HMRC’s stance on the valuation of goodwill in trade-related properties has become much stricter. Therefore advisors need to be prepared for their original valuations to be robustly challenged. Plan for the worst and hope for the best!

Our round-up of topical news this month features clients who make partial surrenders on life insurance products face unfair tax charges unless they take action, following the case of Lobler V HMRC and we compare the legislation regarding who should file a self-assessment tax return with HMRC’s guidance. 

Our round-up of topical news this month features the new €10,000 threshold coming in from 1 January 2019 for micro-businesses selling digital services to EU consumers and how HMRC has recently made changes to the guidance on how some of the conditions of S396B may apply.

The introduction and evolution of ADR has given advisors an avenue to resolve disputes with HMRC which is much more effective and cost efficient than the alternatives available.

HMRC are writing to businesses who have outsourced both their payroll and their employees to a third party labour provider. The reason for the letter is to notify the business that they believe the third party has not accounted for all of the PAYE and VAT and asks for information and assurances regarding due diligence undertaken.

From 1 October, where HMRC discover that a UK taxpayer has overseas income and/or gains, a new penalty regime will apply of between 100% and 200% of the tax paid late.

My employer operates a defined contribution pension scheme. At present, let us say that the employer pays £100 into the scheme for me each month and pays me a salary of £1,000 from which I contribute another £100 to the scheme.

Our round-up of topical news this month features how to calculate the income tax liability for a non-resident client and we look at the proposals in the 2018/19 Finance Bill which simplify the rules regarding reimbursed expenses incurred by employees working in the UK, with similar simplification for expenses incurred by those working overseas.

Following on from our previous update we have compiled our response to the IR35 consultation (Off payroll working in the private sector, closing date 10 August 2018). We provided our responses based on our experience of dealing with contractors, agencies and end client organisations and looking at what has already taken place in the public sector.

It is clear that compliance with the NMW rules is extremely high on the Government agenda, and we have seen a substantial increase in calls from advisers on this subject. Given that all complaints notified to HMRC are investigated, coupled with the punitive penalty regime, it is a risk area that advisors should be discussing with their clients.