The latest Tax News, VAT News, HMRC News and Fee Protection Insurance News from the experts at Vantage Fee Protect.
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Unprecedented Challenges: Understanding HMRC’s Scrutiny of R&D Tax Credit Claims and the Role of SIC Codes
As Tax Fee Protection Providers, our claims department have seen the volume of R&D tax credit investigations reach previously unprecedented levels. Most of our accountancy clients are perplexed about why these claims have been challenged by HMRC whereas in previous years claims from even the most unlikely candidate companies for R&D have been processed without…
Q: I want to buy a motorhome or campervan; what are the tax implications?
Motor Homes HMRC has always considered these vehicles to be cars for tax purposes because they are mechanically propelled road vehicles, and none of the exceptions in EIM23100 apply to prevent them from being cars. This means that, unless manufacturers start making low-emission motor homes, anyone provided with a motor home as a company car…
The pitfalls of Share Dealing – Are You Trading for loss relief?
The recent case of N Henderson v HMRC [2023] TC8755 shows that it is not always easy to distinguish whether dealing in shares is an investment activity or enough to warrant being treated as a trade for tax purposes. This distinction is crucial when using sideways loss relief against other income. Background and Transaction History…
Do you supply serviced, holiday or leisure accommodation? You may have paid too much VAT!
A recent First Tier tribunal decision in the case of Sonder Europe Ltd v HMRC [2023] TC08853 has gone against HMRC’s existing policy that “if you hire, lease or rent accommodation under an agreement whereby you take responsibility for the upkeep of the property and you are required to undertake any maintenance to the fabric…
Good news for non-residents hit with an additional 2% stamp duty!
Since the 1 April 2021, different rates of Stamp Duty Land Tax have applied to purchasers of residential property in England and Northern Ireland who are not resident in the UK. The rates are 2 percentage points higher than those that apply to purchases made by UK residents. This surcharge applies to purchases of both…
Change of enforcement date for new claim notification and additional information requirements: August 8, 2023
New claim notification and additional information requirements will not be enforced until August 8, 2023. Originally due to come into effect on August 1, 2023, ‘The relief for research and development (content of claim notifications, additional information requirements and miscellaneous amendments) regulations 2023’ will now be laid a week later than expected due to delays…
Deadline for voluntary National Insurance contributions extended to April 2025
Taxpayers have been granted an extension until 5 April 2025, to address gaps in their National Insurance records from April 2006, potentially increasing their State Pension entitlement. This recent announcement by the government (made on 12 June) offers an additional period of nearly 2 years for individuals to make informed decisions regarding voluntary contributions, ensuring…
Earning a commission, surely that’s not subject to VAT?
The VAT liability of earning a commission is a subject we regularly get asked questions about on the VAT helplines. As per usual these days the answer is never as straightforward as you think it should be. Commission income (also referred to as an agency fee, intermediary service, or a broker’s fee) occurs when a…
Tax Returns
Submission dates and whether you need to complete one. An overview Notices to complete Self-Assessment tax returns are issued after April 5th each year. The notice requires the person named to complete a tax return declaring details of all their income and claims for allowances/reliefs for the year ended April 5th of that year. The…
Plastic Packaging Tax Reminder
If you manufacture or import 10 or more tonnes of plastic packaging within a 12-month period, you must register for PPT on GOV.UK, even if your packaging contains 30% or more recycled plastic. ou manufacture or import 10 or more tonnes of plastic packaging within a 12-month period, you must register for PPT on GOV.UK, even if your packaging…
Changes to the second-hand margin scheme for cars which are bought in Great Britain and moved to Northern Ireland
A new scheme has been introduced with effect from 1 May 2023 under “The 2023 Value Added Tax (margin schemes and removal or export of goods: VAT related payments) order”. It has been introduced to resolve a VAT issue for businesses trading in second-hand motor vehicles in Northern Ireland that have been sourced from Great…
My client is in the process of selling woodland whose trees are being sold as ‘pending issuance units’ (PIUs). Will the value attributable to the woodland be exempt from Capital Gains Tax?
First, a little background… The UK Woodland Carbon Code (WCC) is a government backed standard for woodland creation projects across the UK. It provides a framework for the sequestration of carbon dioxide from the atmosphere to help the UK achieve its targets for tackling climate change. At its core, the code provides an opportunity for…
HMRC Cracking Down on R&D Claims
Companies that conduct Research and Development (R&D) need to be aware of the upcoming changes in the R&D tax relief starting 1 August , 2023. The UK government has become increasingly concerned about the number of companies that have been abusing the R&D scheme. As a result, HM Revenue and Customs (HMRC) has issued new…
Challenges Posed by HMRC Enquiry
There has been a considerable increase in HMRC’s scrutiny of claims, with bona fide claims being rejected on the basis of a disputed interpretation of the relevant provisions. This in turn has caused considerable commercial anxiety for businesses that may have based their planning on what was a previously settled view of the law. Our…
Research & Development –The New Rules for SMEs
Research & Development –The New Rules for SMEs With effect from 1 April 2023, the rules applying to R&D relief under the Small and Medium Sized Enterprises (SME) scheme will be changing. A summary of these changes is given below. Rates of Relief The enhanced deduction for expenditure incurred after 1 April 2023 will be…
HMRC Enquiry Challenges
There has been a considerable increase in HMRC’s scrutiny of claims, with bona fide claims being rejected on the basis of a disputed interpretation of the relevant provisions. This in turn has caused considerable commercial anxiety for businesses, which may have based their planning on what was a previously settled view of the law. Our…
Increase in the National Living Wage
The National Minimum Wage Act 1998 introduced a statutory right to be paid a certain amount of remuneration for work performed. HMRC announced that from 1 April 2023 the NMW will see an increase and the effect is presented in the following table: NMW Rate Annual increase (£) Annual increase (%) National Living Wage…
What is the accurate treatment of trading profits and capital gains from April 2023, for corporation tax purposes?
Starting with the 2023 financial year, from 1 April 2023 the main rate of corporation tax will rise from 19% to 25% (an increase of 6% for some companies). For trading profits, the guidance seems quite straight forward although arguably quite unfair. Corporation Tax Act 2009 – Section 8 states How tax is charged and…
Did Truss Get It Right On Tax…?
…sort of! Cutting through all of the political hyperbole and potentially poor timing of the previously announced tax cuts and freezes proposed by ‘Liz and Kwasi’ as I’ll now refer to them, I think the real underlying question which needs asking is “What sort of country do we want to live in? One controlled by…
Budget Summary March 2023
Hunt for growth Jeremy Hunt opened his first full Budget speech by declaring that it was a ‘budget for growth’. He emphasised that this would be ‘long term, sustainable, healthy growth’; after all, Kwasi Kwarteng’s ill-fated September speech at the same despatch box was titled ‘the Growth Plan’. The Office for Budget Responsibility reported that…
Business Asset Disposal Relief – Have You Had Too Much Of A Good Thing?
Key Points HMRC are now issuing letters to taxpayers whom they believe have made claims for Business Asset Disposal Relief (BADR), formerly Entrepreneurs’ Relief, on their 2021/22 tax returns in excess of their lifetime allowance. Agents will also be sent a copy of the letter. What is BADR? BADR is a capital gains tax (CGT)…
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