This time: we have updates on PAYE penalties (with examples), a new VAT section and lots of news.

I have long been a critic of HMRC's apparent double standards in not only its dealings with large corporates (Vodaphone, Goldman etc), but also its attitude to tax agents. Two new Commissioners have just been appointed from within HMRC, one of whom is a Chartered Acccountant with an industry background. This means we will have five HMRC Commissioners as Dame Lesley Strathie has just resigned due to ill-health, of which three have some kind of tax know-how. If we can just balance this for agents by also having a Commissioner at the helm who has worked at SME level in the private sector then I think those of us at the coal face will all feel a bit more confident about the future.

The Tax bodies (that's the CIOT, ICAEW, ATT etc) have all given HMRC's plan of "Digital by Default" the thumbs down for now. They want to wait for current systems to bed in and they also want to give people choice. That is quite apt, as I write this our broadband is on the blink yet again (something to do with the rain it seems), so no hope of surfing the net more like swimming in leaky waders.

We are now 2 years old, so I would like to say a big "thank you" to everyone for your support. Keep on reading...

Best wishes


Nichola Ross Martin FCA
Tax Director
Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients



Digital by Default? Tax bodies say “No thanks”
HMRC's plans for compulsory online filing remain unpopular due to lack of countrywide broadband.

iXBRL: HMRC are you bonkers...
Or just hopeful? CT online filing declared a success before systems capable of receive a CT return

VAT: end of concession caravan owners
Pitch fees may now include VAT on recharged costs

New tax guide to PAYE underpayment letters
LITRG create step by step guidance

Error or mistake? Challenge over HMRC’s Goldman Sachs deal
Campaigners threaten HMRC with its own medicine

Bona Vacantia: concession dropped
Striking off requires a Capital Reduction...More

New Commissioners at HMRC
Board given more tax know-how

Guides and updates

these are FREEVIEW

PAYE: late payment penalties
UPDATE: we have addded examples

VAT: a whole new section
NEW: toolkits, practical guides and updates

IHT: new relief on deathbed bequests to charity
but...donors (and charities) can do much better using Gift Aid

Savings & ISAs
Introducing the Junior ISA and new limits for 2012/13

For PAID subscribers (because you are special :)

Essential reading this time:

VAT: toolkit
NEW: VAT in 3 minutes, our version of HMRC's toolkit (but we also include planning points)

VAT: income splitting (single supply directions)
NEW: essential reading where you have couples setting up businesses from the same premises

VAT: reclaims
NEW: are you aware of possible opportunities for clients to claim refunds of VAT or to submit protective claims?

PAYE: late payment penalties
UPDATE: we have addded examples

Recent updates

Joint property: legal v beneficial ownership
UPDATE: a rewrite, this guide explains the differences, looks at transfer of beneficial ownership, issues for spouses and Declarations of Trust

Repairs and renewals
UPDATE: new "At a glance" section & case law: highly recommended

Capital reduction: distributing capital reserves
UPDATE: why and how to guide for advisers

Bona Vacantia & striking off
UPDATE: a summary of the key issues for advisers to watch out for and advise clients

Capital reduction with a purchase of own shares
UPDATE: this is a very complicated combination, so we have created this checklist

Capital reduction: tax treatment
UPDATE: this guide examines the position where a capital reduction is used and trading is ongoing.

Broadband (Employer's guide)
NEW: our at a glance guide summarises the different combinations and their tax treatment.

Tax penalties: grounds for appeal
UPDATE: cases added for reasonable excuse and reliance on accountants. Note VAT and direct tax differences.

Finance Act 2011: tax planner
UPDATE: our rolling CPD tool is designed to keep you on top of key legislative changes and announcements.

Can I back-claim capital allowances on residential property?
UPDATE: a rewrite of this guide with improved links.


Starting in business: start here
NEW: menu and tax summaries

Joint property elections
UPDATE: HMRC change Form 17

Ceasing trading: overview
UPDATE: a summary of the mechanics for companies with a look at the tax on final distributions

Retirement: a purchase of own shares
NEW: menu and summary

Recent updates

Running an LLP in tandem with a company
UPDATE: in tandem or corporate partners? Lots of plusses and minuses for professional practices.

Employment status checklist
UPDATE: following the Autoclenz decision clients may wish to review their working relationships with self-employed subcontractors.

Employment status: directors
UPDATE: the difference in treatment of office holders under tax and employment law.

Employment status: partners
NEW: this guide considers a problem for some professional firms.

Furnished Holiday Letting
UPDATE: a major rewrite to include 2011 FA provisions including examples on Averaging and Period of Grace reliefs.

Business Property Relief: holding companies
UPDATE: following recent queries we have included further examples to deal with mixed trading groups.

Joint property elections
UPDATE: new links, following new guidance from HMRC.

Goodwill: trade related properties
UPDATE: new tabs, clearer guidance on valuation with new links.

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.



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