Nichola's SME Tax W-update 7 September 2023

Hello

We are focusing mainly on Corporation Tax this week. We have created a topical update that takes you on a whistlestop tour of all the changes that apply from 1 April 2023, along with new guides that will assist you in completing your CT600 returns.

Now that we have two rates of Corporation Tax (the main and the small profits rate), many SME advisers have a new range of tax rules to negotiate. We are effectively reverting back to the pre 1 April 2015 Corporation Tax rules. We have narrowed the steps down to a 12-stage process. The idea being that you work your way through the guide and, once completed, you will have the right data for your Corporation Tax calculation. The new guide 'Calculating Corporation Tax' and its accompanying checklist explains all the changes clearly and will remove some of the agony. We published a freeview version of this last week.

I note that that the Chartered Institute of Taxation (CIOT) is having some in-depth conversations with HMRC about R&D claim processing. It looks as if some claimants are unaware of the new Advanced Notification Process. There is also an Additional Information form, which provides officer and agent details, and which must be attached to claims. See our guide below for further details.

In terms of tax cases this week we have a cautionary tale for taxpayers: you may well have instructed an agent to assist you with your affairs, but you should be aware that the buck stops with you. You alone sign off your return.

There is also quite an interesting case on Substantial Shareholding Exemption (SSE). We have recently had quite a few enquiries on this useful relief. 

More news and updates 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)  

Autumn Statement 2023: dates
The Chancellor, Jeremy Hunt, has announced that he will present his Autumn Statement on 22 November 2023.

Overseas owners of UK property: time to register for tax?
In a further step in HMRC's ongoing campaign targeting offshore company owners, HMRC is sending out nudge letters with a 'Certificate of tax position' to overseas companies who hold UK commercial property.

Councils call for control of failing apprenticeship levy scheme
The County Councils Network (CCN) has called on government to give councils greater powers over apprenticeships and adult learning. Data compiled by CNN showed a decline in almost 200,000 people taking part in adult education.

Tax Cases

Can't only rely on agent: taxpayer must check tax returns
In Sunil Joseph v HMRC [2023] TC08895, the First Tier Tribunal (FTT) found that an employee, whose agent had claimed around £27,500 of expenses annually without factual basis, had not taken reasonable care. The inaccuracy penalties charged by HMRC were upheld.  

SSE: a single company can't be 'a group'
In M Group Holdings Limited v HMRC [2023] UKUT 213, the Upper Tribunal (UT) confirmed that the Substantial Shareholding Exemption (SSE) legislation could not be interpreted to allow looking through the ownership of a trade back to a time when there was not a group when assessing the 12-month holding period requirement.

Editor's Choice (subscribers)

Company Tax: What's New 2023-24
NEW: a topical update that takes you on a whistlestop tour of all the changes that apply from 1 April 2023. We are back to the with the change in tax rates, the data that you need for your tax calculation has changed. Are you and your firm ready for the changes?  

Calculating Corporation Tax (from 1 April 2023)
NEW: Now we have returned to two rates of Corporation Tax we need to dust off all those old (pre 2015 manuals) and re-acquaint ourselves with the tests for Control and Close Companies, Associated companies, Activities (and Inactivities), Augmented profits and Marginal relief. 

Corporation Tax (from 1 April 2023) checklist
NEW: stand-alone version of the checklist that is attached to the guide above for you to cut and paste.

Tax Tools 

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)

Directors & Companies 

Company tax claim checklist
What are the time limits for Corporation tax claims and elections? How are claims and elections made?

Share capital: What's an ordinary share?
What is an ordinary share? Why is it important?

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

Private Client & Estate Planning

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. 

Capital Allowances

Capital Allowances: What's new 2023-24
What's new in Capital Allowances for 2023 and 2024? A summary of the different types of capital allowances currently available to UK businesses.

Land & Property 

Restricting mortgage interest relief
Since April 2020, individual landlords' tax relief for finance costs on residential property has been limited to the basic rate of Income Tax. How is the relief calculated? How were the provisions introduced? 

SDLT: Stamp Duty Land Tax, start here
What is SDLT? What are the SDLT rates? What is exempt from SDLT? What reliefs are available? When are returns due? When can you amend a return?

Devolved Taxes

Scottish Income Tax: Am I a Scottish taxpayer?
Who does Scottish Income Tax apply to? Am I resident in Scotland? What constitutes a residence and the 'main' residence?

Welsh Income Tax: Am I a Welsh Taxpayer?
Who is a Welsh taxpayer? What if I move across the border during the tax year? What about non-UK residents who work in Wales?

VAT Guides & Cases

Land & Property: Relevant residential & relevant charitable purpose
UPDATE: What are the VAT rules for land and property that is used for a relevant residential purpose or a relevant charitable purpose? What are the clawback provisions affecting a change of ownership or use?

Goods or services for VAT
What are goods and what are services for VAT? The answer may have an impact on the time of supply, the place of supply and in some cases the rate of the supply. The answer is not always as straightforward as it may seem.

CPD for Lunch

Byte-sized chunks of lunchtime CPD for subscribers

• NEW: CPD: Landlords Update 2023
• CPD: VAT Penalties Update
• CPD: Maximising Expense Deductions for Businesses
• UPDATE: CPD: Non-Resident CGT: UK Property

More at CPD Index

CPD Workouts

Two hours of CPD: Unravelling the diverse tax rules over a range of topical subjects

• 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

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 31 August 2023 

• R&D Relief for your sensory garden
• Advisory fuel rates from 1 September 2023
• Charges like ULEZ are tax deductible
• Calculating Corporation Tax: At a glance
• Child Trust Funds
• Land & Property VAT (Subscriber guide)
• Named tax avoidance schemes, promoters, enablers UPDATE
• Penalties: Senior Accounting Officers UPDATE
• IHT: Loans and restrictions on liabilities against the estate UPDATE
• Accounting periods and tax basis periods
• Ceasing trading: What are your options?
• AIA & WDA: Rules where there is a change of rate ...More

Come and join our Cloud

Subscribe (and UNLOCK the whole site) A single-user annual subscription is £519 (+ 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 5,000 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 and 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.