Hello,
This time we have a new Employer Bulletin from HMRC and a CPD special on Partnerships: What's New 2024-25. We also look at snail farming and business rates relief, Uber's VAT, what it means to be a child and there is good news for employers, the reporting of employee hours is deferred for now.
Our Partnerships update is for subscribers only and this is my pick of Essential reading this week. If you are looking and not subscribing, reply to this email to request a free trial or to learn more.
We have detected an unusual phenomenon. As many of you know we field tricky tax queries via our Virtual Tax Partner service and we regularly find, a bit like buses, that we will have a sudden spate of queries on similar topics. This week, for no detectable reason, demergers and share schemes are trending. In previous weeks we had a run of people asking what is the best vehicle to invest in property, while before that it was a focus on share for share exchanges and before that a rash of purchase of own shares and business sales.
We cannot tell why this happens, it's not as if we are running social media campaigns on these topics. There must be something in the wind! Some trends are a result of HMRC sending out letters. For example, we have been dealing with several investigations as a result of the Let Property Campaign. One thing is certain in tax, you can publish whatever you want and then you can guarantee that someone will ask you about something completely different!
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Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Employer Bulletin: August 2024
HMRC have published their Employer Bulletin for August 2024. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
Employee hours RTI data deferred
HMRC has confirmed that employers will not need to start providing more detailed employee hours data through PAYE Real Time Information (RTI) until April 2026. The draft legislation was previously expected to take effect from April 2025.
Free Study Skills Session: Preparing for Your Tax Exams
Free Study Skills Session: Preparing for Your Tax Exams on 10th September 2024 at noon.
Redesigned IHT100 forms
HMRC have recently redesigned and replaced the IHT100 suite of Inheritance Tax (IHT) forms which are used to report transfers by trusts and Chargeable Lifetime Transfers (CLTs) by individuals.
Tax Cases
Private Hire Vehicle Operators: Agent or Principal for VAT purposes?
In DELTA Merseyside Limited and Anor v Uber Britannia Limited [2024] EWCA Civ 802, the Court of Appeal overturned the High Court's ruling, finding that Private Hire Vehicle Operators (PHVOs) outside London can be treated as agents for VAT purposes.
What does it mean to be a child?
In Marcus v Marcus [2024] EWHC 2086 (Ch), the High Court found that a settlor’s non-biological child was their child for the purposes of being a trust beneficiary.
No agricultural relief for snail farm
According to various sources in the press, Liverpool Council has rejected a claim for agricultural business rates relief for an empty office building that was claimed to be used as a snail farm. In a previous case back in 2021, the courts ruled that a lease granted for a Heliculture business was a sham.
Editor's Choice
Partnerships: What's New 2024-25
NEW: What are the issues on Basis Year reform? What is the fuss about hybrid structures? Where are we on partnership tax appeals?
An Index to Share Transactions incl. Reorganisations, Demergers & Share Exchanges
What tax relief applies in a share transaction? When do you need a company reorganisation or reconstruction? What tax reliefs apply to a company reorganisation, a share for share exchange, reconstruction or other transaction involving shares?
Guides & Updates
Self-employed
Compare software for Making Tax Digital for Income Tax
UPDATE: Explanation of the three types of software for Making Tax Digital (MTD) for income tax. These are software packages, Application Programming Interface spreadsheets and bridging software.
MTD: Toolkit for accountants
UPDATE: Summary of the digital record-keeping requirements & quarterly filing deadlines.
Partnerships
Partnerships: Losses
What loss reliefs are available to partners and what restrictions are there? How to calculate a partner's capital contribution? What are the anti-avoidance rules?
Directors & Companies
R&D: Staff costs & reimbursed expenses
UPDATE: What staff costs qualify for R&D relief? What staff costs do not qualify for R&D relief? Do reimbursed employee expenses qualify for R&D relief?
Bona Vacantia & striking off
What is Bona Vacantia? What does this mean? How does it impact companies?
Land & Property
Abolition of the FHL regime: Briefing
UPDATE: HMRC have published draft legislation and related notes detailing how the abolition of the Furnished Holiday Letting (FHL) rules in April 2025 will operate. We consider the practical impact of the loss of the FHL rules and provide some essential planning points.
Penalties & Compliance
Failure to Notify Chargeability
What do you do if your receive a tax assessment of penalties? Start here.
Private Client & Estate Planning
CGT: Rollover Relief
What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset?
CGT: Rollover Relief: Exchanges of joint interests in land
This guide outlines the form of Capital Gains Tax (CGT) Rollover Relief available for exchanges of joint interests in land.
VAT News & Cases
Bad debts: VAT recovery
When can you recover VAT on a bad debt? How much VAT is payable to HMRC or recoverable from HMRC when only part of an invoice is paid?
Transfer Of a Going Concern (TOGC)
Buying a business and VAT, do you take over the old owners' VAT registration? What is a Transfer Of a Going Concern (TOGC)? What conditions must be met? What are the consequences of a TOGC?
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
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.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- NEW: CPD: Change of basis periods: Transitional rules 2023-24 Returns
- CPD: VAT Penalties Update
- CPD: CGT Reporting and payment deadlines
More at CPD Index
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 wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 15 August 2024
- Online platforms: ready for tax changes?
- ICAEW new £2m PII limit from September
- One-to-many letter that takes the biscuit
- Self-assessment: Check for HICBC
- Local authorities warned on trustee responsibilities
- Deathbed gift of registered land to be appealed
- Not one reason to reject MDR claim
- Hair loss treatment not zero-rated
- Director notice: no debarring HMRC
- Digital Platform Reporting NEW
- Salaried members: When is a partner taxed as an employee? UPDATE ...More
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