Index

Missed last time's Web-update?

Nichola's SME Tax W-update 28 July 2022

• Agent Update: July 2022 
• 60-day CGT returns required despite reporting under Self Assessment
• 2018 Employment Status consultation outcome is bad news for workers
• Consultation on improving the data collected by HMRC 
• Helping taxpayers get offshore tax right, Consultation outcome
• Directors' responsibilities and duties
• Time to Pay agreement
• GAAR: Repayment of a participator loan through transactions involving group companies (freeview) 
• FTT reluctantly denies CJRS claim 
• No Business Property Relief for apart-hotels
• Chaotic records lead to tax on unexplained payments 
• Land & Property: DIY Housebuilders scheme
• Is voluntary VAT registration worthwhile?
• Record-keeping & tax: What, how and until when?
• Ceasing trading: What are your options?
• Trust Registration Service
• Joint property: legal v beneficial ownership
• Overseas Workday Relief (OWR)
• Super-deduction & First Year Allowances
• NEW: CPD: MBOs: How should they be structured?
• NEW: CPD: Setting up a corporate group ...More 

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