Hello,

Things are moderately quiet in terms of tax news this week, however we do feature some new, invaluable practical guides and updates. There are also new consultations on several aspects of Scottish and Welsh devolved taxes, and a response from HMRC on its Cryptoasset promotions consultation.

HMRC has published a new Stamp Taxes Newsletter, featuring links to guidance on Stamp Duty Land Tax (SDLT) and Freeports. In earlier weeks, we drew your attention to the new consultation SDLT Mixed Property Purchases and Multiple Dwellings Relief, all areas of continuing confusion for property purchasers and their advisers

We have just created a new index and start-up index for Landlords, and also updated our new Company index. These are indexes-crossed with guides and are very handy if you are new to our site and our content. In passing, corporate landlords who pay the Annual Tax on Enveloped Dwellings (ATED) should note that properties need to be revalued for the ATED on 1 April 2022.

Our review of tax cases this time includes yet another case featuring a remuneration trust tax avoidance scheme. The lack of consistency from the First Tier Tribunals (FTT) as to the treatment of these highly complex schemes is now quite apparent.

As we head towards the end of January, I hope that the Self Assessment season is going well. in a blink of the eye there will be another budget! 

Back soon, 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director

www.rossmartin.co.uk

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

Quick News (Freeview)

Stamp Taxes Newsletter: January 2022   
HMRC have released the Stamp Taxes Newsletter: January 2022.  This is our enhanced version with links to our guides and SDLT tools.

Consultation responses: Scottish framework for tax 
The Scottish Government have released the summary of responses to their consultation covering: Tax policy and the Budget – a framework for tax.  This details stakeholder feedback on how the Scottish Government could enhance its approach to tax policy over its next parliamentary session. 

Consultation outcome: Cryptoasset promotions
HM Treasury have published the responses to the 'Cryptoasset promotions' consultation, along with further detail on how the government intends to regulate cryptoasset promotions.

Consultation: Welsh Tax Acts etc. (Power to Modify) Bill 
The Welsh Senedd have published "Consultation: Welsh Tax Acts etc. (Power to Modify) Bill" which seeks views on the proposed Bill, the principles behind having the power to modify Welsh Tax Acts and protect Welsh tax revenues, as well as the effectiveness of the proposed mechanisms.

Editor's Pick 

A landlord? Start here...
NEW: our FREEVIEW guide helps new landlords and their advisers navigate the growing complexities of tax and a UK's property business.

A new company? Start here...
UPDATE: This 'At a glance' FREEVIEW guide is essential reading for anyone thinking about starting up a new company.

Top tips for last-minute tax returns
UPDATE: This guide is a summary of top tips for dealing with last-minute tax returns; what not to forget and how to protect against enquiries. 

Guides and Updates (subscribers)  

Self Assessment 

Gift Aid
UPDATE: How is tax relief for Gift Aid donations received by individuals? How do donations impact the personal allowance? When can Gift Aid donations be carried back to an earlier tax year?  

Do I have to file a tax return?
When does an individual need to file a tax return? In what circumstances do HMRC need to be notified that a tax return is required?

Land & Property   

Annual Tax on Enveloped Dwellings (ATED)
UPDATE: the new valuation date is 1 April 2022, and return must be submitted by 30 April 2022. Typically this tax is paid where residential property owned by a company is occupied by a connected person.

Directors & Companies   

Purchase of own shares: multiple completion contracts
UPDATE: There are signs that HMRC has been taking different views to some of the suggested routes for alternative versions of share buy-backs, these affect both POS and BADR.

Video Games Development relief
UPDATE: Video Games Development tax relief is a tax relief that can be claimed by games production companies in respect of expenditure incurred in the development of British video games. The relief provides an enhanced deduction of expenditure for Corporation Tax relief or alternatively a repayable tax credit may be claimed. 

Employers

Tax-free Childcare
UPDATE: Back to working in an external office? What are your options for reducing the costs of childcare?

