Hello,

This week we launch new tax calculators, we have four topical cases, and a range of new and updated materials to help you stay on top of your game, in tax.

We have three new tax calculators out for beta testing. These are free to paid subscribers. New subscribers from April 2022 also have access to our full range of Tax Tools included in the subscription package. You can find these on the top menu of the site.

Our weekly review of topical decisions from the First Tier Tax Tribunal (FTT) includes a really useful one on tax treaties and so-called ‘tie-breaker’ clauses. Most non-tax specialists often tend not to appreciate that the provisions of double tax treaties can override our domestic law, i.e. our Statutory Residence Test (SRT).

HMRC has announced a new settlement opportunity for users of some disguised remuneration trust tax schemes, and the net is closing in on the tax avoidance industry as HMRC 'names and shames' a couple of employment tax avoidance scheme promoters. 

A review of VAT cases reveals that the FTT has confirmed that flapjacks are not cakes. We have flagged up the decision this week, as it provides a useful run down of the cake tests for VAT. 

We have more updates, cases and news below.

Finally, it's Easter this weekend and we have a 'double rollover' of bank holidays. Whatever your faith or belief, say a prayer for the people of Ukraine and all other victims of war around the world. 

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) 

Settlement opportunity for Remuneration Trust schemes
HMRC have introduced a new short term settlement opportunity for the users of certain types of remuneration trust tax planning schemes where they consider that the scheme design may be fundamentally flawed.

Companies House: What's New 2022?
Small & micro companies will have to file full profit and loss and balance sheets as part of reforms introduced in the Government's 'Corporate Transparency & Register Reform White Paper'. Further reforms give new powers to the Registrar including identity checks for directors and restrictions on corporate directorships.

Tax avoidance scheme promoters named
HMRC have named two tax avoidance scheme promoters under new powers granted to them by Finance Act 2022.

Editor's Pick (subscribers)

NEW: Tax Calcs

Self Employment Calc
Calculate Income Tax, Class 4 and Class 2 National Insurance (NICs) payable on profits from self-employment. How do you calculate tax and NICs on self-employed income?

Salary v Dividend Calc
What is the difference between paying yourself via salary or a dividend? How does the Employers' Allowance affect your calculations? Calculate the tax and National Insurance on a salary or tax on a dividend for 2022-23 and earlier years.

Day Calc (freeview)
What is the difference between two dates, in days? Calculate the difference between two dates.

Guides & Updates (subscribers)

Starting in business

A new business? Start here (Freeview)
Starting in business? Our 'At a glance' guide takes you through the key steps in getting started for tax, with links helping you drill down for more detail.

Directors

Salary 2022/23 (avoiding NICs)
What amount of salary can be paid by an employer to a director or shareholder and avoiding or reducing National Insurance Contributions (NICs)? Is it beneficial to pay a slightly higher salary to claim the Employer's NICs allowance and pay some NICs? 

Tax Returns: To-do list before/after 5 April 2022
NEW: What tax returns and claims are due before the end of the tax year? What are my tax filing requirements? This is a checklist of key deadlines for SMEs and their owners. 

Companies

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

Goodwill and the intangibles regime
UPDATE: Agent Update 91 common errors are now included.

Land & Property 

Property profits & losses: Toolkit (2022-23)
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual.

SDLT: Residential property higher rates
UPDATE: 36-month time limit extension as a result of exceptional circumstances updated to reflect changes to HMRC guidance.

Overseas & Residence

Tax treaties: Where do you live?
Where do you live for the purposes of a double tax treaty? How can you resolve disputes and uncertainties over your tax residency?

Non-domicile status, deemed domicile & tax
Who is non-UK domiciled? What does this mean for UK Income Tax, Capital Gains Tax and Inheritance Tax? What reliefs are available to non-doms?

Private Client & Estate Planning 

Tax Planning for the 2021/22 year-end
This is our year-end and new tax year checklist and toolkit for individual Private Clients. It can be used in conjunction with our checklists for directors, employers and self-employed individuals.

Divorce & Separation: Toolkit
UPDATE: A summary of the tax implications which can arise on divorce and separation. 

Disguised remuneration loan charge
UPDATE: What is disguised remuneration? What is the loan charge? When does the loan charge apply? Will the loan charge affect me? More information about HMRC's plans to deal with unpaid and undeclared loan charges. 

Tax Cases (freeview)

Employer error extends auto-enrolment time limits
In Ian Moan v HMRC [2022] TC08449/V, the First Tier Tribunal (FTT) considered the deadline for opting out of auto-enrolment when an employer had provided incorrect information to the employee, who had consequently lost pensions fixed protection

Tax treaty saves Oppenheimer £10m of tax
In Jonathan Oppenheimer v HMRC [2022] TC08443, the First Tier Tribunal (FTT) ruled that a non-UK domiciled individual was 'treaty resident' in South Africa despite long term residence and business interests in UK. As a result £20m of funds transferred to the UK were not 'remittances' and as such not subject to UK tax.

IR35: Sky football pundit was an employee
In McCann Media Limited v HMRC [2022] TC08435, the First Tier Tribunal (FTT) found a fixed annual payment regardless of the number of appearances to be persuasive when determining that ex-Scottish footballer Neil McCann had fallen foul of IR35 and deemed the relationship between himself and Sky to have been one of employment.

VAT Cases (freeview)

Flapjacks not cakes for VAT 
In Glanbia Milk Limited v HMRC [2022] TC08439 the First Tier Tribunal (FTT) found that a number of food products described as flapjacks were not zero-rated cakes for VAT purposes, but were standard rated confectionery.

VAT guides

Land & Property VAT (Subscriber guide)
UPDATE: This guide provides an outline of the VAT treatment of some of the more common supplies of land and property including relevant case law. We have added some recent cases on the VAT treatment of certain types of letting and leasing of land and property.

Tax Tools

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 (premium content) 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 7 April 2022

  • Accountants: are you a MSC provider?
  • ATED: Don’t forget to revalue your property at 1 April 2022 
  • Calendar of tax deadlines and new tax measures
  • PAYE: Starter checklist new employee 2022-23 
  • What is the 2022/23 PAYE tax code?  
  • Unexplained Wealth Orders
  • FTT: Schedule 36 notices not reasonably required 
  • No CGT deduction for notional expenditure
  • Company payments not 'on behalf' of owner
  • Revenue & Customs Brief 7 (2022): Claiming a repayment of overpaid import VAT on dental prostheses
  • SRT: Statutory Residence Test
  • Non-domicile status, deemed domicile & tax
  • Employers' NICs Allowance
  • Managed Service Companies
  • Tax Returns: To-do list before/after 5 April 2022
  • Annual Tax on Enveloped Dwelling
  • Register of Overseas Entities  ...More 

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