Issues Over- State Aid CIOT and ATT view Group and the FCPE exam results
Jon Stride Matt Stringer E Results, prizes and distinctions activities of the IOG investigation into the regime from the November 2017 exams www.att.org.uk
Excellence in Taxation February 2018 www.taxadvisermagazine.com
The Phantom of the OpRAs
Michael Steed looks at the new income tax and NIC rules for OpRAs and asks who the winners and losers are, page 19
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Welcome Features 3 Editor-in-chief’s welcome The Joy of Tax Chris Matt os Scotland conference Opti onal remunerati on Scotti sh update Joanne Walker reports on Phantom of the OpRAs Michael Steed 4 President’s page 08 19 the Scotland Branch Conference held in looks at the new income tax and NIC rules Developing the tax policy Sti rling for OpRAs and asks who the winners and debate losers are John Preston GENERAL FEATURE PROFESSIONAL STANDARDS 6 ATT page PERSONAL TAX EMPLOYMENT TAX A ti me to plan Tracy Easman
Education November 2017 exams 30 CIOT Results 34 Joint Programme Results 36 ATT Results
EMPLOYMENT TAX Technical From the Technical team Making Tax Digital State Aid 51 Brexit: VAT, C&E paper on 11 The silver lining in the Cloud 22 Subsidy, or not subsidy? Matt Stringer disincorporati on relief Dale Simpson provides a practi ti oner’s explores the design of the FCPE and the EC’s investi gati on into the regime 52 Risk to capital view of implementi ng cloud accounti ng requirement for venture so� ware and communicati ng MTD LARGE CORPORATE TAX INTERNATIONAL TAX capital schemes changes to clients in a tax practi ce 53 Universal Credit roll-out GENERAL FEATURE OMB Pensions Anton Lane 54 Interest Harmonisati on 24 Worth the advantage? considers the commerciality of Qualifying and Sancti ons for Late Issues Overview Group non-UK Pensions Payment 14 OMG it’s IOG Jon Stride provides an look 55 Making Tax Digital for VAT at the acti viti es of the Issues Overview EMPLOYMENT TAX PERSONAL TAX 56 Large Business Group of the CIOT, and how it can help compliance members in practi ce VAT registrati on Neil Warren 57 The future role of ADR in GENERAL FEATURE 28 Freezing the threshold civil justi ce considers practi cal issues about the Budget announcement that the 58 Engagement Le� ers registrati on threshold will be frozen unti l 59 HMRC Counter-Avoidance at least April 2020 Acti vity: an update 60 Scotland update INDIRECT TAX Cryptocurrencies Briefi ngs 44 Money online Julie Butler and Fred Butler From Arti llery House provide an overview of the taxes that can apply to cryptocurrencies 62 At the Christmas Carol PERSONAL TAX Service 63 New Council member elected to Council in January 2018 Digital economy 64 HMRC Chair off ers departi ng thoughts at 17 Which way forward? Bill Dodwell considers CIOT roundtable the taxati on of the digital economy 65 MTD – UK and Irish LARGE CORPORATE TAX INTERNATIONAL TAX P e r s p e c ti v e s 66 News from Bridge the Gap
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24988 TAX PA Tax Adviser.indd 1 12/19/17 11:25 AM Welcome from the editor-in-chief
[email protected] Editor-in-chief, Tax Adviser The Joy of Tax
ive years seems a lifeti me when you a lot this year. What are the tax implicati ons?’ consider the changes to the tax landscape. Julie and Fred Butler’s arti cle, on page 44, was FBack in 2013, I was a 36-year-old tax very well ti med! Secondly, Neil Warren’s arti cle partner of a six-partner fi rm in Stroud with on page 28, arrived while I was considering litt le more publishing experience than the whether it would be more profi table for a client producti on of the quarterly client bulleti n. to reduce their opening ti mes so that they Career changes can happen in the most returned below the VAT threshold. unexpected way. Mine involved asking career 2018 marked my 21st January – the busiest advice of a non-league football burger seller to ever but perhaps the most organised! There be told with surprise, ‘Why don’t you go for the were many hours in the office but it was editorship of Tax Adviser!’ – the burger seller full of the buzz that January brings; helping was Rebecca Benneyworth! Aft er a lengthy to demystify clients about their tax affairs, interview process, I was off ered the post and catching up with them and making plans I am sti ll grateful to John Whiti ng and Patrick for the future (I lost count of the number Stevens for putti ng their faith in the passion of times I heard, ‘I will do this earlier next that I had for the magazine. year!’). It really was the joy of tax. It has been an honour to be the guardian of My practice has now reached a size that Tax Adviser. I have stuck to my original focus I know I can’t do both, so at the age of 60 of fi nding a wide variety of authors to write (issues!), I’ve decided to retire from my arti cles that aim to help members to do their publishing career to concentrate on being jobs. We have made many changes over the a tax adviser. This means that the CIOT are past fi ve years and I am parti cularly pleased looking for a CTA with a passion for Tax with how successful the online version has Adviser, including its online offerings, to take Over the become. over the baton. You can find details on page years, my When I fi rst took up the post of editor, I 68 and if you would like to learn more, please remember telling my wife how the role would feel free to get in touch with me on the email practice has signal my last January tax return season – how address above. played an wrong was I! Six months aft er starti ng the role, and with my fi rst dry tax January in prospect, important part in social media connecti ons encouraged me to set the commissioning up my own tax fi rm. Over the years, my practi ce has played an process and important part in the commissioning process helped me keep and helped me keep in touch with the practi cal tax issues facing clients. There have oft en been in touch with the interesti ng issues that have become arti cles or practical tax someti mes ti mely arti cles which have come in for review just at the right ti me. This month we issues facing have two such arti cles, fi rstly, there was the Chris Matt os clients email, ‘I’ve been investi ng in cryptocurrency Editor-in-chief, Tax Adviser
Journal of The Chartered Insti tute of Taxati on and The Associati on of Taxati on Technicians Tax Adviser magazine subscripti on This product comes from sustainable forest Arti llery House, 11-19 Arti llery Row, London, SW1P 1RT. tel: 020 7340 0550 queries contact 0330 161 1234. sources. Reproducti on, copying or extracti ng The CIOT is a registered charity – No. 1037771; The ATT is a registered charity – No. 803480 or email [email protected] by any means of the whole or part of this publicati on must not be undertaken without EDITORIAL Offi ces LexisNexis, Quadrant House, For any queries regarding late the writt en permission of the publishers. Editor-in-chief Chris Matt os deliveries/non-receipt please direct The Quadrant, Sutt on, Surrey SM2 5AS. This publicati on is intended to be a general Publisher Jelena Sevo to Juliett e Walker, guide and cannot be a substi tute for Editor Emma Reitano tel: 020 8686 9141 Magazine Distributi on Administrator professional advice. Neither the authors nor [email protected] juliett [email protected] the publisher accept any responsibility for loss tel: 020 7400 4653 UK print subscripti on rate 2018 tel: 020 74002817 occasioned to any person acti ng or refraining Web editor Sophia Bell £103.00 for 12 issues from acti ng as a result of material contained in [email protected] Reprints: Any arti cle or issue may this publicati on. be purchased. Details available from ADVERTISING & MARKETING Europe print subscripti on rate 2018 Charlott e Scott ISSN NO: 1472-4502 Head of Sales Rosie Ellett £136.00 for 12 issues charlott e.scott @lexisnexis.co.uk adverti [email protected] tel: 020 8212 1980 tel: 020 8212 1980 O/S print subscripti on rate 2018 Commercial Marketi ng Director Sanjeeta Patel © 2018 Chartered Insti tute of Taxati on (CIOT). £136.00 for 12 issues Printed by Stones Ashford Ltd, PRODUCTION Ashford, Kent. Producti on Assistant Nigel Hope ATT print student rate 2018 Design & Technology Manager Elliott Tompkins Designer Jo Jamieson £136.00 for 12 issues President’s page [email protected] John Preston
Developing the tax policy debate
n my President’s page for the August 2017 to people on higher incomes who arguably issue of Tax Adviser, I talked about how could afford to pay the tax. An alternative Inarrow and limited the current public (and possibly better) approach would be to debate about tax policy was and how in standard rate everything and deal with the practice it was very difficult for any politician regressive consequences through the benefits to raise even the possibility of really major system as happens elsewhere. More details of policy reform. To do so would be a very this proposal will follow in due course. ‘brave’ political decision as the focus would immediately be on the ‘losers’ and there The joy of giving awards would be no recognition that a discussion One of the most enjoyable things about the over a possible reform of a policy and the privilege of being President is that I get to question of what government might do with award people the recognition they deserve. any resulting increase in tax revenue are The best example of all are our Awards very different things. Take a possible merger Ceremonies when the President hands out of income tax and national insurance for membership certificates to those who have example. Undoubtedly such a move would just joined our Institute after completing be likely to increase tax for many people their exams. At the same event, I award ADIT (especially pensioners) but if the government certificates to individuals who have passed chose to use the money raised significantly to those exams and some of these recipients increase the old age pension, it might not be travel from far distant countries to attend. All quite so controversial a move. recipients bring their families and the pride in As I said in August, I emphasise I am not the room is almost tangible! necessarily saying any such reform would Similarly, at the President’s Lunch be a good idea. I am merely saying that it in January I was able to give Honorary should be possible for there to be a proper Fellowships to two outstanding candidates: public debate about the idea and that I Professor Michael Devereux, Professor of think the Institute might be able to play a Business Taxation at Saïd Business School and meaningful role in helping this to take place. Paul Johnson, Director of the Institute for As always, we are strictly apolitical so we Fiscal Studies. However, the high point for me would not be promoting anything: merely personally was giving the Council Award to enabling members of the public to have a Anthony Thomas, whose service has included, fuller understanding of the issues. There is amongst other things, past President of some evidence that if one can only get people both the CIOT and ATT, a past Master of the to consider tax issues over a realistic time Worshipful Company and the Chair of our frame and in an unbiased way, not only do Low Incomes Tax Reform Group for five years. they understand those issues, but they are The Council Award is the highest honour our prepared to contemplate changes even if they Institute can bestow and is in recognition of personally might be worse off. outstanding contribution to our Institute and Accordingly, I’m delighted to say that the tax profession. This is only the fifth time If one can considerable interest has been shown in this this Award has been bestowed and Anthony only get broad idea by a wide range of interested was an extremely worthy recipient. parties. Crucially, we have agreed to work Very best wishes to all people to consider closely with the ICAEW and a number of tax issues over a others to facilitate and promote a series of events across the country to see if the concept realistic time frame can work. Indeed, a very similar version and in an unbiased of this article appeared on the President’s page in the ICAEW’s Economia magazine for way, not only do February. We will probably start with VAT for they understand a comparatively small representative group in a central location outside London – perhaps those issues, but in the Midlands – to test the concept as this they are prepared is a tax everyone pays and consider whether zero rating and exemptions are the best way to contemplate of ameliorating the regressive nature of the changes even if they tax. Take zero-rating of children’s clothes. As John Preston I said in August, whilst this does assist those President, CIOT personally might be on lower incomes, it also provides a tax break [email protected] worse off
4 February 2018 www.taxadvisermagazine.com Spring Residential Conference 2018
Friday 23 – Sunday 25 March 2018 Book online at: Queens’ College, University of Cambridge www.tax.org.uk/src2018
Programme topics will include: e ng to grips with the residence nil rate band inance ill 2018 uc bre TEP, iggs & Sons Robert Jamieson MA FCA CTA (Fellow) TEP, Mercer & Hole The gig economy and the pitfalls of using personal M C clearances – the do and don ts to non service companies ete i er CTA ( ellow), The Miller Partnership and members usan a CTA ( ellow) ATT, Crowe Clark Whitehill LLP Martin o er s, M C Clearance Team Leader elping businesses grow through the use of Cross-border AT – essential facts to avoid errors and entrepreneurial tax reliefs optimise the AT position avid arcussen CTA, Marcussen Consulting a co m Greenbaum CTA ACA, reenbaum Training & C T Consultancy Ltd for three or more Client due diligence – what do the new rules require members a ending you to do Practical uses of trusts from the same arlo e li, Chartered Institute of Taxation ob Trunchion CTA CA MSc TEP, M A MacIntyre Hudson firm ow to protect yourself against PII claims Conference fee: £635 aren c stein LL ( ons) CTA ATT, Womble ond (booking before 28 February 2018) £715 thereafter ickinson LLP
Tax Rate Cards 2017 & 2018
If you would like to order tax rate cards in 2018 to distribute to clients or for use by staff in your practice, please log on to: 2017/18 Tax Rate or C T embers Cards tax or u taxratecards Order by or ATT embers Wednesday att or u taxratecards February 28 2018
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www.taxadvisermagazine.com February 2018 5 ATT welcome [email protected] Tracy Easman A time to plan
ell here we are, another January good law in the first place. Guidance should be deadline has passed. I hope it was as there, where needed, to explain or elaborate Wstress free as possible for our members HMRC’s view of the law. At the ATT, we have who work in compliance. found that guidance is significantly less effective For me, February is the time to plan my CPD for when it attempts to both please tax practitioners the year and I am pleased to see that the itinerary AND non-tax specialists or unrepresented for the Spring Residential Conference at Queen’s taxpayers. It would be better to have guidance College Cambridge has been announced; an written specifically for each of these two groups. opportunity to get ‘our little grey cells’ working. The age old adage of ‘you can’t please all the The conference presents a great chance for people all of the time’ springs to mind here. ATT members to listen to lectures by leading When it comes to technical guidance which tax speakers and get involved in group working our members come across, it is vital that sessions. Some of the topical lectures to catch such guidance does not merely restate the my eye, cover the gig economy, the pitfalls of legislation in different words; on the basis that using Personal Service Companies, how to get to our members will most often use technical grips with the residential nil rate band and cross- guidance when they are trying to understand border VAT. The public were sort of introduced a provision where the text of the legislation is to some of these matters in the media last not self-explanatory. Guidance framed in those year and they are matters which will be topical terms has little to offer them and there is also in 2018 with Brexit, continued challenges the risk that it ends up misleading, as some may to traditional forms of employment and the be concerned that what is purely a restatement housing crisis in the South East. is intended to add something more. We like the In addition to the technical sessions there use of examples, particularly those derived from are two sessions connected with the running actual experience. of our businesses – a session on how to protect We have long suggested that consultation yourself against PII claims, including what with professional bodies such as ours on the practical steps to take to prevent claims in the possible consequences of significant changes first place and what to do if a claim arises and to guidance would reduce wider damage by client due diligence. Both are vital to anyone considering the implications before the new running their own practice as I do. interpretation is published. As always, we are Before that, we have the annual Branches ready and willing to help the Government as Conference at Warwick. Such is the churn there is no benefit for anyone from changes of regular tax changes in the UK that these introduced without forethought into the gatherings are important to our members implications. who are involved with the branch network. It I want to take the opportunity to personally is an ideal time for us to share opinions and welcome Nancy Cruickshanks and Senga ideas. Until we are all replaced with Artificial Prior to ATT Council. Nancy obtained her ATT Intelligence, as some speculate, the Branches qualification in 1993 (as did I – seems like only Conference is an opportunity to be human and yesterday!), and began volunteering her time for let off a bit of steam among friends about the the ATT VAT Sub-Group in 2015. She represents latest challenges to our work. There is also the the ATT at the EU VAT Forum as well as attending chance for a bit of good old-fashioned human some of the JVCC meetings. Senga Prior became self-congratulation at having got through what a member of ATT in 2002 and has recently been seemed a breathless 12 months of fiscal and made a Fellow. She is a member of our Technical political action; who can blame us for that in this Steering Group and represents the ATT at the constantly changing world? Scottish Devolved Taxes Collaborative and ICAS There are only weeks to go before the meetings with the Scottish Government. first Welsh taxes in almost 800 years – land Welcome to them both, and goodbye from transaction tax and landfill disposals tax - are me, for now. introduced in that nation. Both taxes will be The ATT collected by the Welsh Revenue Authority when maintains that they are introduced in April. Taxpayers and their agents will need good quality guidance guidance from a tax and reassurance that the collection process is authority should not efficient and secure. With the Scottish Budget in December we all need to be aware of the be a substitute for implications of devolution in the UK. Tracy Easman drafting good law in The ATT maintains that guidance from a tax Deputy President, ATT authority should not be a substitute for drafting [email protected] the first place
6 February 2018 www.taxadvisermagazine.com ANNUAL CONFERENCE 2018
BOOKING NOW OPEN
The Association organises an Annual Tax Conference which is held across several locations in the UK. This FULL DAY CONFERENCE conference concentrates on topical issues with an emphasis on the practical issues faced on a daily basis by the Taxation Technician. Our knowledgeable speakers provide detailed notes and illustrate their lectures with 9am – 5pm practical examples gained from their experience in practice. The conference also gives you an ideal opportunity to network with like-minded professionals. Speakers to include: Michael Steed Month Date Day City Venue SEVEN Mike Thexton LOCATIONS May* 8th Tuesday Bristol Mercure Grand Hotel May 16th Wednesday Belfast Radisson Blu Hotel Across Conference pricing: the UK May* 19th Saturday London Holiday Inn - Bloomsbury • ATT members and students: £170 The above reduced rate also applies to May 30th Wednesday Stirling Stirling Court Hotel AAT, ACCA, ICAS, CIMA and Accounting June* 14th Thursday Haydock Holiday Inn Haydock Technician Ireland Member(s) or June* 20th Wednesday Birmingham Holiday Inn - Hill Street Student(s)
th June 28 Thursday Newcastle Crowne Plaza • Non Members: £240
*New Dates
For further information: Please email [email protected] Register now : www.att.org.uk/attconfe2018
Women in Tax- London No Vote, No Tax!
The Women’s Tax Resistance League Wednesday 7 March 2018, Mazars LLP, London
Helen Thornley, Technical Officer with the Association of Taxation Technicians, will be speaking about the Women’s Tax Resistance League at a Women in Tax event in London on the evening of 7 March 2018.
T s e r m r s t e centen r o t e e resent on Helen s t l s b sed on er stud o t e e gue s o the eop e Act 9 h ch a o e ome o er rc es eld t t e Women s br r t t e ondon t e ge o w o met ro ert u l c on to ote c ool o Econom cs t w ll co er t e women ( nd men) or t e rst me Founded n , t e Women s T n ol ed n t e e gue, t e t es t e res sted nd t e es st nce e gue (WT ) w s rt o t e su r ge t c ses t t t e too mo ement, c m gn ng on t e sub ect o t WT Women n T s networ or women wor ng n t n members elt eenl t e n us ce o ng t on t e ro ess on, n ouse, HM C or n w ere else t ms the r come homes a ser a ts he the ac e a to r se t e o ce o women wor ng n ll s eres o t P rl ment r ote For further details and to book your place please go to www.womenin.tax where you can also sign up for notifications of future events. The event is open to all and men are equally welcome! www.taxadvisermagazine.com February 2018 7 SCOTLAND CONFERENCE
KEY POINTS zz What is the issue? The ATT and CIOT Scotland Branch Annual Conference was held on 3-4 November 2017. The speakers addressed recent tax changes and issues pertinent to practitioners in Scottish Scotland. zz What does it mean to me? The conference featured sessions on Brexit, the Finance Act, Ethics and Professional Conduct in Relation to Taxation, Losses and the Substantial update Share Exemption, Making Tax Digital, Domicile, Land and Property Taxes, Employment Status and the Gig Joanne Walker reports on the Scotland Economy. Branch Conference held in Stirling zz What can I take away? The ATT and CIOT Scotland Branch Annual Conference offers the chance to listen to experts on a variety of tax topics and enjoy networking with other advisers.
ith the UK Autumn Budget 2017 and Scottish Draft Budget Wfor 2018/19 looming on the horizon, the acting deputy chair of Scotland Branch Sean Cockburn welcomed delegates to the Scotland Branch conference on Friday 3 and Saturday 4 November 2017 in Stirling.
Update Delegates heard from John Preston, President of the CIOT, who highlighted the major revamp of the CIOT exams, announced a few months earlier. It is hoped the updated exams will meet stakeholder needs, and test the skills needed by tax professionals going forward. They should take effect with the May 2019 sitting. The President also mentioned Professional Conduct in Relation to Taxation (PCRT), which had just been updated prior to last year’s conference. described as ‘nightmarish’: if the UK does quotas, using lamb imports as an example. The update was carried out in response not keep its commitments to 2020 under There would need to be an agreement over to a challenge by the UK Government in the current framework, there will be a the split of the current quota between March 2015, and appears to have been Budget crisis in the EU for net recipients. the UK and the EU. Moreover, other WTO recognised positively by HMRC and the UK While steering clear of endorsing it, countries might have a say in whether any Government. Professor Bell explained how the £350m agreement is accepted. per week ‘red bus’ figure might have Brexit: where next? been calculated by members of the Leave Finance Bill/Finance Act update Professor David Bell, University of Stirling, campaign. He also set out some of the Robert Jamieson, Mercer & Hole provided considered progress to date and looked UK’s key liabilities and assets in relation insights into Finance Bill (No. 2) 2017 and to the future in relation to Brexit. While EU Finance Act 2017. He reminded us that Phase 1 was essentially high-level and Especially enlightening was Professor most clauses were dropped from the concerned the short term, Phase 2 Bell’s explanation of a World Trade original Finance Bill, which became Finance concerns the framework for the future Organisation (WTO) outcome. In addition Act 2017 in April, due to the calling of the relationship between the EU and the UK, to reminding delegates that the UK would General Election. Finance (No. 2) Bill 2017 and is of more importance in the long run. face the cost of running things alone that appeared only in September, but picked up Professor Bell considered the UK used to be shared with the EU, he detailed most of the previously abandoned clauses. position paper on the Irish border, pointing the complexities of agreeing ‘schedules’ From April 2017, thanks to new trading out a number of potential problem for tariffs on goods and making quota and property allowances, individuals do areas. The financial settlement issue was agreements where the EU currently has not have to pay income tax on trading or
8 February 2018 www.taxadvisermagazine.com
SCOTLAND CONFERENCE
PROFILE Name Joanne Walker Position Technical offi cer Organisation LITRG and CIOT Tel 07763 140839 Email [email protected] P r o fi l e Joanne is a Technical Offi cer for LITRG and is also the Technical Offi cer for the CIOT’s Scotti sh Technical Committ ee. In additi on to dealing with devolved taxes in Scotland for both LITRG and CIOT, her areas of work for LITRG include issues for migrants, residence, taxati on of savings income and tax compliance.
childcare, and cycle-to-work schemes. fl exible use of corporate losses carried Important changes to make Business forward and of group relief – although Investment Relief should take eff ect from losses arising pre-1 April will remain under 6 April 2017, including allowing relief on the old rules. the acquisiti on of existi ng shares (not only Trading losses can be carried forward new subscripti ons), extending the start-up to use against future total profi ts (not just period to fi ve years and extending the profi ts of that trade) under s. 45A(3) CTA relief to hybrid companies. 2010, and in future years under s. 45C CTA 2010, provided certain conditi ons are met. Ethics and Professional Conduct in Failing that, carry forward under s. 45B Relation to Taxation (PCRT) CTA 2010 is possible, to use against future Ray McCann, Deputy President of the profi ts of the same trade. In both cases, it CIOT and Charlott e Ali, Head of Professional is possible to claim how much of the loss is Standards, ATT discussed the new standards actually relieved in the later period. for tax planning set out in PCRT. Group relief for carried-forward losses It was noted that if the professional is also extended, by allowing a company bodies had not updated PCRT to set out new to surrender losses and other amounts standards on tax planning, the Government carried-forward. The surrendered losses probably would have taken its own acti on. can be set against the total profi ts of the There was a close examinati on of the claimant company. new standards in relati on to tax planning. There are new restricti ons on the use of For example, tax planning must be client losses for companies whose profi ts exceed specifi c and assumpti ons that assume away £5 million – they will only be able to shelter all anti -avoidance legislati on are worthless. a maximum of 50% of future profi ts with There should always be full disclosure and brought forward losses. In additi on, a new transparency, such that the tax advice targeted anti -avoidance rule allows HMRC does not rely for its eff ecti veness on HMRC to counteract by ‘just and reasonable’ having less than the full facts. A relevant adjustments any loss-related tax advantage questi on is whether not putti ng something from relevant tax arrangements. in the white space leaves you open to Finally, there are changes to various SSE accusati ons of incomplete disclosure. requirements, including that the investi ng While members must not create, company must have held a substanti al encourage or promote tax planning shareholding in the target company
© IStockphoto/pawel.gaul arrangements or structures that set throughout a 12-month period beginning out to achieve results contrary to the not more than six years before the day on property income of up to £1,000. Where clear intenti on of Parliament and/or are which the disposal takes place. income exceeds £1,000, the individual can highly arti fi cial or highly contrived and choose to deduct the £1,000 allowance seek to exploit shortcomings within the Making Tax Digital (MTD) instead of actual expenditure. An electi on relevant legislati on, this does not preclude Richard Wild, Head of Tax Technical Team, is needed to claim parti al relief or to members from advising on tax planning. CIOT, took delegates on a journey through disclaim full relief. A key issue is how to identi fy the the ever-changing environment of MTD. The new opti onal remunerati on clear intenti on of Parliament in enacti ng Looking at MTD for business – income arrangements (OPRA) rules aim to stop relevant legislati on. Any opinion must be tax, NIC and corporati on tax – it was most of the income tax and Nati onal credible and records should show how noted that although there would be no Insurance contributi ons (NIC) advantages and why you have reached it. Sources mandati on unti l at least April 2020, HMRC off ered by salary sacrifi ce schemes of assistance may include the legislati on will not then be sympatheti c to those and fl exible benefi t arrangements, by itself, HMRC’s view, and Hansard. who claim not to be ready. Therefore, it is deeming that the taxable value of a essenti al to plan ahead. benefi t obtained through an OPRA is the Losses and SSE unbound: HMRC Meanwhile, HMRC have identi fi ed some higher of the existi ng taxable value of the giveth and HMRC taketh away exempti ons in relati on to corporates and benefi t and the salary foregone. However, Pete Miller, The Miller Partnership, large unincorporated businesses, such the new legislati on does not apply to covered new legislati on that took eff ect on as for non-resident companies subject to certain benefi ts the Government wishes 1 April 2017 on losses and the substanti al income tax and large partnerships with to encourage, such as employer pension shareholdings exempti on (SSE). turnover in excess of £10 million. Other scheme contributi ons, employer-provided The new rules allow for the more exempti ons from MTD for business include www.taxadvisermagazine.com February 2018 9 SCOTLAND CONFERENCE
the digitally excluded, businesses with Isle of Man. He claimed his domicile of how to consider the size of the problem, total income of less than £10,000 per choice had changed, from the Isle of Man before going on to look at possible solutions. annum, charities, CASCs etc. to Mauritius. The court determined that MTD for VAT will come into force with he did not acquire a domicile of choice in Employment status and the gig effect from April 2019. It applies to all Mauritius, thus his domicile of origin re- economy businesses with taxable turnover in excess emerged. Anne Fairpo, Temple Tax Chambers, noted of £85,000 per annum including non-UK that many of the issues in relation to businesses with UK VAT registration and Land and property taxes models of employment are not new; it is those within VAT special schemes. The Carl Bayley, author of several tax guides, merely the scale that has changed. One of exemptions are limited to the current surveyed current issues for landlords and the key issues is the mismatch between exclusions for VAT online filing. property owners. employment law and tax law. The concern is that currently, even The cash basis for landlords, available Under employment law an individual though businesses have to file VAT from April 2017, is now the default for can be: employed; a worker; self- returns online, only 13% of businesses individuals and partnerships, provided employed. Under tax law there are only do so directly from software, meaning gross rent does not exceed £150,000. It two options – an individual can be either MTD for VAT will require a huge shift is possible to elect (annually) to use the employed or self-employed. This can in functionality and behaviour for the accruals basis. Joint owners may elect lead to odd situations, for example, an majority of businesses. separately – so one could use the cash individual may be taxed as an employee, MTD for individuals is unaffected by basis, and another use the accruals basis. but have no employment rights. the announcement in July. HMRC are Spouses and civil partners who own A number of tax ‘solutions’ to the continuing with a variety of measures property jointly must however use the employment status issue were then to digitise and tax in real time, including same basis. surveyed, including the construction dynamic coding, simple assessment and Attention was drawn to a number industry scheme (CIS), IR35, agency pre-population of the personal tax account of problems, including the potential workers regulations, umbrella companies with bank/building society information. acceleration of income and deferral of rules and ‘government’ IR35. It was noted relief. Furthermore, no relief is available that IR35 has so far failed spectacularly. Updating some thoughts on domicile for abortive professional fees, for example Moreover, the IR35 and ‘government’ IR35 James McNeill QC, Axiom Advocates, when attempting (but failing) to buy a rules do not help resolve the grey area that set out some key domicile principles: it property. Capital expenditure that would exists; they merely shift the responsibility. has the same meaning in all branches of qualify for capital allowances should be The patterns in the growth in self- law; everyone gets a domicile of origin at claimed on the cash basis, and cannot be employment were considered, with birth; you can acquire a domicile of choice disclaimed. reference to the recent Taylor Review. through residence and intention. HMRC’s change of approach in Going forward, NIC is likely to increase Domicile cases are often fact-based, so relation to interest and finance costs for the self-employed and there may be an appellate court rarely interferes with was considered. Historically, if interest CIS-type deductions for other sectors or the judgement of a court of first instance. payments were either incurred for business industries. There is likely to be ongoing Sometimes differences may arise when purposes or the borrowing was up to the consideration of employer’s NIC. In the drawing inferences from facts. value of capital introduced, relief would be meantime, the lack of alignment between To illustrate these points, a number available. Now, their view is that interest tax law and employment law will continue of cases were considered, starting with payments must be incurred for business to result in problems for workers. that of Mr Gulliver. The judge found that purposes; meeting the capital introduced HMRC’s original ruling on his domicile, condition alone is not sufficient. Conclusion in relation to an earlier tax year, was not There was also a recap of the restriction Guests attending the conference dinner binding on another tax year, and did not on the rate of relief on interest and finance heard from Derek Mackay MSP, the prevent HMRC from challenging his costs for residential landlords. This will Cabinet Secretary for Finance and the domicile status later. take effect by changing from an expense Constitution, who offered his thoughts Mr Agulian was born in deduction to a 20% tax reducer. on the devolved tax powers available Northern Cyprus and lived in Delegates were shown to Scotland, and in particular those on the UK for a number of years. income tax. The court of first instance The conference covered a lot of ruled that he was domiciled in ground, providing members and England at his death. The Court students with the opportunity to of Appeal however, thought hear from a range of speakers the court of first instance had and to network with fellow underestimated the enduring tax professionals from across strength of his bond with Cyprus Scotland. and in particular, it viewed the If you have not attended division into periods pre- and a conference before, then post-1995 as incorrect. Taking the consider putting one in your question holistically, it ruled against diary for 2018. As well as the him having acquired a domicile of Scotland Branch conference choice in England. in November, there are The case of Mr Henwood shows the Spring and Autumn how to view a person who has conferences. For more information moved away from their domicile of and to book, visit the website: https:// origin. Mr Henwood was born in England, www.tax.org.uk/members/conferences- and acquired a domicile of choice in the events.
