As we head towards the end of the tax year we have been updating checklists for you.
This time we have various updates and some summaries of important new tax cases for you - capital allowances, employee bonuses, salary sacrifice and IHT business property relief.
Tax penalties remain a topic of concern for advisers. A key tax penalty case HOK Limited (whether HMRC's delay in sending out P35 penalties is fair or not) is listed for appeal at the Upper Tax Tribunal, however, it will not be heard until the summer.
The Office of Tax Simplification (OTS) has been reporting this week on simplified accounting for small business and disincorporation relief. If its recommendations are accepted by the Minister we will have a two-tier system that will be a challenge for accountants, but I think in a positive way.
Scroll on down for news and updates.
Nichola Ross Martin FCA
Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients
Capital allowances case: plant or buildings?
Have your clients claimed capital allowances on expenditure incidental to the installation of plant, or on construction preliminaries? Two case summaries....More
Tax penalties: SA late filing & payment
HMRC has changed its examples to take account of the leap year: a late payment surcharge of 5% applies if tax is unpaid by midnight on 1 March 2012 (e.g. 30 days late).
(PAID subscribers) If a business has a year end other than 31 March and is considering in investing in new plant and machinery in April, it may be advisable to bring forward expenditure.
Business Property Relief & Furnished Holiday Letting
The First Tier Tribunal disagrees with HMRC's IHT manual: "an intelligent man" would consider a furnished holiday let with minimal services provided to be a business for IHT relief. Did you know you can always ask HMRC for non-statutory clearance on these matters?
OTS: let's default to cash accounting for small business
Yes, and maybe introduce disincorporation relief too.
Year-end tax planning
Tax planning for the 2011/12 year end
Private clients - (PAID subscribers)
Directors' loan accounts: toolkit
Companies - (FREEVIEW)
Property profits & losses: toolkit
Property - (paid subscribers)
Associated companies checklist (new rules)
Companies - (Paid subscribers)
All about employees
Tax-free benefits in kind and perks
UPDATE: a quick guide.
Overarching contracts, travel & salary sacrifice
Reed v HMRC: a cautionary tale for agencies and umbrella companies. A salary sacrifice will not work if you can opt out again and watch the wording of overarching employment contracts...More
How to check your 2012/13 PAYE Code
New guidance from the Low Income Tax Reform Group.
Bonuses paid via EBT don't avoid PAYE
Case review: a reminder that dressing up employee cash bonuses using offshore company share plans fails to change nature of payment - PAYE is due.
Buying from Germany? New tax requirements
If you have any clients who buy goods from Germany they will need to comply with these new rules.
Do I pay a salary or dividend?
UPDATE: ensure that basic rate bands are maximised.
Worried about formalities or the consequences of an unlawful dividend, start here.
Transactions in securities (TiS)
UPDATE: capital treatment of a Companies Act 2006 capital reduction may well be counteracted under the TiS rules.
Finance Bill 2012: tax planner
Refresher on 2011/12 and what to expect in 2012/13 - pending announcements made in the Budget on 21 March.
ABC or Alphabet shares: employees
What are the tax and NICs consequences of issuing different classes of shares?
Pensions: carry forward of unused allowances
The mechanics of the carry-forward of deemed allowances from 2008/09.
Collecting Tax Debts through PAYE
From April 2012 debts of up to £2,999 will be added to codes. These will be issued from now on.
When a dividend is subject to NICs (Part 3)
A contrived bonus scheme is taxed as employment earnings (may yet appeal to Supreme Court).
Use of home for business purposes
Tax treat mini guide for your staff.
Plug in car and van grants
NEW: the fleet vehicle of the future?
More Subscribers' Guides
Capital expenditure allowances - signpost
Quick guide to alternative allowances to plant and machinery capital allowances.
Confused about late claims for Fixtures and changes in 2012? Start here.
Disappearing tax reliefs
UPDATE: tax reliefs and changes that will affect your clients in the next 12 months.
Legal or unlawful dividends: Companies Act 2006
Tax planning for directors
Index to guides and updates
Retirement: a purchase of own shares
A menu and summary
VAT: a whole new section
Toolkits, practical guides, current reclaim opportunities and updates
Come and join usSubscribe (and UNLOCK the whole site)
A single user annual subscription is £295 (+ VAT) - if you subscribe before 31 March.
What do you get?
- Open access to the entire Virtual tax database together with bonus material.
- Structured CPD our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
- A regular Email update when there are new guides and tax issues that we think you MUST read.
- Nichola’s monthly SME tax news summary (we do the reading and cherry pick the best of the press, magazines and websites for you).
- A 25% discount to our Tax W-updates (that is a tax webinar-update service).
- A 20% discount on our new Tax Masterclass.
- You can also commission guides and checklists for your own practice, post comments and upload your own articles.
- Access to the Virtual Tax Partner service for FREE quick calls with a discount of 25% on phone, email and investigation tax support from the Virtual Tax Partner helpline.