Wading through the sea of this summer's tax consultations we find that the Office of Tax Simplification is considering radical changes to small business taxation.
This follows on its earlier suggestion that Income Tax and NICs should be joined up. Disincorporation could be made popular by creating a new tax relief. It's an interesting idea: we may see a large drop in companies thus achieving the goal of less red tape for those who go back to being sole traders or LLPs. The thought occurs, perhaps Companies House can be disbanded at the same time. That would save a bit of cash.
Lots of interesting news items this time (on FREEVIEW) and subscribers, please scroll down to see an update summary.
Best wishes
Nichola
Nichola Ross Martin FCA
Tax Director
www.rossmartin.co.uk
Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients
News and FREEVIEW
HMRC updates its guidance and we summarise it.
VAT and green fees
Why HMRC will not change its guidance following a recent case...it is lodging an appeal.
VAT flat rate scheme
HMRC eventually amends its guidance to exclude bank interest from turnover.
Delaware LLCs: company or partnership?
A private equity boss tests HMRC's interpretation of LLCs. Why it took so long for this issue to come up.
A simpler income tax for the smallest businesses?
The OTS considers cash accounting and fixed rate expense allowances as an alternative to GAAP.
Disincorporation of small companies
The OTS considers the case for a new disincorporation relief: is demand sufficient to justify the complexity?
Tax Agent proposals: tax bodies broadly supportive
The CIOT and ATT make their suggestions to self-serve by agents.
Companies House dumps iXBRL...for now
Compulsory e-filing postponed until 2015
Contractor loses fight against retrospective tax
Anti-avoidance legislation does not breach your human rights if you choose to take part in a tax scheme.
31 July reminders: HMRC runs out of paper
500,000 taxpayers affected
Guides and updates
For PAID subscribers (because you are so special :)
Recent new guides and updates
Repairs and renewals
UPDATE: resurfacing a farm track, revenue or capital?
NEW: what is the difference and why is it important for tax? We summarise HMRC's latest guidance. Joint property elections
UPDATE: new links, following new guidance from HMRC.
Salary sacrifice schemes and VAT
UPDATE: from 1 January 2012 employers must account for Output VAT on salary sacrificed in return for taxable benefits.
Pensions: tax rules and planning
UPDATE: HMRC has recently amended its pensions guidance for 2011/12 this guide explains the complicated changes in recent years.
Pensions planning for directors
UPDATE: this looks at contributions in specie and various other planning aspects.
UPDATE: the US now confirms that the Remittance basis charge is an income tax for which foreign credit is allowable against US tax.
Recent additions and updates:
Interest: paid on loans from directors
NEW: mini-guide. Is interest paid gross or net? At what rate? Tax relief when irrecoverable.
Capital Gains Tax: Entrepreneurs' Relief
UPDATE: new sections including planning points and pitfalls for private company shares
Valuation (of goodwill) on incorporation
UPDATE: new examples for small & lifestyle businesses.
Goodwill: trade related properties
UPDATE: new tabs, clearer guidance on valuation with new links.
Our favourite summer topics:
Furnished Holiday Letting
UPDATE: ensure clients are ready for the changes.
Capital allowances
2011/12 updated: take a tour of the section.
ABC shares: family companies
A guide that examines the tax consequences of creating new share classes.
Incorporation
UPDATE: a section of the site with guides on valuation of goodwill, tax avoidance issues, and worked examples.
Accounts health check (self-employed)
UPDATED: a general re-write with more interactive links.
These guides consider the different methods available for extracting funds from a company.
Directors' loan accounts: toolkit
UPDATE: for 2011/12
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