10 February 2018 www.taxadvisermagazine.com
MAKING TAX DIGITAL
The silver lining in the Cloud
Dale Simpson provides a practi ti oner’s view
KEY POINTS PROFILE zz What is the issue? Name Dale Simpson The MTD proposals are changing the Position Partner © Istockphoto/lukutin77 fundamental way tax professionals Company Thomas Westcott interact both with their clients and with Tel 01392 288555 HMRC. Email dale.simpson@thomaswestcott .co.uk zz What does it mean to me? P r o fi l e Dale is a Chartered Accountant and Tax Adviser, has been a We have implemented a number of Partner at Thomas Westcott since 2007 and is based in the Exeter offi ce. As a practi cing initi ati ves to ensure that both our member of the Academy of Experts and the Expert Witness Insti tute, Dale spends practi ce and our clients are prepared much of his ti me providing evidence in the Courts as an expert witness. for this paradigm shift . zz What can I take away? Now is the ti me to ensure that the party, which I chair, and I joined the CIOT MTD arti cles and leafl ets explaining MTD MTD proposals bring your practi ce digitalisati on and agent strategy working and cloud accounti ng were published opportuniti es. group. My fi rm felt it was essenti al to and distributed. We also ran a series of be proacti ve and ensure that our clients seminars at strategic locati ons in our area. were kept aware of what was happening One of our main recommendations am a partner with Thomas Westcott , with MTD, how it would impact on to our clients has been to convert their a practi ce which is based in the West them and how Thomas Westcott could bookkeeping systems onto one of the Icountry with offi ces covering Devon and help them through the implementati on cloud accounting packages which the Somerset. Although we are ranked as a top phase as effi ciently as possible. The software producers have been working 50 UK practi ce, the vast majority of our homepage of our website has links to on to make MTD compliant. We see clients are SMEs that are owner managed cloud accounti ng, MTD and digital news many benefits with these packages. They businesses. We regarded MTD as having to provide updates and client awareness. provide a clear overview of a client’s the potenti al to be a life-changing event To ensure that clients who did not or business by creating sales invoices, for professional practi ces and their clients. could not visit our website did not miss managing expenses and creating links to With this in mind we started a MTD working these updates, our newslett er contained their bank accounts to give a clear real- www.taxadvisermagazine.com February 2018 11
MAKING TAX DIGITAL
time overview of their financial position. to be in the forefront of digital their bookkeeping through software There is ready accessibility – providing development rather than have clients packages specifically written for a client has an internet connection they reading mailshots or business articles management of their businesses. What Prepare for the can access financial records at any time composed by competitor firms. We benefits are there for businesses and and on any device. The information is prefer our clients to hear it first hand HMRC to mandate them to use MTD shareable and, as a practice, we can from ourselves. It is important to reach compliant software? Many businesses see their records on a real-time basis out to clients who are unlikely to read see this as being of little or no benefit and help them deal with problems they website articles, social media postings to either party and that it will be may encounter dealing with certain or information emails. To this extent, we costly, time-consuming and disruptive future of practice. transactions. With automatic updates have recently sent out two flyers – one to implement. The other worry is the and backups there is no need to buy dealing with the changes in focus on uncertainty of MTD in relation to When Making Tax Digital goes live, make sure you’re equipped or install updates and gone are the MTD and the other dealing with digital corporation tax and clarity for these dangers of losing information by not accounting. These flyers have received requirements is needed urgently. Will for success. We work closely with HMRC to ensure we’re on having secure backup data. With apps to an excellent response and more clients these concerns and uncertainties be the connect to other software, our clients are seeing the benefit of bringing their cause of another U-turn for MTD? Only course to build the right products for you and your clients. are able to complete integration and accounting systems up to date and time will tell and, in the meantime, we the intelligent software recognises and entering the digital world. must continue to prepare ourselves as learns different types of transactions to The change of focus has, of course, a professional practice and to ensure speed up input time. reduced the number of clients who will that our clients will be best served from Join us and find out why we’re called the Digital Tax People. Choosing the correct software for be affected by the first staging date for both a statutory compliance point of clients is extremely important. In the MTD as it will be restricted to businesses view and from a business advisory point South West there are some ‘digitally with a turnover in excess of £85,000 of view. challenged’ geographical areas with and clients which are VAT registered. It is important that professional either weak or unstable internet signals. Nevertheless, it is surprising how many practices do not just think about MTD Although these clients’ internet signals of these clients are still left to convert for VAT with an April 2019 staging may cope with submitting VAT returns to either from manual records or from date. Although we do not have a fixed HMRC via the API it is either not strong old software which will not be MTD staging date for income tax, we know enough or not stable enough to run a compliant. It is interesting that only 12% that this will not be before April 2020. cloud accounting package on. Therefore, of businesses currently submit their VAT This means that HMRC now have around Client Hub Accounts Company MTD for some clients, an MTD compliant returns directly from their accounting two and a half years to develop and test Incorporator desktop solution will provide the right software. This does mean that the the technology for MTD. It is dangerous Production Cashbooks to assume that MTD for businesses is significant majority are currently filing In development Staff training also plays an important VAT returns through HMRC’s portal and either a long way into the future or to part in readying our practice for MTD. that a large proportion of VAT registered anticipate that there will be a further They have been regularly updated on clients will need to ensure that they deferment for income tax. With this in the MTD implementation programme. have made changes to their accounting mind, Thomas Westcott will be ensuring Office champions have been trained to systems before April 2019. that its client base, partners and staff help clients choose the most appropriate The importance of ‘Know Your Client’ of the practice are well prepared for the package for their business, install these to enable the firm to concentrate on digital world. AML Identity Companies and train them how to use the software. those where advice is most needed For those clients whom we regard Tax Return MTD We’ve also discussed how MTD is likely to means ensuring that the firm’s database the cloud accounting packages to be Checking Production House Forms Business Tax change staffing roles in the longer term. can readily provide the following suitable we will continue to encourage All in all, a considerable amount of information: them to convert their bookkeeping In development time and effort has been invested into zz The level of turnover for the onto these packages. Not only will getting our practice and our clients business and whether or not it is VAT this provide them with the benefits ready for the implementation of MTD. registered. specified above, it will also enable them The deferral of the MTD timetable zz The type of records maintained and to become MTD compliant if and when has been welcomed by the majority whether these are manual or digital. mandated to do so. For a proactive of practitioners and it should ensure zz If accounting software is being used, professional practice real time access VAT Filer CloudConnect an implementation timetable which which package is currently in use and to client’s financial records enables an is carefully progressed rather than whether it will be MTD compliant. increased level of advisory work with hurried and in danger of falling into zz Whether VAT returns are submitted their clients. Our message to clients chaos. Like many of our professional directly from the accounting software who are not already there is that it’s colleagues, Thomas Westcott believes to HMRC. time to bring their business records that digitalisation of the tax system is zz What VAT special schemes, if any, are into the 21 century, using software the correct approach and we must make relevant to the business. which has been designed to help them best use of the deferment period by maintain their records and manage their continuing to prepare ourselves and our The software producers have a finances efficiently and effectively. As clients for MTD. huge challenge to ready their packages predicted by Philip Hammond in his A substantial time cost has already for the nuances of VAT such as partial Budget speech, the digital revolution been expended in preparing ourselves exemption, second-hand goods scheme, will provide a wealth of opportunity to and our clients for MTD. As a firm we flat rate scheme and capital goods those willing to grasp the challenge. We will continue to make our clients aware scheme. Not only will mandating for MTD have taken these measures to ensure of the changes that will affect them and VAT cover the SME businesses which that our practice is ready to make the Find out more today how we can best help them to manage we deal with, but it will also include most of these opportunities, and we these changes. Client communication large corporate businesses. The latter recommend that you do the same with www.taxcalc.com is key to good practice. It is far better are often complex businesses running yours. Website: Support: 0345 5190 882 | [email protected] 12 February 2018 www.taxadvisermagazine.com Sales: 0345 5190 883 | [email protected] Innovation in Practice
A4 MTD Taxation Magazine Advert 4 - final.indd 1 24/01/2018 15:38 Prepare for the future of practice. When Making Tax Digital goes live, make sure you’re equipped for success. We work closely with HMRC to ensure we’re on course to build the right products for you and your clients.
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A4 MTD Taxation Magazine Advert 4 - final.indd 1 24/01/2018 15:38 ISSUES OVERVIEW GROUP
OMG it’s IOG
Jon Stride provides an look at the activities of the Issues Overview Group of the CIOT, and how it can help members in practice
KEY POINTS zz What is the issue? The IOG is a partnership involving the professional bodies of the tax world and HMRC. zz What does it mean to me? Both ATT and CIOT are actively involved with HMRC to resolve operational issues identified and reported by the tax profession – particularly through the Agents Forum. zz What can I take away? A great deal of time and effort is devoted to progressing and resolving systemic difficulties by the PB representatives and HMRC.
cronyms are used for just about everything these days. Ask Asomeone to name a three letter acronym ending in the letter G and it is likely that the answer will be OMG. However, as far the relationship between HMRC and the professional bodies are concerned, there is another answer – IOG. So, what is the IOG? Probably the best way to answer that is to take a couple of steps back, and to see what the role of IOG is. In my previous article in the February 2017 edition of Tax Adviser I wrote about Working Together – this is the link between HMRC and the tax profession. In my article I mentioned that there were many Working Together groups dotted around the country – and with the demise of the tax offices to which they were attached, the local groups folded. The IOG exists to take the matters identified at Working Together one step further – and in particular progress those issues with HMRC and to ensure that the systemic errors raised by Working Together are investigated and (hopefully) to enable those problems to be advanced so that enhancements to HMRC system and processes can be introduced.
14 February 2018 www.taxadvisermagazine.com
ISSUES OVERVIEW GROUP
In order to understand how the PROFILE IOG came into existence, we need to step back in time to 2005, when the Name Jon Stride Inland Revenue and the Customs and Position Member in practice representative for ATT on the Issues Excise were amalgamated to form HM Overview Group Revenue and Customs (HMRC). At about Company ATT/CIOT Email this time, HMRC invited nominated [email protected] Profile Jon Stride is the Vice-Chair of the joint ATT/CIOT Working nominated agents from the accountancy Together Sub-Committee and a member of ATT Council, serving on the ATT professional bodies when they formed Technical Steering Group. Jon is also a member of the Somerset and Dorset branch NWTT – National Working Together committee. Jon is a professional bodies representative on the Issues Overview Team. There had always been a Working Group. Together Steering Group, who had an © IStockphoto/SaulHerrera overarching view of the issues raised and the potential to escalate matters Subsequent developments within that have logged into the Forum to that were considered urgent. In addition IOG report problems, and to add comments to the involvement of the professional In the months shortly after the formation where necessary. bodies, WTSG also had two HMRC of IOG the local Working Together Both the IOG members and HMRC secondees. Groups ceased to exist. The only way are able to see the problems being At this time, a Working Together to refer the matters that would have reported, and to use these when publication was issued to agents – this normally been escalated through the discussing the issues that need to later became ‘Agent Update’, and this is local groups was for matters to be be resolved. An article written by how it is still known. referred to the various professional Richard Wild appeared in the October NWTSG was disbanded about five bodies, and then on to IOG. Both ATT and edition of Tax Adviser (https://www. years ago. However, it was agreed by CIOT have maintained dedicated e-mail taxadvisermagazine.com/article/ all parties that there remained a clear in boxes for Working Together matters. working-together-new-agent-forum). need to collate, review and escalate There have therefore been changes This provides useful insight into how to the systemic issues raised by the local to the way that IOG operates as a result get involved. Working Together groups to the NWTT, – but the core activity of the group The IOG members have a and monitor the subsequent reporting remains to bring problems arising at the teleconference roughly every six back of issues to local Working Together coalface to the attention of HMRC, and weeks to discuss the matters and Coordinators. where ever possible to achieve solutions problems in hand – with one or two In response to this need, the Issues or work arounds. 90 minute teleconferences between Overview Group was formed. IOG met It was inevitable that the local the members representing the for the first time in September 2013. Working Together groups would professional bodies, with a further 90 Membership of the group was drawn disappear as the local tax offices to minute teleconference with HMRC to from the representative bodies that sat which they were attached closed. discuss existing issues, new issues and on NTWSG, and members of the HMRC HMRC recognised the need to produce emerging problems. This gives plenty NWTT team. The following were agreed something that would keep those of opportunity for lively debate. for IOG: members of the tax profession in The meetings are chaired for zz IOG will meet quarterly, by telephone, touch with those that were previously HMRC by Hugh McCann, from and for an hour involved with local Working Together Customer Experience and Stakeholder zz The professional bodies will have up onboard. The Digital Working Together Engagement at HMRC. From the agent to two representatives each on IOG webinars were launched to fill the gap. community, all of the key professional zz HMRC will be represented by 2 or 3 It is fair to say that these were not a bodies are represented – in addition from the previous NWTT committee great success – those working out in the to those at Artillery House, AAT, ACCA, zz Management information on referrals, field had enjoyed the camaraderie and ICAEW and ICAS are represented, issues raised, and issues closed will be ability to discuss issues with both similar as are CIMA. HMRC provide the circulated at least a week before the professionals and HMRC that Working secretariat for the meetings involving meeting. These will be discussed by Together provided. them. exception. HMRC recognised that the members Each professional body can zz The IOG will not discuss the detail of of IOG worked well together, and as a have two representatives on the any individual case result, were asked to host the Digital committee – which for ATT and CIOT zz The focus of the group will be Working Together webinars. The means that there is one member of the delivery of service, reviewing members agreed to this – but only as an the technical team from Artillery challenges to closing a referral, finding interim measure. House (Helen Thornley and Richard evidence to progress referrals. Although the members of the Wild respectively), and two members zz Unresolved issues from IOG to be group were happy to do this, it did add from practice, who are working at the escalated through JISG significantly to the workload, adding to coalface, and are dealing with HMRC the existing schedule of teleconferences on a practical basis day in and day out A key aspect of the IOG was that it was and meetings that already existed. (myself and Nigel Clarke respectively). expected to strengthen links between Having the input of practitioners national and local Working Together And up to the present day – the means that we are able to stress the coordinators. The IOG members devised a Working Together Forum way in which problems are affecting scoring spreadsheet to weight the reported The arrival of the Forum in 2017 marked those trying to take care of their clients issues, with ranking depending on the the arrival of a new method of working. tax affairs. impact, gravity and where necessary to Although introduced gradually, this has Solutions are rarely swift – escalate those with far-reaching significance. brought a new way for those members sometimes there is no solution, but www.taxadvisermagazine.com February 2018 15 ISSUES OVERVIEW GROUP
use the Forum to report it. If a problem is affecting you at ground level, it is DIGITAL WORKING TOGETHER quite possible that others are affected. How issues are raised and then progressed Use the Forum to see if others are Dark blue boxes illustrate actions by agents / professional bodies, light blue boxes illustrate actions by HMRC experiencing similar problems. If the issue isn’t there, raise it as a potential issue. If HMRC don’t know about an Originator of issue issue, they can’t be expected to do anything about it! Stage 1 IssueIssue referred referred to to CIOT CIOT / /ATT ATT Client specific issued Client specific issued referred to Issue [ w t[[email protected] @ t a x . o r g . u k o r wor t @[email protected] a tt . o r g . u k o r referred to Agent Account And the future? Agent Account Manager service identified director direct email] email] Manager service The Working Together Forum is up and / reported running, and as this beds in, there will be other opportunities for IOG. One Potential widespread issues reported on Agent Forum with call for particular change that is being considered evidence (ie “has anyone else experienced this issue?”) is for members of IOG to be involved with bespoke HMRC Talking Points presentations, where a particular matter that the group has been looking at needs Stage 2 Additional evidence is sought from agents, via Agent Forum further public discussion. The members of IOG welcome the fact that they are able Issue is Issues Overview Group (IOG) discuss whether a widespread issue identified to have frank and open discussions with and Issue Resolution Managers (IRMs) start investigating the issue HMRC, and look forward to being able to developed IOG prioritise the issue (eg 1 = most important etc) continue to do so. An example of the issues that the IOG have been involved with is the ongoing problems with P800 calculations. We have been able to IRMs progress the issue with the relevant business teams illustrate the type of errors filtering Progression reported in Agent Update and on the Agent Forum through–and provide examples of the Stage 3 impact of those errors. By establishing Possible solutions / work-arounds discussed with professional bodies Issue is common themes emerging with the / agent community ‘worked’ errors, it enables HMRC to address Note – the issue may be ‘closed’ on the Agent Forum. This means no those specific aspects. more evidence is needed and no more posts can be made. Being able to discuss matters directly with HMRC enables us not only to provide details of the problem but also of its ramifications for agents, taxpayers, and the likely extent of the Issue resolved / work-around found / issue cannot be resolved – Stage 4 issue. Following the highlighting of one Communicated as above Outcome particular issue with P800’s, HMRC communicated Moved to cleared issues on Agent Forum were able to identify those cases that were likely to be subject to errors in that field, and to suspend the issue of P800’s to those taxpayers until the we aim to work with HMRC in order to The article written by Noel Flanagan problem had been fixed – a move that produce a solution wherever possible. that appeared in the November 2017 was helpful to all those involved. Being able to discuss matters in an edition of Tax Adviser provides a helpful There is some common ground with open and frank manner with HMRC summary of how and why agents should other groups involving the profession enables the group to share not only be involved with the Working Together and HMRC, and in recent weeks IOG their concerns, but also suggestions Forum. and the VCG (Virtual Communications for improving or resolving a particular Richard Wild from CIOT has produced Group) have both been involved with problem or issue. a helpful flowchart showing how meeting with HMRC where there is The IOG, in conjunction with other Working Together issues are progressed, common ground, thus helping with committees that liaise with HMRC such which is reproduced here. resolving issues. as the Virtual Communications Group The role of the Issues Overview (VCG) and the Joint Initiatives Steering How can IOG help members in Group in relation to the Forum is Group (JISG) are key to ensuring that the practice? becoming clearer now and we can door remains open in discussing matters This is a two way process – how can revert to our core role of recognising with HMRC. With HMRC operations being members in practice help IOG? The the most serious issues, as well as increasingly centralised, and contact at key to the operation of IOG is that following issues through from reporting a local level being a distant memory, the members of the professional bodies to resolution, including escalation. use of the Working Together Forum and report difficulties involving HMRC at Many thanks to Jeremy Nottingham the involvement of IOG represent the operational level by using the Working (Chair of the IOG) and Jacqueline best avenue available for the profession Together Forum. Colston-Stewart from HMRC for their to deal with day to day problems If there is an issue that is likely to be help in providing background details for involving HMRC. systemic and not specific to one client, this article.
16 February 2018 www.taxadvisermagazine.com STRAP HERE
DIGITAL ECONOMY
Reassuringly, the paper affi rms that ‘countries should have the right to tax business profi ts derived from producti ve acti viti es, enterprise and human innovati on in their jurisdicti on, irrespecti ve of where shareholders and customers are located.’ This is of course the long-standing basis of internati onal taxati on, reaffi rmed during the BEPS project. it is also important to fi nd a means of disti nguishing general businesses from digital businesses deriving value from Which way their user base. If this disti ncti on cannot be drawn clearly, then it could open up the prospect of a much more major change to internati onal tax – by allocati ng some profi t to the customer locati on. The paper does discuss an interim forward? measure that a group of countries – such as the EU – could adopt, in the form of a turnover-based tax. Such a tax would be levied on businesses that derive value from Bill Dodwell considers the taxati on of the digital economy their user base – but it would not apply to digital businesses selling self-developed ne of the hott est topics in tax or acquired goods to customers through policy is the taxati on of the digital It turns out that this was not the last word an online platf orm, or charging customers Oeconomy. The G20 asked the OECD on the digital economy. The 22 November for the provision of digital content, digital to re-establish its Digital Taskforce and paper says ‘…there is a need to ensure that soft ware and digital services. produce some recommendati ons by April the internati onal tax framework is responsive Examples of the type of business in 2018. The European Union also thought to the changing nature of our economies in scope are: it essenti al to look at the area and held the digital age, and able to accommodate zz businesses that build a user base on discussions under the Estonian Presidency new digital businesses that operate and an online service, including those last autumn. create value in diff erent ways.’ that allow for the sharing of content Into the mix stepped the UK at the The paper notes that ‘the challenges that and user-generated contributions, Autumn Budget, with a positi on paper and digital businesses pose to the eff ecti veness and then generate revenues through the announcement of a new withholding tax. of the internati onal corporate tax rules can directing targeted adverts at that The withholding tax will apply from April only be sustainably addressed in the long run user base using personal data, e.g. a 2019 – and levy UK tax on payments made through multi lateral reforms.’ The disti ncti ve search engine, a social media or file- by non-UK companies to related parti es feature that supports a diff erent approach to sharing platform based in territories without a UK double tax certain digital businesses is that some derive zz businesses that provide an online treaty with a non-discriminati on clause. The value from a material and acti ve user base – marketplace for buyers and sellers of objecti ve is to ensure that ‘payments for the which is central to the success of the business goods/services and take a commission exploitati on of certain property or rights in model and has a direct link to the generati on from sales, or those which take a the UK that are made to connected parti es in of revenue. In such cases, the paper argues commission from matching users’ low or no tax jurisdicti ons will be subject to that jurisdicti ons where the users are based common interests, e.g. exchanging of appropriate taxati on.’ The measure might be should be able to tax a company even goods, renting of assets, and forming seen as a further ‘encouragement’ to ensure though it may not have a fi xed place of of relationships. that royalti es are no longer paid to zero-tax business in that locati on. It suggests that a locati ons, typically without the people-based metric for such a profi t allocati on needs to The paper acknowledges the challenges functi ons necessary to att ract profi ts under be worked out – based on something like of a turnover tax and suggests the provision the new transfer pricing approach. The average monthly users. It may be relati vely of double tax relief, de minimis thresholds challenges with this measure undoubtedly easy to measure usage – but there are no and miti gati ng provisions for loss-making come from reporti ng and collecti ng tax from clear economic theories of calculati ng value. and early-stage businesses. a legal enti ty outside the UK. This theory is someti mes known as virtual It remains to be seen whether the The UK’s positi on paper on the digital permanent establishment. Adopti ng this internati onal community will manage to economy is much more wide-ranging and would require global agreement and a major reach agreement on the way forward in this interesti ng. It gives a wider perspecti ve change to double tax treati es. challenging area. than anything so far from the EU or the OECD. The measures being considered go PROFILE beyond the parameters of the Base Erosion Name Bill Dodwell and Profi t Shift ing (BEPS) project. BEPS has Position Head of Tax Policy © iStock/Maravic something to say about the digital economy, Company Deloitt e LLP but it deliberately left open any questi on of Tel 020 7007 0848 specifi c tax measures, noti ng ‘Because the Email bdodwell@deloitt e.co.uk digital economy is increasingly becoming P r o fi l e Bill Dodwell is head of tax policy at Deloitte’s tax policy the economy itself, it would be diffi cult, group, responsible for consultations and representations to the OECD, HM Treasury if not impossible, to ring-fence the digital and HMRC. He is the Immediate Past President of the CIOT. economy from the rest of the economy for www.taxadvisermagazine.com February 2018 17 TURNOVER TAX
Merseyside Branch Annual Dinner
Thursday 1 March 2018 Book online at: Crowne Plaza Hotel, Liverpool www.tax.org.uk/merseyside
The Merseyside Branch of the Chartered Institute of Taxation and Association of Taxation Technicians is pleased to announce that its annual dinner will take place on Thursday 1 March 2018 at the Crowne Plaza, St Nicholas Place, Liverpool, L3 1QW and is kindly sponsored by the Equiom Group.
ur guest speaker will be ominic Frisby, who, Tickets for the evening cost plus AT. The tables seat alongside being an actor (the Inbetweeners movie), ten people and we would be delighted if you would like comedian (resident C at London s oldest comedy to take one, or indeed more. We stress that the evening venue, ownstairs at The King s ead), voiceover actor is open to all and one does not need to be a member (such as the booking.com commercials), T Presenter to a end. Indeed we typically find that well over half ( The oney Pit with ason anford on ave) is a the a endees are not. We aim for a relaxed, convivial financial writer (author of the books itcoin: the end of atmosphere and plenty of firms invite clients, targets and Money And Life a er The State ) and columnist at The intermediaries. uardian.
