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This week we discovered there is an international group, the Joint Chiefs of Global Tax Enforcement or ‘J5,’ comprising the heads of tax enforcement from the UK, Australia, Canada, The Netherlands and the US.

They are meeting in London to share intelligence and coordinate efforts on a global level against international tax crime and money laundering. Apparently, the J5 has had some success during its first four years of operating, including 10 individuals being charged following a suspected multimillion-pound investment and impersonation scheme, aimed at defrauding people across the globe. Good to know such a group exists, although the current membership doesn’t quite yet make it ‘global’.

We have an interesting case on Enterprise Incentive Scheme (EIS) relief and the application of the new risk to capital condition introduced in 2018, which had not previously been tested in the courts. We also have the Court of Appeal decision in the Hoey case, where it was held that an Employee Benefit Trust (EBT) participant could not claim a PAYE credit against taxable contributions to an EBT as there had been no PAYE deducted by an employer. 

As P11D season approaches we have updated our ‘Employer checklist and top tips’ guide which now includes a useful table setting out the National Insurance position on Benefits in Kind and whether a particular benefit is subject to Class 1 or Class 1A NICs.

If you are waiting on R&D claim repayments please note that delays are currently being reported due to HMRC investigating ‘irregularities.’

Check out our new guide ‘A sale of the company’s shares? Start here’. It's a great starting point if you are considering a sale or looking at succession planning.

We also have a new CPD webcast this week. It is the first in a two-part series looking at the proposed changes to tax Basis Periods: essential viewing for those who have Income Tax period ends that are not co-terminus with the end of the tax year.

Lots more exciting content and updates 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.

Quick News (Freeview) 

Annual expenses for employees: How to claim
The way in which employees can claim expenses has recently changed. This freeview guide explains the way in which employees can claim expenses.

Irregular R&D claims suspended by HMRC
The ICAEW has reported that HMRC have suspended or delayed some R&D tax credits due to irregularities. This may lead to delays in other R&D claims.

HMRC responds to PAC tax debt enquiry  
The Government has released their responses to the Public Accounts Committee (PAC) enquiry entitled ‘HMRC’s Management of Tax Debt’.  The PAC recommendations have been accepted and HMRC aim to better handle the number of customers with tax debt.

Consultation on Statutory Debt Repayment Plan
HM Treasury has published, 'Statutory Debt Repayment Plan: Consultation', which looks at a new statutory debt solution focused on repayment of debt, rather than debt relief. 

Editor's Pick (subscribers)

A sale of the company's shares? Start here...
NEW: Part two of four planning aids on disposing of your business. If one or more shareholders are considering selling their shares what are their options?

P11Ds: Employers' checklist & top tips
UPDATE: Top Tips for employers on preparing form P11D together with a checklist.

Guides & Updates (subscribers)

Freeports: Tax breaks
UPDATE: It has been announced that a new Freeport will be established in Wales. 

Discovery Assessments
UPDATE:  Following the Supreme Court decision in HMRC v Raymond Tooth [2021] UKSC 17, a number of First Tier Tribunal decisions which allowed appeals against discovery assessments on the basis that the discovery was 'stale' are being overturned by the Upper Tribunal.

Self-employed

Partnership agreements: What should be considered?
UPDATE: Partnership agreements can be invaluable to clarify everyday matters and settle disputes within a partnership. What sort of things should be discussed for inclusion in a partnership agreement?

Accounts: Tax Checklist (self-employed)
UPDATE: This is a checklist to assist you in preparing accounts and to highlight key areas of discussion with your sole trader clients. 

Companies

Substantial Shareholding Exemption (SSE)
UPDATE: What is the Substantial Shareholding Exemption?  When does it apply?  How does it interact with de-grouping charges?

Directors

Interest relief: Making a loan to a close company
UPDATE: In certain circumstances, individuals can claim tax relief for interest paid on a loan where the funds are used by a close company or used to buy an interest in a close company. Which loans qualify? What is a business purpose?

Leaving payments and directors
UPDATE: How are leaving payments to directors taxed? What are the planning opportunities and pitfalls?

Overseas

Foreign and residency pages: FAQs
UPDATE: How do you complete the foreign and residency pages of the Self Assessment return?

Non-domicile status, deemed domicile & tax
UPDATE: 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?

Employers 

Golden handshakes, signing on fees and unusual payments
UPDATE: How are golden handshakes, signing on fees and unusual payments taxed? 

Private Client & Estate Planning 

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

Rollover Relief: Exchanges of joint interests in land
UPDATE: This guide outlines the form of Capital Gains Tax (CGT) Rollover Relief available for exchanges of joint interests in land.

Land and property

SDLT: Amending returns
UPDATE: How do I amend an SDLT return?  When can I amend an SDLT return?

Tax Cases (freeview)

Start-up film company did meet EIS risk to capital criteria
In Inferno Films Limited v HMRC [2022] TC08472, the First Tier Tribunal (FTT) upheld the appeal of the Welsh film company, Inferno Films, finding that there were objectives to grow the business and as such the risk to capital criteria was met, allowing EIS status to be claimed.

FTT agrees apportionment for Multiple Dwellings Relief claim  
In Marcus and Marcus Limited v HMRC [2022] TC08476, the First Tier Tribunal (FTT) determined that the main property in a property purchase qualified for Multiple Dwellings Relief and that the apportionment of consideration based on floor area was just and reasonable.

Court of Appeal: no PAYE credit for payments to an EBT 
In Stephen Hoey & Ors v HMRC [2022] EWCA Civ 656 the Court of Appeal agreed that no PAYE credit was available for payments made to an Employee Benefit Trust. The courts had no jurisdiction to challenge HMRC’s discretion in not pursuing a deemed employer for PAYE, and the appellant’s judicial review claim failed.

VAT Cases & Guides 

Revenue & Customs Brief 8 (2022): DIY housebuilder claims 
HMRC have published Revenue & Customs Brief 8 (2022): ‘Single DIY Claim — First-tier Tribunal Andrew Ellis and Jane Bromley’, which clarifies HMRC’s policy in relation to making more than one claim under the DIY Housebuilders Scheme.

Registering for VAT
UPDATE: When should a business register for and charge VAT? What are the VAT registration thresholds? What penalties might HMRC issue for late notification of registration? When do you need to file a VAT return?

Groups (VAT)
UPDATE: What are the conditions for forming a VAT group? What rules apply once a VAT group is in place?

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 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 12 May 2022

 

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