Hello,

This week we have Autumn Budget 2021 coverage and our freeview guides provide all the essential information. As usual, we will be drilling down into more detail over the coming weeks with more comprehensive guidance for subscribers.

We realised when the Chancellor had been talking for an hour and had only mentioned tax a few times that there was going to be little of great interest this time from a tax perspective. The key announcements about the new Health and Social Care levy and increases to dividend tax rates had already been anounced by the Prime Minister in September.

The tax highlight of the day was the extension of the 30-day reporting and payment deadline for Capital Gains Tax (CGT) on residential property sales, which has immediate effect for disposals completing on or after 27 October 2021. A sensible solution to a practical problem. 

Much of the rest of the Budget speech revolved around government spending. There were some welcome improvements announced to R&D relief and reliefs for museums, orchestras, galleries and theatres, as well as further business rates reprieves for the hospitality sector. The extension of the £1 million Annual Investment Allowance (AIA) is almost customary now. With no further tax rises announced, a deficit in the region of £16 billion and all this new spending, it does rather feel as though the Chancellor is putting off the inevitable.

Also notable by their absence were any new measures to tackle climate change, but perhaps we can expect more to come on this following the COP26 Summit next month. 

In non-budget news, contractors and the businesses engaging them, have an opportunity to send submissions to the House of Lords finance committee about how the Off-Payroll Working rules for the private sector have worked in practice since they were introduced in April. This review got lost last year in the midst of COVID so it is nice to see that the Lords have now picked it back up. 

Finally, all the delegates to this year's VtaxP Practical Tax Conference should now have received a link to download and rewatch the presentations for both days. Please contact This email address is being protected from spambots. You need JavaScript enabled to view it. if you have not received the link.

Lots more news, updates and CPD below.

Back soon, 

The Team @ www.rossmartin.co.uk

Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.

Autumn Budget 2021

Autumn Budget 2021: At a glance
Our summary of Rishi Sunak's new budget announcements affecting owner-managed businesses and their owners

Autumn Budget 2021 Zone
Go to our Budget Zone for the details of changes across the tax spectrum; Land & Property, CGT, VAT and others. This is Chancellor Rishi Sunak's second budget of 2021. 

Quick News (Freeview)

PAYE RTI reporting: exception to the rules 
HMRC have issued a reminder to employers, in respect of PAYE Real-Time Information (RTI) filing, that where employees are paid early or late, the contractual payment date should be reported rather than the actual payday. 

Call for evidence: Implementation of Off-Payroll Working rules in the private sector
The House of Lords Finance Bill sub-committee has launched a new call for evidence into the implementation of the off-payroll rules in the private sector and how they are working in practice.

Consultation: tax conditionality regulations   
HMRC are seeking views on draft regulations covering the additional requirements for license renewals for taxi and private hire drivers, private hire vehicle operators and scrap metal dealers in England and Wales.

Editor's Pick 

Autumn Budget 2021: Income Tax, NICs, claims and reliefs
The Chancellor made the following announcements that affect Income Tax rates, allowances, reliefs and claims in his Autumn Budget 2021. 

Autumn Budget 2021: Capital Gains Tax (CGT)
The Chancellor made the following new announcements in respect of Capital Gains Tax (CGT) in his Autumn Budget 2021.

Guides and Updates (subscribers)  

Self Assessment 

2020/21 Self Assessment Tax Return toolkit
UPDATE: A tax return toolkit for the year ending 5 April 2021. 

Partnerships

Running a LLP in tandem with a company
UPDATE: It is possible to run a Limited Liability Partnership (LLP) or other form of partnership in tandem with a company. Partnerships can also have corporate partners. What needs to be considered? 

Land and Property  

Property profits & losses: Toolkit (2021-22)
UPDATE: Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual. 

Directors & Companies   

Dividends: Formalities for companies
UPDATE: This is a briefing note for discussion with directors about the formalities of declaring and paying dividends. 

Employers

ABC or alphabet shares: directors & employees
UPDATE: Can you set up different classes of shares? How do you create Alphabet or ABC shares? What are the rules in giving different classes of shares to directors and employees?  

Private Client & Estate Planning

IHT: Loans and restrictions on liabilities against the estate
UPDATE: When are loans deductible from the estate on death? What restrictions are there? What anti-avoidance rules do I need to consider?  

Tax Cases  

No duty of care for accountant who introduced tax scheme promoters  
In Alastair Graham Knights, Evergreen Trees and Shrubs Limited and Knights Investment Management Limited v Townsend Harrison Ltd, EWHC 2563, the High Court (HC) adjudged that an accounting firm neither had nor breached, a duty of care when providing introductions to providers of tax avoidance schemes.

Parent unaware of child benefit claims had a reasonable excuse  
In Michael Anderson v HMRC [2021] TC8290, the First Tier Tribunal (FTT) allowed the taxpayer's appeal against failure to notify penalties. The taxpayer was not aware his partner was receiving child benefit and the FTT judged that this was a reasonable excuse.

Accommodation costs were wholly, exclusively and necessarily incurred 
In Jayamth Kunjur v HMRC [2021] TC08296, the First Tier Tribunal (FTT) found that a proportion of accommodation costs incurred by an employed dental surgeon were deductable from employment income.  

VAT Cases & Guides

Care home: Input VAT blocked and output VAT due 
In Silver Sea Properties (Leamington Spa) SARL v HMRC [2021] TC08284, the First Tier Tribunal (FTT) found that input VAT was largely irrecoverable on furniture, fixtures and equipment incorporated into a leased care home. 

Capital Goods Scheme
UPDATE: What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work? 

Tax Toolkits 

Tax Tools
Be a winner with our game-changing tax diagnostics tools for Business Asset Disposal Relief, SDLT & annexes/subsidiary properties, Company reorganisations, R & D Zone and TAAR on winding up. Sign up now!

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 21 October 2021

  • HMRC guidance for employment agencies
  • Fail to pay your tax and what might HMRC do? 
  • Making Tax Digital for Agents issue 18: September 2021 
  • Expect new taxes to achieve Net Zero
  • Transfer of UK business to Gibraltar was a transfer of assets abroad
  •  No aggregation of employments for NICs lower earnings limit
  • High Court finds that EBT is valid potentially costing millions
  • Late evidence causes R&D relief claim to fail
  • Multiple DIY housebuilder claims permitted 
  • Vtaxp Practical Tax Conference Q&A: Greatest Hits of 2021-22 & Tax Return Boot camps
  • Vtaxp Practical Tax Conference FAQ: Planning for a rise in Corporation Tax
  • VtaxP Practical Tax Conference Q & A: Demergers demystified
  • Recordkeeping & tax: What, how and until when?
  • Incorporation: Property business/Buy to let
  • Purchase of own shares: Checklist (Masterclass)
  • SRT: Statutory Residence Test
  • LBTT: Land and Buildings Transaction Tax (LBTT)
  • Welsh Income Tax ...More 

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