Please contact our Chairman, Michael Spencer, Grant Thornton, Royal Liver Building, L3 1PS for further details at [email protected]
The Worshipful Company of Tax Advisers
The taxation of land in the British Empire was not just a means The Politics of Land Taxation of fiscal extraction but a way of shaping the nature of society. in the British Empire Should the colonies follow the pattern of English agrarian Speaker: Professor Martin Daunton society, with a tripartite system of large landowners, tenant farmers and landless labourers as a way of creating efficient division of responsibilities? Or should the colonies return to Date: 20th February 2018 a system of peasant proprietorship that had been destroyed in Time: 5:45pm for 6pm start England? The issue was fought out in English politics, but was even more central to politics in the colonies. In India, policy Venue: CIOT, 1st Floor Artillery House, 11-19 Artillery veered between creating a class of large zamindars who paid Row, London SW1P 1RT taxation direct to the East India Co and the Raj in return for Cost: £18 for members of the Worshipful Company of security of their holdings, and taxation of small peasants in Tax Advisers and their guests, £20 for non-members the ryotwari system. Similarly, in Australia and New Zealand, there was a political controversy over the structure of society, Supper: There will be an optional supper afterwards between those who favoured large squatters and those who at the Colosseo Restaurant on a self pay basis on the wished to break up their holdings through taxation. The New night. See http://www.colosseorestaurant.co.uk/ Zealand tax of 1879, for example, did not tax income from alacarte.php. employment but imposed a tax on land even when it produced The event is open to everyone with an interest in no income. These colonial debates drew on English political the history of tax. For more information please visit debates over the taxation of land, and were fed back into www.taxadvisers.org.uk the Edwardian debates. The talk explores the politics of the taxation of land across the British Empire.
Please contact Ann Bailey on [email protected] to book your place
18 February 2018 www.taxadvisermagazine.com
OPTIONAL REMUNERATION
The Phantom of the OpRAs
Michael Steed at the new income tax and NIC rules for OpRAs and asks who the winners and © IStockphoto/caracterdesign
KEY POINTS What has changed and why? concerned that salary sacrifice zz What’s the issue? Salary sacrifice schemes have been schemes have been over-used and Salary sacrifice and the taxation of popular for years with both employers in circumstances where it was never flexible benefits packages changed and employees. At its simplest, an intended that they should be used, in April 2017 and employers and employee sacrifices salary and receives for example paying employee travel employees alike will need to understand in return benefits of equal value. The expenses. The Government was never the scope of the changes. difference, at best, is that by receiving going to let this continue with its zz What’s changed? benefits instead of salary, both employer attendant loss of tax and NIC revenue. Salary sacrifice has been subsumed and employee will save tax and/or NICs. The upshot of this is that salary into a new regime called Optional The rules have been changed sacrifice has been subsumed into a new Remuneration Arrangements (OpRAs), because HMRC has become increasingly Optional Remuneration Arrangements where IT and NIC savings are greatly reduced (including down to zero) in many cases. PROFILE zz What can I take away? Name Michael Steed Employers will need to make sure Position Head of Tax that these new rules are effectively Company BPP Professional Development communicated to employees, so Tel that both sides can make informed Email [email protected] judgements about whether such Profile Michael is Head of Tax at BPP Professional Development. He remuneration schemes still make sense. is a Past President and Co-Chair of the ATT’s Technical Steering Group. www.taxadvisermagazine.com February 2018 19
OPTIONAL REMUNERATION
regime (OpRAs) and the IT and NIC HMRC example: nurseries, and directly contracted outcomes are generally worse than they An employee has the option of a cash employer provided childcare; were before April 2017. allowance of £5,000 (type B) which he zz cycles and cyclists’ safety equipment decides to give up for a car. However, (including Cycle to Work); What are OpRAs? the employee wants a higher specified zz ultra-Low Emission Cars (ULEVs) with The new legislation is in Schedule 2, FA model costing a further £1,000. So, he CO2 emissions of no more than 75g 2017 and inserts new provisions into also gives up £1,000 of salary (type A). per kilometre that are in the scope of ITEPA 2003 (starting at new section 69A). The amount foregone is £5,000 plus the car benefit charge. OpRAs are schemes where the employee is provided with a benefit in So these benefits, with any IT and return for giving up some form of salary, Are all benefits affected by this new NIC advantages, are preserved as the cash pay or allowance and will be caught regime? Government wished to encourage them. under the new rules if provided under No, if a benefit is provided by an There are also some ‘Special case arrangements where the employee: employer and there is no salary sacrifice exemptions’ in ITEPA 2003 s 228A(4), zz Gives up the right, or the future or agreement to choose a benefit rather which have already been removed from right, to receive salary (commonly than cash, then the new rules do not kick salary sacrifice schemes, so these too called salary sacrifice) (Type A in. The existing rules apply. are not within the new rules (presumably arrangements) (new ITEPA 2003 s So, if an employer provides an annual to avoid any double taxation). These 69A(3)); or medical check-up under the provisions include: subsidised meals, reimbursed zz Agrees to be provided with the of S320B, ITEPA, no tax or class 1A NIC expenses and trivial benefits. benefit rather than an amount of cash liability arises (where no IT charge arises, pay (Type B arrangements) (new ITEPA it follows that no Class 1A NIC liability When are the new rules triggered? 2003 s 69A(4)) . arises – S10, SSCBA 1992). This may suit, After April 2017, the new rules are Simply put therefore, in Type A for example, the directors of a family triggered when a salary sacrifice arrangements, an employee gives up company. If that same company provides agreement starts or is renewed, or something and in Type B arrangements, this benefit to their employees, then modified. they choose something. The rules for these, too, will be tax and NIC free. If the existing arrangements are OpRAs will therefore impact on flexible But if the medical check-up is in place on 6 April 2018, then that benefit packages. provided under an OpRA, say to an date will be the trigger point, unless Where a benefit is provided under employee under salary sacrifice, then the benefit is a car with emissions in optional remuneration arrangements, the new rules will apply and the benefit excess of 75 gm per km , school fees or the value of the benefit to be treated as will be valued at the higher of the cash living accommodation benefit. These earnings from the employment, is the equivalent (valued at £0 under the BIK exceptions are all protected until the greater of: rules ) or the salary forgone (agreed earlier of: zz the amount of salary or cash pay given between the employer and employee). zz a variation, renewal, modification of up by the employee in return for the It will also be subject to Class 1A NICs on the arrangements; and benefit; this higher figure. zz 6 April 2021. zz the amount of the benefit treated as When making the comparison, earnings from the employment under you ignore any amounts made good. There are special rules for school fees. the normal rules, ignoring any amount However, once you have determined made good. the relevant amount, in most cases What are the new NIC rules? the taxable amount is reduced by any The basic shape of the new NIC rules is that Where the two are the same, then the amount made good by 6 July following benefits that are provided under OpRAs will normal benefit valuation rules are used. the end of the tax year in which the be charged to Class 1A NICs, so the pre-2017 benefit was provided. rule that there was an exemption from Class Examples: 1A NICs where there is no IT charge has An employee gives up £1,000 of salary Example (from HMRC’s revised changed (S10, SSCBA 1992). for benefits that are valued at £900. The Booklet 480 – 2017 edition) The NIC rules mirror the IT rules, so the higher value of £1,000 is used. An employer provides an employee value is the higher of the two values chosen zz An employee chooses between a pay with private medical insurance that for IT purposes. rise of £2,000 and a car (which is not a costs it £500. The employee gives up The ‘excluded exemptions’ rule for IT is low emission vehicle) where the cash her right to salary of £600. The relevant also mirrored by the NIC rules. equivalent is £2,200. The higher value amount treated as earnings from the of £2,200 is used. employment is £600, being the greater of What about cars that are made zz An employee gives up cash of £1,500 the cost of providing the benefit (£500) available for private use? for a benefit that is worth £1,500. and the amount foregone (£600). If the There’s good news and bad news! There is no difference between the employee then makes good £50, this The new rules do not apply to cars values – £1,500 is used. reduces the relevant amount by £50 to with CO2 emissions of 75 grams per km leave an amount treated as earnings or less (a ULEV).These vehicles continue Some employees have both type A and from the employment of £550. to be taxed on just the cash equivalent type B arrangements under which a benefit Some benefits are not affected (at of the benefit worked out under the is provided partly in exchange for the least for now). The new rules identify normal rules without having to make a employee giving up an amount of salary and some ‘Excluded exemptions’ (in new comparison with the salary foregone. partly in exchange for giving up the option ITEPA 2003 s 228A(5)) and these include: They are subject to Class 1A NICs in the of a cash allowance. Where this is the case, zz payments by employers into normal way. the amount foregone is the total value of the registered pension schemes; Cars made available for private use type A and type B arrangements. zz childcare vouchers, workplace with emissions of more than 75 grams
20 February 2018 www.taxadvisermagazine.com
OPTIONAL REMUNERATION
of CO2 per km are within the optional is greater, so this remuneration arrangement rules. They amount is used in are also complicated by the fact that determining the the BIK rules on valuation allow for relevant amount. capital contributions (say for higher The relevant specification cars) and payments for amount to be private use. treated as earnings The basic ‘higher of’ rule is still in is £3,600 less £255 play, but the cash equivalent is now (capital contribution of modified to exclude any payments £1,500 x 17%) = £3,345. from the employee, but credit is given for these payments as shown in the What does all this mean? following example: Employers offering OpRAs will need to be clear about which benefits provide Example (from HMRC’s revised 2017 tax and NIC advantage and which will Booklet 480) An employee is provided with a car in the Some OpRAs will still be of interest, 2017/ 2018 tax year in return for giving such as pensions, cycle to work schemes up £300 salary per month or £3,600 per and low emission cars and some will be year. The car has a list price of £20,000 and much less tax-efficient. Clearly, if the an appropriate percentage of 17%. The salary foregone and the cash equivalent employee also makes a capital contribution are the same, there will be no change for of £1,500 for a higher specification vehicle. an employee. The cash equivalent value of the vehicle Having said that, employees are not allowable would normally be £3,145 ((£20,000 less generally interested in the increased revenue capital contribution £1,500 =£18,500) loading of Class 1A NICs on employers, deductions under x 17%). The modified cash equivalent they are only concerned with IT and their the IT and CT rules, is, however, £3,400 (£20,000 x 17%) own Class 1 NIC liability and the trade- this will still be a factor as no account is taken of the capital off between the value of the benefit and in the decision to offer contribution. take-home pay. OpRAs or not. The modified cash equivalent is then For employers, increased costs under HMRC has produced compared with the amount foregone of the IT valuation rules mean higher Class guidance in the Employment £3,600. The amount foregone of £3,600 1A costs and although these will be Income Manual at EIM 44040 onwards.
FIELD COURT TAX CHAMBERS We are delighted to announce that Philip Goeth has joined 3 FIELD COURT • GRAY’S INN Field Court Tax Chambers. LONDON • WC1R 5EP TEL: 020 3693 3700 Mr Goeth has an extensive practice on all aspects of Revenue law, www.fieldtax.com including international tax law, taxation of financial instruments and land transactions. From his many years as a senior partner with a Big-4 Accounting firm, he is also a leading expert in audit Based in the traditional heart of legal London, we are a modern, and accounting standards as well as financial regulation. energetic, forward looking Mr. Goeth’s focus is predominantly advisory, but encompasses set of expert tax counsel with enforcement and penalties proceedings in relation to revenue wide experience of UK and international tax related matters and financial regulatory authorities. He also acts as advisor in both as advisers and advocates. commercial and criminal litigation where accounting, valuation and capital markets requirements are in issue, and he is instructed on a frequent basis as independent expert in court proceedings. MEMBERS OF CHAMBERS: Patrick C. Soares Head of Chambers, Mr Patrick Soares says: We are delighted to (Head of Chambers) Patrick Way QC have Philip as a tenant. He has substantial experience in dealing Philip Baker QC with issues of complex commercial and financial background Imran S. Afzal and is used to handle cases involving multiple jurisdictions. The Peter Vaines David Bloom QC (Australia) width and depth of his knowledge as well as the scope of his Philip Goeth practice is a huge asset for Chambers. www.taxadvisermagazine.com February 2018 21 STATE AID
KEY POINTS zz What is the issue? The EC have presented initial arguments that the UK’s Finance Company Partial Exemption regime (‘FCPE’) may represent unlawful state Subsidy, aid. An in-depth probe by the EC now begins. zz What does it mean to me? Should the EC conclude that the regime does represent state aid, the UK or not Government would be instructed to collect significant amounts of additional taxes from Groups which made use of the regime. Groups utilising the FCPE should consider their position. subsidy? zz What can I take away? Some insight into the design of the UK CFC rules, the Finance Company Partial Exemption, and an overview of what to expect from the EC’s investigation.
n 26 October 2017, the European Commission O(‘EC’) gave notice to the UK Government of a decision to investigate certain elements of the UK Controlled Foreign Company (‘CFC’) regime on the basis that they may represent unlawful state aid. An official publication was released on 24 November 2017. A successful challenge by the EC could give rise to significant costs for many Matt Stringer multinationals. design of the FCPE and the EC’s Introduction to the UK CFC regime investigation into the regime The UK’s CFC rules were introduced in 1984 to prevent the diversion of UK profits to overseas subsidiaries by multinationals. The concept of the UK Operation of the CFC rules rules for identifying profits which could CFC rules has always been that certain The regime operates by applying certain be subject to a CFC apportionment. Any profits of subsidiaries located overseas ‘gateways’ to different types of profits UK based SPF/KERT functions in relation may be subject to a UK tax on a current to identify any that have been diverted to the profits is enough to trigger an basis, where certain conditions are met. from the UK (Chapter 3), which will then apportionment (as opposed to the need for After a substantial consultation be charged to tax at the level of a UK a majority in a Chapter 4 context). Further, process, the rules were reformed as part parent (the ‘water’s edge’ company). any capital contributed from the UK to the of Finance Act 2012, to be effective 1 After passing ‘through’ a gateway, the two overseas subsidiary which then generates January, 2013. The 2013 reforms were, most common chapters for UK companies the non-trading finance profits is a to some large extent, in response to a with overseas subsidiaries to consider are sufficient connection for an apportionment challenge in the European Courts that Chapter 4: Business Income and Chapter 5: to arise. the old rules were inconsistent with the Non-Trading Finance Income. Chapters 6, This means that certain non-trading EU Freedom of Establishment principle. 7 and 8 of the rules contain rules for other finance profits of a UK CFC would not (More on this to come in a future article!) kinds of profit which are not explored here. be subject to current tax in the UK at all An overriding aim of the 2013 reforms Chapter 4’s main test looks to identify – those profits which cannot be traced was that the UK CFC rules should profits that are attributable to UK to a capital contribution from the UK, minimise the compliance burden for activities by considering Significant People and where there is no (or very little) both business and HMRC. The rules were Functions and Key Entrepreneurial Risk functionality in the UK in relation to designed to prevent artificial diversion Taking Functions (‘SPF’s and ‘KERT’s) of the generating those profits. These profits are of profits from the UK to jurisdictions business; who undertakes these functions; simply not within the scope of Chapter 5. where they would be subject to a lower and where they take place. Chapter 4 The rules also contain wide reaching level of tax. They should not interfere, requires a majority of these functions Entity Level Exemptions (Chapters 10 as far as possible, with multinationals’ to be performed in the UK before an through 14) which, where the relevant commercial decisions in how to arrange apportionment arises. conditions of the exemption are met, act their overseas operations. Chapter 5 contains much more stringent to completely exclude that entity from the
22 February 2018 www.taxadvisermagazine.com STATE AID
PROFILE Name Matt Stringer Position International Tax Senior Manager Company PwC Tel 0207 212 2452 Subsidy, Email [email protected] Profile Matt has worked in international tax for seven years and specialises in advising US multinational groups on a range of areas concerning UK corporation tax – particularly in relation to financing and business model issues. He is a CA and a CTA, having been awarded the Institute Medal, John Wood Medal and CCH or not prize for his performance in the CTA examinations. The Finance Company Partial Next steps in the State Aid Exemption (‘FCPE’) investigation Chapter 9 of the rules contains the FCPE. An overview of the next steps in the subsidy? The FCPE is a 75% exemption from an process are provided below: apportionment where (i) there are The EC presented their ‘opening profits which constitute qualifying loan decision’ on 26 October 2017 and it was relationship profits (‘QLRP’) and (ii) a published on 24 November 2017. This business premises condition is met. decision outlines the EC’s preliminary For the profits to be QLRP, the analysis as to why they have concerns that relevant loan must: FCPE may represent unlawful state aid. Be a loan relationship as defined in The UK Government had one month CTA 2009 from the opening decision to submit their Have an ultimate debtor which is response, i.e. by 26 November 2017. Other connected to the CFC and controlled interest parties also had one month to by the same UK company which respond to the decision – meaning the EC are likely to receive other responses by 24 Not be excluded from being December 2017. qualifying, by virtue of a number of Any third party responses will be tests (broadly focussed on ensuring forwarded to the UK Government, who may that the loan does not give rise to a also offer their comments on the responses. UK tax deduction) The EC must then progress the Where these conditions are met, investigation which will involve further there is no need for any tracing of the meetings and letters between the UK SPF/KERT functions associated with the Government and the EC. financing profits. Instead, 25% of the When ready, the EC will issue a final finance profits are apportioned to the UK decision as a ‘non-aid decision’ or a and subject to tax on a current basis. ‘negative decision’. A negative decision
© IStockphoto/ukayacan This approach is of course different would include an order for the UK to from the detailed analysis of people, recover the aid. In this instance, this CFC regime – regardless of the nature of its functions and risks that we see in a would mean HM Treasury are directed to profits. Broadly, these exemptions provide Chapter 4 context. The joint approach of recover the additional tax from Groups a simple way of concluding that a CFC Chapters 5 and 9 enables a UK company who have utilised the FCPE. It is possible should not be subject to an apportionment to establish the appropriate level of that the EC could issue a final decision where the CFC is, for example: subject to a apportionment in respect of a CFC’s before the end of 2018. reasonable level of tax, immaterial in terms financing activity, via a mechanical A negative decision could be appealed of its profits or profit margin, or resident calculation and satisfaction of certain before the General Court, which is likely in a location where the UK has deemed the basic conditions. See Figure 1. to take a couple of years. Both the UK risk of artificial profit diversion to be low. The FCPE’s introduction recognised Government and the affected taxpayers that it is much more difficult to could appeal the decision to the General FIGURE 1 undertake an analysis of people, Court. A further appeal to the ECJ of the functions and risks relating to financing General Court’s judgement could then activity than it is for other types of be made on any point of law. This means UK CFC business activity, and to do so would be that it may be several years before the apportionment UK Parent a highly subjective task. Activity relating matter is finally resolved. £1 to generation of financing profits is often In a future article I will explore the mobile and changeable, and limited in its EC’s initial arguments as to why the FCPE represents unlawful state aid, as well Non-UK Non-UK A further, more complex exemption as the arguments that HM Treasury and Lender Borrower exists which can act to exempt more others may be looking to make as to than 75% of non-trading finance profits. why it is not. We will then move on to Whether this ‘full’ exemption may be consider the implications of a negative eg Loan £100 availed depends on the origin of the decision, including the impact of a world Interest 4% funds lent or the net interest expense of where Chapter 5 of the UK rules exists the Group at UK level. without Chapter 9.
www.taxadvisermagazine.com February 2018 23 PENSIONS
KEY POINTS zz What is the issue? QNUPS have become popular structures to provide reti rement benefi ts although where they are not established for the right reasons, the risks can be high. Worth the zz What does it mean to me? Advisers need to be aware of the risks and the increasing tougher tests for reasonable excuse. zz What can I take away? QNUPS have advantages and if advising advantage? on them it is important to consider the risks and managing reasonable excuse arguments if they could arise in the future.
‘Everybody aspires to an aff ordable home, a secure job, bett er living standards, reliable healthcare and a decent pension’ Jeremy Corbyn
he defi niti on of a decent pension may vary depending on the normal Tlevel of income received by a person and hence unapproved reti rement benefi t schemes were popular. Today, qualifying non-UK pension schemes appear to have gained popularity. A QNUPS is defi ned in ITA 1984 s 271A(1) as: ‘a pension scheme (other than a registered pension scheme) which – (a) Is established in a country or territory outside the United Kingdom, and (b) Sati sfi es any requirements prescribed for the purposes of this secti on by regulati ons made by the Commissioners for Her Majesty’s Revenue and Customs.’
The defi niti on of pension scheme has the same meaning as FA 2004 s 150 and is broadly: ‘a scheme or other arrangements, comprised in one or more instruments or agreements, having or capable of having eff ect so as to provide benefi ts to or in respect of persons – Anton Lane considers the commerciality (a) On reti rement, of Qualifying non-UK Pensions (b) On death, (c) On having reached a parti cular age, (d) On the onset of serious ill - health or incapacity, or subsecti on by regulati ons made by tax legislati on of the country or territory (e) In similar circumstances.’ the Board of the Inland Revenue’ in which it is established; or zz Established by an internati onal And, an… On 15 February 2010, HMRC released organisati on pursuant to secti on 1 of ‘overseas pension scheme means a the Inheritance Tax (Qualifying Non-UK the Internati onal Organizati ons Act pension scheme (other than a registered Pension Schemes) Regulati ons 2010 (SI 1968. pension scheme) which – 2010/51). The regulati ons have eff ect from (a) Is established in a country or 6 April 2006 and set out the requirements The primary conditi ons are: territory outside the United which must be sati sfi ed by an overseas zz The scheme is open to persons resident Kingdom, and pension scheme in order for it to be a in the country or territory in which it is (b) Sati sfi es any requirements QNUPS. It must either be: established; prescribed for the purposes of this zz Recognised for tax purposes under the zz The scheme is established in a country
24 February 2018 www.taxadvisermagazine.com PENSIONS
PROFILE Name Anton Lane CTA Position Managing director Company Edge Tax Tel 01454 258999 Email [email protected] Profile Anton is responsible for managing tax risks for clients facing challenges from HMRC. Anton is the author of a number of books and articles on tax investigations and welcomes discussions with fellow professionals on their experiences.
The secondary conditions are: ‘ (b) property applied to pay lump sum zz The scheme is approved, recognised death benefits in respect of a member of or registered with the relevant tax [a qualifying non-UK pension scheme or] authorities as a pension scheme where a section 615(3) scheme is to be taken to it is established (condition A); be so held if the benefits are paid within zz Where the relevant authorities have the period of two years beginning with the no system for approval, recognition earlier of the day on which the member’s or registering the scheme must be death was first known to the trustees or resident there, provide at least 70% of other persons having the control of the the member’s relevant scheme funds fund and the day on which they could first for providing an income for life and reasonably be expected to have known of must be payable no earlier than if the it.]’ pension rule 1 in section 165 FA 2004 Section 151 IHTA 1984 prevents the applied – normal minimum pension age value held within the QNUPS from being (currently 55 years) (condition B). within the scope of IHT on the death of the member. Establishment of a QNUPS The establishment of the QNUPS with a Capital gains tax (‘CGT’) nominal contribution should not have had The trustees of the QNUPS will be non-UK any IHT, CGT or income tax implications. resident and therefore generally outside The transfer of assets to the QNUPS will the scope of CGT under section 2 TCGA be a disposal for CGT purposes and may 1992. give rise to a gain for CGT purposes. Section 86 and schedule 5 TCGA The transfer of value to a trust by 1992 can attribute gains of an offshore a UK domiciled person is generally a settlement to UK resident settlors if they chargeable lifetime transfer for IHT have retained an interest. purposes. IHTA 1984 contains certain provisions that prevent sums and assets Income tax held under a registered pension scheme The trustees of the QNUPS will be non-UK or a superannuation fund to which section resident and therefore outside the scope 615 (3) Taxes Act 1988 applies from certain of UK income tax other than on UK source IHT charges. income. Section 12(2) IHTA 1984 therefore applies to prevent a charge arising to IHT Transfer of assets abroad on the transfer of assets to a QNUPS. Section 721 of the Income Tax Act (‘ITA A QNUPs can be established as a stand- 2007’) applies an income tax charge on alone pension fund and contributions are individuals with power to enjoy income as a not chargeable lifetime transfers. result of relevant transactions and section 723 ITA 2007 sets out the conditions where QNUPS after establishment a transferor would be regarded as having Inheritance Tax (‘IHT’) the power to enjoy income. There is an A trust established by a UK domiciled exemption from the charge to income tax
© IStockphotoanusorn nakdee person will normally be within the relevant (section 737 ITA 2007) where the transfer property regime and subject to IHT at is for commercial purposes and the or territory where there is a system a maximum of up to 6% every tenth avoidance of tax is not the motive or one of of taxation of personal income under anniversary. In addition, distributions of the motives for the transfer. which tax relief is available in respect of capital would be subject to IHT as exit Section 738 ITA 2007 defines a pensions; and commercial transaction. zz Tax relief is not available to the member Section 58(1)(d) IHTA 1984 excludes (or if an employee, the contributing property held within a QNUPS from being Settlements legislation employer) on contributions; relevant property: ITTOIA 2005 s 619 imposes a charge to zz The scheme is liable to taxation on its ‘ [(d) property which is held for the income tax on the settlor of a trust where income and gains; or purposes of a registered pension scheme they retain an interest either directly or zz All or most of the benefits paid by the [,a qualifying non-UK pension sche me or by virtue of their spouse of children being scheme to members who are not in a] section 615(3) scheme;] ‘ beneficiaries. The meaning of settlement serious ill health are subject to taxation. In conjunction with Section 58(2A)b: and settlor for these purposes is: www.taxadvisermagazine.com February 2018 25
PENSIONS
‘In this Chapter – ‘settlement’ includes Advice provided by a financial current. In the situation, to ensure a any disposition, trust, covenant, adviser, which stipulated the QNUPS reasonable excuse argument would be agreement, arrangement or transfer of was a suitable option, adds significant available would require regular tax advice. assets (except that it does not include evidence of commerciality. However, Furthermore, to rely on the defence the a charitable loan arrangement), and given HMRC’s more recent approach advice needs to be specific as to the tax ‘settlor’, in relation to a settlement, scrutinising a taxpayer’s motive, they treatment. The requirement for advice to means any person by whom the are likely to consider more detailed be concise causes concern because it is settlement was made. information. HMRC are likely to identify unlikely that any suitably qualified adviser A person is treated for the purposes potential other motives and whether would stipulate a particular tax treatment. Question-based training for ATT and CTA Students of this Chapter as having made a any one of them were for the avoiding If the tax advice received cannot be settlement if the person has made or of tax as well as the way the transaction specific, then reliance on a reasonable entered into the settlement directly or was advised upon and undertaken. For excuse argument is hindered considerably indirectly. example, HMRC have asserted where the because the taxpayer would be aware A person is, in particular, treated as manner a transaction is undertaken is that the desired tax treatment may not be having made a settlement if the person: guided by tax advice, that advice must be afforded. As such, the risk in the event the I couldn’t have been (a) has provided funds directly or a significant influence. tax treatment is disputed is the application happier with the quality indirectly for the purpose of the There is a genuine risk that HMRC will of the offshore criminal offence. of teaching, the course settlement, challenge the income tax position to treat Part 3 of the Criminal Finance I definitely feel a lot more prepared material and the lunch (b) has undertaken to provide funds income of the QNUPS as that of a UK Act (‘CFA’) legislated to provide new for the exam. I know that I still have a lot of work to do, but I feel a lot more (which was excellent!). directly or indirectly for the purpose resident transferor on an arising basis. corporate offence for failure to prevent focused and that I know exactly which of the settlement, or HMRC could challenge the treatment on facilitation of tax evasion, which came areas to spend my study time on. The course brought the (c) has made a reciprocal arrangement the basis that the legislation was written into effect from 30 September 2017. THANK YOU :) subjects to life and I feel with another person for the other with the intention that members utilising Historically, to attribute criminal liability well prepared now. person to make or enter into the QNUPS would not be UK domiciled and to a corporate body, it was necessary Q settlement’ resident individuals. If such a challenge for prosecutors to show that the senior were successful, HMRC would likely treat members of the organisation were The definitions are much wider than the QNUPS as a relevant property trust: involved in and aware of the illegal that contained in other legislation. a chargeable lifetime transfer on assets activity. Given that senior members However, where the contribution is transferred into the trust, exit charges generally constitute the Board of & A commercially justified, it would not be on trust capital and ten yearly principal Directors, HMRC have historically had Exam Focus and Skills Days bounteous. difficulty in attributing criminal liability to large or multinational organisations. Commerciality Tax penalties and offences The new legislation seeks to change The commercial reason to transfer assets The penalty regime for failed offshore who is accountable for acts contrary to The Exam Focus and Skills days are intended for students to a QNUPS is important because in tax planning has also changed and can what is criminal. taking their ATT and CTA examinations in May 2018 and Fees absence of a substantive reason, anti- be up to 200% for jurisdictions within The legislation seeks to achieve this by concentrates on the more demanding aspects of the topics, avoidance legislation is likely to apply. The category 3. focusing on the failure to prevent and the exam technique needed for the relevant paper. ATT London Classroom: 10am - 5pm Webinar 9:30am - 4:30pm anti-avoidance provisions require for not Issues may arise under new legislation crimes of those acting on behalf of the £90 (lunch included) £65 one of the purposes for or associated with introducing the Offshore Criminal body, rather than by attributing their They are designed to help kickstart your revision with confidence. the transfer to be the avoidance of tax. It Offence that was given effect from 6 criminal acts to the corporation. They will cover both core and challenging is necessary therefore to consider whether April 2017 and The Criminal Finance Act Prosecution under the offence could areas of the syllabus for each paper. CTA London Classroom: 10am - 5pm Webinar 9:30am - 4:30pm those establishing QNUPS had good 2017 that has effect from 30 September lead to a conviction and an unlimited You will be provided with exam standard and past exam questions. £100 (lunch included) £75 commercial reasons for making transfers. 2017. penalty. The new offence allows criminal A basis of the commercial reason The new criminal offences apply for liability to be attributed to a corporation The tutor will guide you through each question, showing The Application and interaction is a half day webinar (9.30 – 2pm) at a cost of £50 could be that a person who had reduced the purposes of income tax and CGT only, or partnership – without the necessity of you how to effectively identify issues and scenarios as well pension options would be attracted to where a person has failed to declare demonstrating involvement or awareness as assisting you to produce an exam standard answer. utilising a QNUPS. A person with reduced offshore income or gains. The offence of senior members of the organisation. The days are run by very experienced tutors from For the classroom sessions in London you will also have the opportunity to pension options would be a person that applies to any subsequent loss of tax BPP, Kaplan Financial and Tolley Tax Training. meet and speak to members of the Education Team regarding any questions has maximised or is unable to maximise over a threshold amount, which will be PCRT you may have on your student registration and/or the examinations. contributions to a regulated pension. The defined in the regulations annually. The CTAs and other professionals responsible Choice of classroom-based sessions in London and webinars. person would have a desire to secure a offence does not prescribe the need to for advising in relation to the QNUPS in Good exam and revision technique can be the pension (to provide an income stream prove intent for failing to declare taxable the circumstances described need to difference in passing or failing a paper. in retirement) by placing assets in an offshore income and gains. A custodial consider the Professional Conduct in environment that purposely facilitates a sentence may be given. The offence Relation to Taxation Rules (see: https:// Monday 19 & pension. An alternative proposition would could apply where say, the income of www.tax.org.uk/professional-standards/ Monday 12 & Saturday 24 Saturday 3 March Saturday 10 March Saturday 17 March Wednesday 21 Wednesday 14 March March be to place funds into an environment that the QNUPS is not included in a personal professional-rules/professional-conduct- March would permit the regular payment of an tax return and subsequently, HMRC relation-taxation) which includes five income stream, which is akin to a pension. successfully contend it should have. An new tax planning standards, including: CTA Taxation of CTA Owner-Managed CTA Owner-Managed CTA Owner-Managed CTA Application CTA Individuals CTA Individuals A specific pension vehicle is not actually offence would have been committed. ‘Members must not create, encourage Major Corporates Businesses Classroom Businesses Webinar Businesses & Interaction Webinar Classroom needed to provide retirement benefits Where full professional advice is sought, or promote tax planning arrangements Webinar London Two Evenings Webinar Webinar where the level of wealth is considerable. protection from the offence is available or structures that i) set out to achieve Assets could alternatively be held to through a reasonable excuse defence. results that are contrary to the clear ATT Paper ATT Paper 1 provide benefits in a period of ‘retirement’. The defence of reasonable excuse has intention of Parliament in enacting ATT Paper 2 ATT Paper 2 ATT Paper 1 ATT Paper 2 Webinar 2 Classroom Webinar Two The question will arise whether the QNUPS recently been tested through the courts relevant legislation and/or ii) are highly Webinar Classroom London Webinar Two Evenings London Evenings is chosen because commercially it was the and HMRC have provided new guidance. artificial or highly contrived and seek to right structure or because the member The defence requires advice to be provided exploit shortcomings within the relevant contributing sought other advantages. by an appropriate specialist and to be legislation.’ Book online at www.tax.org.uk/studenttrainingdays and www.att.org.uk/studenttrainingdays or contact us at [email protected] 26 February 2018 www.taxadvisermagazine.com
† includes lunch Question-based training for ATT and CTA Students
I couldn’t have been happier with the quality of teaching, the course I definitely feel a lot more prepared for the exam. I know that I still have a material and the lunch lot of work to do, but I feel a lot more (which was excellent!). focused and that I know exactly which areas to spend my study time on. The course brought the THANK YOU :) subjects to life and I feel Q well prepared now.