Electric Vehicles: Update
UPDATE: With the increased recent focus on climate change and the government’s plan to ban new petrol and diesel car sales by 2030, we provide an update of the tax issues businesses and their employees should consider when acquiring or providing an electric vehicle.

Overseas & Residence

Certificates of residence
UPDATE: This is a freeview 'At a glance' guide for companies, partnerships and individuals who need to apply to HMRC for a UK certificate of residence and provides details of the application process. 

Private Client & Estate Planning 

CGT: how to report
At a glance guide about how to report capital gains. How do you report your capital gains? What return do you use?

CGT: Payment of tax
When is Capital Gains Tax (CGT) due? Can I pay in instalments? What are the penalties if I pay late? 

Capital Allowances

Vehicles (4 wheels): Allowances
UPDATE: What capital allowances are available for vehicles? How does HMRC classify what is a car or what is a van? 

Plug-in car, van & motorcycle grants
UPDATE: Plug-in vehicles and charging points can be eligible for government grant funding.

Tax Cases   

CoA: Closure notice requires tax liability
In Epaminondas Embiricos v HMRC [2022] EWCA Civ 3, the Court of Appeal (CoAadjudged the taxpayer was prevented from forcing HMRC to issue a closure notice covering only his domicile status, against which he could appeal, until the underlying tax at stake could be quantified.

UT dismisses SDLT MDR appeal  
In Andrew & Tiffany Doe v HMRC [2022] UKUT00002, the Upper Tribunal (UT) endorsed the FTT decision that a residential property purchase did not represent the purchase of two separate dwellings on which Multiple Dwelling Relief (MDR) for Stamp Duty Land Tax (SDLT) could be claimed.  The taxpayer's appeal was dismissed.

Remuneration trusts: no consistency from the tribunals 
In Strategic Branding Limited v HMRC [2021] TC08348, the First Tier Tribunal (FTT) found, contrary to a previous decision on the same tax scheme, that contributions to a remuneration trust were disguised remuneration taxable under Part 7A ITEPA. 

VAT Cases & Guides 

Supply of rooms to beauticians: VAT exempt 
In Errol Willy Salons Ltd v HMRC [2022] TC08370 the First Tier Tribunal (FTT) found that the supply of rooms within a salon to beauticians were exempt from VAT. Additional services provided were ancillary to the supply.

No input VAT recovery as VAT was not due or paid 
In Zipvit Ltd v HMRC (Case C-156/20) (13 January 2022), the CJEU found that VAT was not due or paid on Mailmedia services supplied by Royal Mail. This blocked Zipvit Ltd from recovering input VAT on the supplies.

HMRC cancelled VAT registration: Late appeal refused 
In Flying Spur Limited v HMRC [2022] TC08360 the First Tier Tribunal (FTT) refused permission for a late appeal against HMRC’s cancellation of a company’s VAT registration.

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 20 January 2022

  • Agent update: January 2022 
  • Deferral of new VAT penalty and interest rules to 2023
  • Consultation response: Business rates treatment of self-catering accommodation 
  • Think tank calls for carbon border tax 
  • PAC seeks views on implementing IR35 reforms
  • Technical consultation: Uncertain tax treatment 
  • Sole trader?  Start here... 
  • A new director? Start here...
  • Four-year time limit for MGD repayments 
  • Court of Appeal upholds denial of farming loss relief claims 
  • Employer payments whilst training remained taxable earnings 
  • Revenue Scotland had no right to unilaterally withdraw Closure Notice 
  • Opting to tax land and property
  • Wider impacts: the 2020-21 tax return penalty waiver 
  • Annual Tax on Enveloped Dwellings (ATED)
  • Purchase of Own Shares
  • Employer's What's On: 2021-22
  • Private client: What’s on? 2021-22
  • Insolvency FAQs for directors ...More 

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single user annual subscription is £425 (+ 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.

 


Squirrel ad


Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad