Autumn has certainly arrived this week with cold weather and dark nights! Whilst for many people this means pumpkins, fireworks and falling leaves, we know that for accountants and tax advisers, it marks a major ramping up of Self Assessment activity as the filing deadlines approach.
With this in mind, we are featuring some of our favourite tax return-related guides to help you with the more complex areas of Self Assessment that crop up at this time of year. With 12 days to go before the paper return filing deadline on 31 October, we note that HMRC have backtracked on their plan to force everyone into online filing, making the printable Self Assessment return available online once again.
We have a new Employer Bulletin from HMRC, and confirmation after much speculation, that HMRC does not agree that an ISA can hold fractional shares. This puts into question the tax-free status of many investors’ ISA holdings and may result in additional tax charges. We await next month's autumn statement to see if the Chancellor has anything to say about this.
Finally, if you are filing RDEC R&D claims, beware of a glitch in the CT600 return forms following the introduction of the new additional information form, which is causing HMRC to automatically reject claims. Since this will not be resolved until next year, we recommend that those who are affected put a note in the white space in their return advising HMRC that their Additional Information Form has been submitted even though they cannot tick the box on the return to say so.
More news, cases and updates below. Do check out the Editor's Choice.
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Quick News (Freeview)
Employer Bulletin: October 2023
HMRC have published their Employer Bulletin for October 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
HMRC say that ISAs can't hold fractional shares
HMRC have confirmed that they do not consider that fractional shares can be held by ISAs, meaning that taxpayers who hold investments in this way may have to sell their holdings and pay tax on any resulting gains.
New statistics show CGT up 27% on trusts
HMRC have published 'Statistics on trusts in the UK October 2023'. Three-quarters of the trusts registered signed up between 1 April 2022 and 31 March 2023 as a result of new rules. Capital Gains Tax payable increased by 27% in the tax year ending 2022 when compared to the previous year.
SA paper return available online as deadline looms
As the deadline for submitting a paper tax return by post for 6 April 2022 to 5 April 2023 is 31 October, HMRC have relented on a previous policy and have advised that they would accept a properly completed, downloaded copy of the reference Self Assessment tax return available from GOV.UK.
R&D CT600 glitch causing submission errors
HMRC have highlighted an issue with their software and the submission process when filing an R&D tax relief claim. The issue is affecting companies claiming the Research & Development Expenditure Credit (RDEC).
Ramsay principle catches partnership tax planning
In BCM Cayman LP & BlueCrest Capital Management Cayman Limited v HMRC  EWCA Civ 1179, the Court of Appeal (CoA) found that a series of pre-ordained transactions kept beneficial ownership of profits with the taxable entity under the Ramsay principle, and so within the charge to UK Corporation Tax.
No £30,000 exemption for payment for loss of share options
In Peter Hemingway v HMRC  TC 08929 the First Tier Tribunal (FTT) agreed that an amount paid to compensate an employee for the cancellation of stock options was taxable. The Employment-Related Securities (ERS) legislation overrode the £30,000 exemption for a change in his employment rights.
Editor's Choice (subscribers)
Online filing exclusions for 2022-23 tax returns
Some taxpayers will be unable to file their Self Assessment returns online for the year ended 5 April 2023, due to software specification issues from HMRC. Lists of filing exclusions for individuals, partnerships, trusts, and estates have been published.
Foreign income and residency pages: FAQs
How do you complete the foreign and residency pages of the Self Assessment return?
Offshore Income Tax Toolkit
This toolkit provides an outline of the tax issues for UK resident individuals with offshore income and investments.
FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
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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)
Accountancy & tax fees
Is tax relief available on accountancy and tax advisory fees? What costs need to be disallowed?
What journeys qualify for tax relief? Where is the base of operations? What is business travel? Can a home be a workplace? What case law is there?
PAYE Settlement Agreements
UPDATE: What are PAYE Settlement Agreements? How do they work? What can be included?
Directors & Companies
Stamp Duty: Share-for-share exchanges
UPDATE: How do you calculate Stamp Duty on a share for share exchange? What relief is available from Stamp Duty on a share-for-share exchange?
Transactions in Securities
What are the Transactions in Securities rules? When do they apply?
Private Client & Estate Planning
UPDATE: How does tax relief for a share-for-share exchange work? What are the rules for an exchange of shares or securities? Are there anti-avoidance rules to consider? Is tax clearance needed?
IHT: Main Residence Nil-Rate Band (RNRB)
What is the Main Residence Nil-Rate band? When was it introduced? How does it work? Who can claim it?
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
Disposal values & rules
What is a disposal for capital allowance purposes? What is the tax consequence of a disposal? What value needs to be accounted for on a disposal?
Vehicles (4 wheels): Allowances
What capital allowances are available for vehicles? How does HMRC classify what is a car or what is a van?
Land & Property
Annual Tax on Enveloped Dwellings (ATED)
What is the Annual Tax on Enveloped Dwellings (ATED)? Who does ATED apply to? What relief is available and how is it claimed? What are the ATED return filing dates?
Penalties & Compliance
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publishes a list of Named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC does not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
What is Overpayment Relief? When can you claim Overpayment Relief? What are the conditions for a claim for Overpayment Relief? What are the time limits for a claim for Overpayment Relief?
VAT News & Cases
VAT surcharges do not require assessment of VAT
In MJL Contracts Ltd v HMRC  UKUT 254, the Upper Tribunal (UT) found that there was no additional requirement placed on HMRC to make an assessment before imposing a surcharge penalty for non-payment of VAT
Staff, Bureaux or Agencies and VAT
What are the VAT issues when an employer supplies services to an employee or vice versa?
VAT fraud: What is the Kittel principle?
What is the VAT Kittel principle? What happens when the Kittel principle applies? What tests do HMRC and the tribunals apply? How can I protect my business?
Time of supply (Tax Point)
The time of supply of goods or services determines the date on which VAT becomes due. There are a number of different rules which must be considered.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- NEW: CPD: Corporation Tax Part 1: Rates and Challenges
- NEW:CPD: Corporation Tax Part 2 Associated Companies
- NEW:CPD: Corporation Tax Part 3 Augmented Profits & Marginal Relief
- CPD: Landlords Update 2023
More at CPD Index
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
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.
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