Hello,
There is something of a 'Budget theme' this week. The Budget Responsibility Act 2024 has received Royal Assent and the dates of the Scottish and Welsh budgets have been announced. If you are acting for clients in the hospitality sector do note the changes on tips, there is also a deadline reminder for R&D claims, and summaries of a range of useful decisions from the courts and tribunals.
In other Budget news, Rachel Reeves confirmed to Parliament that a 'tax road map for business' will be outlined as part of the October Budget. This will include a commitment to cap Corporation Tax at 25% for the duration of this Parliament, as well as retaining Full Expensing.
The Supreme Court has nearly decided the long-running argument as to whether part-time football referees are employees or not. The appeal by Professional Game Match Officials Ltd now almost completes a perfect 'box set' of case law on the thorny topic of employment status. Is it now time to introduce a statutory employment status test? A statutory test has been 'a game changer' in terms of the creation of the Statutory Residence Test (SRT).
Our other cases consider a fishy tale on Inheritance Tax (IHT) Business Property Relief (BPR). We all like BPR cases, such variety: we hope the chancellor does not remove BPR in her budget. We have a good one on Intellectual Property too.
We have noted a really high level of activity in company share sales and reorganisations recently and so we highlight a selection of our handy guides if you are advising in these areas. If you have any queries, do of course post them to our Virtual Tax Partner service.
More news and cases below
Nichola and the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Tipping Act comes into force
Dating back to a consultation process that began in May 2016, the much-anticipated Employment (Allocation of Tips) Act 2023 (the Tipping Act) comes into force on 1 October 2024 for England, Scotland and Wales.
R&D Claim Notification Due 30 September 2024
Companies with a 31 March 2024 year-end must submit an R&D claim notification by 30 September 2024 if the company is claiming R&D relief for the first time or hasn’t made a claim in the three years before the claim notification deadline.
HMRC analysis shows employment up, EU workers down
HMRC have released a report, 'UK payrolled employments by nationality, region, industry, age and sex, from July 2014 to December 2023' which showed the total of payrolled jobs in the UK increased by 1%, from 31.7 million to 32.0 million.
Budget news
Welsh Budget date set for 10 December 2024
The Welsh Parliament has announced that its outline and detailed draft Budget will be published on Tuesday 10 December 2024. This will set out the tax, spending, and financing plans for Wales for 2025-26.
Scottish Budget date set for 4 December 2024
The Scottish Government has announced that its 2024 Budget will be held on Wednesday 4 December 2024. This will set the tax and spending plans for Scotland for 2025-26.
Autumn Budget 2024: What might we see?
The Chancellor, Rachel Reeves, will present the first Budget of the new parliament on 30 October 2024. What might we see announced and what do we already know?
The Budget Responsibility Act 2024
Following the publication of the Budget Responsibility Bill in July 2024, the Budget Responsibility Act 2024 received Royal Assent on 10 September 2024. This creates a ‘fiscal lock’ that is designed to ensure that fiscally significant announcements made by the Government are subject to independent assessment and will not upset the financial markets.
Tax Cases
Referees' employment status nearly sorted
In HMRC v Professional Game Match Officials Ltd (Appellant) [2024] UKSC 29, the Supreme Court has nearly settled the long-running battle over the PAYE status of part-time football referees. The final decision now rests with the First Tier Tribunal (FTT) to determine whether or not a contract of employment exists.
Fishy business fails to net BPR
In Dimitrakis G Demetriou & Anor v HMRC [2024] TC09288, the First Tier Tribunal (FTT) found that a wild fishery business did not qualify for Inheritance Tax (IHT) Business Property Relief (BPR). The business consisted mainly of holding investments.
No relief for IP amortisation
In Muller UK and Ireland Group LLP & Ors v HMRC [2024] UKUT 00273, the Upper Tribunal (UT) held that the Limited Liability Partnership (LLP) was related to all of its corporate members despite not being a 'company'. As a consequence, the relief claimed for the amortisation of Intellectual Property (IP) acquired from those companies was denied.
Failure to take proper tax advice was careless
In Janet Bray Limited v HMRC [2024] TC09277, the First Tier Tribunal (FTT) dismissed the taxpayer's appeal against determinations for tax and associated penalties for 2009-10 and 2010-11 following the use of a tax scheme.
Editor's Choice
Succession Planning: Buyouts What are your options?
UPDATE: Fancy winding down but not sure which way? What are the options for succession planning and a company buyout? What are the tax implications?
A company disposal? Start here
UPDATE: A handy overview and flowchart if you are thinking of selling your company, what sort of things do you need to bear in mind? How do you know what the business is worth? What should you do with any built up cash? Are there any relief to mitigate the gains?
Loans to Participators: what's new?
UPDATE: What is the Corporation Tax treatment when a close company makes a loan to a participator (director-shareholder)? How do the 'bed and breakfasting' rules work? What are the concerns with MBOs?
Guides & Updates
Self-employed
Accountants: Tax Overview
How are accountants taxed? What expenses can accountants and tax advisers claim for tax purposes? Are there special rules for taxing income? What are the VAT rules for accountants? How is goodwill treated?
Brewers: Tax Overview
How are brewers and gin makers taxed? What expenses can they claim for tax purposes? How is their income taxed? What are the VAT rules for brewers and gin makers?
Tradespeople: Tax Overview
What expenses can Tradespeople claim for tax purposes? How is their income taxed? What are the VAT rules? What are the rules for sub-contractors?
Directors & Companies
Share capital: What's an ordinary share?
What is an ordinary share? Why is it important? When can a preference share be an ordinary share? Is a preference share treated as debt or equity? What do you need to consider when setting up new share classes?
Carried interest
NEW: What is carried interest? When does carried interest arise? How is carried interest taxed?
R&D: Claim Notification
NEW: What is a claim notification? When does a company need to submit a claim notification? What is the deadline? What happens if a company fails to submit a claim notification? What information should be included in a claim notification?
Land & Property
Non-Resident Landlord Scheme
What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
National Insurance for landlords
When are National Insurance Contributions (NICs) payable by landlords? Can landlords pay Class 2 NICs voluntarily?
Employers
PAYE Settlement Agreements
What are PAYE Settlement Agreements? How do they work? What can be included?
Private Client & Estate Planning
Self Assessment Return 2023/24: What's new?
2024 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2024.
Rectification of Trustee mistakes
What happens when trustees make mistakes? Can the court rectify them? When will they agree to rectification?
Divorce & Separation: Toolkit
A summary of the tax implications which can arise on divorce and separation.
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.
Overseas & Residence
Remittance basis (overseas income)
What is the remittance basis? Who can claim it and when? What are the advantages of claiming the remittance basis and how much is the remittance basis charge?
SRT: Statutory Residence Test
What is the Statutory Residence Test (SRT)? Why is it important and how does it determine a person's residency?
VAT News
Food, catering and takeaway
What is the VAT rate charged on food? How does this differ depending on hot or cold food and food consumed on or off the supplier's premises?
Gifts & samples: VAT repayment claims?
When can I reclaim VAT on gifts and samples?
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: Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
- CPD: VAT Penalties Update
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 12 September 2024
- NAO: HMRC not preventing tax evasion in high street or online
- One-to-many letter for remittance basis charge claimants
- EIS and VCT extension confirmed
- Oops! A typo resulted in 11,000 letters from HMRC
- Check if a business is AML registered with HMRC
- Not voucher, Yes voucher
- Badly drafted appeal defeats static caravan DIY builder
- Cross-border cooperation catches VAT second-hand margin fraud
- Not SEISS and Bounce Back Loan looked dubious too
- UK fails to embrace tax technology ...More
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