Hello
We are continuing to dissect key announcements from the Autumn Budget 2024 this week and we have created a number of adviser and client briefings which we hope you will find useful.
We also take a closer look at IHT changes, which are wide-ranging and which certainly affect many accountants and advisers. Finally, we review consultations on agent registration with HMRC and also 'tax conditionality' which is due to spread across many sectors.
Whilst a lot of noise has been made in respect of IHT changes to Agricultural Property Relief (APR) there are likely to be far more business owners affected by the reforms to Business Property Relief (BPR). We have made special briefings for each of these topics. There is more to come from the government on its plans for IHT and Environmental Land Management Schemes (ELMs), ELMs are now a specialist topic in their own right.
HMRC's attempts to narrow the definition of double cab pick-ups met with considerable 'push back' earlier this year when the motor industry and businesses combined to protest against the changes. The question of 'car or van' will, from April 2025, not be decided purely by payload. Don't worry, there are transitional arrangements for businesses that already own or use one at the cut-off date.
As announced at the recent 20:20 Innovation Annual Conference, we are delighted to confirm that both our practical tax database at RossMartin.co.uk and our Virtual Tax Partner (VtaxP) service have merged into the 20:20 Innovation group. I am totally thrilled at this development and to be joining 20:20 Innovation as a Director, bringing all of the existing RossMartin and VtaxP teams with me. We will continue to deliver our unique range of tax services to you, from within a bigger team with even more scope for growth and innovation. Do ping me an email if you have any queries.
More news, cases and updates below.
Nichola and the Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Quick News
Raising standards in the tax advice market: Consultation response
HMRC have published a response to their consultation ‘Raising standards in the tax advice market – strengthening the regulatory framework and improving registration’. This outlined potential approaches to strengthen the current regulatory system and tackle non-compliance in the tax advice market, including mandatory membership of a recognised professional body.
Consultation: Expanding Tax Conditionality
The Government is extending 'tax conditionality' to animal welfare, transport and waste sectors in the UK and this will likely roll out to further sectors too. A new consultation was published in Autumn Budget 2024 ‘Tackling the hidden economy: expanding tax conditionality to new sectors’. It considers, amongst other factors, whether HMRC can share data with other regulators.
Double Cab Hic-Ups
It was announced at Autumn Budget 2024 that the question as to whether a double cab pick-up is a car or a van will be decided purely on the basis of weight. This policy will apply from 6 April 2025.
Tax Compliance: Autumn Budget 2024
New proposals in terms of tax compliance, penalties and HMRC's other powers made during Autumn Budget 2024 include the mandatory registration of tax advisers who interact with HMRC from April 2026 and an increase in the late payment interest rate.
Autumn Budget 2024: At a glance
In case you missed it.
20:20 Innovation, RossMartin Practical Tax Database and Virtual Tax Partner Service
Accounting expert firm 20:20 Innovation, a leader in providing practice development support, compliance resources, and CPD training for UK accounting practices, has acquired the practical tax database, RossMartin, together with its associated Virtual Tax Partner (VtaxP) support service.
Tax Cases
HMRC right to refuse notice submitted ten years late
In Paul Anthony Haigh vs HMRC [2024] TC09284, the First Tier Tribunal (FTT) accepted HMRC’s decision to refuse a notice for pension Lifetime Allowance Fixed Protection (FP 2012) after it was received ten years late.
Tax Agent deliberately misled HMRC
In Isaac Aboagye Frempong vs HMRC [2024] TC09347, the First Tier Tribunal (FTT) confirmed that an inquiry raised by HMRC to assess undeclared income was valid since the payments received were receipts for payment of services as a tax agent.
Serviced offices not 'relevant business property' for IHT purposes
In The Executors of Keith Denis Lewis Beresford vs HMRC [2024] TC09333, the First Tier Tribunal (FTT) found that shares in a holding company did not qualify as ‘relevant business property’ for IHT purposes. Its subsidiary was not undertaking a qualifying business activity for IHT.
Editor's Choice (subscribers)
Adviser Briefing: Changes to BPR (Autumn Budget 2024)
NEW: A review of the changes to Business Property Relief (BPR) as announced at the 2024 Autumn Budget with worked examples.
Adviser Briefing: Changes to APR (and BPR) from a farming perspective (Autumn Budget 2024)
NEW: Significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) were announced in the 2024 Autumn Budget. What is changing and what might the impact be?
Company Tax: What's New? FY2024
The company tax year, 'Financial Year' (FY) commences on 1 April. This Corporation Tax update takes you through key new measures and changes that apply from 1 April 2024.
Guides & Updates
Self-employed
Income Tax, Claims and Reliefs Autumn Budget 2024 (Subscriber Update)
The Chancellor, Rachel Reeves, used the Autumn Budget 2024 to announce the following measure: Making Tax Digital (MTD) for Income Tax will become compulsory for sole traders and landlords with an income over £20,000 but no timetable has been announced.
Directors & Companies
Companies Autumn Budget 2024 (Subscriber Update)
The Chancellor, Rachel Reeves, in her Autumn 2024 Budget announced updates to the Targeted Anti-Avoidance Rule for loans to participators, enhanced tax relief for visual effects costs, amendments to R&D support in Northern Ireland, adjustments to the R&D intensity condition, and administrative changes to Creative Tax Reliefs. The government also published the Corporate Tax Roadmap, which aims to restore stability and business confidence.
RTI: Salary Advance Payments
Changes to salary advance payments under Real-Time Information (RTI) should make filing for employers easier under new rules.
VAT News & Cases
VAT: Autumn Budget 2024 (Subscriber Update)
This is our summary version of HMRC's output and input VAT toolkits, our version includes more detail, topics and planning points.
Agents and principals
What is an agent for VAT purposes? What is a principal? When do the agency rules apply?
VAT Toolkit
This is our summary version of HMRC's output and input VAT toolkits, our version includes more detail, topics and planning points.
Tax Tools & Calculators
Tax tools & calculators
UPDATE: 2024/25 versions available now. We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
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
CPD for lunch: Byte-sized chunks of lunchtime CPD (free for our Subscribers)
- NEW: CPD: Income Tax and Trusts
- NEW: Free Study Skills Session - Preparing for Your Tax Exams
- CPD: Change of basis periods: Transitional rules 2023-24 Returns
- How to run the most tax-efficient business 2024/25.
- Purchase of Own Shares: all the details.
- Anti-money Laundering Update and Firm-Wide Risk Assessment ...More...
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 wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: Autumn Budget 2024 Special
- Autumn Budget 2024: At a glance
- Agent Update: October 2024
- Spotlight 66: LLP arrangements used to disguise employment income
- Investing in Women 2024 Update
- Inheritance Tax (IHT): Autumn Budget 2024 (Subscriber Update)
- Capital Gains Tax (CGT): Autumn Budget 2024 (Subscriber Update)
- Capital Allowances: Autumn Budget 2024 (Subscriber Update)
- Land & Property: Autumn Budget 2024 (Subscriber Update)
- Stamp Taxes: Autumn Budget 2024 (Subscriber Update)
- Employers: Autumn Budget 2024 (Subscriber guide)
- CPD: Income Tax and Trusts NEW ...More
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