Hello,
This week we take a closer look at tax issues for property landlords, and there is also lots to interest employers and entrepreneurs.
SME Tax News
In Neill Dyer v HMRC [2020] TC07567, an accountant’s claim that he had retained personal ownership of the goodwill of his practice, following its incorporation was rejected by the First Tier Tribunal (FTT). No such asset existed and his claim for Entrepreneurs’ Relief (ER) when he did dispose of his asset was rejected.
HMRC have published their Employer Bulletin for February 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered.
In early 2019 the Department for Business, Energy and Industrial Strategy (BEIS) launched a National Minimum Wage consultation on salaried workers and salary sacrifice schemes. The response has now been published.
In LINPAC Group Holdings Ltd v HMRC [2020] TC7556, the First Tier Tribunal (FTT) found that EU group relief claims did not replace earlier domestic claims to relief. The UK claims remained valid.
HMRC have advised that as income tax thresholds and rates will not now be finalised until March, tax codes for 2020/21 will have to be initially calculated using 2019/20 rates and then revised as necessary after the budget.
Hello,
I gave a talk on the new Construction Industry Scheme (CIS) reverse charge VAT measures (due to apply in October) this week. My chatty audience asked many questions and we worked through many of the practicalities of implementing the changes that are required to reverse charge your supplies. I am not sure that any of my software currently allows me to use both cash and accruals accounting at the same time and I wonder how many people have actually tried a ‘walk through’ of a typical construction contract under the proposed measures. I recommend that you have a go.
In John Leonard McNeill Shelford as Trustee of the Herbert Life Interest Trust Settlement & Ors v HMRC [2019] TC7549, the First Tier Tribunal found that a home loan scheme was not effective IHT planning. The transactions were void and the assets remained in the estate on death.
In Castlelaw (No 628) Limited and Irene Douglas v HMRC [2020] TC7540, the First Tier Tribunal upheld penalties under the Senior Accounting Officer rules for failures to make notifications about a dormant company. An innocent mistake was not a reasonable excuse.
The statutory legacy amount due to a surviving spouse or civil partner when an individual has died intestate has been increased for the first time in over 5 years.