& A Exam Focus and Skills Days
The Exam Focus and Skills days are intended for students taking their ATT and CTA examinations in May 2018 and Fees concentrates on the more demanding aspects of the topics, and the exam technique needed for the relevant paper. ATT London Classroom: 10am - 5pm Webinar 9:30am - 4:30pm They are designed to help kickstart your revision with confidence. £90 (lunch included) £65 They will cover both core and challenging areas of the syllabus for each paper. CTA London Classroom: 10am - 5pm Webinar 9:30am - 4:30pm You will be provided with exam standard and past exam questions. £100 (lunch included) £75
The tutor will guide you through each question, showing The Application and interaction is a half day webinar (9.30 – 2pm) at a cost of £50 you how to effectively identify issues and scenarios as well as assisting you to produce an exam standard answer. The days are run by very experienced tutors from For the classroom sessions in London you will also have the opportunity to BPP, Kaplan Financial and Tolley Tax Training. meet and speak to members of the Education Team regarding any questions Choice of classroom-based sessions in London and webinars. you may have on your student registration and/or the examinations. Good exam and revision technique can be the difference in passing or failing a paper.
Monday 19 & Monday 12 & Saturday 24 Saturday 3 March Saturday 10 March Saturday 17 March Wednesday 21 Wednesday 14 March March March
CTA Taxation of CTA Owner-Managed CTA Owner-Managed CTA Owner-Managed CTA Application CTA Individuals CTA Individuals Major Corporates Businesses Classroom Businesses Webinar Businesses & Interaction Webinar Classroom Webinar London Two Evenings Webinar Webinar
ATT Paper ATT Paper 1 ATT Paper 2 ATT Paper 2 ATT Paper 1 ATT Paper 2 Webinar 2 Classroom Webinar Two Webinar Classroom London Webinar Two Evenings London Evenings
Book online at www.tax.org.uk/studenttrainingdays and www.att.org.uk/studenttrainingdays or contact us at [email protected]
† includes lunch VAT REGISTRATION
Freezing the threshold
KEY POINTS zz What is the issue? Many business owners were relieved that the Chancellor decided not to reduce the VAT registrati on threshold in his recent Budget. It will be frozen at the current fi gure of £85,000 unti l at Neil Warren considers practi cal issues about the Budget least April 2020. But this decision could create hidden problems for thousands announcement that the registrati on threshold will be of UK businesses that trade close to the threshold. frozen unti l at least April 2020 zz What does it mean to me? It might be worth discussing registrati on issues with clients that are trading close to the threshold, where an infl ati onary here was great excitement before very exciti ng but I personally think the issues price increase next year could send Budget day that the Chancellor are much wider than you might imagine. them over the limit and create a VAT Tintended to slash the VAT registrati on problem. threshold from £85,000 to £26,000. This Trip to the seaside zz What can I take away? speculati on followed the publicati on of the Let me take you to Blackpool, a fun packed VAT registrati on is not good news OTS VAT report which identi fi ed that a large resort that is very popular with holiday for a business with standard rated quanti ty of businesses were trading just makers of all ages and a place that is packed sales and very litt le input tax to claim below the threshold and that the £85,000 with history dati ng back to Victorian ti mes. and which sells goods or services to limit was a disincenti ve to trading growth. There are 1,600 guest houses in Blackpool, customers who cannot claim input tax. However, the speculati on was unjusti fi ed, and as well as a lot of small businesses such as There might be scope to review trading the fi nal announcement was that the £85,000 ice cream kiosks, cafes, bars, gift shops and structures to avoid a potenti al problem, which are considered in the arti cle. threshold would be frozen unti l at least April tatt oo parlours. My guess is that most of 2020. You might think that this policy is not these businesses will not be VAT registered and are part of the ‘cliff edge’ problem identi fi ed by the OTS, i.e. many businesses EXAMPLE 1: THE DUCKWORTH HOTEL are bett er off trading just below the VAT Jack and Vera run The Duckworth Guest House in Blackpool as a partnership. Their threshold if their income is mainly standard annual turnover fi gure is £83,000, i.e. just below the VAT registrati on threshold – their rated and they have very litt le input tax to gross profi t is 80% of sales and net profi t aft er expenses is £11,000. Expenditure that is claim and they also have customers who standard rated for VAT purposes is only £6,000. cannot claim input tax, i.e. the general public. Jack and Vera close the hotel for three months a year (January to March) but think See example 1. they could generate an extra £20,000 of sales if they opened in February and March as Price increase? Soluti on: if Jack and Vera progress with this strategy, then their gross profi t will We are hopefully all agreed that Jack and Vera increase by £16,000, i.e. £20,000 x 80%. But the increased takings mean they will need will not be extending their opening hours to register for VAT at some stage and their annual VAT payment to HMRC will probably because of the potenti al VAT problem but exceed this fi gure: what will happen in March when they want zz Output tax – takings £103,000 x 1/6 = £17,166 to increase their prices for the new summer zz Input tax – standard rated expenses of £6,000 x 1/6 = £1,000
© Istockphoto/MATJAZ SLANIC © Istockphoto/MATJAZ season? An infl ati onary increase of 3% would zz VAT payable = £16,166. lead to anti cipated turnover of £85,490 in
28 February 2018 www.taxadvisermagazine.com VAT REGISTRATION
the following 12 months, which is now above PROFILE the VAT threshold because of the Budget announcement that it would remain at Name Neil Warren £85,000. So they might decide to freeze their Position Independent VAT consultant prices for the year or restrict the increase to Company Warren Accounti ng Services Ltd 1% or 2% but they will then have the same P r o fi l e Neil Warren is an independent VAT author and consultant, and is issue in April 2019 – and possibly April 2020. a past winner of the Taxati on Awards Tax Writer of the Year. Neil worked My personal view is that the VAT registrati on at HMRC for 13 years unti l 1997. threshold will probably be frozen at £85,000 for many years to come – 2020, 2021, EXAMPLE 2: MOBILE CATERER 2022 etc. There are numerous examples of thresholds being frozen in the VAT world – Hot Dogs Ltd operates a mobile catering unit and has annual sales of £83,000. The for example, the annual joining threshold of company is not VAT registered. The director Steve would like to increase prices by 3% £150,000 for the fl at rate scheme has not on 1 April 2018 but this will cause a VAT problem (£83,000 plus 3% = £85,490). The been increased since April 2003! It is very company provides catering services at three dog shows each year, achieving total sales hard to reduce the threshold by a signifi cant of £4,500 and a net profi t of £1,500. amount because this would capture As a change in trading strategy, he has decided to hire out his unit to a second thousands of businesses and potenti ally caterer for these three events at a cost of £250 per event. The second caterer will be convert them into a loss making positi on. If responsible for buying his own stock, arranging his own staff and selling the goods we were starti ng with a blank sheet of paper to customers. The taxable sales of Hot Dogs Ltd will be reduced by £3,750, but the company is sti ll earning profi t from the events (without any hassle) and has scope to and inventi ng VAT as a new UK tax, rather increase its prices without creati ng a VAT registrati on problem. than one that is 44 years old, then it would be a diff erent ball game. A classic example of this is the self-employed personal trainer I use at VAT enthusiasts will know, this strategy would VATA1994. The key challenge is for HMRC my gym, who I esti mate has annual income be challenged by HMRC (almost certainly with to be able to prove that the two businesses of about £40,000 and his only signifi cant success) because the reality is that the guest have ‘fi nancial, economic and organisati onal input tax would be about £800 on the trading house is making all supplies to the guests, and links.’ The key word is ‘and’ i.e. all three links fee he pays to the gym owners. So his net the cleaner is working for the guest house. have to be proved rather than one or two profi t would fall by nearly £6,000 if he had to This outcome was reaffi rmed in the case of of them. The main outcome of a directi on register for VAT and it would be very diffi cult Wendy Lane T/A Spot On (TC2909) a number from HMRC is that the combined businesses for him to raise prices to his customers in a of years ago. But can you see the likely will need to register for VAT as a single enti ty very competi ti ve market. I know he has a big permutati ons that might be put forward by moving forward, i.e. not retrospecti vely. But mortgage on his Manchester apartment so a clients aff ected, many of which will be non- if HMRC decide there never was two separate big VAT hit would be very unwelcome! starters? Here are a few suggesti ons Jack and businesses (such as in the example of the split Vera might propose: between the room charge and the cleaning Alternative strategies zz There is a small bar in the guest house. fee I gave), this will become a late registrati on This is where I think the VAT issues will Would it be possible for the bar acti vity issue. And don’t forget that HMRC have the become very interesti ng: Jack and Vera will be to be organised by Jack or Vera as a sole power to go back up to 20 years to correct a faced with increases in their costs each year trader i.e. a separate legal enti ty to the late registrati on. For guidance about business but we have identi fi ed how diffi cult it will partnership guest house? This defl ects splitti ng issues, see HMRC VAT Manual: VAT be for them to increase prices on their sales taxable sales from the partnership to Single Enti ty and Disaggregati on when the VAT threshold is frozen for two or another business. As a general ti p, there is no doubt that three years. And there are many thousands zz How about if guests pay a ‘room only’ fee the most precarious business splits are of businesses in the same positi on as Jack to the partnership – and then a separate those that involve family members. There and Vera. I used to act for an architect who payment of, say, £6 if they wanted is not the same incenti ve to do things on an deliberately controlled his work level to avoid breakfast? The breakfast service would arm’s-length basis as there is with non-family exceeding the VAT threshold in any rolling be organised as a separate business to the structures e.g. for shared overheads that 12-month period. So I suspect that clients will partnership – say Vera as a sole trader. are recharged or goods that move from one start thinking about how they can have their zz What would be the positi on if Jack and enti ty to another. However, a recent First-ti er cake and eat it, i.e. increase their selling prices Vera ask their son Terry to organise either Tribunal case (MG and ND Stoner (TC6193) ) but sti ll avoid a VAT problem. the bar or breakfast acti vity as a separate involved four separate trading operati ons business, i.e. separate characters are being in one building down in Swanage. There did Income splitting introduced to part of the operati on? not seem to be any HMRC concern about the The reason I have chosen the Blackpool I have not directly answered the above business splitti ng issue (two enti ti es were VAT guest house theme for this arti cle is because questi ons because each trading situati on is registered and two were not) and the case I was talking to a guest house owner at a diff erent and the circumstances needs to be was all about input tax claims. football match a while ago, who told me thoroughly reviewed with business owners. It (with great pride) that the way he avoided a is also important that advisers remember the Final thought VAT registrati on problem was by splitti ng his Professional Conduct in Relati on to Taxati on To share an example of a commercial charge to guests between his own business (PCRT) guidelines, and do not embark on arrangement that would work, see example and that of the self-employed cleaner he used any business splitti ng arrangements that are 2. A plus point with this scenario is that the to service the rooms. So he would charge a highly arti fi cial or contrived. second caterer is not related to the fi rst guest £30 a night for the room and breakfast caterer, so there is a commercial incenti ve and the cleaner would separately charge the Business splitting to do things correctly. And there is no doubt guest £5. The annual total of the £30 fees is The powers of HMRC to treat separated that the second caterer is clearly selling food less than the VAT threshold, which would not business as one legal enti ty (a partnership) and drink to the punters at the shows i.e. he is be the case if the relevant fi gure was £35. As are given by paras 1A(1) and 2, Schedule 1(A), responsible for any VAT issues on the takings. www.taxadvisermagazine.com February 2018 29 CHARTERED INSTITUTE OF TAXATION RESULTSEXAM Results and prizes November 2017
he Chartered Institute of Taxation, The Institute President, John Preston, examination. 302 candidates have now the principal body in the United commenting on the results said: successfully completed all of the CTA TKingdom concerned solely with ‘I would like to offer my congratulations examinations (including 22 who were taxation, announced on 17 January to all 1,120 of the candidates who have on the ACA CTA Joint Programme) and 2018 the results from its examinations made progress towards becoming a we very much look forward to them taken by 1,498 candidates on 7 and 8 Chartered Tax Adviser as a result of passing becoming members of the Institute in the November 2017. one or more papers at the November 2017 near future.’
CTA prizes and awards The John Wood Medal for the The Avery Jones Medal for the The Institute Medal for the candidate with candidate with the highest mark in candidate with the highest mark the best overall performance attempting the Advisory Paper on Advanced in the Application and Interaction the Awareness Paper and two Advisory Corporation Tax. The medal has been Paper. The medal has been awarded to Papers (all at the same sitting). The medal awarded to Ryan James Stowers of Neavana Martin of Christchurch who has been awarded to James Lawton of Peterborough, where he is employed is employed by Westlake Clark in New Prescot who is employed by BDO LLP in by Saffery Champness. Milton. Liverpool. The John Beattie Medal for the The LexisNexis Prize for the candidate The Gilbert Burr Medal for the candidate candidate with the highest mark in with the highest total marks in two with the highest mark in the Advisory the Advisory paper on Human Capital Advisory Papers (taken at the same Paper on Taxation of Owner-Managed Taxes. The medal has been awarded sitting). The prize has been awarded to Businesses. The medal has been awarded to Catherine Edwards of Bristol, where Robert Thomas of London, where he is to Emma Marguerite Aish-Lyons of she is employed by Deloitte LLP. employed by Latham & Watkins. Ottershaw who is employed by BDO LLP in Guildford. The Wreford Voge Medal for the The Croner-I Prize for the candidate with candidate with the highest mark the highest distinction mark. The prize has The Spofforth Medal for the candidate in the Advisory Paper on VAT on been awarded to Oliver Jackson, winner of with the highest mark in the Advisory Cross-Border Transactions & Customs the Spofforth Medal. Paper on Inheritance Tax, Trusts & Estates. Duties. The medal has been awarded The medal has been awarded to Oliver to Hannah Ching Mui Wu of London The Victor Durkacz Medal has not been Jackson of London, where he is employed who is employed by BDO LLP in awarded on this occasion. by Dixon Wilson Chartered Accountants. Reading. The Medals, Prizes and Distinctions are The Ronald Ison Medal for the candidate The Ian Walker Medal for the awarded for each examination paper with the highest mark in the Advisory candidate with the highest mark in subject to the discretion of Council Paper on Taxation of Individuals. The the Awareness Paper. The medal has and the attainment of a satisfactory medal has been awarded to Victoria Bell of been awarded to Steven James Carson standard, regardless of whether Wellingborough who is employed by BPP of Ballymena who is employed by the examination requirements for Professional Education in London. Harbinson Mulholland in Belfast. membership have been met.
CTA distinctions Kevin Peter Francis (Larking Gowen, Jonathan Bradford (KPMG, Distinctionsare awarded to candidates for Norwich) (Advisory: Inheritance Tax, London) (Advisory: Advanced the following papers: Trusts & Estates) Corporation Tax) Oliver Jackson (Dixon Wilson Chartered Harpreet Kaur (Brebners, Amy Louise Armitage (HB Accountants, Accountants, London) (Advisory: London) (Advisory: Advanced Hoddesdon) (Advisory: Inheritance Tax, Inheritance Tax, Trusts & Estates) Corporation Tax) Trusts & Estates) Ryan James Stowers (Saffery (Francis Clark LLP, Ashley Michael Partridge (George Ide Sarah Rachel Brown Champness, Peterborough) Exeter) (Advisory: Inheritance Tax, Trusts LLP, Chichester) (Advisory: Inheritance (Advisory: Advanced Corporation Tax) & Estates) Tax, Trusts & Estates) Laura Corbet (Grant Thornton (UK) Nicola Whyte (PwC, Newcastle upon Distinctions are awarded to LLP, St Peter Port, Guernsey) (Advisory: Tyne) (Advisory: Inheritance Tax, candidates whose answers reflect Inheritance Tax, Trusts & Estates) Trusts & Estates) an exceptional level in the Advisory Frances Davies (Blick Rothenberg, Victoria Bell (BPP Professional Education, Papers and the Application and London) (Advisory: Inheritance Tax, London) (Advisory: Taxation of Interaction Paper. Distinctions are not Trusts & Estates) Individuals) awarded for the Awareness Paper.
30 February 2018 www.taxadvisermagazine.com EXA RE U T
CTA results In addition to success in the required papers and Computer Based Examinations the criteria of experience must be satisfied to be eligible for membership of the Institute. The following candidates have met the examination requirements for membership. RESULTSEXAM
+Carson S J (Ballymena) Goldberg E Z (London) Khan Z (Heywood) + = Prizewinner Chernikov A (London) Goodman J (London) Khela P K (Smethwick) * = Distinction Childs D (Brooklyn, United States of Gordon S (London) Kieran R (Aberdeen) These are awarded on America) Gray A (London) Kilikitas V (London) a per paper basis. Clarke J G (Harrogate) Gray I S (Horsham) King S (Leyland) Clayton P (Sevenoaks) Greer A (Motherwell) Koppel M (Birmingham) Clayton P (Dudley) Groutage J (London) Ku T L W (London) A Cook H (Southsea) Addison N (Manchester) *Corbet L (St Sampson, Guernsey) H L Aderibigbe A (Erith) E (Hove) Haile E (Brislington) Lamb S (London) Adewusi A O (Leeds) Costello V A (Stockport) Hainsworth D (Tewkesbury) Land C (York) Aggarwal N (London) E (Cheadle) Hall E K (Henley-On-Thames) Lane A B D (Cambridge) Ahmed A (London) Coward T (Winchester) Hardiman N R (Buntingford) Larkin T (Liverpool) Aitken S J (Filey) Coyston D J (Ipswich) Harding L C (Herne Bay) +Lawton J (Prescot) Ali N (Wilmslow) Crudden M C (Benburb) Hawkins A (London) Lee C (Birmingham) Allen M (Bristol) Culver M (Kings Langley) Hawkins K E (Willenhall) Leighton H (Carlisle) Anderson S (Bristol) Cuthbert K (Newcastle Upon Tyne) Hein S K A (Orpington) Li X (Sale) Angus L (Newtownards) Herbert C (Birmingham) Liskova L (London) Anstee H M (Coventry) D Hill C (Epsom) Lister N (London) Appleton R C (Macclesfield) Daud S (Oldham) Hills G (Bristol) Lock S J (Manchester) *Armitage A L (Ware) *Davies F (London) Hobbs R D (London) Lopes V M (Basingstoke) Avison R (Lincoln) Davies R (Bristol) Hodgett E C (Newry) Lowe M J (Norwich) Davies S G (Leeds) Hodgson J (Wigan) Lui L B (Liverpool) B Davies T B (Worcester) Holmes A (Newry) Ly S (Hendon) Backhouse S P (Malvern) Desai F (London) Hopley E L (Cambridge) Balmer H (Livingston) Dickson J W (Torquay) Howell A (Birmingham) M Bardsley M (Cambridge) Dixon S R (Ashby-De-La-Zouch) Howell K (Wrexham) MacDonald A K (Glasgow) Barrett J (Tavistock) Dong L (London) Howse A (Leeds) Magee M J (Southampton) Barstow J (Cambridge) Dosanjh N (Southampton) Hughes N (Wigan) Mahmood M M S (Sutton) Bell L (Southampton) Dukes C E (Barton-Upon-Humber) Humphreys S I (Carmarthen) Malone K (Cardiff) Bell S (Ballyclare) Dunkley R D (Bromsgrove) Hussain Q (London) Mangalage T D (Harrow) Belshaw S (Leeds) Dyer L (Bonnybridge) Mansell M (Wimborne) Bethwaite P (Swindon) I Marcus C (Newtownabbey) Bhana A (Batley) E Ishido A (London) Marks A (Leeds) Birch K (Harrogate) Eble S D (Andover) Martin A (Winchester) Blair A C (Belfast) Edwards B (Huntingdon) J +Martin N (Christchurch) Blair-Porter J (London) +Edwards C (Bristol) James L (Mansfield) Maru D (London) Boscoe P (London) Elliott R E (Hednesford) Jarosova D (Herne Bay) Matthews H J (Nottingham) Bottyan J (Budapest, Hungary) Ellis R C (Crawley Down) Johnston A (Aberdeen) McBride L J (Dungannon) Braithwaite A (Milnthorpe) Emery D K P (London) Jones D J (Slough) McColgan P (Glasgow) Brazier W (Droitwich Spa) Ereira A I B (London) Jones G (Bicester) McCourt D (Derry) Broomfield S (Wareham) Jones H C (Llanarthne) McDermott H (Belfast) F Brough J (Doncaster) Jones R (Edinburgh) McGowan D J (Leatherhead) Fearing J J (Newcastle Upon Tyne) Brown G A (Glasgow) Joyce P (Alresford) Mehta A (Hounslow) Finnie C (Falkirk) *Brown S R (Exeter) Message G D (Eastbourne) Fishley T O (Wotton-Under-Edge) K Budzyn G (Isleworth) Middleditch J (Bristol) Flinn N (Deganwy) Karamchandani R (Harrow) Bukhari S A (London) Millichip D (Stamford) Florczak A (Southampton) *Kaur H (Hanworth) Bulley H L (Reading) Mitchell L (Ashby De La Zouch) Fort L (Burnley) Kaur V (Romford) Bulstrode R (Bury St Edmunds) Morrison N (London) (Guildford) Kay I D (Strathaven) Burgess S (Ashford) Mulcahy K (Folkestone) Francis T (Cheddington) Kaye J (Barnsley) (London) Fulton G (Bury) Kelly C (Portstewart) N C Kelly J (Wakefield) Nandha R S (Bedford) G Capener L A (Hinckley) Kelly K (Belfast) Naylor-Wood K (Newcastle Upon Gaunt C (Walsall) Carden D (London) Keltie R(Newcastle Upon Tyne) Tyne) Gifford J (Rochester) Carr J P (Newcastle Upon Tyne) Kemp R C (Newcastle Upon Tyne) Neville R A (Sheffield) Godwin A A P (London) Kennedy S (Craigavon) Newberry P (London)
www.taxadvisermagazine.com February 2018 31 EXAM RESULTS
Newman N (Greenwich) Priest T (Milton Keynes Village) Solly M (London) V Nicholls A J (Newcastle Upon Tyne) Soni R (Leicester) Van Den Brande E P A (London) Norgrove C (Brierley Hill) R Spear L (Cardiff) Venkataraman A (Croydon) Raffa M (Epsom) Spokes A (Northwood) Vepa S (Harrow) O Rees K A (Lancing) Sprason C (London) Vogelaar-Kelly C (Canterbury) Oliver C (London) Robati S (London) Stanfield W (Hillsborough) Oliver H (Falkirk) Roberts S (Baldrine, Isle of Man) Starritt C (London) W Osadnik N (Edinburgh) Robertson-Gopffarth A(Sway) Stears M (Birmingham) Walker T (Lincoln) Oster M (London) Robinson L (London) Stewart E (Carrickfergus) Wallace A (Reading) O’Sullivan M (Bolton) Rose D (Wickford) Stewart R (Ipswich) Walsh C (Dublin) Otoo D (London) Rosier J (Andover) Stoclin C (London) Watson E (London) Congratulations to everyone on Rowe V (Plymouth) +*Stowers R J (Peterborough) Weate A (Reading) P Rudling A (London) Sunderland D (St Peter Port, Weeks M (Bexhill-On-Sea) Palmer A (Pentre) Russo S (London) Guernsey) Weinstein J (Salford) exam success! Panchalingam G (New Malden) Sykes J (Leeds) Wingate B (Swinton) Parsons E M (Shrewsbury) S Withers B J (Frome) Patel B (London) Sahadevan S (Ilford) T Woodman T R P (London) If you are based in South West England or Wales or are thinking Patel M (Dudley) Sandford V (Sutton Coldfield) Tan R (Milton Keynes) Wooldridge R (Bridgnorth) Pavel D C (Glasgow) Shah N (Greenwich) Tanna D (Wembley) Wotton M J (Southampton) of relocating, we would be delighted to hear from you. Pearson A (Paisley) Shah R J (Harrow) Taylor K S (Sheffield) +Wu H C M (London) Pettit M (London) Sharples N (Leyland) Thanki M (Watford) Pianca E (London) Sherwood C (Cambridge) Thomas J (Manchester) Y Pierce G (Newtownabbey) Simaskaite G (London) +Thomas R (London) Yong N K K (London) Pike L (Loughborough) Singh-Digpal H (London) Thompson D R (Hull) Pitt D (Worcester) Smith E (Leeds) Tien M (London) Popplewell D (Coventry) Smith H (Coulsdon) Turner H (Basildon) Portelli R (Ashford) Smith T (London) Tym C (Oxted)
Work, progress, rest and play We can offer tailored career advice to you and enlighten you on the astonishing array of different opportunities available in the region at the moment.
