Hello
They say that a week is a long time in politics; the same is sometimes true in tax! HMRC’s plan to change the classification of double cab pick-ups for employment benefit and Capital Allowance purposes back-fired over the weekend, due to pressure from industry lobby groups. This led to a reversal in policy (a U-turn!). The result is that double cab pick-ups remain vans and are not cars.
The long-established treatment of double cab pick-ups as goods vehicles, where their payload exceeds 1,000 kg, will now be put on a statutory footing in the next Finance Bill.
Anyone offering up a property as an Airbnb or short-term holiday let in England will be interested in the government's proposed registration schemes and a new requirement for planning permission. As we have noted previously, similar schemes are progressing in Wales.
Any new scheme is going to require some form of registration, and it will come as no surprise to find that Companies House are increasing their charges from 1 May 2024. In percentage terms, there is quite a jump: a Confirmation Statement goes from £13 to £34, with fees for the Register of Overseas Entities increasing by 134% to £234 from £100.
HMRC has another tax awareness scheme in progress. They have identified that companies may have overclaimed the Annual Investment Allowance (AIA) due to claims by group or related companies where the investment limit is shared. Watch out for letters highlighting this issue and be sure to review past claims carefully.
As the 2023-24 financial year draws to a close, company owners and advisers may like our Essential Year-End Planning & Compliance Checklist, and this week we also have an Employment Related Securities (ERS) Update. This one combines HMRC's latest update with a full 'what's new' for this year and a helpful re-cap on some topical case decisions.
Finally, we only had time to cover one case this week, and we decided to look at one which covers not only tax on termination payments but also throws some light on the often hidden side of high-value unfair dismissal claims. We seldom hear the full story behind an unfair dismissal as large employers tend to make ample use of non-disclosure agreements. Shivani Mathur's appeal concerns the fall-out to the Libor scandal, whether she was made a 'fall-guy' for other guilty parties is something we will never know!
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Nichola & the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
HMRC U-turn on double cab pick-ups
Days after announcing that HMRC was going to make business owners reclassify their double cab pick-ups as ‘cars’ for employment benefit and capital allowance purposes, HMRC has changed its unworkable policy.
Registration of short-term lets in England
The government has provided an update on the proposed registration scheme for short-term lets in England and announced measures which will require planning permission for future short-term lets.
HMRC target group AIA claims
Annual Investment Allowance (AIA) claims within groups and between companies under common control can be complicated. HMRC are writing to corporate groups and related companies that may have exceeded the AIA limit.
Companies House 134% fee increase
The fees for Companies House services and filings are increasing from 1 May 2024. The costs of Registration of an Overseas Entity have increase by 134%. Who even realised that there is a cost to remove an Entity from the ROE?
Tax Cases
Libor rigging dismissal claim was taxable
A senior Deutsche Bank AG employee sacked in the fallout of the 2012 Libor rigging scandal, received £6m in compensation for unfair dismissal. The Upper Tribunal has rejected the taxpayer's claim that the payment was received as a result of discrimination and was receipt being outside employment income and confirmed that the amount was taxable under PAYE
Editor's Choice (subscribers)
Companies: Essential Year-End Planning & Compliance Checklist 2023/24
Year-end tax planning and compliance review checklist for a company and its shareholders.
Employment-Related Securities Update 2024
NEW: Employee shares, share options and shares schemes: a mini-CPD update covering what's new with HMRC. What's hot or not in Employment-Related Securities in 2023/24, catch-up on current consultations and review topical cases from the courts and tribunals.
Guides & Updates (subscription content)
Self-Employed
Cash or accruals accounting toolkit
UPDATE: Unincorporated businesses can elect to use one of two different methods of accounting for tax: simpler accounting (cash basis) or accruals basis accounting.
Directors & Companies
A new company? Start-here
UPDATE: You have decided to trade via a company: what now?
A sale of a company's shares? Start here
UPDATE: Planning to disposal of your company shares? Our guide takes you step-by-step through the different options.
Employers
Managed Service Companies (MSCs)
What is a Managed Service Company (MSC)? What rules apply to MSCs? Can you avoid being an MSC provider? What is the accountancy exemption from the MSC rules? How are partnerships caught by the rules?
CIS: Contractors and Subcontractors
The Construction Industry Scheme (CIS) is a scheme created by HMRC for contractors and subcontractors, designed to minimise tax evasion within the construction industry.
Private Client & Estate Planning
CGT: Connected persons & losses
What are the rules for connected party losses? What is a clogged loss? How can clogged losses be relieved?
Joint income: Splitting income within the family
Spitting different forms of income around a family to save tax may work well if planned correctly. This guide explores key issues and considers HMRC's approach as a result of a tax enquiry.
Land & Property
Annual Tax on Enveloped Dwellings (ATED)
What is the Annual Tax on Enveloped Dwellings (ATED)? Who does ATED apply to? What relief is available and how is it claimed? What are the ATED return filing dates?
Partnerships
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?
Running an LLP in tandem with a company
It is possible to run a Limited Liability Partnership (LLP) or another form of partnership in tandem with a company. Partnerships can also have corporate partners. What needs to be considered?
VAT News & Cases
Health and welfare: VAT
When do reduced rating, zero rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
VAT fraud: What is the Kittel principle?
What is the VAT Kittel principle? What happens when the Kittel principle applies? What tests do HMRC and the tribunals apply? How can I protect my business?
Tax Tools
Tax calculators
UPDATED for NICs changes: 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.
CPD for Lunch
Byte-sized chunks of lunchtime CPD for subscribers
- CPD: Dividend Taxation
- CPD: CGT Reporting and payment deadlines
- CPD: Corporation Tax Part 1: Rates and Challenges
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 15 February 2023
- Order your double cab pick-up now
- New guidance from HMRC on R&D changes
- Have you declared all share disposals?
- Property transfer could not be rescinded for CGT
- SDLT hard-edged: no scope for a late MDR claim
- SDLT and overpayment relief made clear
- Sports nutrition bars were standard-rated
- Energy-Saving Materials UPDATE
- Tax Planning for the 2023/24 year-end: Business Owners NEW
- CGT: Date of acquisition or disposal UPDATE
- IHT: Estate planning checklist UPDATE
- R&D: Research and Development Expenditure Credit (RDEC)
- P11Ds: Employers' checklist & top tips
- Client Briefing: How to avoid penalties for carelessness?
- Foreign Currency Gains...More
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