Hello
The leading tax bodies are mid-way through a pilot on HMRC service standards, but almost pre-empting their conclusions, HMRC has announced that it has already made changes to its agent helplines. Apparently, agents are responsible for clogging up the technical lines so HMRC has created a new option for chasing refunds.
Our pick of the tax tribunal decision brings forth more interesting cases.
We always say, in tax, that 'the devil is in the detail', and this has been well illustrated in the outcome of two discovery assessment appeals. Each succeeded as the tribunal considered the evidence and ruled the assessments to be invalid. The appeal process clearly works but could HMRC's system of pre-appeal reviews, the 'Statutory Review', be strengthened to ensure that taxpayer money is not wasted in hopeless cases for HMRC?
Stamp Duty Land Tax (SDLT) is one of our favourite taxes, and I think that we have more case summaries in our guide to SDLT and residential property than any other guide. The one this week is novel: was an island a fish farm or residential grounds? You decide - the tribunal members could not agree.
When does a trade start? This is a detail of such vital importance. We have two appeals for claims, one for Research & Development (R&D) and the other for Enterprise Investment Scheme (EIS), with each claim failing as the actual trades had not yet commenced.
Finally, we have a wonderful new CPD webcast out on Income Tax and trusts. If you are down in the West Country, do check out the CIOT Somerset & Dorset Tax Conference.
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
Rule change to allow fractional shares
HMRC have confirmed that new regulations will be issued allowing certain fractional shares to be held in an Individual Savings Account (ISA). This confirms a change in HMRC's advice from October last year when it said fractional shares could not be held in ISAs and Child Trust Funds (CTFs).
Changes to HMRC telephony agent services
From 7 October 2024, HMRC is introducing changes to its service for agents handling Self Assessment (SA) and PAYE queries.
Somerset & Dorset Tax Conference
Somerset & Dorset CIOT Branch Tax Conference 17 Oct 2024: head down the A303 to join Nichola Ross Martin, Heather Britton, Kate Hardy, Liz Jones and Chris Thorpe for the day.
Tax Cases
Double tax assessment invalid
In Mark Stewart Wyatt v HMRC [2024] TC09297, the First Tier Tribunal (FTT) found that HMRC’s discovery assessments were invalid as they assessed both Income Tax and Capital Gains Tax on the same transactions.
Discovery conditions not met for employee's travel or subsistence
In Julian Lowe v HMRC [2024] TC9285, four years of Discovery Assessments for allegedly overclaimed travel and subsistence expenses were invalid. HMRC was unable to provide any evidence to substantiate its officer's decision to make a discovery.
SDLT and a fishy business
In Mr Brzezicki v HMRC [2024] TC9294 the tribunal was divided as to whether a trout stream with an island was residential land for Stamp Duty Land Tax (SDLT) or not. The chair confirmed the appeal using her casting vote.
EIS relief denied, not ready to trade
In Putney Power Limited and Piston Heating Services Limited v HMRC [2024] TC09300, the First Tier Tribunal (FTT) denied EIS relief as neither company was found to be ready to trade by the required deadline.
R&D relief denied on subcontractor expenditure
In Strictly Money Ltd v HMRC [2024] TC09296, SME R&D relief for subcontractor expenditure was denied because the expenditure was not wholly and exclusively incurred for the company’s trade.
Editor's Choice (subscribers)
SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? When are gardens and grounds subject to higher rates of SDLT? What is a mixed rate?
Research & Development Tax Reliefs: At a glance
UPDATE: What is Research and Development (R&D) relief? What is the Merged RDEC scheme? What is the SME credit scheme? What is the Enhanced R&D Intensive Support (ERIS) scheme? Which R&D Relief can you claim? What are the rates of relief?
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- NEW: CPD: Income Tax and Trusts
- NEW: Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
More at CPD Index
Guides & Updates
Self-employed
Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?
Directors & Companies
Loss relief (Income Tax) disposal of shares
Share Loss relief allows you to offset a loss made on the disposal of shares against income instead of following normal capital loss treatment.
Research & Development
R&D Zone: Do I have a valid R&D Claim?
UPDATE: Do I have a valid R&D Claim? What conditions do I need to meet? What form of relief can I claim?
R&D Zone: Can I claim under SME Scheme, RDEC, Merged Scheme or ERIS scheme?
UPDATE: Can I claim under the Small or Medium-sized Enterprise (SME) Scheme, R&D Expenditure Credit (RDEC) scheme, the Merged RDEC scheme or Enhanced R&D Intensive Support (ERIS) scheme?
Land & Property
SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? When are gardens and grounds subject to higher rates of SDLT? What is a mixed rate?
SDLT: Residential property higher rates
A guide to the Stamp Duty Land Tax (SDLT) higher rate charge on residential property, when it applies and what reliefs are available to exempt buyers from the charge.
Employers
Apprenticeship levy (employers' briefing)
UPDATE: In September 2024, a new growth and skills levy was announced. What is the apprenticeship levy? Who pays it? How much is it?
Agency Workers: Employment intermediaries rules (subscribers)
What are the tax rules for Employment Intermediaries and Agencies? Are agency workers subject to PAYE?
Private Client & Estate Planning
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.
CGT: Chattels
What are chattels? Is it a wasting or non-wasting chattel? How are capital gains on chattels taxed?
Devolved taxes
Scottish Income Tax
From 6 April 2016, Scotland sets its own Income Tax rates. What is the rate of Scottish Income Tax? What implications does it have?
Penalties & Compliance
Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? Can HMRC issue two alternative assessments for the same period? What are your rights of appeal and defences?
VAT News
Registering for VAT
When should a business register for and charge VAT? What are the VAT registration thresholds? What penalties might HMRC issue for late notification of registration? When do you need to file a VAT return?
Health and welfare: VAT
When do reduced rating, zero rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
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.
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 26 September 2024
- Agent Update: September 2024
- Discrepancies with corporate losses
- Clarifying the legal status of digital assets
- Chancellor unveils part of new HMRC package
- ABAB report finds worsening customer experience with HMRC
- Supervising bodies inconsistent on AML oversight
- Defeated by Double Tax Treaty Tie-breakers
- TalkTalk loses prompt payment discount VAT appeal
- Four years to resolve Alternative Dispute Resolution agreement ...More
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