These range across all areas of tax, with large and small fi rms, in-house options, tax consultancies and more.
For a confi dential, non-pressurised discussion backed up by a strong 12 year track record of assisting tax professionals in the area to progress their career, please contact:
Jane Passingham Connecting tax professionals in the South West of England and Wales E:[email protected] M:07876562135
32 February 2018 www.taxadvisermagazine.com Congratulations to everyone on exam success!
If you are based in South West England or Wales or are thinking of relocating, we would be delighted to hear from you.
Work, progress, rest and play We can offer tailored career advice to you and enlighten you on the astonishing array of different opportunities available in the region at the moment.
These range across all areas of tax, with large and small fi rms, in-house options, tax consultancies and more.
For a confi dential, non-pressurised discussion backed up by a strong 12 year track record of assisting tax professionals in the area to progress their career, please contact:
Jane Passingham Connecting tax professionals in the South West of England and Wales E:[email protected] M:07876562135 ACA CTA JOINT PROGRAMME
Pass and prize list
The following candidates have met the ACA CTA Joint Programme examination requirements for the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales as a result of the CTA November 2017 examination session and are eligible to apply for membership of both bodies subject to meeting the experience requirement. B H P WHERE Bebb E (Bradford) Hippolyte-Mccarthy T L (Redhill) Pettit S (London) Brierley B (Manchester) J W G Jones R (London) Wong-Morrow C (Borehamwood) NEXT? Gibson M (London) WORK WITH THE BEST IN TAX AND FIND OUT…
The following candidates have met the ACA CTA Joint Programme examination requirements of the Chartered Institute of Taxation as a As a dedicated tax search business, Nebula was founded to become the result of the CTA November 2017 examination session. rm of choice for both established tax leaders and those making their rst step post-quali cation. Having built a reputation for unremittingly honest advice, our small experienced team of consultants are committed to A C F L helping tax professionals achieve their long-term goals. +Aish-Lyons E M (Ottershaw) Cook L (Canterbury) Field G (Uckfield) Light W (Leeds) Franks N (Ottery St Mary) At Nebula, we oer impartiality and make no distinction between clients B D T and candidates; recognising today’s newly quali ed specialists as the tax Baptiste N(London) Dalton R (Spalding) H Talbot K (Southampton) leaders of the future. Barr M (Esher) Davison Z (Southampton) Harrison K (Trowbridge) Beardmore F S W (London) Helsby T E F (Leeds) Bunn N (Wokingham) E Edmondson G (Gerrards Cross) Nebula is ready and able to support you through INTERNATIONAL TAX MANAGER every career crossroad you face; to listen, £50,000 - £60,000 + BONUS understand and advise. With access to career LEADING AEROSPACE GIANT options not readily available in the market, our live Tax pathway assignments currently include: Managing your own portfolio of countries, this In addition to success in the required ATT Certificate papers, CTA examination papers and Computer Based Examinations the criteria of opportunity oers exposure to all UK and European experience must be satisfied to be eligible for membership of the Institute. The following candidate has fully completed the Tax Pathway tax projects across Corporate Tax, Transfer Pricing, and has met the examination requirements for CIOT membership. EMEA TAX MANAGER VAT and M&A. £60,000 + CAR ALLOWANCE + BONUS R (Braintree) FTSE250 AUTOMOTIVE COMPANY GROUP TAX SPECIALIST Supporting the Group’s international tax activities £60,000 - £65,000 + BONUS including restructuring, M&A and BEPS advice. You RAPIDLY EXPANDING MEDIA GROUP will also assist in reviewing the Group’s outsourced direct tax compliance. Reporting directly to the Head of Tax, you will liaise with all operating entities within the Group and will READ TAX ADVISER ONLINE be focused on tax planning and strategy. EUROPEAN TAX ADVISOR £65,000 + LONDON ALLOWANCE + BONUS INDIRECT TAX MANAGER You can read the latest issue of Tax Adviser at FORTUNE500 MULTINATIONAL ENERGY COMPANY £60,000 + BONUS www.taxadvisermagazine.com from the first of the month In this purely advisory role, you will provide tax FTSE100 FASHION GROUP – featuring all of the monthly features and technical content, input on; tax transactions, planning initiatives and investment into new markets. Reporting directly to With a UK and international focus, you will work on and accessible for desktop, tablet and mobile. the Head of Tax, you will lead your own projects and projects including; M&A, supply chain analysis and You can also find our iOS and Android have daily exposure to commercial operations. ongoing development of Group policy. Furthermore, you will oversee indirect tax compliance. apps in the app stores now.
Whether you are looking to take the REBECCA SHEEHAN FINOLA MALLINSON next step now or simply understand SENIOR CONSULTANT CONSULTANT the in-house tax commerce career [email protected] [email protected] path in more detail, do not hesitate to contact us: +44 (0)207 947 4993 +44 (0)207 947 9576 34 February 2018 www.taxadvisermagazine.com
Nebula - Tax Adviser EE - Media-210x297.indd 1 25/01/2018 13:03 WHERE NEXT? WORK WITH THE BEST IN TAX AND FIND OUT…
As a dedicated tax search business, Nebula was founded to become the rm of choice for both established tax leaders and those making their rst step post-quali cation. Having built a reputation for unremittingly honest advice, our small experienced team of consultants are committed to helping tax professionals achieve their long-term goals. At Nebula, we oer impartiality and make no distinction between clients and candidates; recognising today’s newly quali ed specialists as the tax leaders of the future.
Nebula is ready and able to support you through INTERNATIONAL TAX MANAGER every career crossroad you face; to listen, £50,000 - £60,000 + BONUS understand and advise. With access to career LEADING AEROSPACE GIANT options not readily available in the market, our live assignments currently include: Managing your own portfolio of countries, this opportunity oers exposure to all UK and European tax projects across Corporate Tax, Transfer Pricing, EMEA TAX MANAGER VAT and M&A. £60,000 + CAR ALLOWANCE + BONUS FTSE250 AUTOMOTIVE COMPANY GROUP TAX SPECIALIST Supporting the Group’s international tax activities £60,000 - £65,000 + BONUS including restructuring, M&A and BEPS advice. You RAPIDLY EXPANDING MEDIA GROUP will also assist in reviewing the Group’s outsourced direct tax compliance. Reporting directly to the Head of Tax, you will liaise with all operating entities within the Group and will be focused on tax planning and strategy. EUROPEAN TAX ADVISOR £65,000 + LONDON ALLOWANCE + BONUS INDIRECT TAX MANAGER FORTUNE500 MULTINATIONAL ENERGY COMPANY £60,000 + BONUS In this purely advisory role, you will provide tax FTSE100 FASHION GROUP input on; tax transactions, planning initiatives and investment into new markets. Reporting directly to With a UK and international focus, you will work on the Head of Tax, you will lead your own projects and projects including; M&A, supply chain analysis and have daily exposure to commercial operations. ongoing development of Group policy. Furthermore, you will oversee indirect tax compliance.
Whether you are looking to take the REBECCA SHEEHAN FINOLA MALLINSON next step now or simply understand SENIOR CONSULTANT CONSULTANT the in-house tax commerce career [email protected] [email protected] path in more detail, do not hesitate to contact us: +44 (0)207 947 4993 +44 (0)207 947 9576
Nebula - Tax Adviser EE - Media-210x297.indd 1 25/01/2018 13:03 ASSOCIATION OF TAXATION TECHNICIANS
RESULTSEXAM Results and prizes November 2017
The Association of Taxation Technicians, distinctions awarded for outstanding examination requirements for the oldest and largest body concerned performance. membership by passing the two solely with tax compliance, announced Our modular system means that Computer Based Examinations since on 17 January 2018 the results of its candidates can study at their own pace, the last pass list was issued in July examination taken by 975 candidates whether they are working towards 2017. In addition to this, 202 Tax on 7 and 8 November 2017. The full membership by sitting the two Pathway students sat ATT papers at Association reports that a high compulsory and one optional paper this session and I am delighted that standard of performance was achieved together with our two Computer we now have our second student by many candidates. Based Examinations or simply wishing who has fully completed the ATT CTA The Association President, Graham to obtain one or more Certificates of Tax Pathway. Of the 146 mentioned Batty, commenting upon the results Competency in their specialist area. above, 68 have now completed the said: This flexibility continues to be popular. examination requirements for the ‘I am delighted to congratulate all As a result of the examinations ATT element of the Tax Pathway. I of the successful candidates from the 146 candidates have now completed look forward to meeting as many November sitting of our exams. In the examination requirements for new members as possible at one of total candidates sat 1,546 papers and membership and a further 198 our popular admission ceremonies 1,119 passes were achieved with 91 candidates have completed the held at the House of Lords.’
ATT prizes and awards The Medals and Distinctions are awarded for each examination Wrekin Housing Trust in Telford. The Kimmer Medal is paper subject to the discretion of Council and the attainment of awarded to the candidate with the highest mark in Paper a satisfactory standard, regardless of whether the examination 5 – Inheritance Tax, Trusts & Estates. requirements for membership have been met (with the exception of the Association Medal). The Gravestock Medal The Gravestock Medal has been awarded to Charlotte Page of Cambridge, where she is The Association Medal The Association Medal has been awarded employed by Price Bailey LLP. The Gravestock Medal is to Sabrina Webster of Southampton, where she is employed by awarded to the candidate with the highest mark in Paper Grant Thornton UK LLP. The Association Medal is awarded to the 6 – VAT. candidate taking three written papers at one sitting obtaining the best overall result including having passed both Computer Based The Johnson Medal The Johnson Medal has been awarded Examinations in Professional Responsibilities & Ethics and Law. to Karl Leesi of Cobham who is employed by Smith & Williamson in Guildford. The Johnson Medal is awarded The Ivison Medal The Ivison Medal has been awarded to to the candidate with the best overall performance Natasha Mary Lines of Milton Keynes who is employed by when passing both the Computer Based Examinations in Haines Watts LLP in London. The Ivison Medal is awarded to the Professional Responsibilities & Ethics and Law within a six candidate with the highest mark in Paper 1 – Personal Taxation. month period.
The Jennings Medal The Jennings Medal has been awarded The LexisNexis Prize The LexisNexis Prize has been to Kong Yau Cheng of Birmingham, where he is employed by awarded to Courtney Childs of Paignton who is employed BDO LLP. The Jennings Medal is awarded to the candidate with by EY in Exeter. The LexisNexis Prize is awarded to the the highest mark in Paper 2 – Business Taxation & Accounting candidate taking three written papers at one sitting and Principles. obtaining the highest total marks on those three papers.
The Collingwood Medal The Collingwood Medal has been The President’s Medal The President’s Medal has been awarded to Charlotte Patricia McBride of Waterlooville, where awarded to Benjamin Kearns of Skelmersdale who is she is employed by Murray McIntosh O’Brien. The Collingwood employed by EY in Manchester. The President’s Medal Medal is awarded to the candidate with the highest mark in Paper is awarded at the discretion of the President to an 3 – Business Compliance. outstanding candidate or candidates not otherwise eligible for a prize. The Stary Medal The Stary Medal has been awarded to Louise Radcliffe of Hythe who is employed by Buzzacott LLP in London. Prizes and Medals are only awarded provided the papers The Stary Medal is awarded to the candidate with the highest are of a sufficiently high standard. mark in Paper 4 – Corporate Taxation. Distinctions Passes with Distinction for each Certificate paper are listed on page 43. Distinctions are only awarded The Kimmer Medal The Kimmer Medal has been awarded to candidates whose answers reflect an exceptional level in to Christopher Lewis of Newport who is employed by a paper.
www.taxadvisermagazine.com February 2018 36 RESULTSEXAM Tax Opportunities Jersey
Jersey is the largest of the Channel Islands, situated 14 miles off the north-west coast of France and 85 miles from the English coast. With a population of around 100,000, Jersey is a self-governing Crown Dependency with its own financial, legal and judicial systems. The Island’s parliament is known as the States Assembly. Jersey has a ministerial system of government. Jersey is not part of the European Union, although it is in a customs union in order to allow the free flow of goods and people between the Island, the UK and Europe.
Deputy Director, Tax Policy Unit Deputy Director, International Taxes (x2) Circa £110,000 Circa £110,000
An exciting role has arisen at the Tax Policy Unit at the Two exciting roles have been created at the States of Jersey Taxes States of Jersey Taxes Office. The role is a key, pivotal one Office. Two Deputy Directors of International Taxes are being in supporting the Minister for Treasury and Resources, recruited to join the growing tax team. The post holders will be Council of Ministers, Treasurer of the States and the responsible for acting as one of Jersey’s competent authorities Comptroller of Taxes in making informed decisions about with respect to its international tax agreements. Working closely tax policy for the States of Jersey. You will be leading on with the Director and Senior Officers of the Chief Minister’s the strategic initiatives and legislative changes in relation Department you will play a leading role in assisting with to the Island’s tax policy and provide tax technical advice, negotiating international tax agreements, implementing related research assistance and leadership support to the Deputy tax strategy and delivering sensitive operations arising from them. Comptroller of Taxes. The post holders will work closely with the Director of You will be responsible for leading and taking policy International Taxes to ensure the effective implementation reviews, will deal with freedom of information requests of Jersey’s International Tax agreements. You will assist in and will deputise for the Director in his absence. You will managing a growing team handling the sensitive and often be a qualified tax specialist with a strong understanding legally-challenged exchange of information about investments, of Corporate Tax. You will have had some exposure to structures and activities in Jersey by overseas residents, working International Taxes and will be accustomed to dealing closely with the Law officers and the Island’s financial institutions. with international tax affairs. You will be credible, able to The role will suit a technically strong International tax specialist represent the States of Jersey at international forums and looking for a role allowing them to have immediate and direct be able to provide tax advice to ministers often at short impact on tax policy. You will be excited by the challenge of notice. You will have a sound understanding of general tax working directly with Tax Policy from devising it to implementing affairs and will be interested in pursuing a role where you it. You will have a solid understanding of cross border taxes, can have a direct impact on devising tax policy. double tax agreements and broader international tax principles. For further information and details on how to apply, please You will work directly with International bodies and attend visit www.berwickpartners.co.uk/64120 meetings with different Tax Authorities and the OECD.
For further information and details on how to apply, please visit www.berwickpartners.co.uk/65941
For an informal and confidential discussion, please speak with our Advisor at Berwick Partners; Tahira Raja on 020 7529 1036 – [email protected]. Closing date for applications: 23rd February.
20 Cannon Street, London EC4M 6XD. +44 20 7529 6340 www.berwickpartners.co.uk
www.taxadvisermagazine.com February 2018 37 EXAM RESULTS
ATT results
In addition to success in the required Certificate papers and Computer Based Examinations the criteria of experience must be satisfied to be eligible for membership of the Association. The following candidates have met the examination requirements for membership.
D Kareti P K (Chittoor, India) R + = Prizewinner Davey G R (Lancaster) Kausar S (Halifax) +*Radcliffe L (Hythe) * = Distinction Davidson F (Potters Bar) Klingenspor H M (Hockley) Robb J R (Leyland) These are awarded on a per paper basis. Davidson R C (London) Rogers D (Bristol) Davies R (Neath) L Desai P (Hyderabad, India) Law K Y (Bexleyheath) S A +Leesi K (Cobham) Samad A (Stoke-On-Trent) Aldridge N R A (Kettering) E Simkauskaite L (Wilstead) Ali Khalid M M (Bury) Erwin S (Mansfield) M Smith M J M (King’s Lynn) Arya T (Uxbridge) Etheridge J (London) Martin J (London) Snook A (Taunton) Martinez Navo L J (Ruislip) *Stanley K J (Sheffield) B F McArdle D (St Clement, Jersey) *Stone T (Birmingham) Bell S (Livingston) Fekete J A (Sutton) McNeill J (Dover) Sturt G (Worthing) Berryman K (Milton Keynes) Findley K (London) Metcalfe A (Milton Keynes) Berwick E (Solihull) Fox J (Beverley) Molade Y A (London) T Briggs S (Bristol) Montgomery L (Rendall) Tejwani D K (Bangalore, India) *Burke A (London) G Moore J (Peterborough) Thind J (Hampton) Gillani R (Leicester) Muir R (Falkirk) Tomy S (Chelmsford) C Cain-Jones A (Cheltenham) H N V Campbell A (Daglan, France) Hak L (Great Yarmouth) Neal A (New Milton) Van Eyken R (Haslemere) Cancela A M (Cheshunt) Harding E (Farnborough) Nicolini R (Waltham Cross) Cardwell L A (Ipswich) Hayes K (Southport) W Castle J (Canterbury) Headley T (Basildon) O Walter J L (Spennymoor) Cazac A (Ruislip) Hillyard W (Salisbury) Ono K (Maidenhead) Watts S (London) Chalamaiahgari Palli M M R +*Webster S (Southampton) (Hyderabad, India) J P Whitehouse A (Milton Keynes) *Chapman A (Wells) Jackson D R (Margate) Perrott A (Sherborne) Charlton D (Newcastle Upon Tyne) Jones A S (Bebington) Pollard S J (Shipley) Z Colin P (London) Price G B (Brecon) Zawisla M (Edinburgh) Cousens J (Swindon) K *Prior B (Hutton) Kara A (Hendon)
TAX PATHWAY In addition to success in the required Certificate papers and Computer Based Examinations the criteria of experience must be satisfied to be eligible for membership of the Association. The following candidates have met the examination requirements for ATT membership.
A F Lyne E (Barnet) S Adamus M (London) Feldano A D (London) Schofield M (Reading) Agarwal S (Basingstoke) Ford S (Epsom) M Shabir N (Birmingham) Ahland B C (Reading) (Northampton) Mackenzie-Kennedy R F S Shah T (Cambridge) Alford V (Plymouth) (London) Snape R (Ossett) G Avital B S (Stanmore) McCutcheon A P H (London) Stokes J W I (Cannock) Ganeva A (Reading) Mhute Y (St Peter Port, Guernsey) Stone P (Walton-On-Thames) Ghansah A (Milton Keynes) B *Miles D (Ruislip) Stoughton A (Cranbrook) Mills J (London) Bailey R E (Leeds) H Miura M (London) T Barclay R (Forres) Horne-Smith R (Swindon) Montero Kono L (London) Taylor C (London) Beach T (Cardiff) Hudson J (Bootle) Morgan R (London) Taylor S (Nottingham) Bretherton A (Edinburgh) Husare S (Reading) Tripathi R (Hornchurch) Brown R L (Plymouth) P J Painter L (Bristol) V C Jacob F (Milton Keynes) *Palfreyman A (Ruthin) Verberckmoes K (London) Cooke M (Nantwich) Johnston R (Renfrew) Jones A (Douglas, Isle of Man) Parmenter R (Farnborough) Coolen A (London) Judge M (London) Pennicott E (London) W Platt O (Farnham) Walker M (Manchester) D K Priore A (London) *Webb J C (Rayne) Downing W (London) Kampira R (Leicester) Webber L (Wokingham) Dunn R (Newbury) Kilby J (Stevenage) R Wheeler O (Newton Aycliffe) Durrant N (London) Kosmalska M (London) Rampton S (Warrington) Wilson S J (Didcot) Rodwell J (Kettering) E L Ross M (Norwich) Z *Edgley N (Ely) Linsley E (Leeds) Russell L (St. Andrews) *Zhang H (Hook)
38 February 2018 www.taxadvisermagazine.com EXAM RESULTS
Since 1 July 2017 the following candidates have completed the ATT examination requirements for membership by successfully passing the Computer Based Examinations in Professional Responsibilities & Ethics and Law, having previously passed the three required written papers.
