We are back after the Easter break with a combination of mini-guides and updates from VAT to penalties to property letting.

Reviewing the output of the First Tier Tax Tribunal it is clear that tax penalty appeals are ever increasing. We are also starting to see more PAYE late payment penalty appeals. I am wondering how so many employers got it so wrong - clearly the regime is too complex, and what of their advisers: did they not understand the rules too?

Points of interest for advisers following last month's Budget are:

  • A new consultation on simplified tax accounting for small businesses.
  • A quick guide to the cap on income tax relief.

Scroll on down, or click here for the online version.

Best wishes


Nichola Ross Martin FCA
Tax Director

Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients

Essential reading - Freeview

VAT: update with Budget 2012 measures
A quick round-up of latest developments.

Cap on unrestricted tax reliefs
Quick guide - watch out for losses.

Case round-up

Overarching contracts, travel & salary sacrifice
With £158m at stake no surprises to find an appeal has been made. Reed v HMRC: so far a cautionary tale for agencies and umbrella companies.

Property letting not a business for CGT rollover
No new legal developments; a case which confirms that ordinary letting is regarded as investment activity

Civil servant leaving bonus: taxable
Evidence from HR department proved conclusive for tribunal.


Scam Alerts: helping older taxpayers
If you are helping a pensioner with their tax, do look out for odd transactions on their bank statements, you might save them a lot of money.

Simplified tax accounting
Consultation on cash accounting for small business with round sum expense allowances.

Budget 2012 + Finance Bill 2012
Our summary of the new measures proposed for 2012 combined with those announced last Autumn.

PAYE and CIS round-up

The service company question: P35s and SA tax returns
Does it make any difference how you answer this?

CIS: company subcontractors & refunds
Instructions from HMRC: make your claim in writing.

Low earners

How to work out the Child Benefit Tax charge
This does what it says it does.

High earners

IHT: relief on deathbed bequests to charity?
Actually, it is more tax efficient to Gift Aid, while you can...

For subscribers (pay to view)

PAYE late payment penalties buster
UPDATE: essential tips and planning points.

Tax penalties: grounds for appeal
UPDATE: new cases added

Property letting: CGT and IHT issues
NEW: a refresher illustrating the limitations of business asset reliefs and let property.

Surplus cash CGT & IHT relief and Strking Off
Companies: check that changes in trading activities do not compromise business asset tax relief.

Do I pay a salary or dividend?
UPDATE: falling marginal rates of corporation tax will tip the balance for many more companies from 2012/13.

Salary 2012/13 (avoiding NICs)
UPDATE: these tables show the salary levels to pay to secure basic benefits and avoid National Insurance charges.

Tax planning for income at marginal tax rates Changes to Child Benefit and the claw back of personal allowances have created extra tax cliff-edges.

Editor's choice

Finance Bill 2012: tax tracker
UPDATE: our unique tracker provides essential CPD for all subscribers. We keep a rolling summary of all the key tax measures introduced and also track key HMRC changes affecting SMEs and their owners from 2010/11 to 2012/13.

Travel (self-employed)
A complete rewrite comparing and contrasting recent FTT decisions.

Enterprise Management Incentives (EMIs)
Get planning now. New limits for 2012/13 and from 2013/14 options may qualify for Entrepreneurs' Relief.

Company cars
UPDATE: changes to fuel benefit charges from April 2012 and lowering of emissions rates for capital allowances.

CGT Capital Gains Tax rates & allowances
UPDATE: following Budget announcements

Technical support

Stuck on a technical query?
Have you tried our Virtual Tax Partner support service? ...More

Don't forget

Directors' NICs and payrolls
Check your payroll is calculating correctly before you year-end.

Advisory fuel rates (company car drivers)
New rates for diesel drivers from 1 March 2012.

Tax Credits: urgent action required
HMRC is removing families from tax credits before 2011/12 figures are in. As the backdating rules are changing this could lead to a loss of benefits.

Remittance basis (overseas income)
UPDATE: changes for long-term residents.

Subsistence (self-employed)
A rewrite and update.

Capital allowances case: plant or buildings?
If you missed this last time, look again: have your clients claimed capital allowances on all they should?

New year tax planning

Directors' loan accounts: toolkit
Companies - (FREEVIEW)

Property profits & losses: toolkit
Property - (PAID subscribers)

Associated companies checklist (new rules)
Companies - (PAID subscribers)

AIA: rules where there is a change of rate
If a business has a year-end other than 31 March 2013.

All about employees

Employee homeworking allowance rises in 2012/13
Those generous folk at HMRC have increased the rate.

Tax-free benefits in kind and perks
UPDATE: a quick guide.

How to check your 2012/13 PAYE Code
New guidance from the Low Income Tax Reform Group.

Dividends: index
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.

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 tax codes.

When a dividend is subject to NICs (Part 3)
A contrived bonus scheme is taxed as employment earnings (taxpayer has appealled 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

Don't miss:

Capital expenditure allowances - signpost
Quick guide to alternative allowances to plant and machinery capital allowances.

Fixtures: overview
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
A mini-guide.


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

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