A new government consultation considers the merits of increased tax incentives, particularly extending the Benefit in Kind (BiK) exemption for medical benefits. We have a new Agent Update and our tax cases cover sales suppression by a prolific puppy breeder and a successful input VAT claim on a fund raising share sale. It's getting to the end of another busy week.
Don't forget that 31 July is the deadline for the second payment on account for Income Tax and Class 4 National Insurance Contributions for this 2023/24 tax year. Official interest rates are now high enough to be a concern. If you cannot afford to pay, make a time to pay agreement before the deadline.
We held a couple more of our verifiable CPD tax workouts this week. Some might think that I drew a short straw in doing an Anti-Money Laundering (AML) update, however, as AML Officer for the Virtual Tax Partner side of our business this is well within my pay grade. Besides which, it's fascinating to research this topic. Our obligations as professionals make us the gamekeepers to Companies House gatekeeper and my research took me down several rabbit holes. I also visited the House of Lords' debates on the new Economic Crime and Corporate Transparency Bill. They have seen a chance to try and close loopholes in the Overseas Entity disclosure rules. We will see what happens to their amendments in the Autumn when parliament returns.
My colleague Andrew gave a really practical tax planning talk on Inheritance Tax too. We are sending out detailed summaries to those who took part as there was a lot to take on board and some really useful planning advice, particularly around optimising your Nil-rate bands. Andrew also took a pragmatic look at long-term planning opportunities using Family Investment Companies (FICs). Recordings of both tax workouts are available to purchase and notes showing the detail in the IHT case studies will be circulated too.
More news and updates below
Nichola Ross Martin FCA CTA (Fellow)
Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News (Freeview)
Agent Update: July 2023
HMRC have issued their Agent Update for July 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Consultation on extending the medical BIK exemption
HM Treasury and HMRC have opened a joint consultation ‘Tax incentives for occupational health’. This explores how the tax system can support employers to increase the provision of occupational health services for their employees.
Finance (No. 2) Act 2023 finally published
Missing act is found! Finance (No. 2) Act 2023 received Royal Assent on 11 July 2023. The Act in its final form has finally been published in full.
Lords press to close offshore entity loopholes
When the government published legislation that aimed to improve transparency over ownership of UK land property in 2022, legal experts noted a loophole in the rules.
Land & Property: an Adviser's Tax Update 2023-24
NEW: Land and Property taxes: a comprehensive review of sector offering a topical CPD update.
Tax Cases (Freeview)
Prolific puppy breeder hid sales
In Sylvia Hook v HMRC  TC08859, the First Tier Tribunal (FTT) found that a dog breeder deliberately under-declared puppy sales. Recorded sales of cockapoos, poodles and French bulldogs, each fetching £1,000 per puppy, were shown at a maximum of 194 a year, vastly understating the actual 297 sales of one particular year.
Guides & Updates (subscription content)
Starting in business? Start here...
FREEVIEW: Starting a new job or 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.
LLP v Company: which will save me tax?
Different types of trading structures all have their own tax advantages and disadvantages. What are the key issues if you run a Limited Liability Partnership (LLP)? Should I run an LLP instead of a company? Does an LLP save tax?
PAYE late payment penalties buster
What penalties apply to late payment of PAYE? What can you do to manage or reduce them?
Employers can provide sporting or recreational benefits tax-free to employees. What is excluded? How should an employer structure benefits?
Directors & Companies
Register of Persons with Significant Control
UPDATE: What is the Register of Persons with Significant Control (PSC)? Who must complete it? Who is a Person with Significant Control? What details must be included on the Register?
R&D Tax Relief: Overview
UPDATE: For a delay to the changes to the new R&D claim requirements.
Private Client & Estate Planning
Pensions: Tax rules and planning
What tax rules apply to pensions? What tax relief is available? What tax charges can arise? What planning opportunities are there?
Tax Planning to avoid paying tax at Marginal rates
At what levels of income do higher marginal rates of Income Tax apply? What tax planning can be undertaken?
Super-deduction & First Year Allowances
UPDATE: What is the Super-deduction? When does it apply and what is the rate of allowance? What is the SR Allowance? What if I dispose of an asset on which the Super-deduction or SR allowance has been claimed? What happens when an accounting period straddles 1 April 2023?
Annual Investment Allowance (AIA): Related companies
UPDATE: What restrictions to AIA apply to companies? What does common control mean? When are companies related?
Full expensing & First Year Allowances
UPDATE: What is full expensing? When does it apply and what is the rate of allowance? How are disposals of full expensing assets dealt with? What assets qualify for the 50% First Year Allowance (FYA)? How do I deal with disposals of 50% FYA assets? How do I make a claim?
Land & Property
Register of Overseas Entities: Agent Guide
Registration of Overseas Entities: How to register an Overseas Entity that owns, buys or sells UK property. A detailed guide for Overseas Entities and their UK Agents.
Non-Resident Landlord Scheme
UPDATE: What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
Penalties & Compliance
How to appeal an HMRC decision
Disagree with an HMRC decision? How to appeal, what type of decision can you appeal and what are your different options when you disagree with HMRC? What are the key steps in making an appeal?
VAT Cases & Guides
Input VAT claimable on fund-raising share sale
In HMRC v Hotel La Tour Ltd  UKUT 178, the Upper Tribunal (UT) agreed with the First Tier Tribunal (FTT) that Input VAT can be reclaimed on professional services fees incurred during a share sale, where the ultimate economic purpose was fundraising.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- CPD: VAT Penalties Update
- CPD: Maximising Expense Deductions for Businesses
- CPD: Purchase of Own Shares (POS)
- UPDATE: CPD: Non-Resident CGT: UK Property
More at CPD Index
Taking a deeper dive into a range of topical subects
- VtaxP Tax Workouts 2023: AML essentials update & IHT and Family Investment Company case studies
- VtaxP Tax Workouts 2023: Tax Update for OMBs & Taxing the Digital Nomad
FREE for subscribers: We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
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.
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?
- Legislation Day: At a glance
- Phone helplines: Customers love 'em, but HMRC has other ideas
- Enquiry into Sexism in the City
- Consultation to close EOT and EBT loopholes
- How Post Office Horizon Compensation receipts are taxed UPDATE
- Designer's business overvalued on incorporation
- Accommodation App was a tour operator for TOMS...More
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