Hello,
We have launched our coronavirus Self-Employment Income Support Scheme (SEISS) tool this week for the first stage of testing with unrepresented taxpayers. So far so good, everyone gets the basics. There is an enhanced version in the pipeline for those who struggle with averaging.
The House of Lords' final recommendations on its review of Off-Payroll Working might raise the odd eyebrow. It suggests that HMRC scraps IR35 in favour of ‘one of the simpler, less burdensome alternatives'. Having followed this topic closely for many years I must admit that I struggle to find anything simpler than deduction at source. Perhaps though a statutory employment test is the means to the final end. The Statutory Residence Test works well for determining tax residence, and it really is a tough call for HMRC to design a 'check employment status tool' that takes into account every single judge-made decision on employment status, there are so many decisions. And what else do with the Lords' request at the end of the report? They go on to recommend that the government design a 'short-term means of raising revenue that will not prove burdensome for businesses as they emerge from the COVID-19 pandemic'. I wonder what on earth they mean when they say, "will not prove burdensome".
The House of Lords committee was heavily lobbied by anti-IR35 groups and their report does not consider the wider impacts of the use of abusive tax avoidance schemes which have been such a fundamental feature of the contracting market over the last two decades and ultimately have to be the reason for the introduction of the extended Off-Payrolling rules. HMRC, whether by coincidence or not, has published the results of research conducted into that aspect this week too. That makes interesting reading: in total contrast to the Lord's review.
If you have any tax-specific queries, please post them up to our sister site, details are here: www.VtaxP.co.uk.
Back soon
Nichola Ross Martin FCA CTA (Fellow)
Tax Director
Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick news & guides (freeview)
Employer Bulletin: April 2020
HMRC have published their Employer Bulletin for April 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered.
Spotlight 55: Comparison and broker websites marketing umbrella companies are not always what they seem
HMRC have issued a guide to help workers who are considering using an umbrella company to make sure that it complies with the tax rules.
House of Lords: re-think IR35, Off-Payroll rules and employment status
The House of Lords Economic Committee's review of the proposed extension to the IR35 Off-Payrolling rules, 'Off-payroll working: treating people fairly', concludes that the rules are flawed and the government should re-think tax and employment status.
HMRC research: Understanding tax avoidance arrangements used by contractors
HMRC have published new research, ‘Understanding tax avoidance arrangements used by contractors’, undertaken in 2018 to help HMRC better understand how contractor tax avoidance schemes are promoted and how contractors view such schemes.
Independent review of the Loan Charge
The government has published a summary of evidence provided to Sir Amyas Morse as part of the independent loan charge review undertaken in December 2019.
Coronavirus Support
COVID-19: New timelines for tax policy consultations
Due to the disruption caused by the COVID-19 crisis, HM Treasury and HMRC have extended the deadlines for ten ongoing tax policy consultations and calls for evidence by three months.
Coronavirus Self-Employment Income Support Tool
Coronavirus (COVID-19) Self-Employment Income Support Scheme (SEISS) tool. Use this to see whether you meet the qualifying conditions to allow you to claim.
COVID-19: Tracker
UPDATE: Start here to track key government measures and announcements aimed at supporting businesses and individuals.
Editor's Pick (subscribers)
Personal Service Companies (PSC) & tax
What are the key tax issues for PSCs and their owners?
IR35/Off-Payroll Working
What is IR35? How does it work? How is the deemed payment calculated? What expenses are deductible?
Focus on Wales (subscribers)
Welsh Income Tax
UPDATE: What is Welsh Income Tax and how does it work?
Welsh Land Transaction Tax
UPDATE: The Welsh version of Stamp Duty Land Tax (SDLT).
Welsh LTT vs SDLT: Comparing the rates and additional dwellings charge
UPDATE: Side by side comparison of LTT and SDLT.
Tax Guides and Updates (subscribers)
Employers' Travel guide
This guide considers relief available where accommodation is provided during business travel or when the employee works at a temporary workplace. Handy guide to the special rules for IR35, MSCs, Agencies etc.
Employers' Guide: accommodation
This guide considers relief available where accommodation is provided during business travel or when the employee works at a temporary workplace.
Scale Rates, Bespoke Rates & Fixed Rate expenses
What can you pay without receipts?
PIID exemption for paid and reimbursed expenses
All about the exemption for qualifying business expenses provided that the expenses are incurred personally and then reimbursed by the employer
Regulation 80 PAYE Determinations
And Decisions under Section 8 Social Security Contributions (Transfer of Functions) Act 1999. HMRC has the power to raise assessments on the employer and sometimes its employee when it fails to operate PAYE and NICs correctly.
Case Update (freeview)
No discovery: Unauthorised payment not careless
In Bella Figura Ltd V HMRC [2020] UKUT 120, the Upper Tribunal (UT) found that HMRC were out of time on two of the three discovery assessments and incorrectly issued one relating to a pension unauthorised payment charge.
Virtual Tax Partner Toolkits (freeview)
Virtual Tax Partner © Tax Toolkit© Tax Toolkits
NEW: be a winner with our game-changing tax diagnostics tools. Sign up now.
- Entrepreneurs' Relief: Sole traders: sale of a business, incorporation, sale of assets
- Entrepreneurs' Relief: Company owners: rules for sales pre 29 October 2018, sales between 29 October 2018 and 5 April 2019 and after.
- TAAR: closing your Personal service company? Will your final dividends be taxed as income?
- Salary or dividend, or a mixture of both. Better to claim the Employers' Allowance?
- Making Tax Digital for VAT: when do you need to join.
Tax Queries?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
CPD for lunch
Byte-sized chunks of CPD for subscribers
More at CPD Index
Missed last time's Web-update?
Nichola's SME Tax W-update 23 April 2020
- COVID-19: Tracker
- Fuel scale charges (VAT)
- Making Tax Digital for Income Tax
- COVID-19: Landlords and tenants
- COVID-19: Future Fund convertible loan scheme
- COVID-19: Working from home
- COVID 19: Deferring Income Tax payments
- Furnished Holiday Letting (FHL)
- Adviser guide: Property profits and losses
- CGT: Entrepreneurs' Relief
- IHT rules do not discriminate against UKIP supporters
Come and join our Cloud
Subscribe (and UNLOCK the whole site) A single user annual subscription is £399 (+ VAT).
What do you get?
- We keep YOU up to date in SME tax.
- FULL access to www.rossmartin.co.uk: your firm's favourite TAX INTRANET containing over 3,500 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 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.
