Nichola's SME Tax W-update 27 April 2023

Hello,

HMRC have just brought out another Agent Update together with Trusts and Estates Newsletter. We also have details of our new Virtual Tax Partner (VtaxP) Tax Workouts.

Our first new Tax Workout will take us deep into the world of the 'Digital Nomad' and then after we will explore other new ways of working. Since the UK made the decision to leave the EU we have had a steady stream of queries from individuals all considering the merits and tax impacts of working elsewhere in the world. We note a rapid rise in countries creating what are known as ‘Digital Nomad Visas’: a type of working visa aimed at attracting digitally mobile workers to come and live and work in a host country. Terms vary, and Spain is one of the latest countries to offer such a visa scheme. Our VtaxP Digital Nomad tax workout will be held on 27 June. Do book your places now.

There has been a string of First Tier Tribunal (FTT) tax decisions examining the merits of late appeals. In all the cases we are featuring this week, the late appeal was primarily caused by adviser error. It is easy to miss a 30-day deadline, particularly if you are feeling overworked, stressed out and possibly dealing with some unpleasant, highly contentious tax issue. The only way to deal with these deadlines is to put them into your diary, with a reminder as soon as you receive them. I have been known to stick a copy of the assessment to my office wall too, just in case.

The VAT case on turmeric shots is quite funny: the tribunal decided to sample the product, which they did not enjoy doing. 

That's all for now, more cases, news and guides below.

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)  

Agent Update: April 2023 
HMRC have issued their Agent Update for April 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered. 

Trusts & Estates: What’s New 2023/24 
HMRC's latest Trusts and Estates newsletter contains some useful information. Here is our enhanced version together with a reminder of upcoming and recent changes.

Electronic Sales Suppression one-to-many letters 
HMRC's latest one-to-many letter campaign targets businesses using Electronic Sales Suppression (ESS) tools, such as software, to deliberately manipulate electronic sales records and hide the value of individual transactions.

Named tax avoidance schemes, promoters, enablers
HMRC publishes a lists. It is not recommended that taxpayers use any of these schemes, as HMRC does not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.

Editor's Pick 

VtaxP Tax Workouts 2023

BOOK NOW: Tax planning for Digital Nomads & OMB tax update 2023: Our new season of Virtual Tax Partner ®;Tax (VtaxP) Workouts commences with an exploration of exciting new innovations in working and the workplace.

Tax Tools 

2023-24 Tax Data Card
FREEVIEW tax data at a glance

Tax calculators
FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes. 

Tax Tools
FREE add-on for subscribers, or available separately

Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax significant events.  

Guides & Updates (subscription content)

Self-Employed 

Tradespeople: Tax Overview
UPDATE: Our new and improved guide for tradespeople covers how they are taxed, what expenses they can claim for tax purposes and the special VAT rules which apply.

Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?

Employees 

Wholly and exclusively…toolkit
When is an expense allowed for tax purposes? What does 'wholly and exclusively' mean? How do you determine if a cost is wholly and exclusively incurred for the purpose of a trade? What cases are there?  

Website and e-commerce costs
What tax relief is there for the costs relating to designing, creating, and maintaining a website, software or e-commerce development?  

Directors & Companies

R&D Tax Relief: Overview
UPDATED: Updated to reflect HMRC guidance change in respect of the requirement to notify HMRC of forthcoming R&D claims.

Plastic Packaging Tax
UPDATE: New penalty guidance. What is Plastic Packaging Tax? Who does it apply to? Are small businesses subject to Plastic Packaging Tax?

Land & Property

SDLT, LBTT, LTT: What's new 2022-23?
What is new for Stamp Duty Land Tax, Land and Buildings Transaction Tax and Land Transactions tax for 2022-23?  How are they taxed? What reliefs may apply? What has changed? What are the latest cases and developments?

SDLT: Chattels, fixtures & fittings   
NEW: Can I purchase chattels with a property?  How do I apportion the purchase price between a property and chattels?  Can I save SDLT by purchasing chattels?  What items are chattels?

