Missed our SME Tax Web-updates in August? Here is a summary of the month.
SME Tax News
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This time: Off-payroll working rules will increase your chances of investigation. Is software ready for the CIS VAT reverse charge? The latest trusts and estates newsletter and changes to employee fuel rates.
Up to 170,000 Personal Service Companies (PSCs) are likely to be affected by the Off-payroll working rules which come in from next April according to HMRC. These changes could result in a windfall of IR35 tax Discovery cases for HMRC and a resultant tax-hell for PSCs and their owners.
With a month to go before the introduction of the VAT reverse charge mechanism to the Contruction Industry, there are signs that some of the top selling accounting and bookkeeping software for small business is not yet ready for the changes.
It's set be 'all change' for many* Personal Service Company (PSC) owners next April, when the new private sector off-payroll working tax rules replace IR35. Those affected will find that their company fees will be paid to them after deduction of PAYE tax and National Insurance by their 'payer'.
HMRC's latest Trusts and Estates newsletter contains some useful information. Here is our enhanced version.
HMRC have published new advisory fuel rates for company car drivers which will apply from 1 September 2019.
In Richard Lee & Nigel Bunter v HMRC [2019] TC07269 the First-Tier tribunal confirmed that time apportionment is a just and reasonable basis to apportion a capital gain between business and non-business assets.
In Bruce Cawdron v HMRC [2019] TC07295 the FTT held payments to a GP were his remuneration and not compensation to his personal company for the time he spent working elsewhere.
In HMRC v NCL Investments Limited, Smith & Williamson Corporate Services Limited v HMRC [2019] UKUTT0111 the Upper Tribunal confirmed that the grant of share options by an employee benefit trust was deductible as a trading expenses under IFRS2.