Hello
We are back with the real tax news and not a conspiracy theory in site!
That was a joke and not a typo, the 'site' being our gorgeous website. In this time's update we have a major re-write and up-date of our popular guide 'Buy-to-let: personal ownership v company ownership'. This guide covers all the different taxes including IHT and offshore issues. We have also updated the worked case study for 2016/17 and so the next few months are a good time to consider this question and plan ahead of the changes to tax relief on interest.
We have a guide to incorporation of a buy-to-let and as when one door opens another so often closes. We also have a guide on de-enveloping your property. With property in mind we feature a guide to the new provisions covering Profits on dealing and developing land. They apply to individuals as well as to companies.
VAT is an ongoing problem tax for advisers and business owners. Our 'VAT: toolkits' takes HMRC's toolkits and makes them much more interesting and we highlight the key problem areas that we find on our helpline.
Tax cases: these won't interest everyone, however one that caught my eye is where the Upper Tribunal agreed with HMRC that a third party loan made via a SIPP was an unauthorised payment from a pension scheme. We have seen a couple of these recently: the moral of the story is that you need to be very careful with arrangements that provide you with any benefit and are connected to your SIPP or SSAS.
Top tip if you are new to Self Assessment: don't forget to register with HMRC if you wish to file an online 2016/17 return by the 31 January deadline. You need a UTR (unique tax reference). Daft that you cannot use your NI number in an emergency, but I did not make up the rules.
If you have any tax queries please do try out our Virtual Tax Partner support portal at www.VtaxP.co.uk
Enjoy the guides and updates and the news is below.
Back soon
Nichola Ross Martin FCA Tax Director
Your Virtual Tax Partner®: online PRACTICAL support for accountants & tax advisers BY accountants & tax advisers
Quick news (freeview)
Tax credits: don't miss 31 Jan deadline
The Low Incomes Tax Reform Group (LITRG) is urging tax credit claimants who have submitted estimates of their 2015/16 income to confirm or update their estimates by 31 January 2017 to ensure they have received and continue to receive the right amount of support.
Consultation: withdrawl of 4 ESCs
HMRC have launched a consultation 'Withdrawal of extra statutory concessions 2017' on the removal of 3 VAT concessions and 1 income tax / corporation tax concession which are believed to be obsolete.
Case Update (freeview)
CGT error in LDF claim adds further penalties
In Knight v HMRC [2016] TC05544 an incorrect currency conversion and calculation of foreign gains under the LDF led to a discovery assessment and enhanced tax penalties.
SIPP: 3rd party loan is unauthorised payment
In Mark Danvers v HMRC [2016] UKUT 0569 the Upper Tribunal (UT) an arrangement to use a third party loan to unlock pension funds resulted in an unauthorised payment charge.
Pensions enhanced protection: late application refused
In Gordon Anthony Yablon v HMRC [2016] TC 05539 a late application for enhanced protection was denied as the taxpayer did not have a reasonable excuse for missing the deadline.
Mistaken VAT deregistration can't be backdated
In Inspired By Service Limited v HMRC [2016] TC 05537 a request to backdate cancellation of a voluntary VAT registration was denied. Although not liable to be registered, the taxpayer was entitled to be.
Intention to enquire blocks repayment
In Mark Wickersham v HMRC [2016] EWHC 2956 the High Court blocked a tax repayment claim for share loss relief: HMRC had given notice of their intention to enquire into the claim.
Editor's Choice
Buy-to-let ownership: personal v company?
UPDATE: we've made a major re-write and update to this unique guide. Updated case study for 2016/17, profit extraction, CGT reliefs, tax planning with shares, trusts, IHT issues for non-doms, ATED, de-enveloping, VAT and much much more.
2016/16 Tax Update and Rolling Planner
UPDATED: our rolling planner is essential CPD 'At a glance' guide to UK taxes. It covers all the key changes in real time across the main direct and indirect taxes, tax by tax, and shows what is coming up in future years, including links to HMRC's latest round of condoc responses and the work of the OTS.
VAT: goods v. services
NEW: What are goods and what are services for VAT? The answer is not always as straightforward as it may seem. Essential know-how for the new Flat Rate Scheme % for low cost traders.
VAT: toolkits
UPDATED: we took HMRC's toolkits and made them much better. Start here.
Practical Tax Guides and Updates (subscribers)
Profits from dealing in or developing UK land
NEW: an expanded version of our guide on the new rules which from July 2016 extend UK taxation to all profits from trading in and developing UK land, regardless of residence.
CGT reliefs: disposal of a business or its assets
UPDATED: more information added on holdover / gift relief, including transfers to trusts and restrictions for non-trade use of assets.
Entrepreneurs' Relief
UPDATED: more information added on what shares can qualify for relief.
Investors' Relief
UPDATED: information added on trading status when in administration, receivership or liquidation.
Pensions: unauthorised payment charges
UPDATED: new section added on payments by third parties.
CPD Webinars
Missed last time's update?
Nichola's SME Tax Update 6 January 2017
Features:
- Spring Budget date announced.
- Top 10 hits of 2016
- Scottish tax rates announced.
- Cases on property dilapidation compensation and place of supply for VAT.
- Buy to let ownership: personal or company?
- Personal allowance: who can claim?
- IHT and CGT: passing on investment company shares.
- Stamp duty on share for share exchanges
- More Finance Bill 2017 updates.
Come and join our Cloud
Subscribe (and UNLOCK the whole site) A single user annual subscription is £349 (+ VAT).
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's personal TAX INTRANET containing over 2,500 actively maintained tax guides, briefings, toolkits and checklists.
- Want to know more? Commission your own articles and checklists.
- Structured CPD: our detailed SME tax updates "for Advisers Only" provide topical summaries and planning notes & our NEW webcasts provide you with structured CPD at your desk.
- Regular client tax briefings: these cover the latest business and employment tax issues and are designed to assist you plan meetings and improve your client services.
- Nichola’s regular SME tax news web-update: we do the reading and cherry pick the best of the taxpress, magazines and websites for you.
- You can also commission guides and checklists for your own practice, post comments and upload your own articles.
- Access to the Virtual Tax Partner ® service provides subscribers with FREE quick calls and a discount of on phone, email and tax support and mentoring.
