Good morning,
This time we have quite a few "quick news" items for you to speed read. Our featured "Essential reading" includes several items on penalties and following the introduction in the 2014 Finance Act which outlines the requirement to file an online annual return for shares, options and securities there is also a new tough penalty regime for late filing to embrace.
I still note that there appears to be quite widespread ignorance on the part of many employers and advisers as to what share-related events are reportable under the employment-related securities regime. Whilst some people may argue that a gift of shares from say a retiring shareholder to a new director is not "employment-related" the chances are, based on its manuals, that HMRC will not agree unless the pair have been lifelong friends or relatives. Given that we now have a new penalty regime for share reporting it is probably a good time for advisers to decide whether they wish to advise in this area or not. If not then they need to set this out clearly in the letter of engagement in order to avoid a red face later before their client and the tribunal.
If anyone has noticed some changes we have been updating all our penalties guides and we now have on the site a separate menu item called "Penalties & appeals" in the Penalties and Compliance section.
Scroll down for news and updates.
Best wishes
Nichola Ross Martin FCA Tax Director
Your online Virtual Tax Partner®: practical support for accountants, tax advisers and their clients.
Quick News (freeview)
RTI: new phasing in of penalties
No penalties for late in-year submissions for small employers until 6 March 2015. Relaxation in reporting deadlines for micro weekly payrolls until 2016.
EMI1 notifications move online
End of paper returns: employer must register online in order to file (links to guidance on new share scheme reporting and penalties)
Purchase of own shares: HMRC updates guidance
New and much-improved tax guidance from HMRC (see also here links to our guides and checklists on this topic)
EBT settlement opportunity: set to end in March 2015
HMRC calls time, so far some 700 employers have settled
Scotland: further tax challenges ahead
Will Scotland become a tax haven? CIOT calls on those involved in devolution measures to consider the impact of tax policy.
IHT: late filing penalty trap
A cautionary tale for advisers: the tribunal agrees daily penalties after HMRC is unable to contact an elderly professional trustee.
CIS: no penalty for error after relying on accountant's advice
A good taxpayer witness and not a good performance by the accountant. For advisers: ensure that your LOE sets out clearly what topics are off-limits.
Consultations (freeview)
VAT on prompt payment discounts
The ATT suggests using the French model to cut out paperwork
Tax-advantaged venture capital schemes
A call for evidence on EIS, VCT and SEIS schemes with some thought to increasing investment limits
Subscriber updates - Essential reading
How to appeal a tax penalty
UPDATE: step by step guide to appeals and case management
Shares, securities and options: tax compliance
NEW: employers must register new share schemes online, this includes unapproved share schemes, such as the gift of shares to a new director. This contains example. See next item for the accompanying penalty regime.
Penalties: late filing of share scheme annual returns
NEW: a responsible person (normally the employer, but also including the person from whom securities or options were acquired) will incur a penalty if a reportable event is not reported on a share scheme return by 6 July following the tax year. A reportable event may includes gifts of shares to employees and directors.
Penalties: IHT late filing of accounts
NEW: these penalties are still under the old system.
Finance Act 2014 new guides.
Accelerated Payment & Follower Notices
NEW: clients who have used tax schemes or have ongoing tax enquiries may find themselves subject to a Follower Notice: comply now or face a fine. If you have taken part in any of the well-publicised schemes that have failed in the courts then expect an Accelerated Payment Notice. There is an appeal process.
UK Agencies & Offshore intermediaries
NEW: At a glance guide: new provisions from 6 April 2014
Agency workers
NEW: changes to the agency rules from 6 April 2014 stamp out "false self employment". This guide contains both new and old rules.
Editor's choice
Close company loans toolkit
This guide takes a detailed look at the corporation tax treatment when a close company makes a loan to a participator (director-shareholder). It also provides links to our guides for individuals on the making of loans to companies.
Director's loan account toolkit
HMRC instructs staff to examine directors' private expenditure during the course of an enquiry into a close company's books and records. In most cases the company will be expected to produce a transaction history of any director's loan or current account.
Director's tax planning toolkit 2014/15
This year's toolkit, like all our maintained guides a rolling planner so we keep updating it when we find practical points that will interest you.
Entrepreneurs' Relief
The latest version of this guide answers your FAQs.If you have any other queries - just ask!
Furnished Holiday Letting
The latest version of our guide considers issues of joint property v partnerships, IHT and ER.
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