The HMRC programming pixies sometimes forget that the UK tax system would grind to a halt without the hard work and goodwill of tax agents. The online services they build are often designed without an “agents door”, leaving accountants to struggle on with paper forms, or even worse – excluding them from the process altogether.
News & Updates
Accounting For An APN
Since HMRC acquired the power to issue APNs in 2014, over 75,000 of those notices have been sent out to individuals and companies. As we explained in our newsletters on 15 July 2015 and 13 August 2015, the taxpayer has only 90 days to lodge objections to the APN or pay up.
Directors’ Loans
Loans to and from directors in close companies can cause all sorts of tax problems, but since the accounting standard FRS 102 came into effect for accounting periods starting on and after 1 January 2016, such loans can cause accounting problems as well.
VAT Option to Tax
Land and buildings are generally exempt from VAT, but it is possible to charge VAT on supplies of commercial buildings if the taxpayer opts to tax the building. The process of how to make this option to tax election is set out in VAT notice 742A.
MTD Update
HMRC has published some documents alongside the latest Finance Bill, which give us a little more insight to how making tax digital (MTD) may work in practice. There are two draft regulations on how the digital record keeping and reporting will apply for income tax, and an overview of legislation to implement MTD for VAT.
Still Entitled to Child Benefit?
We remind clients in receipt of child benefit to update their child’s educational status if their child is age 16 or over and is continuing in full-time education or undertaking an apprenticeship. Child benefit can continue to be claimed in respect of teenagers aged 16 to 19 who are in approved education of training. This must be full-time (more than 12 hours a week) and will include study for A levels, Scottish Highers, NVQs up to level 3 and traineeships in England. However, it does not include higher education, such as study for a university degree or a BTEC Higher National Certificate. Approved training includes foundation apprenticeships.