Hello
We have a seasonal special for you this week with top tips for Self Assessment and interesting news and cases, including a freezing order on perpetrators of a massive NHS PAYE fraud and a review of an EU regulation that affects many UK businesses selling online in the EU and NI.
This week: the Chancellor confirmed the date of the Spring Statement in March, she assures that this is not going to be another Budget. Also published this week are details of the tax benefits charge for 2025-26 for employee van drivers.
It appears that the guidance surrounding exemption from new EU safety measures is not as clear as it might be. UK businesses, particularly online traders who sell products in Europe and Northern Ireland (NI), must now conform to the new regulations for newly listed items. As this means appointing a representative abroad, many traders are stumped. We take a closer look.
We have an Editor's pick of Christmas Special guides for you, plus a new section on Self Assessment.
The Ross Martin team wish you all happy Christmas holidays and a prosperous New Year.
Nichola and the Team
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Quick News
UK sellers caught out by new EU General Product Safety regs
From 13 December 2024, the EU’s General Product Safety Regulation (GPSR) adds compliance obligations to businesses selling goods that are intended for consumers living in the EU and Northern Ireland.
Van benefit and fuel benefit charges 2025-26 confirmed
The 2025-26 flat rate van benefit charge, flat rate van fuel benefit charge and car fuel benefit multiplier have been confirmed.
Spring Statement announced, not a Budget
The Chancellor, Rachel Reeves, has confirmed to the House of Commons that the Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast which will be published on 26 March 2025. This will not be another Budget.
Tax Cases
Donations to own charity were non-qualifying
In John Harvey & Keswick Enterprises Holdings Charitable Trust v HMRC [2024] TC09372 the First Tier Tribunal (FTT) found a series of ‘donations’ to charity were not ‘qualifying donations’ and a loss to tax had occurred due to excessive gift aid claims.
Freezing Order in £171m NHS PAYE fraud
In Ducas Ltd, Enix Services Ltd and FL Capital Holdings Ltd v HMRC [2024] EHHC3132 the High Court (HC) granted HMRC the power to freeze assets for the three companies who are thought to be participants in fraudulent PAYE and NIC arrangements.
Directors' termination payments disallowed
In Simrajsar Ltd & Achilles Products Ltd v HMRC [2024] TC09363 the First Tier Tribunal (FTT) found that payments made to directors were not genuine termination payments and were not covered by the £30,000 tax free exemption.
Editor's Festive Choice
Christmas 2024: Gifts to Charity (freeview)
Festivals, like Christmas are a time for giving. Many folk across the world make gifts at special times of the year and in this guide we are looking at the tax rules surrounding gifts to registered charities
Christmas 2024: The Business Angel (freeview)
We review the tax and accounting treatments of items that relate to the festive season. Let's take a closer look at the tax breaks available for [business] angels.
Christmas 2024: Shepherds and Farmers a tax review (Subscriber special)
We make a seasonal (and topical) review of the tax and accounting aspects of Shepherd and Farmers.
Christmas 2024: Temporary workers & holiday pay(Subscriber special)
Another Tax & Accounting Festive Special! A festive season makes a fine excuse for a light hearted but technically useful update.
Self Assessment: Last minute tax returns
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.
Notice to file a tax return: section 8(1) TMA 1970
Received one of these? You need to file a return . A guide to explain the implications of a notice sent to an individual under s.8(1) TMA 1970 to file a tax return.
Directors: Do I need to file a tax return
Do I need to file a Self Assessment tax return? What if I am a director? Can HMRC make directors file tax returns? When should I file a Self Assessment return?
Basis Year Reform
What is basis period reform? Who is affected? What is the new basis year for tax? What are the transitional rules?
Foreign Income and Residency Pages
How do you complete the foreign and residency pages of the Self Assessment return?
Guides & Updates
Self-employed
Self Employed: Accounts & tax checklist
A handy checklist to assist you in preparing accounts and completing the Self-Employed section of a Self Assessment tax return and to highlight key areas of discussion with your sole trader clients.
Tax Rules for the different trades and professions
How are different types of business taxed? What special rules apply to different types of business income and expenses? What about VAT? We summarise the different rules for taxing income and expenses of a large selection of different trades, professions and vocations.
Directors
Director's Tax Planning Toolkit 2024/25
What tax planning opportunities and strategies are available to directors? What's the optimum way to extract profits in 2024/254? What tax reliefs and tax deductions are handy to consider? This planner looks at a range of director tax issues.
Partnerships
Running a partnership in tandem with a company
It is possible to run a Limited Liability Partnership (LLP) or another form of partnership in tandem with a company. Partnerships can also have corporate partners. What needs to be considered?
Employers
Employers' NICs relief for veterans
Since April 2021, a relief from Class 1 National Insurance has been available for employers who hire veterans within their first 12 consecutive months of civilian employment.
Car fuel benefit charges
What is the car fuel benefit charge? How do you apply it?
Private Client & Estate Planning
NICs Top Ups: National Insurance Contributions
Topping up NICs: when should you make additional National Insurance contributions NICs? How do you check your NICs record? How to pay voluntary NICs? How to check your state pension entitlement?
Trusts & Estates: What’s New 2024/25
HMRC's latest Trusts and Estates newsletters contain some useful information. Here is our enhanced version for subscribers, including reminders of recent and upcoming changes.
Investment bonds & tax
How are investment bonds taxed? What is an investment bond? What is a chargeable event gain and how is it calculated? How do notional tax credits work? How is top slicing relief calculated? What is deficiency relief?
Land & Property
Residential Property: Tax charges & reliefs (Signpost) - Freeview
This signpost provides links to practical tax guides which explain the different ways in which profits or gains on the disposal of UK residential property and land are taxed for a variety of taxpayers.
VAT News & Cases
Supply of education is a business activity
In Colchester Institute Corporation (CIC) v HMRC [2024] UT397, the Upper Tribunal (UT) found that funding provided to a college constitutes an economic activity for VAT purposes. In this unusual case, HMRC agreed that their appeal should be dismissed but reserved the right to appeal to the Court of Appeal, maintaining that the decision in CIC v HMRC [2020] UKUT 0368 was incorrect.
Revenue and Customs Brief 3 (2024): VAT on cladding remediation work
HMRC have published 'Revenue and Customs Brief 3 (2024): VAT on cladding remediation work' which clarifies HMRC's policy on the recovery of VAT incurred on cladding remediation works which are carried out on existing residential buildings.
Penalties (VAT)
When do penalties apply for VAT? What penalties are charged and how can they be mitigated?
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
CPD for lunch: Byte-sized chunks of lunchtime CPD (free for our Subscribers)
- CPD: Income Tax and Trusts
- Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
- How to run the most tax-efficient business 2024/25.
- Purchase of Own Shares: all the details.
- Anti-money Laundering Update and Firm-Wide Risk Assessment ...More...
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 December 2024
- Welsh Budget 2025-26
- HMRC service standards survey results
- Spotlight on Managed Service Companies
- EBT decision set aside
- Transfer of beneficial ownership did not need to be in writing (shares)
- VAT fraud and phone cards ...More
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