Investment Zones: Tax breaks
NEW: What is an Investment Zone? Where are Investment Zones located? What are the tax advantages of running a business from an Investment Zone? When are the reliefs available?

Private Client & Estate Planning

Estates: Income Tax and Capital Gains Tax
UPDATE:  How do executors deal with income and capital gains arising on the deceased’s estate? What allowances and reliefs are available?

CGT: Rollover (Incorporation s.162) Relief
Incorporation Relief is available to individuals. Gains from the disposal of business assets on incorporation can be deferred. What assets are included? How does the relief work?

Penalties & Compliance

Appeals: Late
UPDATE We compare and summarise the relevant factors considered by the tribunals in considering late appeals following the Upper Tribunal decision in Martland.

CPD for Lunch

Byte-sized chunks of lunchtime CPD for subscribers

• NEW: CPD: Company cars: 2023
• CPD: Acting for a UK trust: Start here...
• CPD: CGT Reporting and payment deadlines
• CPD: Taxation of couples in 2022-23

More at CPD Index

Tax Cases (Freeview) 

Late appeal denied: director could have done more
In Shafique Uddin & Kazitula Limited v HMRC [2023] UKUT99, the Upper Tribunal (UT) found the denial of a late appeal had been considered correctly by the First Tier Tribunal. That the taxpayer had been misled by his advisors, in the circumstances, was not enough to allow a late appeal.

FTT denies late appeal for tennis commentator  
In Cranham Sports LLP v HMRC [2023] TC8794, the First Tier Tribunal (FTT) denied a late appeal against IR35 PAYE determinations caused by adviser error. They should have known better and the sum involved and other circumstances did not justify the appeal.

Late appeal allowed: tax adviser mistake
In Marie Guerlain-Desai v HMRC [2023] TC8795, the First Tier Tribunal (FTT) allowed a late appeal against an SDLT assessment. While the delay due to human error was considered significant and serious, the tax at stake was significant and HMRC’s remit was to collect the right amount of tax. 

VAT Cases & Guides

HMRC correct to treat OTT as valid 
In Rolldeen Estates Limited v HMRC [2023] TC08783, the First Tier Tribunal (FTT) found that a company which claimed its Option To Tax (OTT) on a property was invalid had no right of appeal against HMRC’s decision to treat the OTT as validly exercised.

Robson-Kanu's zero-rated turmeric shots not consumed for pleasure
In Innate-Essence Limited (t/a The Turmeric Co) v HMRC [2022] TC08792, the First Tier Tribunal (FTT) agreed with the appellant that turmeric shots were a food item and not a beverage, allowing them to benefit from zero-rating.

Fuel scale charges (VAT)
UPDATE: New 2023-24 charges. What is the VAT fuel scale charge? What alternatives are there to the VAT fuel scale charge? Does the VAT fuel scale charge apply to vans?  

Annual accounting
UPDATE: What is the VAT annual accounting scheme? How does it work? Who can use it? What are the conditions?

Input VAT claims: Pre-registration
UPDATE: When can pre-registration input VAT be recovered? What are the time limits and restrictions? 

Tax Queries?

UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?

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.  

Missed last time's Web-update?

Nichola's SME Tax W-update 20 April 2022

• Half of director disqualifications due to COVID-19 fraud 
• Employer Bulletin: April 2023
• CJRS to be repaid: employees were not added to RTI 
• PAYE dispensation binding on HMRC  
• Sale of overvalued IP to pension results in scheme tax charges
• Scottish law not to be treated as a foreign law
• Trust liabilities reduce estate value without reducing IHT charge
• Special Dividend causes assessment chaos
• Employer’s What’s On: 2023/24
• Sole trader v. limited company: Tax differences & savings (2023/24) NEW
• Self Assessment Return 2022/23: What's new?
• Lorry drivers: Tax Overview UPDATE
• Do I pay a salary or dividend? 2023/24 NEW
• Incorporating a property/buy-to-let business UPDATE
• Dividend tax (subscriber guide) UPDATE
• Super-deduction & First Year Allowances UPDATE
• Statutory Review (by HMRC) UPDATE ...More

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