Nichola's SME Tax W-update 24 August 2023

Hello

In our news from HMRC this week we have another Employer bulletin, and HMRC reports that it is still having technical delays both in sending out Corporation Tax return submission responses and in making its new overlap profits service work properly. 

Meanwhile, we are continuing on our never-ending mission of updating and 'fettling' this website. This is to update the detail in our guides now we have the final legislation in Finance (No 2) Act 2023 and also because we like to review guides and improve the writing and layout, and update examples etc. It's an engaging process which often involves a lot of thought about where to put things and what to call them. Then there are the 'rabbit holes'. So often we start updating one guide in one area which then leads us to follow links into another article in a totally different part of the site. We read and perhaps edit that, which then takes us on to something else. Before you know it there are about 20 tabs open in the browser. Some of our guides and updates picked out this week reflect that randomness!

Enjoy the bank holiday. 

More news 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)  

CT600 submission response delays
HMRC have updated users on a new delay when filing a company's CT600. Some taxpayers may be experiencing a delay in receiving the online return submission response.

Employer Bulletin: August 2023 
HMRC have published their Employer Bulletin for August 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.

Tax in the 'silly season': UK IHT pipped by cow 'burp tax'
A general election looms in New Zealand, the ruling Labour Party has delayed its greenhouse gas tax emissions created by farm animals proposals until the end of 2025. 

High-End Television claim half of creative industry reliefs 
HMRC has released statistics on the number and value of claims for the entertainment industry relating to accounting periods ending in financial years up to March 2022 highlighting a sharp rise High-End Television (HETV) tax relief claims dominated by 'big' productions. 

Tax Cases

Loan relationships: Look to wider group for unallowable purpose
In JTI  Acquisitions Company (2011) Limited v HMRC [2023] UKUT 194, the Upper Tribunal (UT) agreed with the First Tier Tribunal (FTT) that whilst the appellant made a commercial acquisition using a group loan, the wider group strategy of securing a UK deduction meant it had an unallowable purpose.

Editor's Choice 

At a glance: How to calculate Inheritance Tax (freeview)
What is Inheritance Tax (IHT)? When is IHT charged? How do I calculate IHT on a person's estate? What rate of IHT applies?

IHT Business Property Relief: Clearance
UPDATE: Can I apply for an HMRC clearance that Business Property Relief will apply? How do I apply?

Tax Tools 

Tax calculators
FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes. 

Tax Tools
FREE add-on for subscribers, or available separately

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 (subscription content)

Start-ups

 A new company? Start here
This 'At a glance' guide is essential reading for anyone thinking about starting up a new company.

Directors & Companies 

Tax planning for university (parent's guide)
Our guide to the tax implications of planning for your children's education.

Capital reduction: Distributing capital reserves
Making Losses? Need a distributable reserve? What is a capital reduction? How do you implement one? When should a capital reduction be undertaken?

Private Client & Estate Planning

Divorce & Separation: Toolkit
UPDATE: A summary of the tax implications which can arise on divorce and separation. 

Share for Share exchanges
UPDATE: for new measures apply to transfers to non-UK companies

Capital Allowances

What expenditure qualifies for plant & machinery allowances? 
What is plant and machinery? What expenditure qualifies as plant and machinery? What is treated as part of a building? 

Land & Property

SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? What garden and grounds are subject to higher rates of SDLT?

Penalties & Compliance

Closure notices
When does HMRC issue a Closure Notice? Can a taxpayer demand one? Are there appeal rights?

AML: Anti-Money Laundering Procedures and Checks
A subscriber guide to Anti-Money Laundering (AML) procedures and checks, including what factors to consider when taking on a new client and conducting your 'know your client' procedures. 

VAT Guides & Cases

Goods or services for VAT
UPDATE: What are goods and what are services for VAT? The answer may have an impact on the time of supply, the place of supply and in some cases the rate of the supply. The answer is not always as straightforward as it may seem.

Groups (VAT)
UPDATE: What are the conditions for forming a VAT group? What rules apply once a VAT group is in place? 

CPD for Lunch

Byte-sized chunks of lunchtime CPD for subscribers

• NEW: CPD: Landlords Update 2023
• CPD: VAT Penalties Update
• CPD: Maximising Expense Deductions for Businesses
• UPDATE: CPD: Non-Resident CGT: UK Property

More at CPD Index

CPD Workouts

Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects

• VtaxP Tax Workouts 2023: AML Essentials update & IHT and Family Investment Company case studies
• VtaxP Tax Workouts 2023: Tax Update for OMBs & Taxing the Digital Nomad

Tax Queries?

UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?

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.  

Missed Last Time's Web-update?

Nichola's SME Tax W-update 17 August 2023 

• Agent Update: August 2023 
• RTI returns due for payments to director 
• Basic CGT principles not understood
• No exemption from HICBC for someone else's child 
• Provisional and estimated figures in tax returns NEW
• Small Producer Relief (alcohol) NEW
• Flat rate scheme: Farmers UPDATE
• Food: Catering and takeaway UPDATE
• NEW: CPD: Landlords Update 2023 ...More

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