A Davies R (Reading) L R (London) Aggarwal S (London) Dhillon P S (Slough) Lally A S K (Gosforth) Riley O C (Halifax) Ajisafe O M (Erith) Drake L R (Southampton) Lambe K (Maidstone) Robinson L (Leigh-On-Sea) Ajit A (Bangalore, India) Drummond G F (Balerno) Larvin A J (Gateshead) Robson A (Sheffield) Akhtar W (Leyton) Lavery M (Leicester) Rose H (Huddersfield) Akinrinade A (London) E Lee J (Edinburgh) Rowley J (Rayleigh) Alcock D D (Gateshead) Earley P (Bradford) Lingard L (Epsom) Alvarez P (Manchester) E (Dunfermline) Livingston-Campbell G (Oxford) S Annat T H (Newbury) Lock T W (Weston-Super-Mare) Sadler A (Solihull) Arlington D (London) F Lowen K (Malvern) Saraf N K (Bangalore, India) Azahari A (London) Farrow S (Yeovil) Sarkeshik L (Northampton) Azam M (Manchester) Fiddes B (Inverness) M Satkunam S (Surbiton) Field C (Gwersyllt) Man W (London) Scarrott C (Blaydon-On-Tyne) B Fine A (London) Manning A (Bristol) Scott R (London) Baigent M (Broadstone) Fish S L (Newbury) Mansuri S (Birmingham) Shaker A (London) Bailey R (Crewkerne) Marles C (Hornchurch) Sheraz G (Birmingham) Baker M (Brierley Hill) G May T S E (Taunton) Shorter A (Ashford) Bamber M T (London) Garbiak C (Birmingham) McArdle A (Kinawley) Simper D (Ely) (London) Geesink N T (Kingston Upon McGeown G A (Dungannon) Simpson C (Chislehurst) Barker P L (Chorley) Thames) McIlroy R (Ballyclare) Smith H R (Hull) Barnes J K (Dundonald) Ghumra P (Morden) McKillion J (Lytham St. Annes) Soper B D (Okehampton) Beaumont A (Polmont) Ghumra S (Morden) McManus C J (Chalfont St. Peter) Spooner C R (Braintree) Begum J (Birmingham) Gibson M (Bedlington) Mistry N (Tameside) Stone-Galpin H (Hackney) (Benfleet) Gill S K (Bilston) Molnar V (Gyor) Stretton L (Birmingham) Bergin A (Londonderry) Gordon H (Paisley) Morgan C (Ballynahinch) Sutherland N (Hamilton) Berry R (Salisbury) Green C (Woodley) Muntean M (London) Sutton D (Dudley) Bills L (Aberdeen) Growcott R S (Swindon) Murphy D (Wishaw) Bishop-White I (St Peter Port, Gupta M (London) Murphy M (Manchester) T Guernsey) Gurung A (Reading) Tan Z T W (Davenport) Boulton G (London) N Tee J L (Hook) Breen L (St Clement, Jersey) H Narey L (Exeter) Teward M (Barnard Castle) Bryant A (Woking) Hague J D (Cookham) Negus S (Chatham) Thomas A (Hitchin) Buivyde I (Stanford Le Hope) Hames J R T (Durham) Nemeth J (Norwich) Thomas B (Epsom) Bunce M (Clavering) Hamilton C (Stockton) New H (Harrow) Thompson G (Jarrow) Burnett J (Lincoln) Hanson G (Bury) Thorne A J (Arberth) Burnside A (Carrickfergus) Harazawa H (Kenley) O Tuffs R (Iver) Burr D (High Wycombe) Hashmi S (London) Olutola O (London) Turner C (Wokingham) Hendry R (Glasgow) Omene O (Stanmore) C Hewerdine E (Honiton) Onraet-Wells J (Wokingham) V Campion B (London) Hobbs E (Bedford) Outhwaite H (Bridgwater) Vadgama H (Worcester Park) Capp-Isaksen L (Paignton) Holman B (Ilford) Oyebade D (London) Verney T (Manchester) Capper O (London) Hopper J (Bagshot) Vogel J (London) Carman R (Ashford) Houston E J (Guildford) P Cauacean C M (Northampton) Hughes P (Ashford) Pandya K (London) W Chan J (Dartford) Humphrey A J (Benfleet) Park J H (London) Waine E P (Ashford) Chen H (London) Pask A (Cwmbran) Walker D (Newtownabbey) Chew Z B (South Ockendon) I Pataskar M (Mumbai, India) Waters J G (Old Harlow) Chrysostomou P (London) Irving S (Newcastle Upon Tyne) Peacock A (High Wycombe) Watson R (Little Tey) Clamp J (Yelverton) Pearce C (Spalding) Watt E (Belfast) Clarke S (Thornton-Cleveleys) J Phillips N (Wilmslow) Willis K L (Colliers Wood) Clayton J (Chesterfield) Jackson A J (Rosewell) Pidgen J (London) Woolley C (Haverhill) Collin S (Gourock) Jain K (Croydon) Poole A (London) Worsnop M (Bradford) Cornford J (Jeddah, Saudia Arabia) Jovanovic M (Cookhill) Purchase G (Walsall) Corr A (Reading) Puttock J(Sittingbourne) Y Coyde A (Brixham) K Yadav A K B (Mumbai, India) Crawford A (Loughton) Kaleel A (Rotherham) Q Yusuf N (London) Cripps A (Norwich) Kaminskaite L (Ilford) Quay X Y (London) Kaye H L (Otley) D Kedge S (Tunbridge Wells) R Dance J (Rochester) Kennea D O E (London) Rahman Dip M N (Newcastle) Darvill R D (St Leonards On Sea) Khalid A (Birmingham) Ralph A (New Milton) Davies A (Swansea) Knight D (Dunstable) Ramus A (Milton Keynes) Davies P T (Cardiff) Raval K (Northolt) www.taxadvisermagazine.com February 2018 39 EXA RE U T
Those eligible to apply for a Certificate of Competency for individual papers passed in the examinations held in November 2017: 1 – Personal Taxation 2 – Business Taxation & Accounting Principles 3 – Business Compliance 4 – Corporate Taxation 5 – Inheritance Tax, Trusts and Estates 6 – VAT
Begum R (Sunderland) (3) Cameron S (Waterlooville) (1) Davies M (Hornchurch) (1,2,4) + = Prizewinner E (Worcester Park) (1,2,4) Cannings J (Cardiff) (2) Davis D S (Welwyn Garden City) * = Distinction (Leeds) (3) Carey P (Cardiff) (2,5) (1,2,4) *Bellenger T (East Grinstead) (3) *Carey R (London) (2) Davis L (Tonbridge) (1) A Ben-Nathan A (Stanmore) (1) Carson D L (Glasgow) (1) Dawe S J (Maidstone) (2) Abery M (Buckhurst Hill) (1) Bennett D (Horsham) (2) Cassiday E V (Sheffield) (6) De Buriatte J(Byfleet) (2) Abid M O (Thornton Heath) (2) Benson G (Sheffield) (2) *Castaner-Gonzalez E (London) Dean G (Grays) (4) Abid N (Barking) (5) Beresford B (Arundel) (2) (6) *Denby M (Bury St. Edmunds) (2) Absar S S (Luton) (6) Beresford E (Glasgow) (5) Cavanaugh L (Guildford) (2) Dhillon J S (Hitchin) (1,3) *Ackerley B (Selby) (2) Bevan G (Reading) (1) Chadwick L (London) (1) Dickinson J (Aldershot) (2) Adam-Akhtar R (Huddersfield) (5) Bhachu G (Leeds) (5) *Chan M (Surbiton) (1,3) Dinowitz B (Salford) (1) Addison L (London) (1,3) Bharadwaj V (Bangalore, India) (2) Chan S Y (London) (1) Dixon L (Corbridge) (3) Afari S (London) (2,3) Bhatia N(Bristol) (1,4) Chana H R (Slough) (5) Dixon N (Driffield) (3) Agarwal A (Meerut, India) (1,2) Bilton L (Nottingham) (1,5) *Chandler Z (Melksham) (1) Dodson C (Northampton) (2) Ahearn Z (Oxford) (3) Birdee D S (London) (1,2,4) Chandrasekaram J (London) (2) Donaldson A K (Dromore) (2) Ahmed S (Edinburgh) (1) Blackman J V (Andover) (2) Charalampous K (London) (4) Dong C (London) (1) Akhtar S (Reading) (4) Blake V (London) (1) Chattaway G(Bromley) (1,3) Donneaux J (St Clement, Jersey) (6) Ali A (Manchester) (1) Blakemore B (Rotherham) (2) (Bristol) (1,2,5) *Donnelly D (Bolton) (1) Ali A S (London) (1) Blears G A (Manchester) (1) R (Enfield) (2,3) Donovan L (Marlow) (3) Allan J (Reading) (2) Blok A R (London) (1,3) +*Cheng K Y (Birmingham) (2,4) Dorairaj S (Bangalore, India) (3) Anderson A (Elgin) (2) Blythe D (Leigh) (1) Chetter I(Bridgnorth) (1) *Down C (London) (2) Anderson D (London) (1,2) Bolster L (Bangor) (1) +*Childs C (Paignton) (1,2,3) Dragu A L (Douglas, Isle of Man) (1) Anderson K (London) (1,2,3) Borkowska E M (South Croydon) (1) Chowdhury S (Dartford) (1) Dreano E (Malmesbury) (1) Ando H (London) (2,4) Bouron L (Bracknell) (2) Christodoulou C (Limassol, Cyprus) Drew H (Beckenham) (1) Andrew C J (Truro) (1) Bowen N (Pembroke Dock) (2) (5) Driver B (Maldon) (2) Anniss S D G (Nairn) (2) Bowerman C (Romford) (1,3) Christodoulou M (London) (4) Drummond J (Holsworthy) (1) Asaman D (London) (3) R (Cheltenham) (2) Chuah Y (London) (1,2,3) Duff G D (Inverness) (2,4) Asamoah-Twum N (Manchester) Bowes L (Crook) (2) Ciubatiuk E (Chandlers Ford) (2) Duffy E (London) (5) (1,2) Brack D (Middlesbrough) (1) Clancy D (Littleborough) (2) Duignan E (Oldham) (2) Ashcroft M(Kettering) (6) Bradbrook J (Dereham) (1) Clark S L (Yeovil) (2) Dunand M (Ely) (2,3) Ashley M (Barnet) (1,2,3) Bradbury W (Bathgate) (2) Clarke N (Hindhead) (6) Dunn A (Heathfield) (2) Aslam A (London) (1) Bradley D (Hereford) (1) Clarke S T (Motherwell) (1,2) Dunn J M (Ellesmere Port) (2) Atkins M (London) (4) Bradley R (Liverpool) (2) Clarkson D P (Rochester) (2) Dunne S (Birchington) (3) Aust C J (Bath) (5) (Hastings) (1,2) Cochrane D (Coatbridge) (6) Duongova M M (Rugby) (2) Awofisayo O (London) (1,4) Breen D J (Hamilton) (1) Cochrane V (Linlithgow) (3) Dyer C (Maidstone) (1) Azah T (St Peter Port, Guernsey) (1) Breheny J (Guildford) (2) Coley H (Cardiff Gate) (2) *Dziewulski K (Reading) (2) *Brenton G (St. Columb) (1) Comer R (Lancing) (2) B Brett R (Macclesfield) (1) Considine R (Bolton) (1,2,3) E Bagg D (Edgware) (2) Brettell K R (Birmingham) (2,5) (Godstone) (1) Eagling R J (Ipswich) (6) Bah O M (Hayes) (4) Bridgwater L (Egham) (4) Cornelius R (London) (1,2,3) Eastwood A C (Tunbridge Wells) (5) Bailey D C (Bolton) (1,2) Brinkley A (Broxbourne) (1) Cornes M (Salford) (4) Edwards B (Norwich) (1,2) Bains S (Southall) (2,4) Brinkman K (Chichester) (5) Cornett A (Craigavon) (4) Edwards M (London) (2) Baker S (Edinburgh) (5) Brockley E (Wigan) (2) Crawford A (Downpatrick) (1) Elliott T (Ashford) (1) Balasingam A (London) (1,3) Brooke J (Abingdon) (2) Crawley C C (Lisburn) (1,2,3) El-Moudallal M (London) (6) Balog A (Belfast) (2) R (London) (5) Cresser R L (Halesowen) (1) Elsworth S L (Bradford) (2) Balogun-Lynch I C G (Milton Brown D (Wallsend) (2) Croot S W (Rushden) (1) *Emett C (Pontypridd) (2) Keynes) (2) Brown M A (Nottingham) (1,2) Crosby K (Hartlepool) (2) *Etherington B (London) (1,2,3) Bambhra S (Harrow) (2,3) Broxup J L (Salisbury) (2) E (Bexleyheath) (1) Evans E E M (Cynwyl Elfed) (1) Bandy J (Portsmouth) (1) Bryant C (Frome) (1) Cross J (Rugby) (4) Evans J (South Shields) (1,2,3) Bani S (Rochdale) (4) Bryant T (London) (2) Barclay H (Dartford) (1) Buckberry M J (Peterborough) (3) D F Barnes G (London) (2) Budhathoki R (Southall) (1) Daboiko C (London) (2) *Fanning R (Oldham) (2) *Barnes R J (Ammanford) (1) Bukalak A A (Truro) (1) Dahl S (Leeds) (2) Farnan J R (Stockbridge) (1) *Barratt J (Hornchurch) (1) *Bulgarelli A (Aylesbury) (3) Dalais V (Bristol) (3) Fekete O (Brentford) (2) (Bangor) (2,3) Burdett J (Upminster) (5) Dalli P R (Hyderabad, India) (2) Feng X (Colchester) (1) Bartkiv I (Watford) (6) *Burgess R J (Southend On Sea) Dalton T (Falmouth) (1) Ferguson J E (Singapore) (5) Barton A (Winnersh) (1) (1,2,4) Daniels P (Walsall) (1) Ferguson V B (Pevensey) (5) Barton S (Leicester) (1) R (Greenfield) (4) Davie J F (Montrose) (2) Fichant F (Carshalton) (3) Bayliss L (York) (1) Davies A (Congleton) (1) Figurska D (Perth) (1) Beechey V (Milton Keynes) (2,3) C Davies J J (Swansea) (1,5) *Filipovic N L (St Andrews) (2,4) Beeden I J (Norwich) (2) Cadd S (Plymouth) (1) Davies K (Glasgow) (2) Finch H J (Port Erin) (4)
40 February 2018 www.taxadvisermagazine.com EXA RE U T
Fletcher S L (Stourbridge) (1) Hashmi L (Nottingham) (2) Jones L (Ramsey, Isle of Man) (1) Luck J W (Dunstable) (2) *Foster C M (Gravesend) (1) Hayler D (Godalming) (1) Joslin A (Buckingham) (2) Lutfullah A (London) (1,3) Francis S P (Winchester) (2) Haynes R K (York) (5) Lynch B J (Sutton Coldfield) (1,3) Freeman H (Banstead) (2) Heath M J (Lauder) (2) K Lynn M (Harrogate) (2) R (Bournemouth) (2) Heaton P (Crawley) (1,6) Kadri S (Hyderabad, India) (2) Lyon A (Eastleigh) (2) Froggett D (Royston) (1) Henriksen C (Diss) (3) Kalispera C A (Enfield) (1) Fung S T H (Rotherham) (2,4) Henry J R (Stirling) (2) Karsznia A (Inverkip) (4) M Hernandez O (London) (2) Kaseke D N (Luton) (1) MacCi M (Watford) (2,4) G Heron G A (Glasgow) (1,2) Kasem H (Nottingham) (2,5) MacHers J (South Shields) (2) Galbraith L (Glasgow) (2) Hewitt K (Tamworth) (2) Katzel D Y (Edgware) (2) Mackeggie Gurney E (Alton) (4) Gallen N (Omagh) (1) Hibbitt J (Sandy) (3) Kawecki O (Orpington) (1) Mackenzie A S (Inverness) (1) Garden F W (Aberdeen) (5) Hicks A (Redditch) (2) (Skelmersdale) (1,2,5) Madden M (Epsom) (1,2,4) Gaspani M L (London) (2) Higgins C (Reading) (1,2,4) Keen J (Exmouth) (1) Maddocks A (Birmingham) (1) Gathogo L (Hayes) (2) Higinbotham A (Congleton) (2) Kelly S M (London) (1) Madlani S (London) (1,2) Gearing C (Hitchin) (1) Higson V (Ashford) (2) Kett R C (London) (1) Mahmood N (Nelson) (2) Germundsson R (Great *Hill A (Bury) (1,3) Khan A (Watford) (2) Malik F (Wakefield) (2) Cambourne) (1,2) Hill B (Hartlepool) (1) Khan M A (Watford) (1) Malley D W (Crosby, Isle of Man) Gibson-Long C (Nottingham) (2) Hillman S D (Southampton) (2) Khan S (Manchester) (4) (1,2) Gill J (Woking) (1,2,4) Hindlet P (Rochester) (2) U (London) (2) Mamonova D (Tamworth) (2) Gill N (Henlow) (1) Ho C L Y (Watford) (2,4) *Khanum J (London) (1) Manojkumar S (Bangalore, India) Gill S (Leicester) (1) Holder A (Newton Aycliffe) (1) Kisel A (West Byfleet) (1) (4) Ginnelly J (Newcastle Upon Tyne) (2) *Holland A (Portsmouth) (1,2,3) Knazevs V (West Malling) (4) Mariga L (Luton) (4) Girling J (Bexleyheath) (1,2) Holland C J (Bruton) (1) Korbey A (London) (1) Marriage E (Edinburgh) (2,4) Gogarty L (Droitwich) (2) Holland S (Hove) (1) *Korta J A (London) (2,4) Marshall A (Rosyth) (1) Goldie D (Bedford) (1,3) Holm A (Richmond) (2) Krishnamurthy N (Bangalore, Marshall W E (Deal) (2) Golding C (Haywards Heath) (1,2) Holmes S (Leeds) (1) India) (2) Maslin R (Eastbourne) (1) Golding C J (London) (5) Holmes S E R (London) (2) Krusheva A (London) (1) Mason B (Southampton) (2) Goodwin D J M (Southampton) (2) Hooke C J (Ballynahinch) (2) Kulkarni S (Bangalore, India) (2) Mason D (Sittingbourne) (1) Goodwin S (Broxbourne) (1) Hopkins J (Bromsgrove) (2,4) Kurt M (London) (1) Massey M (Belper) (2) Gopinatha H C (Kolar, India) (2) Hospet Venkatesh Murthy N Matl J (Milton Keynes) (2) Gould E (Maidstone) (4) (Bangalore, India) (2) L Matson J (Dunfermline) (2,4) Gould S (Shepton Mallet) (4) Hough S (Macclesfield) (5) Laheney T (Bristol) (1) May J J (Sheerness) (4) Gould T R G (Steyning) (1,2,4) Howard S (Havant) (1,2) Lai B (West Ham) (1) McAnerney M (London) (5) Gourlay M (Swindon) (5) Howell E (Rochester) (1) Laker A (Horsham) (3) +*McBride C P (Waterlooville) (3) *Gove H A (Glasgow) (4) Hudson-Bennett K(Twickenham) Lakshmi Narasimhan N (Sheffield) McCann K (Bathgate) (2) Gowrithasan V (Dartford) (1) (2) (4) McClellan E (Manchester) (3) Graham J (Hayes) (1) *Hughes A F (Pwllheli) (2) Lam H (London) (6) McConnon A (Paisley) (1,2) Graham T L (Cannock) (1) Hughes J (Edinburgh) (3) Lambert L (London) (2) McFarlane J (Wednesbury) (1) Gray T (North Baddesley) (2) *Hughes-Thomas L (London) Langford H A (Hereford) (5) McGaw J (Newport) (1,2,6) Gregor G (Inverness) (2) (1,2,3) Langley R (Camborne) (1) McGlone E A (Irvine) (2) Griffin J (Dawlish) (2) Hull J D (Bexleyheath) (1) *Langtree H (Barnoldswick) (5) McGraffin A L (Workington) (3) Grigorova M (Glasgow) (2,4) Humphreys R (Bewdley) (4) Lanigan N (Heaton Moor) (2) McIntosh V E (Norwich) (2) Grinevics D (London) (1,2,3) Hursey T J K (Colchester) (3) Law E (Stirling) (2) McKirdy B (Shotts) (2,3) Grisman N A M (Nottingham) (2,4) Hussain A (Manchester) (4) Lawrence S (Crawley) (4) McLaughlin A (Belfast) (6) Grist H (Salisbury) (2) Hussain O (Westcliff-On-Sea) (2) Lawson D A (Newcastle Upon Tyne) McManus C (Birmingham) (1) Grosvenor-Smith J (Kingswinford) (1,2) McMinn A (Birkenhead) (1) (1) I Leak C (Wirral) (6) McNeil E C (Lancaster) (1,4) Gupta S (Faridkot, India) (2) Ilkhani M (London) (1,3) *Ledingham H G (Ramsgate) (4) McPherson K (Frome) (2,4) Irvine L (Sturminster Newton) (1,2) Lee J A (Bicester) (1,3) Mee V (York) (2) H Isaac J (London) (1) Lee S (Maidstone) (3) Melnyczuk S (London) (5) Habbijam L (Hemel Hempstead) (3) *Ivey J (Tonypandy) (1) *Lee Y S (Woking) (6) Menzies R M (Falkirk) (3) Hailstone H (Scarborough) (1) Leese G E (London) (2) Merritt P (Soham) (1) Halai N (London) (5) J Leitch K (Inverness) (3) Miah A (London) (1,2,3) Hale A (Reading) (2) Jabbar M (Redhill) (4) Leslie C (Dunfermline) (3) Millar R (Oldham) (1) Hallowell S (Barnet) (2) Jackson A A G (Lanchester) (4) Light E (London) (1,2,3) Millray C (Kendal) (3) Hammonds B L (Shrewsbury) (5) Jackson K (Belper) (1) Lim T (Ipswich) (2) Milos J (Bury St Edmunds) (1,2) Hann J (Swansea) (1) Jackson S (Lisburn) (2) Lima T (London) (3) Miron A I (Chafford Hundred) (5) Hanrahan A (Isleworth) (2) James P A (Edinburgh) (2) +*Lines N M (Milton Keynes) (1) Molloy D (London) (1) Hanton A (St Albans) (1,2,3) Janus A (Crowborough) (6) Linter J M (Newtownards) (1) Molnar A (London) (2) Haran J (Nelson) (2,4) Jasat E (London) (1) Lloyd V (London) (1) Money C (Glasgow) (1) Harding S (Coventry) (1,3) Jewitt E (Leeds) (4) Loader J (Thrapston) (2) Moore L (Batley) (6) Harnedy C (Chorley) (2) Johal M (Seven Kings) (1) Locke S (Southampton) (1) *Moore N (Battle) (2) Harper S L (Salisbury) (2) Johnson-Zammit M (Honiton) (3) Lodge L N (Gateshead) (2) Moreton N (Orpington) (1) Harris H (Ipswich) (1,6) Jones A (Coventry) (2) London-Hill S (London) (2,4) Morgan E K (Swansea) (1) Harrison E (Norwich) (1,5) Jones D (Wrexham) (1) Lones S (Beaconsfield) (1,2,3) Morgan H (Twickenham) (4) *Harrison K (Manchester) (5) Jones H A (Ely) (2,5) Long H (Dunfermline) (2) Morgan-Townley C (London) (2) Hart J E (Gloucester) (2) Jones J (Exeter) (2) Longney D L (Tewkesbury) (2,3) Morris R (Porth) (5) www.taxadvisermagazine.com February 2018 41 EXA RE U T
Morris-Reade J (Wolverhampton) Pathak M (Ilford) (1,2,4) Robertson C (Cheltenham) (1) Smith-Langridge H (Woking) (1) (6) Paton D (Fareham) (2,4) Robinson L L (Preston) (2,3) *Snedden G (Dundee) (1) Moseley J (Farnham) (4) *Patrick A (Penarth) (1,3) Robinson P (Salford) (2) Sneyd J M (Netherton) (2) Mosiewicz P (London) (2) Patsalis M (Bournemouth) (4) Robinson P (Welwyn Garden City) Soimu M R (Borehamwood) (1) Moss-Robins A (Chelmsford) (2) Pattani C (Pinner) (2) (1) Solovyeva O (London) (1) Mottershaw J(Telford) (2) Pavlenko M (London) (4) *Rodgers S (Brierley Hill) (2,4) *Sommerfelt N (Bushey) (2) Moyeen J (London) (3) Payne H (Manchester) (2) Rogers A (Chester) (2) Somrah R (Uxbridge) (4) Muhammad H (Glasgow) (1) Pearson M (Brierley Hill) (4) Rogers L (Banbury) (2) Song Y (Manchester) (6) Mukhopadhyay A (Cwmbran) (1) Pearson N (Holywell) (2) R (Falkirk) (4) Sorokina A (Nottingham) (2,5) Murray J (Middlesbrough) (2) Pennington C (Leeds) (1) Roldan Mcrobb L E (Chertsey) (5) Sorrell M (Camberley) (4) Murray K (Glasgow) (1) Perry A (Oswestry) (1) Romanyuk N (Dagenham) (2) Spence T (Ashford) (2) Murugananthan S (London) (6) Phillips D (London) (1) Rowlands N (Moreton-In-Marsh) (5) *Spendlicek K (Aberdeen) (1) Musgrove A (Northampton) (2) Phillips G (Guisborough) (1,2,5) Royce A (Bristol) (2,4) *Squire F (London) (1,2,3) Phillips J (London) (2) Rudling L (Southsea) (1) Squires L V M (Birmingham) (3) N Philp G (Aylesbury) (2,3) Russell A (Southampton) (1) Srisuthakar S (Chessington) (2) Nadir H (Preston) (3) Philpot A (Tunbridge Wells) (1) Rydzewski P (Newcastle Upon Stasiw A I (Derby) (1) Nair S (Langley) (2,3) Pickstock A (Liverpool) (2,3) Tyne) (3) *Statt K(Blaydon-On-Tyne) (2) Naker J (Leicester) (6) Pigeon L (Newport) (1) Stephens C (Ilford) (3) Napier A (Dalmellington) (4) Pleasance H (Loughton) (4) S Stevens F (Bristol) (2) Nartey T (Barnet) (1) Pledger R (Carlisle) (1) Sadler M (London) (1,3) Stevens L (Bristol) (1) Ncube D B (Reading) (1) Plummer K J (Radstock) (4) Sage L (Ashford) (1) Stevens M (Ashford) (2) Neary C (Purley) (1) *Pollack L (London) (1) Sahota M (Derby) (2) Stewart L A (Banchory) (2) Needham L (Mansfield) (1) Ponton S (Edinburgh) (2) Sahotay J (Ilford) (2) Stockwell K (Norwich) (2) Nelloru S (Kadapa, India) (1) Porter G J R D (London) (5) Saleh A (London) (1,3) Stoller A M (Dagenham) (1) Netherway Z (Radstock) (1) Postlethwaite-Hall R B (Liverpool) Salter A (Bristol) (1) Stott E X R (Aberdeen) (3) Newton K (Bletchley) (2) (5) Sam E (Staines) (1) Stroud D (Bridgend) (1) Nisbet C P (Dunfermline) (3) *Potharatnam A (London) (3) Sanghera H (Ilford) (2) Stuart J (Salford) (2) *Nottingham (London)A (1,2,4) Potter J(Upminster) (1,2,6) Santos Mejia P (Kingston Upon Styles D (Cardiff) (1) Nutt M (Sheffield) (2) Poulter D (Ryton) (1,2,3) Thames) (5) Stylianou S (London) (2) Pouni N (Walsall) (1) Sarai D S (West Bromwich) (2,4) Subraya Y K (Bangalore, India) (2) O Pourou R (Aylesbury) (1,2,3) Savage E (Truro) (6) Surve K (Ruislip) (2) O’ Conchuir S (Penarth) (2) Powell K A (Twickenham) (1) Sayer A (Norwich) (2) Sweeney Z L (Douglas, Isle of Man) Oakman D (Weston-Super-Mare) (1) Pozo Riqueni M (London) (2) Scanlan E (Winchester) (1) (1) O’Connor M (London) (1,2) Pulle M (Sonning) (3) Scheffler (Pinvin)M (3) Swindlehurst J (Blackburn) (1) Odutola T (Bristol) (1) Pybus C L (Garforth) (4) Scott K(Motherwell) (1) Swords A (Falkirk) (2) Ogba-Michael M (London) (5) Scott R (Hamilton) (2) Okeke T (Stafford) (2) R Sears N E (Builth Wells) (2) T *Olasupo A (Stevenage) (1) Raghuraman J (Carshalton) (5) Selvendran C (Twickenham) (2) Tamang S (Maidstone) (1) Oliver C (Warwick) (1,3) R R R (London) (2) Shah A S (Stanmore) (1) Taylor A (High Wycombe) (1,2,4) *Oliver M (Edinburgh) (1,4) Rahman M O (Mitcham) (4) Shah S (Waltham Cross) (4) Taylor A E L (Loughton) (1) O’loughlin A (London) (4) Raja Z T (Bangalore, India) (1) Shah W H (Watford) (5) Taylor G J (London) (1) Ord C (Newcastle Upon Tyne) (4) *Rajakumar G (Ilford) (3) *Shakur A (Reading) (6) Taylor L (Margate) (2,4) *O’reilly T (London) (1,2) Ramm O (Guildford) (1,2) Shankar S N (Chennai, India) (1) Teale D T (Brighton) (2) Orgasinska-Bukowska M B Ramsay D (Edinburgh) (5) Sharma G (Chadwell Heath) (1) Tello Tajdin Z (Hayes) (2,3) (Sheffield) (1) Rana J A (Barnstaple) (6) Shaw D (Southampton) (3) Terrill D (Newton Abbot) (1,3) Osobowale H (Mitcham) (1) Randall S (Sandy) (5) *Shaw T (Cheltenham) (1,2) Thaker M (Stanmore) (1) Ouandji Kamshu S D (Eastleigh) Rattew P(London) (1) Sheen T (Benfleet) (4) Thampan S (London) (4) (1,4) Ravji N (New Malden) (4) Sheikh Z (Cheadle) (1) *Thomas D A (Towcester) (4) Owen J A (Manchester) (6) Rayit A K (Leeds) (2,6) Sheldon D (Barnet) (1,2,4) Thomas G (Lincoln) (2) Owen P (Leeds) (2) Raynes A W (Colchester) (2) *Sheldon H (Gateshead) (1,2,3) Thomas V (Maidenhead) (4) *Reed D (Portsmouth) (3) *Shepherd R (Alderley Edge) (2,4) Thompson R (Milton Keynes) (2) P Reed S K (Langport) (4) Shipley A (Poole) (2,4) Thomson M (Fareham) (2,3) +*Page C (Cambridge) (2,6) Rees D (Romsey) (1) Short E (Bristol) (2) Thornicroft D(Enfield) (1,2) Paget L (Bristol) (4) Reeves A (London) (6) Shrosbery S (Waltham Cross) (2) Tickle S (Northwich) (4) Palha J (London) (1) Rest N V (Launceston) (1,6) Simoes C (London) (3) *Tidy J R (Eastleigh) (1) Palmer J (Eastleigh) (4) *Reynolds G J (Swansea) (1) Sinclair G (London) (1) Tilley A (Chatham) (2) Palmer J M (Hornchurch) (1) Rhoden T (London) (1) Singh K (Romford) (1,2) Tinsley M (Manchester) (4) Panigrahi B K (Betada, India) (4) Richards J (Cheltenham) (1) Singh R P (Bangalore, India) (1) Tirant C (London) (1) Park I (East Kilbride) (2) Richards T (Bristol) (1) Sisay L B (Gateshead) (6) *Todd L (Manchester) (1,2) Parker P (Bristol) (1,2) Richardson K (Ramsgate) (5) Sivapathasundram S (Surbiton) (1) Tognollo F M (London) (2) Parkin E (Wigan) (1) Richardson S (Crook) (4) Skipper M J (Polegate) (1) Toor A S (Rowley Regis) (4) Parrin-Marsh K (St Helier, Jersey) Rideal C (Birmingham) (4) Sloane E (Preston) (2) Towers S K (Snodland) (6) (1) Rimmer A J (Warrington) (5) Small L (Whitley Bay) (1,2,3) Trevallion K (Croydon) (4) Parsons T (London) (1,2) Rimmington S (Rochford) (1) Smith D (London) (2) Turner P S (Eastbourne) (1) Pasco R A (London) (2) *Ring A (Norwich) (1) Smith J (London) (2) Pascoe E L (Thatcham) (1,3) Ringland K (Dromore) (2,3) Smith L (Plymouth) (2,3) U Patel B (London) (5) Roach K J (Bishop’s Stortford) (1) Smith L C D (Ipswich) (1,2,4) Uddin J (London) (2) Patel R (Harrow) (1,2) Robertson B J (Aberdeen) (2) Smith T (Newton Abbot) (3) Udroiu M M (Erith) (5)
42 February 2018 www.taxadvisermagazine.com EXA RE U T
V Ward R J (Shefford) (2) (1,2,3) X V Vishakha (Bangalore, India) (2) *Ware C (Exeter) (1,2,3) Wilkinson D (Sutton Coldfield) (2) Xin Z (Exeter) (1,2,3) Van Eyken L (Haslemere) (1) Warnes G (Norwich) (1,5) Wilkinson K (London) (2) Vargas A (Tonyrefail) (2) Washington L (London) (2) Williams E (Cardiff) (1,2,4) Y Varley N (Leicester) (2) Watson G (York) (2) Williams E (Whitstable) (1) Yip J C (Romford) (1,2,4) Vernon C A (Altrincham) (3) Webb R (Sleaford) (1,2) Williams L (Ipswich) (2) Yip S (Bristol) (2,3) Viljoen D L (Burgess Hill) (4) Weedon L (London) (1) Williams S C (Bristol) (1) *Yule S (Aberdeen) (6) Vinni E (London) (1) Weldon A (Warrington) (4) Williamson A (Witney) (2) Vu H T (London) (2) Welsh E (Glasgow) (1) Wilson B (Dartford) (1) Z West E C (Holmfirth) (1) Wilson I (London) (1,2) Zacharko K (Nottingham) (1,3) W West L (Shrewsbury) (1) Wilson L (Bracknell) (1) Zahid Z (Ilford) (1) Wagner H (Edinburgh) (1) Weston S (Hornchurch) (1) Windsor S (Hythe) (1) Zaman A (Sheffield) (2,6) Wain C L (Crowthorne) (6) Whiston C L (Shrewsbury) (5) Wojnowski D (Dalkeith) (1) Zeeshan M (Dagenham) (1) Walker C (London) (1) Whitaker O (Worthing) (1) Wood J (Newcastle Upon Tyne) (5) Zein-Elabdin M (Sutton Coldfield) Walmsley A (Bury) (1) Whitby R (Sandy) (1) Wood L (Huntingdon) (2) (5) Wan H P (Newcastle Upon Tyne) White J M (Wisbech) (2) Wood P A (London) (5) Zhang Z (London) (4) (1,2,3) Whiteley R (Basildon) (5) Wren A (Shepton Mallet) (4) Wang L (Crawley) (1) Whittle A (Newton Abbot) (3) Wren S (London) (1) Wanstall R R (Dover) (5) Whyatt J (Milton Keynes) (1) Wright T (Towcester) (1,2,4) Ward B (Wokingham) (1,2,4) Wilkins L (Houghton Le Spring)
ATT distinctions 1 – Personal Taxation Pensions, Leeds) Gopy Rajakumar (K&B Accountancy Group, Richard John Barnes (Ammanford) Aoife Burke (Smith & Williamson, Guildford) London) Jonathan Barratt (Blick Rothenberg, London) Rob Carey (RSM, London) Daniel Reed (Morris Crocker Chartered Gabrial Brenton (Trudgeon Halling, Wadebridge) Kong Yau Cheng (BDO LLP, Birmingham) Accountants, Havant) Robert John Burgess (Westleton Drake, London) Courtney Childs (EY, Exeter) Jack Callum Webb (Braintree) May Chan (EY, London) Marion Denby (RSM, Bury St Edmunds) Sabrina Webster (Grant Thornton UK LLP, Zoe Chandler (Old Mill Accountancy LLP, Chris Down (RSM, London) Melksham) Katherine Dziewulski (RSM UK Tax and Southampton) Courtney Childs (EY, Exeter) Accounting Ltd, Reading) David Donnelly (General Medical Council, Chelsea Emett (Winning Blend Ltd, Llantrisant) 4 – Corporate Taxation Manchester) Bronte Etherington (Grant Thornton UK LLP, Rebecca Burrows (Greenfield) Nicholas Edgley (Ensors, Huntingdon) London) Amy Chapman (Old Mill Accountancy LLP, Wells) Bronte Etherington (Grant Thornton UK LLP, Robyn Fanning (EY, Manchester) Kong Yau Cheng (BDO LLP, Birmingham) London) Natalie Louise Filipovic (Henderson Loggie, Hayley Ann Gove (KPMG LLP, Glasgow) Charlie Martin Foster(Moore Stephens, Dundee) Howard George Ledingham (Buzzacott LLP, London) (Jelliff Lamprey, Portsmouth) Amy Holland London) Amanda Hill (Bury) Alaw Fflur Hughes (Dunn & Ellis Chartered Alice Nottingham(Frank Hirth, London) Amy Holland (Jelliff Lamprey, Portsmouth) Accountants, Porthmadog) (BDO LLP, London) Jordan Ivey (Grant Thornton UK LLP, Cardiff) Lily Hughes-Thomas (Grant Thornton UK LLP, Ashley Palfreyman Benjamin Kearns (EY, Manchester) London) Louise Radcliffe(Buzzacott LLP, London) Jahanara Khanum (London) Jonathan Andrew Korta (Crowe Clark Whitehill Richard Shepherd (BDO LLP, Birmingham) Natasha Mary Lines (Haines Watts LLP, London) LLP, London) Keeley Joanne Stanley (Gibson Booth, Barnsley) Azizah Olasupo (Blick Rothenberg, London) Nicola Moore (General Gynamics Global Thomas Stone (Crowe Clark Whitehill LLP, Mairi Oliver (Scott-Moncrieff, Edinburgh) Holdings Ltd, St Leonard’s On Sea) Oldbury) Thomas O’reilly (Joseph Hage Aaronson LLP, Alice Nottingham(Frank Hirth, London) Dominique A-M Thomas (Towcester) London) Charlotte Page(Price Bailey LLP, Cambridge) Hongwei Zhang (Hook) Ashleigh Patrick (Deloitte LLP, Bristol) Bronwyn Prior (Gepp & Sons, Chelmsford) Lisa Pollack (EY, London) Sam Rodgers (BDO LLP, Birmingham) 5 – Inheritance Tax, Trusts and Estates Gregory James Reynolds (Swansea) Tamara Shaw (Ballard Dale Syree Watson LLP, Kiera Harrison (UHY Hacker Young, Manchester) Amy Ring (M+A Partners LLP, Norwich) Hampton Lovett) Tamara Shaw (Ballard Dale Syree Watson LLP, Nicholas Sommerfelt (RSM, London) Benjamin Kearns (EY, Manchester) Hampton Lovett) Fiona Squire (EY, Birmingham) Heather Langtree (Shepherd Partnership, Hannah Sheldon (EY, Newcastle Upon Tyne) Kayleigh Statt (Grainger Plc, Newcastle Upon Skipton) Grant Snedden (Henderson Loggie, Dundee) Tyne) Christopher Lewis (Wrekin Housing Trust, Kamil Spendlicek (Wood Group, Aberdeen) Telford) Fiona Squire (EY, Birmingham) 3 – Business Compliance Daniel Miles (Mercer & Hole, Rickmansworth) Jessica Ruth Tidy (Langdowns DFK, Eastleigh) Tara Bellenger (Base (Quantum) Ltd, London) Leanne Todd (Manchester) Alexander Bulgarelli (PKF Littlejohn LLP, London) 6 – VAT Christopher Ware (EY, Exeter) Courtney Childs (EY, Exeter) Elena Castaner-Gonzalez (London) Sabrina Webster (Grant Thornton UK LLP, Bronte Etherington (Grant Thornton UK LLP, Ye Sol Lee (Morgan Stanley, London) Southampton) London) Charlotte Patricia McBride (Murray McIntosh Charlotte Page(Price Bailey LLP, Cambridge) 2 – Business Taxation & Accounting O’Brien, Waterlooville) Aniqa Shakur (HM Customs & Excise, Croydon) Principles Arupen Potharatnam (HM Revenue & Customs– Suzanne Yule (Anderson Anderson and Brown Benjamin Ackerley (Department for Work & LBS, Birmingham) LLP, Aberdeen) www.taxadvisermagazine.com February 2018 43 CRYPTOCURRENCIES Money online Julie Butler and Fred Butler provide an overview of the taxes that can apply to cryptocurrencies
