Both the Institute of Chartered Accountants In England and Wales (ICAEW) and the Association of Taxation Technicians (ATT) have asked HMRC to consider postponing next April's changes to the employee benefits and expenses reporting systems.
SME Tax News
In R (on the application of James Derry) v HMRC [2017] EWCA Civ 435, the Court of Appeal agreed with HMRC that a carry-back share loss claim did not reduce a previous tax year’s liability. It reduces the current year tax. They also found that HMRC had opened the wrong type of enquiry into the loss relief claim.
From 6 April 2015
Gift Aid intermediaries
A charity requires a gift aid declaration (GAD) from a donor in order to be able to claim gift aid. Where donations are made via an intermediary, such as a website, or via text it is difficult because the intermediary has to collect the declaration from the donor and pass it on to the charity.
Finance Act 2015 amends ITA 2007 to allow declarations to be made by the intermediaries on behalf of the individual donors as follows:
- In Chapter 2 of Part 8 of ITA 2007 (gift aid), section 416 (meaning of `qualifying donation`) is extended by the insertion of `or an intermediary representing the individual` to allow GADs made by intermediaries on behalf of individuals to have effect as if they were made by individuals.
- Section 428 (meaning of ‘Gift Aid Declaration’) is amended to cover such declarations. The power contained in Section 428 to made regulations regarding GADs is amended so that specific regulations can be made regarding declarations made by intermediaries on behalf of individuals.
Gift Aid App
A new App has been developed to help both charities and donors. It allows charities to automate their donation process from new donors and donors to automate the process of making a donation and Gift Aid Declaration (GAD) directly to the charity, via their mobile phone and recording the amount of their donation (for later entry on to a self assessment tax return). The app provides the Charity with the audit trail to match the donation to the GAD. Please Contact VTP for further details.
Community Amatuer Sports Clubs (CASCs)
From 1 April 2015 the regulations have been updated in order to specify a maximum amount for costs associated with membership of a club, use of its facilities and full participation in its activities. They will also set a maximum upper limit that a club can charge in membership fees.
- CASCs are allowed to pay players so long as the total payments made to all players in a year, including any benefits, are no more than £10,000.
- Clubs are also be allowed to make travel and subsistence payments to players, subject to certain restrictions.
- The regulations provide detailed rules on a new eligibility condition relating to the amount of social income a club can receive.
- The maximum amount of receipts that a club can receive in order to qualify for the exemption from corporation tax on trading income is increased from £30,000 to £50,000.
- The maximum amount of receipts that a club can receive in order to qualify for the exemption from corporation tax on income from property is increased from £20,000 to £30,000.
See HMRC CASCS
From 6 April 2016
Gift Aid Small Donations scheme (GASDs)
The limit for GASDs will increase to £8,000.
Community Amateur Sports Clubs (CASCs) may claim gift aid-style top-up payments of up to £2,000 a year.
Gift Aid Declarations and Partnerships
- From 6 April 2016, when a partnership makes a donation under Gift Aid each individual partner must make their own Gift Aid declaration, specifing the amount of each partner’s share of the whole donation.
- The old rules: up to 5 April 2016, one partner is able to make a Gift Aid declaration on behalf of all the partners in a partnership provided he is given such a power under deed (e.g. in the partnership agreement). The declaration must lists all the individual partners’ names and home addresses.
In Unison, R (On the Application Of) v The Lord Chancellor [2015] EWCA Civ 935, the Court of Appeal rejected an appeal by Unison against the introduction of fees for Employment Tribunals.
The Government is consulting on a proposed introduction of fees in the tax chamber of the Tribunal Service, as part of a general fee reform of Courts and Tribunals fees.
In Fountain v HMRC [2015] TC04596, the First Tier Tribunal (FTT) denied Capital Gains Tax (CGT) Private Residence Relief (PRR) on the sale of a plot of land associated with, yet not adjoining, the couple's home. There was no evidence to prove that it had ever constituted part of the garden or grounds of the home at the time of the sale.
In L Sjumarken v HMRC (2015) TC04557, a taxpayer failed to declare the correct earnings following termination of his employment. There were issues in respect of share valuation and giving up share options.
HMRC's new briefing on their forthcoming Direct Recovery of Debts (DRD) powers fails to mention that the draft legislation now includes specific provisions in respect of payments due under the new Accelerated Payment Notice (APN) regime.
The Association of Taxation Technicians (ATT) has expressed serious concerns about the £5,000 dividend allowance, announced in the Summer Budget.
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