KEY POINTS ryptocurrencies are currently a Essentially, they are a digital currency ‘hot topic’. The increasing activity or asset that can be bought, sold or zz What is the issue? and value of cryptocurrencies exchanged. The increasing activity and value of C must be embraced and understood Cryptocurrencies use encryption cryptocurrencies must be embraced by tax advisers from the outset, technology (cryptography) in its and understood by tax advisers from and compliance reports cannot creation in order to ensure the security the outset, and compliance reports just be simply ‘processed’ without of transactions but also prevent the cannot just be simply ‘processed’ proper attention to the detail. The creation of additional units. Once without proper attention to the detail. entire motive, subject matter and purchased, cryptocurrencies are held zz What does it mean to me? The reality is that if cryptocurrency circumstances of realisation have to be within a ‘wallet’ which holds the is owned in a personal capacity, the examined, with the basic principle of currency but also allows the owner to owner must not try to avoid tax. all tax problems being to understand spend the currency as it contains the It is essential to make sure that all exactly what the facts are. private and public keys for decryption. transactions are disclosed to HMRC, Although there are a range of and ‘over’ disclosure is better at this What is cryptocurrency? cryptocurrencies available with different stage than ‘under’ disclosure, with Historically, money has taken various features and different users, the first, assistance from HMRC being useful. forms; what was once recorded and arguably most prominent, is Bitcoin. zz What can I take away? in physical ledgers is now entered Satoshi Nakamoto, the mysterious Cryptocurrencies can no longer be electronically on a bank’s books. It could creator of Bitcoin, first released it in ignored and will undoubtedly have therefore be argued that most money 2009 as open-source software. Bitcoin an impact on all tax advisers and nowadays is already digital. operates via a peer-to-peer network, accountants, with questions relating to Similarly, most, if not all, virtual independent of any central authority cryptocurrencies forming part of the currencies are digital. The European or bank. As it is traded without standard tax return checklist. Now is Central Bank (ECB) defines a virtual intermediaries from one person to the time to build a base of knowledge currency as ‘a digital representation another, it theoretically makes the and improve general awareness, in of value, not issued by a central bank, transaction much safer. All functions order to be prepared for the new wave credit intuition or e-money institution, such as issue, transaction processing and of taxpayers trying to navigate the which in some circumstances can verification are managed collectively by unfamiliar tax system. be used as an alternative to money’. this network and recorded in a shared
44 February 2018 www.taxadvisermagazine.com
CRYPTOCURRENCIES
PROFILE Name Julie Butler FCA Position Managing partner Company Butler & Co Chartered Accountants Tel 01962 735544 Email [email protected] Profile Julie Butler is a farm and equine tax specialist. Her articles are published in the national accountancy and tax press and she is the author of Tax Planning for Farm and Land Diversification(Bloomsbury Professional), Equine Tax Planning and Stanley: Taxation of Farmers and Landowners (LexisNexis).
PROFILE Name Fred Butler MSc ATT Position Tax manager Company Butler & Co Chartered Accountants Tel 01962 735544 Email [email protected] Profile Fred is a tax manager in the farm and equine department of Butler & Co Chartered Accountants. Fred regularly advises on income tax, inheritance tax and capital gains tax for rural clients and other professional firms, both lawyers and accountants, that do not have their own in-house experts in this complex area. © IStockphoto/Iaremenko public database called a ‘blockchain’. Brief 9 (2014): Bitcoin and other between Bitcoin and the functional This is maintained through a system of cryptocurrencies, it is stated that: currency then this analysis applies. interactive nodes which contain bitcoin Therefore no special tax rules for software, with a new Bitcoin being ‘As with any other activity, whether Bitcoin transactions are required. produced when a new block is attached the treatment of income received from The profits and losses of a company to the chain. A new block can only be and charges made in connection with, entering into transactions involving added to the chain when the answer to activities involving Bitcoin and other Bitcoin would be reflected in accounts a complex cryptographic algorithm is similar cryptocurrencies will be subject and taxable under normal CT rules. solved, and participants carrying out this to CT, IT or CGT and depends on the zz IT – the profits and losses of a non- activity are known as ‘Miners’. activities and the parties involved.‘ incorporated business on Bitcoin Most of the considerations in this To quote Brief 9: transactions must be reflected in article revolve around Bitcoin, given ‘For businesses which accept payment their accounts and will be taxable on that it forms the focus of most of the for goods or services in Bitcoin there is normal IT rules.’ tax authorities around the world. The no change to when revenue is recognised value of Bitcoin has soared in the last or how taxable profits are calculated. Essentially income is taxable when 12 months, with a record-breaking rally zz CT – the profits or losses on exchange paid as virtual currency but there is coming after it split into two separate movements between currencies no implication that Bitcoin mining cryptocurrencies: the new Bitcoin Cash, are taxable. For the tax treatment should be charged to IT. Given that along with the original Bitcoin. of virtual currencies, the general the normal foreign exchange rules We, as professionals, must look at all rules on foreign exchange and loan apply for reporting transactions, of the possible tax positions that could relationships apply. We have not BIM 39515 suggests that under FRS be related to cryptocurrency including; at this stage identified and need 102, for example, the business would Corporation Tax (CT), Income Tax (IT), to consider bespoke rules. For first translate the foreign currency Capital Gains Tax (CGT), Value Added Tax companies, exchange movements are transactions (i.e. the sales) into, say, (VAT) and the implications of Inheritance determined between the company’s sterling using the spot exchange rate Tax (IHT). functional currency (usually the (or an average rate for the week or currency in which the accounts are month, if the exchange rate does not Cryptocurrency trading prepared) and the other currency in fluctuate significantly), and then, at the Within HM Revenue and Customs question. If there is an exchange rate end of the reporting period, to translate www.taxadvisermagazine.com February 2018 45 CRYPTOCURRENCIES
foreign currency monetary items at the situation where gains are below the this service, a miner that successfully exchange rate applicable at that time. tax-free allowance, if you dispose of verifies a block of transactions receives chargeable assets with an overall worth both reward of newly created Bitcoins Capital Gains Tax (CGT) of more than four times the annual CGT and any transaction fee(s) offered by the To reference the HMRC brief, ‘if a profit allowance, this must still be declared on parties to the transaction(s) in question. or loss currency contract is not within There are thus several elements to trading profits or otherwise within CG78310 provides guidance regarding consider when it comes to VAT. the loan relationship rules, it would investments as opposed to the trading of Bitcoin received by miners for their normally be taxable as a chargeable cryptocurrencies. mining activities generally falls outside gain or allowance as a loss for CT and the scope of VAT on the basis that the CGT purposes. Gains and losses incurred Corporation tax link between the services provided and on bitcoin or other cryptocurrencies In addition to the information set out consideration received is insufficiently are chargeable or allowable for CGT if above, the guidance given by HMRC is direct. they accrue to an individual or, for CT that a trading activity will continue to As such, the activities do not on chargeable gains if they accrue to a be assessed on the basis of preparing amount to an economic activity for VAT company’. profit and loss accounts to determine purposes. Charges made by miners and With the surge in the value of various taxable profits and the value of goods others for performing specific Bitcoin cryptocurrencies in the last few years, or services bought or sold using virtual transactions will also be exempt from there has been a vast increase in the currencies must still be accounted for at VAT under Item 1, Sch 9, Gp 5 VATA. value held within virtual wallets. This their market value or the exchange value However, in the case of Hedqvist has brought a new wave of perhaps of the virtual currency converted into UK Court of Justice of the European Union unknowing people into the tax system. pound sterling. (CJEU) ruled that transactions that With the variety of cryptocurrency Brief 9 states activities include consist of the exchange of traditional available, there are numerous trades ‘the buying and selling of Bitcoin currency for Bitcoin (and vice versa) within a virtual wallet without any cash and providing exchange facilities for constitute supplies of services for receipts. parties to trade bitcoin with recognised consideration for VAT purposes, even Subsequently, there have been currencies’. Bitcoin can be held as where the taxable person derives capital gains realised within these an investment or to pay for goods or their profit from the spread (i.e. the virtual wallets, with the new wave of services, and HMRC have noted that ‘In difference between the purchase and lay taxpayers being unaware of both the UK, there are already a number of selling price) rather than commission. their reporting requirements and tax outlets, including pubs, restaurants and liabilities that have arisen without any internet retailers that accept payment Case by case extraction of funds having taken place. by Bitcoin’. Looking at all matters on a ‘case by case’ Furthermore, an issue may arise when With the reducing level of CT and basis and taking into account specific the buying and selling of cryptocurrency, the lack of clarity in respect of Bitcoin facts and circumstances (per Brief 9) subject to capital gains tax, becomes and other cryptocurrency coming from is the only way forward with regards a trade and thus is subject to income HMRC, it raises the question as to to the taxation of cryptocurrencies. tax. As the hallmarks of the ‘badges of whether the cryptocurrency ‘buyer and Professionals must identify the specific trade’ become more and more apparent, seller’ should hedge their bets and put facts first and then establish the tax the unaware taxpayer could be walking their activity in a company. The issue treatment, the disclosure requirements further into a very unfamiliar world and that then arises focuses on getting the and the way forward for the unaware soon be subject to income tax. Perhaps inflated virtual wallet into the company. taxpayer. the unaware taxpayer could take steps now to mitigate this by incorporating Gambling Compliance their activities. Gambling is ordinarily outside the scope The reality is that if cryptocurrency is As alluded to above, if instead of of tax and so is ‘tax free’. Despite the owned in a personal capacity, the owner making sales for Bitcoins in the course high level of risk associated with Bitcoin must not try to avoid tax. It is essential of a trade, the business disposed of activity, it is not deemed to be gambling. to make sure that all transactions are an investment asset for Bitcoins, and Gambling could be defined as an activity disclosed to HMRC, and ‘over’ disclosure the transactions were subject to CGT which does not involve buying or selling is better at this stage than ‘under’ rather than income tax, it would be anything, rather it is just putting down disclosure, with assistance from HMRC carrying out a barter transaction. The a bet and hoping to make a gain from being useful. consideration for CGT purposes would it. However, if something is bought and A lot has happened since 2014 therefore be the sterling equivalent of sold, no matter how ethereal, high- and there is no doubt that more the Bitcoins at the date of disposal. risk or speculative it may be, it is an guidance will be presented to assist Notably, shares, foreign currency asset and therefore cannot be classed both taxpayers and tax advisers alike. and Bitcoin alike are ‘fungible’. This as gambling. As such, Bitcoin activities Cryptocurrencies can no longer be means the purchases can be pooled into are taxable, unlike gambling, as per the ignored and will undoubtedly have a Section 104 holding and then each above guidance, the corollary of which, an impact on all tax advisers and individual share or Bitcoin in the holding of course, is that the losses would be accountants, with questions relating to can be treated as if acquired at the same available for offset against other taxable cryptocurrencies forming part of the average cost. profits. standard tax return checklist. CGT must be considered when the Now is the time to build a base activities are conducted in a personal Bitcoin Miners and VAT of knowledge and improve general capacity, and the person involved Special users, known as ‘Miners’, gather awareness, in order to be prepared for does not regularly trade with a view together blocks of transactions and the new wave of taxpayers trying to to the realisation of profit. Even in a compete to verify them. In return for navigate the unfamiliar tax system.
46 February 2018 www.taxadvisermagazine.com HMRC POWERS
A request too far
Keith Gordon considers a recent judicial review claim which examines the geographical reach of HMRC’s information powers
KEY POINTS PROFILE zz What is the issue? Name Keith Gordon This case focused solely on the question Position Barrister, chartered accountant and tax adviser
as to whether or not the First-tier Company Temple Tax Chambers © IStockphoto/Murat Deniz and HMRC were entitled to approve Tel 020 7353 7884 and issue a Schedule 36 notice to an Email [email protected] individual resident overseas. Profile Keith M Gordon MA (Oxon), FCA CTA (Fellow) is a barrister, zz What does it mean to me? chartered accountant and tax adviser and was the winner in the Chartered Tax Adviser Since Schedule 36 imposes no territorial of the Year category at the 2009 Tolley Taxation awards. He was also awarded Tax restrictions, HMRC presumably Writer of the Year at the 2013 awards. He provides litigation support and advises on tax considered it had worldwide and related matters to accountants, tax advisers and lawyers. application. As Mr Justice Charles has demonstrated, this assumption might be incorrect. t is a fact of life that exposure to UK UK provides a basis for HMRC to enforce zz What can I take away? tax is not limited to UK residents. As any unpaid tax. It should of course be Given the potential appeal, any action Ia general rule and in the interests of noted that this is not the only possible taken now will be of a provisional simplicity one can say that non-residents solution: for example, the United States nature only. Nevertheless, any overseas are subject to UK tax in relation to UK- has hitherto not hesitated to levy US taxpayer with a Schedule 36 notice based sources of income. Leaving aside taxes on its non-resident citizens on their should carefully consider this decision any philosophical considerations, one worldwide income. as that would suggest that the notice practical reason for restricting the UK tax Given their potential worldwide was unlawfully issued. net to UK sources is that an asset in the ‘customer base’, it is unsurprising www.taxadvisermagazine.com February 2018 47
HMRC POWERS
that HMRC will want to ensure that The High Court’s decision powers within Schedule 36, on the basis as many as possible of their powers The case came before Mr Justice Charles. that the entire code has to be read in will be available to them. This article As Schedule 36 is silent on territorial context. Those powers include inspection considers the extent to which HMRC are limits, he noted that the House of Lords’ powers and the Judge thought that it entitled to issue overseas taxpayers with decision in Clark (HM Inspector of Taxes) would ‘raise eyebrows’ if Parliament information notices under the Finance v Oceanic Contractors Inc [1983] 2 AC 130 intended such inspections to be carried out Act 2008, Schedule 36, which was the was relevant. overseas. subject of a recent judicial review case, R In short, Oceanic confirmed the Consequently, even though Mr Jimenez (on the application of Jimenez) v First-tier principle that (as a general rule) was a UK citizen, the Judge considered Tribunal (Tax Chamber) and HM Revenue Parliamentary statutes should be that the statute should be interpreted in & Customs [2017] EWHC 2585 (Admin). construed as having their effect only on accordance with the usual presumption, British subjects or others present in the being not to impose a penal sanction on Facts of the case UK. This is, of course, subject to the statute a person outside the jurisdiction, as that HMRC wanted information from Mr clearly stating (or implying) otherwise. would offend against the sovereignty of Jimenez who (for the purposes of the Therefore, as was acknowledged in another state. He therefore ruled that case) was assumed to be resident in Oceanic itself, the UK tax code has a wider HMRC should not have issued the notice to Dubai at the time. Although (subject to territorial scope, although it might prove Mr Jimenez and he duly quashed it. the issues raised in this case) HMRC might more difficult for the UK to enforce tax have issued a notice under paragraph 1 debts overseas (following the principles Commentary of Schedule 36, against which Mr Jimenez explained in Government of India v Taylor One of the practical difficulties in dealing would have had the right of appeal, [1955] AC 492) subject, of course, to any with HMRC these days is their firm belief HMRC took the alternative approach mutual assistance arrangements that that they are always right and can do available to them under the statute. That might be in place). whatever they want. I usually put this down alternative approach was to obtain the The Judge also cited the case of Perry to poor training. If a junior officer is told First-tier’s prior approval of a notice, v SOCA [2013] 1 AC 182, which concerned that the law means X, the officer will not meaning that Mr Jimenez had no right of information notices under the Proceeds of unreasonably proceed on the assumption appeal, his only legal remedy being by Crime Act. There, the Court remarked that that that is right and will repeat the way of judicial review following the issue there is nothing to stop an information assertion to taxpayers and advisers. The of the notice. request being sent anywhere in the world. fact that most taxpayers and many advisers As is usual in such cases, Mr Jimenez However, it is very different if the request will not know differently (or will not wish to was given advance notice of HMRC’s contains an obligation which is backed up embark upon costly, time-consuming and proposed application and an opportunity by penal sanction. (Thus, in the context emotionally-draining proceedings to prove to make representations to HMRC. Under of Schedule 36, there is nothing to stop that the officer is wrong) will only reinforce the statutory scheme, this is obligatory HMRC sending out informal requests the officer’s view of the law. Furthermore, (subject to HMRC’s ability to persuade the anywhere in the world. However, as this HMRC are not afraid to ask Parliament for Tribunal to dispense with the requirement). case discusses, formal Schedule 36 notices (and usually get) increased powers just in If representations are made, it is then (which carry a penalty if there is not case their existing arsenal is not sufficient. incumbent on HMRC to provide the complete compliance) are different.) It is therefore not surprising that Tribunal with a summary of them. The Judge accepted much of what HMRC would have assumed that Schedule HMRC’s application was duly heard the Court of Appeal said in R (oao Derrin 36 entitles them to ask anyone for and the Schedule 36 notice was approved Brothers Properties Ltd) v FTT [2016] EWCA information. After all, since Schedule 36 by the Tribunal. Civ 15 about the need for the Schedule 36 imposes no territorial restrictions, HMRC Since the introduction of the Finance powers and for them ‘to provide credible presumably considered it had worldwide Act 2008 rules (and, particularly, following and effective system of checking and application. As Mr Justice Charles has an amendment made by the Finance Act investigation’. However, he continued, demonstrated, this assumption might 2009), several taxpayers in such situations Derrin does not tell the whole story be incorrect. Although this will prove a have also sought to attend the Tribunal because that case was not concerned with welcome decision for Mr Jimenez, it is hearing at which HMRC make their formal territorial limits. perhaps not surprising that HMRC have application and/or to make submissions In particular, the Judge noted that sought permission to appeal against direct to the Tribunal. The First-tier has HMRC were clearly given powers to issue the Judge’s decision. The outcome of routinely rejected such efforts, holding information requests on behalf of overseas that process will become clearer in the that to do so would encroach upon tax authorities, which suggests that where following months. HMRC’s unfettered right to address the HMRC are investigating a person overseas, Also of interest is the fact that the Judge Tribunal in private. Indeed, the Tribunal they should make a corresponding took the trouble to add some comments has ruled that it has no discretion to request of an overseas tax authority of his own regarding the current practice permit the taxpayer’s participation in the for the latter to use its own information involving HMRC’s applications for the proceedings. Mr Jimenez made a similar powers (assuming that the relevant Tribunal’s approval being routinely heard application which was duly rejected by the assistance agreement has been reached). behind closed doors. I have long doubted Tribunal. That rejection was subsequently Furthermore, the Judge recognised that the correctness of the Tribunal’s current the subject of his judicial review claim but any taxpayer who leaves the UK in order approach, both on the basis of the wording permission was refused and the matter to escape HMRC’s investigatory powers of the underlying statutory code and also was not pursued any further. can still be the focus of third-party notices the more nebulous concept of fairness. Consequently, the present case focused issued to UK-based organisations with One difficulty with the current approach solely on the question as to whether or whom the taxpayer had transacted, is that there is no public scrutiny of the not the First-tier and HMRC were entitled irrespective of the country to which the process or even any opportunity for the to approve and issue a Schedule 36 notice taxpayer has moved. Tribunal to monitor closely how HMRC to an individual resident overseas. The Judge also considered the other use these powers. For example, suppose
48 February 2018 www.taxadvisermagazine.com
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the Tribunal decides that HMRC have preceded the Schedule 36 provisions; and subsequent enforcement action is not done enough to justify the Tribunal’s and the subject of considerable litigation at approval of a notice in a particular case, zz shutting out the taxpayer altogether the moment (particularly in the context what (in practice) is going to stop the same is arguably at odds with the Tribunal’s of Accelerated Payment Notices, but also officer repeating the application before a own statutory duty to act fairly. in the context of Schedule 36 itself – see, different Judge on a different day? Is this for example, PML Accounting Ltd v HMRC me just being paranoid or is that in fact It is not clear whether HMRC or the [2015] UKFTT 440 (TC) (as discussed in normal practice? The fact that one just Tribunal will unilaterally or together seek my December 2015 article, which then does not know is itself a cause for concern. to reconsider their approach to such cases experienced an interesting twist in 2017). The Judge recognised that his in the light of the Judge’s comments or A safer approach would be to challenge comments were not the subject of legal whether they will consider themselves the Schedule 36 notice itself, either by argument before him (as permission had bound by their current procedures as appeal (if that option is available) or by been refused) and also that they seemed endorsed in Derrin. If the latter, it is to way of judicial review. To keep costs down, to go against the binding decision of the be hoped that a dissatisfied taxpayer it might be possible for such proceedings Court of Appeal in Derrin. Nevertheless, (emboldened by the Judge’s concerns) to be stayed pending the outcome of the he felt sufficiently troubled to comment would pursue a judicial review claim and Jimenez proceedings. But I would strongly that: that permission would eventually be discourage any taxpayer from missing the zz especially when a public hearing is given. strict JR and appeal time limits: a claim or sought by the taxpayer, it is at least appeal should ordinarily be commenced arguable that HMRC’s concerns as What to do next within the strict statutory time constraints to taxpayer confidentiality are not Given the potential appeal, any action and then subject to an application for a sufficient to justify a private hearing; taken now will be of a provisional nature stay. zz the fact that representations may only. Nevertheless, any overseas taxpayer Similarly, irrespective of the location usually be made from the taxpayer with a Schedule 36 notice (whether of the taxpayer, one should note the undermines any argument that the issued with or without the Tribunal’s concerns expressed by Mr Justice Charles taxpayer’s attendance at a hearing prior consent) should carefully consider regarding the process by which the would risk letting the ‘cat out of the the Jimenez decision as that would Tribunal considers prospective Schedule 36 bag’; suggest that the notice was unlawfully notices. As commented above, this process zz the case law on Tribunal procedure issued. Arguably, the unlawfulness of is worthy of a further examination by the more widely (where there are the notice could itself be a basis for an Courts. Consequently a taxpayer wanting confidential matters to be raised) has appeal against a subsequent penalty for to attend such a hearing should not been updated since the seminal tax non-compliance although the precise necessarily be content with the response cases concerning the legislation that relationship between unlawful notices that open hearings are not permissible.
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www.taxadvisermagazine.com February 2018 49 TECHNICAL
Financial guidance and advice Financial guidance and advice Welcome to Technical Team February’s Technical Newsdesk Welcome to January’s Technical Newsdesk Richard Wild p 50 Particularly eagle-eyed readers of Technical Brexit: VAT, Customs and Excis INDIRECT TAX Angela Fearnside Newsdesk will see that, although we normally p 51 provide a summary of the submissions we have made (as set out in Marriage allowance claims by bereaved Robin Williamson the list in the table at the end), there is no summary this month of the spouses or civil partners: Finance Bill 2017-18 p 51 joint CIOT, ATT and LITRG submission ‘What is good guidance?’. That’s PERSONAL TAX not because it is an issue we feel can ignore. Indeed, we need to talk about guidance! Risk to capital requirement for venture Will Silsby Our joint submission arose through the Welsh Revenue capital schemes: Finance Bill 2017-18 p 52 Authority’s engagement with Welsh taxpayers and stakeholders on OMB PERSONAL TAX the development of tax guidance and digital systems ready for its Qualifying care relief, personal tax: Autumn Gillian Wrigley devolved taxes going ‘live’ April 2018. We seized this opportunity Budget 2017 PERSONAL TAX p 52 to set out the attributes of good guidance, which we believe should include the following: Universal credit roll-out update: Autumn Victoria Todd zz It should not be a substitute for drafting good law in the first place. Budget 2017 PERSONAL TAX p 53 It should be there, where necessary, to explain or amplify the tax authority’s view of the law where it is within its collection and Rent a room relief: call for evidence Will Silsby management powers to do so. PERSONAL TAX p 53 zz It should be tailored to the audience for which it is intended. Interest Harmonisation and Sanctions for Margaret Curran So, simpler guidance for non-tax specialists or unrepresented Late Payment: HMRC Consultation p 54 taxpayers may provide an overview of the way the taxes operate, MANAGEMENT OF TAXES INDIRECT TAX whilst specialist technical guidance would inform tax practitioners Implementation of EU Directive on VAT and Jayne Simpson (whether acting within or outside the tax authority), of the way it vouchers: HMRC Consultation INDIRECT TAX p 54 interprets tax legislation. zz Taxpayers and their advisers should generally be able to rely on Making Tax Digital for VAT: draft regulations Richard Wild, published guidance. and guidance published Emma Rawson zz Guidance should be regularly updated for changes to legislation INDIRECT TAX MANAGEMENT OF TAXES p 55 and for decisions or judgments of a tribunal or court. zz Large Business compliance: enhancing our Margaret Curran Guidance should be dated, and where changes to guidance are risk assessment approach p 56 made the date and the reason for the change should be given. zz LARGE CORPORATE TAX MANAGEMENT OF TAXES Examples, particularly those derived from actual experience, should be used, especially to cover ‘grey’ or nuanced areas. The future role of alternative dispute Margaret Curran zz Where online calculators are used, as well as being simple to use, resolution in civil justice 57 and without error or bias, users must be able to rely on the result MANAGEMENT OF TAXES – such as printing off the results of an online decision or calculation Penalties for enablers of tax avoidance: Margaret Curran tool in support of the filing of a return. HMRC guidance and FAQs Emma Rawson zz Guidance in the form of Frequently Asked Questions (FAQs) can be very useful, particularly where new legislation is introduced, MANAGEMENT OF TAXES p 57 provided that the questions being answered are those the Professional bodies announce review of Jane Mellor taxpayer is likely to be asking themselves. engagement letters PROFESSIONAL STANDARDS p 58 Do take a look at the full submission for a fuller picture. So where Dividend waivers: a ‘reserved activity’? Margaret Curran are we in practice? Well, most of the guidance on non-devolved PROFESSIONAL STANDARDS p 58 taxes is held on GOV.UK. But that’s not all: the websites of 25 HMRC employment forums: an update Matthew Brown Ministerial departments (including HM Treasury), 20 Non-Ministerial EMPLOYMENT TAX p 58 departments (including HM Revenue & Customs) and 388 other agencies and public bodies have been merged onto GOV.UK. So, tax HMRC Counter-Avoidance activity: an update Margaret Curran content is also presented alongside information and functionality MANAGEMENT OF TAXES p 59 around driving licences, flood defences, becoming a British citizen, and even how to bring your ferret into the UK! And there’s more to Scotland update: Air Departure Tax Joanne Walker come – take a look at the Government Transformation Strategy (see Stakeholder Forum; Administrative Justice p 60 https://tinyurl.com/transform-strat for more information). Working Group; Scottish Draft Budget Just in terms of taxation, the quantity of content on GOV.UK is GENERAL FEATURE PERSONAL TAX INDIRECT TAX vast. We know from meetings with HMRC and the Government Digital Service (GDS) that there are over 500 pages of ‘mainstream’ content, over 6,000 pages of ‘specialist’ content, as well as over 80,000 pages of HMRC Manuals. Mainstream content is ‘owned’ by To contact the technical team about GDS (rather than HMRC) and is designed to give an overview of an these pages, please email: Sacha Dalton, area. It is written in a way that it can be understood by a person with a Technical Newsdesk editor reading age of eight. Specialist content is, as you would imagine, more [email protected] detailed, and is written by HMRC, although it must adhere to certain
50 February 2018 www.taxadvisermagazine.com TE N A
styles imposed by GDS, which excludes (for example) FAQs. As a rule January, we also met with the treasury teams of the Labour Party of thumb, if the page does not say ‘From: HM Revenue & Customs’ at and the Liberal Democrats to discuss the Bill. the top of the page, then it is mainstream content. We have made submissions on the Taxation (Cross-border Trade) So is this current approach to guidance working? Well, it’s fair to Bill to assist with its debate in Parliament, which should shortly say we have concerns on a number of levels: be available on the policy and technical pages of the CIOT website Updating of guidance – often guidance is out of date and will (https://tinyurl.com/tax-sub). As always, we would welcome any therefore be misleading and inaccurate. thoughts on the bill or any other aspects of Brexit to be sent to us at Status of guidance – to what extent can it be relied on, by whom, [email protected]. and in what circumstances. Accuracy /completeness of guidance – in particular, mainstream Angela Fearnside guidance often over-simplifies what is quite complex legislation. [email protected]
By way of examples, in relation to 1 above, the specialist guidance entitled ‘Income Tax when you rent out a property: working out your rental income’, until 28 October 2016, referred to claiming the wear Marriage allowance claims by and tear allowance, even though it was repealed with effect from 6 April 2016. So, the guidance was over six months out of date before bereaved spouses or civil partners it was updated on GOV.UK. In relation to 3 above, the mainstream guidance ‘Marriage Allowance’ states ‘To benefit as a couple, you PERSONAL TAX (as the lower earner) must have an income of £11,500 or less’ and ‘you don’t earn anything or your income is £11,500 or less’. These In response to representations by LITRG, the government statements are incorrect. The (four and a half pages of) legislation announced in the Autumn Budget that bereaved people would be which introduced the Marriage Allowance (and more in the current able to benefit from the transferable marriage allowance after the Finance (No. 2) Bill) allows it to be claimed provided neither spouse death of their spouse or civil partner, for a tax year in which that nor civil partner is liable to income tax at the higher or additional partner was alive. This article examines the Finance Bill 2017-18 rate. It is not a requirement that the lower earner has income under clause to enact this measure. £11,500. The distinction is important. Clause 6 of the Finance Bill 2017-18, entitled Transfer of tax Guidance is, therefore, an area which continues to be a focus of allowance after death of spouse or civil partner, amends the the CIOT, ATT and LITRG’s technical work. We’d be keen to hear your provisions in the Income Tax Act 2007 which govern the transferable views, and especially any areas of concern, to [email protected], marriage allowance introduced for tax years from 2015/16. Under [email protected] or [email protected]). these provisions (sections 55A to 55E), provided certain conditions are And though I’m pretty much out of space, I would just like to met, a spouse or civil partner can elect under section 55C to transfer highlight the briefings which the CIOT, ATT and LITRG submitted a percentage (10%) of their personal allowance to their partner, in on Finance Bill 2017-18. These can be found on the submissions which case their personal allowance will be reduced by that amount pages of our websites, and are part of our work towards a and their partner will benefit from a commensurate tax reduction legislative process which translates policy intentions accurately under section 55B. The conditions are that the spouse or civil partner and effectively into statute. entitled to the tax reduction must not be liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for Richard Wild savings, must be UK-resident, and neither that individual nor his/her [email protected] spouse or civil partner has claimed the married couple’s allowance, a different tax break available to couples one of whom was born before 6 April 1935. So in 2018/19, for which the personal allowance is set at £11,850, Brexit: VAT, Customs and Excise ‘A’ can elect to transfer £1,185 of their personal allowance to their spouse/civil partner, ‘B’. That will leave ‘A’ with a reduced personal INDIRECT TAX allowance of £11,850 - £1,185 = £10,665 and give ‘B’ a tax reduction equal to £1,185 at the basic rate (20%) – therefore, £237. Our work with HMRC, HM Treasury and parliamentarians, on the Hitherto, the legislation has been drafted in such a way that VAT, customs and excise implications of Brexit, continues. the partner giving up part of their personal allowance and the In December, representatives of the CIOT and invited guests partner entitled to the tax reduction must be married to, or in a were brought together in a roundtable meeting with cross party civil partnership with, one another at the time the election is made. parliamentarians from the House of Commons and House of So if the partner who would otherwise have been able to make Lords to discuss customs and Brexit issues. The views expressed the election under section 55C to transfer part of their personal highlighted the complexities faced, and also offered constructive allowance is no longer alive, the marriage allowance is not available suggestions for the design and implementation of new procedures and the surviving partner cannot benefit from the tax reduction under to encourage growth. A recurring point throughout the discussions section 55B. This has caused resentment among those bereaved was that businesses need certainty within a realistic timescale in spouses/civil partners who were unaware of the allowance until after order to make effective arrangements to cope with change. The their partner’s death, when something – probably advice received parliamentarians had opportunities to ask questions. We note that from a professional adviser assisting with the administration of the several members of the House of Lords referred to the meeting estate – drew their attention to it. in their subsequent discussions in Hansard (https://tinyurl.com/ When LITRG first drew attention to this anomaly, which yc4kosd2). many members both of the CIOT and the general public The CIOT also met with HM Treasury regarding the Customs had written to us about, the government was sympathetic. Bill White Paper in November 2017, and we met them again in Accordingly this clause allows an election to be made under January 2018 to discuss the Taxation (Cross-border Trade) Bill. This section 55C by the personal representatives of a deceased bill addresses a variety of significant matters; not just import and person, and for that election to have effect for the tax year export duties, but also VAT and excise duties. In December and of death and any earlier year, up to the statutory limit of
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four years previously. Elections can be made by personal the commencement provision within Clause 14 and HMRC’s draft representatives on this basis on and after 29 November 2017. guidance which simply states that the new condition will apply to all Thus, if spouse/civil partner A were to die in 2018/19 without investments made on or after the date of Royal Assent. having made any election, his/her personal representatives could make that election both for the year of death (2018/19) and for Written evidence any of the previous years during which the transferable marriage The written evidence submitted to the Finance Bill Committee should allowance was in force (2017/18, 2016/17 and 2015/16) and the become available on the Parliamentary website at: https://tinyurl.com/ surviving spouse/civil partner ‘B’ could claim a tax reduction for yd2e6ubr. any of those years. It is also available on the ATT website at: www.att.org.uk/ref282 The clause will enable anyone who has previously tried to make an election on behalf of a deceased individual, but whose claim has been Will Silsby rejected, to make a fresh election. [email protected]
Robin Williamson [email protected] Qualifying Care Relief: personal tax Risk to capital requirement for venture capital schemes: changes PERSONAL TAX Autumn Budget extends scope of relief to self-funders. in Finance Bill 2017-18 Qualifying care relief may be claimed by shared lives carers and foster carers to reduce the administrative burden of completing and OMB PERSONAL TAX submitting a full tax return to HMRC. Broadly, if their total receipts from qualifying care for a year are less than their annual maximum Growing and developing complications for EIS, SEIS and VCTs. limit, then they can report a nil profit for tax purposes. Or if their Clause 14 of Finance Bill 2017-18 introduces an additional risk to income is higher than that amount, they can report the excess only as a capital condition in order for investments to qualify for any of the profit. Of course, they retain the right to compute their actual profit or three venture capital reliefs – Enterprise Investment Scheme (EIS), loss, if they wish. Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trusts The annual maximum limit is found by taking a round sum (£10,000 Schemes (VCTs). for the year, which may be apportioned, for example if the carer does According to the published Explanatory Note, the purpose of the not operate for the full year) and adding to it a fixed sum per adult or new condition is ‘to prevent investment in companies whose activities young person per week that they are in the carer’s care. are mostly geared towards the preservation of the capital invested Until this proposed change, in order to be eligible for qualifying care rather than the long-term growth and development of the company.’ relief, the provision of care must essentially (amongst other things) In relation to each of the three schemes, the new risk to capital have been paid for by the Local Authority or an authorised scheme. condition has two legs. Having regard to all the circumstances existing Following the Budget announcement, the scope of qualifying care relief at the time of the share issue, it must be reasonable to conclude will be expanded so that it covers payments made from individuals both that the company in which the investment is being made ‘has who self-fund their shared lives scheme. objectives to grow and develop its trade in the long-term’ and that there is a significant risk that there will be a loss of capital of an Why change was needed amount greater than the net investment return. In recent times and in line with the ‘independent living’ agenda, the In its written evidence to the Public Bill Committee, the ATT delivery of care in the community, particularly for adults, by authorised focused on the company objectives leg. ATT notes that it is unclear carers has changed – and so has the way the care is funded. It used to what the requirement for the company’s objectives to grow and be the case that it was normally local authorities or approved shared develop its trade means in practice. lives schemes who arranged the care and placed the adult with their ATT notes that the company must have objectives to both grow carer. The local authority or scheme then paid the carer direct. and develop but that neither verb is defined in the legislation. This landscape has now changed significantly. For example, some It explores whether there is an intended distinction in meaning individuals pay for their care from direct payments given to them by between the two verbs and, if so, whether there is a risk that a the local authority or use their own resources. Strictly, these payments company’s objectives might satisfy one but not both of the ‘grow and to carers may not be qualifying care receipts since the carer may develop’ tests. not ‘receive payment’ from a local authority or relevant social care The ATT’s written evidence observes that the uncertainty of scheme. Of course, the carer would be providing the same care and meaning is compounded by the addition of the words ‘in the long- support regardless of the source of the payments and indeed in some term’ which introduces an imprecise timescale and also prompts cases the carer may not have known the actual source of their receipts. the question as to whether the new condition would be met if the Carers might therefore have claimed qualifying care relief where it was company’s objectives were to grow and develop in a more immediate not due. timescale than the long-term. Specifically within the context of EIS, ATT ask whether the grow When will the change take place? and develop test achieves anything given that an existing condition This is not clear. The budget announcement was made in November (Income Tax Act 2007 s 174) already requires the shares in respect of 2017, however instead of including provisions in the Finance Bill, which relief is claimed to ‘be issued in order to raise money for the it is intended to make the changes via regulations. LITRG has been purposes of a qualifying business activity so as to promote business campaigning on this matter and we hope to be able to comment growth and development’. on any draft regulations before they are laid before Parliament. It As a subsidiary point, in relation to all three of the venture capital would also make sense for the regulations to recognise this change schemes, ATT drew attention to an apparent inconsistency between on a backdated basis.
52 February 2018 www.taxadvisermagazine.com TE N A
Other issues with qualifying care relief To find out whether tax credits or universal credit can be claimed We are working with HMRC in an attempt to have some guidance in a particular postcode area you can use our web tool www. and forms changed and clarified. We would be very pleased to hear universalcreditinfo.net from you if you or your clients are experiencing any difficulties with the operation of qualifying care relief. Real life examples always Victoria Todd help us when presenting our case for change. [email protected]
Gillian Wrigley [email protected] Rent-a-room relief: Call for evidence Universal Credit roll-out update PERSONAL TAX PERSONAL TAX The CIOT, ATT and LITRG will be meeting HM Treasury officials to A £1.5 billion package of changes was announced to universal discuss the call for evidence on rent-a-room relief. To help inform credit in the Autumn Budget 2017. In this article we outline our response to government we would welcome input from those changes and explain the knock-on effects to the roll-out members with experience of the scheme. timetable. The government has published a call for evidence to understand Universal credit has featured in many media headlines in recent how rent-a-room relief is currently used. Full details can be found at: months. Following growing pressure in the weeks leading up to the https://tinyurl.com/y984essc. The CIOT and ATT will be responding to Autumn Budget, the Chancellor announced a £1.5 billion package of the call for evidence and are seeking members’ views to help inform changes to universal credit. Most of the press interest in universal our submissions. credit focused on the ‘delay’ in getting the first payment. The The rent-a-room rules apply to the ordinary letting of furnished system was designed with a minimum six week wait for the first accommodation in a person’s only or main home, for example, where payment following a new claim. This six week wait was made up of a an individual takes in a lodger or runs a guest house, and allows the seven-day waiting period (not applicable to everyone), the monthly first £7,500 of income from qualifying lettings to be received tax-free. assessment period and then a further week for DWP to process the The scheme applies to people who let a room in a home they rent as payment. In some cases DWP were taking much longer to make the well as to people who own their own homes and is available on the let payment, leading to reported delays in excess of 10 weeks. of a room to someone who is staying in the property as a visitor, on In order to address the concerns about this waiting time, it holiday, to attend an event, to work, study, etc. for any length of time. was announced that from February 2018, the seven-day waiting The scheme does not, however, apply to rooms let as an office or for period would be removed for everyone. New claimants can other business purposes (for example, outbuildings let for commercial ask for an advance payment of universal credit if they haven’t use) nor does it apply to accommodation that is not part of the got enough to live on while waiting for their first payment. The individual’s main residence (for example, a separate annex). advance is a loan from their award and must be repaid. The Rent-a-room relief is also separate from the new £1,000 annual Chancellor increased the amount of these advance payments up tax allowance for individuals for property income, which applies to 100% of the estimated universal credit payment to be paid to commercial and residential lettings, and includes both UK and within five days of the claim and extended the repayment period overseas properties. The property allowance cannot be claimed on from six months to 12 months. income that would qualify for relief under the rent-a-room scheme. In order to alleviate some of the problems relating to rent Thus, the property allowance is most likely to apply to the letting of, arrears for new claimants, from April 2018 those on housing benefit for example, commercial property (for example an office or garage), before claiming universal credit will continue to receive housing driveways, and second or holiday homes where there are minimal benefit for the first two weeks of their universal credit claim. It will also be easier to have the housing element paid directly to the The call for evidence aims to: landlord. Unlike housing benefit, the default position is that the zz Find out more about the current use of the relief: for example who housing element is paid directly to the claimant. uses the relief, what kinds of activity they are carrying out, why In order to accommodate these changes within the IT system, they might choose to let spare accommodation in their main or the government confirmed that the roll-out of universal credit only residence, and the effect of the relief on the housing market. would slow down between February 2018 and April 2018 meaning zz Establish whether the relief is working as intended when it was that full roll-out will now be complete in December 2018 rather introduced in 1992: that is to increase the supply and variety of than September 2018 as previously announced. low-cost residential housing. Shortly after the Autumn Budget, the Secretary of State also zz Establish any potential options for reform of the relief: for example confirmed that people with three or more children (who are not restricting rent-a-room relief to lettings of over 31 days. covered by an exception) will continue to be diverted to tax credits instead of universal credit until 31 January 2019. Tax credits will The CIOT, ATT and LITRG will be meeting with HM Treasury officials therefore remain open to new claims until that date rather than 31 to discuss the call for evidence and to help inform our response to the October 2018 as previously announced. consultation we are undertaking a survey to better understand: Since 2014, DWP have been running two universal credit IT zz The number of individuals claiming rent-a-room relief and the type systems – live service and full service. Rather than make changes to of activity on which relief is being claimed (for example lodgers, both IT systems, it was announced that the live service would close bed and breakfast, etc). to brand new claims from 1 January 2018 and instead claimants zz Whether all types of letting activity, regardless of the purpose in those areas can claim legacy benefits such as tax credits and or length, should be able to benefit from rent-a-room relief, for income-based jobseeker’s allowance until the full service comes to example, letting of a basement flat/annex, letting of a garage for their area. You can read more about this change on our website for commercial use, etc. advisers: https://tinyurl.com/yctxpn77. zz What other options there are for improving the scheme, for
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example would increasing the exempt threshold increase the amount that is being repaid to the date the repayment is made. supply of available accommodation. 6. Interest on delayed payment by HMRC of a repayment return – the zz Can the scheme be made simpler to understand and apply? For current ‘repayment supplement’ is to be replaced by the basic example, is it clear whether the letting of a person’s main home Finance Act 2009 repayment interest rules which HMRC believe during a period when that person is temporarily not in residence, will provide a more proportionate response to a delay and, unlike for example while he/she/they are on holiday/staying elsewhere, the current repayment supplement, reflect the length of time that falls within the scheme. Do we need better guidance, for example a repayment has taken to be made. The current 30 day rule would flow chart for people to check if eligible, etc? not be retained. Various anomalies in the current regime would also be removed. If you, or colleagues, have experience of the rent-a-room scheme, or of non-qualifying lettings of a person’s main home, we would Late payment penalties welcome your input. A survey will be emailed to members, can be The intention behind the proposals for late payment penalties is linked to from the CIOT and ATT websites and will be open until 12 to encourage timely payment of tax, or agreement of time to pay February. (TTP), and the removal of the penalty ‘cliff edges’ which exist in some current regimes. Current rules on appealing penalties and reasonable Matthew Brown Helen Thornley excuse will be retained. [email protected] [email protected] HMRC are proposing that where tax is not paid by the due date and there is no reasonable excuse, a penalty payment of 5% of the tax unpaid at the due date would become payable after 30 days. However, no penalty would be charged if payment of the unpaid tax Interest Harmonisation and was made or a TTP agreed within 15 days from the due date and the penalty would be halved if payment was made or a TTP agreed from Sanctions for Late Payment: day 16 to day 30. The consultation gives the following example where £3,000 is HMRC Consultation outstanding at the due date:
MANAGEMENT OF TAXES INDIRECT TAX Paid or TTP in first 15 days No penalty Paid or TTP from day 16-30 £75 penalty (5% x 50%) HMRC are consulting on proposals to harmonise interest rates Not paid or TTP at day 31 £150 penalty (5%) and rules and introduce a standardised approach to late payment penalties across taxes. If the tax remains unpaid after day 30 an additional penalty would The consultation is seeking views on: then be charged from 30 days from the proper due date until full zz aligning late paid and repayment interest for VAT with similar rules payment is made, and would be calculated in a similar way to interest. for Income Tax and Corporation Tax which will enable a common Late payment interest would be payable in addition to any late set of rules to apply across these regimes. payment penalty. zz introducing a new model for charging penalties on late payments There would be special rules for situations such as where an to help address the current diverse late payment penalty HMRC determination is made where a return is not provided, but models, promote positive behavioural change, and facilitate the subsequently a return is made which displaces the determination. opportunity to apply this same model across other regimes at The late payment penalties would apply to accelerated payment some point in the future. notices. However, HMRC have said that there is no intention to double count penalties. It is unclear whether this means the current APN This is part of HMRC’s wider work to simplify and harmonise penalty regime in Finance Act 2014 will be replaced, or not. tax administration processes across taxes, taking into account the The consultation runs until 2 March 2017 and can be found at introduction of Making Tax Digital for Business https://tinyurl.com/y8rzcmhv. HMRC has set out three broad principles for the design of a good Please send any comments you would like us to incorporate into penalty regime; that it should be: the CIOT’s response to [email protected]. zz Fair zz Effective in supporting good compliance Margaret Curran zz Simple to understand and operate [email protected]
Interest harmonisation HMRC’s intention around interest harmonisation is to smooth out the current anomalies across the taxes, but they recognise there will be Implementation of EU Directive winners and losers, particularly in relation to VAT. In summary, the changes proposed to the interest rules for late on VAT and vouchers: HMRC payment of VAT are that the default surcharge, statutory interest and repayment supplement rules will be replaced, as follows: consultation Interest on late payment of VAT returns – to follow the basic Finance Act 2009 rules, namely, interest would be charged on any INDIRECT TAX amount remaining outstanding from the date the payment for the return was due until it was paid. HMRC consults on how to transpose a recent EU VAT Directive on 5. VAT assessments and amendments – to adopt the existing rules VAT and vouchers into UK law. HMRC also wishes to be alerted to in Finance Act 2009 meaning that interest would be charged as any issues that the new rules may present and whether greater if the return had been correctly made on the due date until the clarity is required in some areas. payment for the amendment is received. For any assessments HMRC published a consultation document on 1 December 2017, or amendments resulting in amounts due to taxpayers, broadly, which requests feedback on the anticipated administrative burden interest would be paid from the date of the payment of the and financial impact on UK businesses of implementing the changes to
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accounting for VAT on certain vouchers required by the EU Vouchers [email protected] by 7 February, or directly to HMRC at alan. Directive, to be effective from 1 January 2019. [email protected] by 23 February 2018. It is anticipated that The new legislation is to be specific to physical or electronic the draft legislation will be published by HMRC in summer 2018. vouchers for which a payment has been made, give the right to purchase goods or services and in respect of which there is an Jayne Simpson obligation for the voucher to be accepted as consideration. It does [email protected] not apply to discount vouchers including money off vouchers, postage stamps, tickets for transport, or admission tickets for cinema and Making Tax Digital for VAT Why do we need to revisit the VAT position on vouchers? On 27 June 2016, the Council of the European Union published the EU INDIRECT TAX MANAGEMENT OF TAXES Vouchers Directive (Council Directive (EU) 2016/1065 https://tinyurl. com/y9p9a4sz) (‘the Directive’), which amends the Principal Directive The VAT requirements become clearer as draft regulations and (2006/112/EC). guidance are published, but do the numbers stack up? The new legislation seeks to harmonise the rules on vouchers across the EU and takes effect for all vouchers sold on or after 1 VAT update January 2019. Although the UK has voted to leave the EU, this will On 18 December 2017 HMRC published a number of documents not take place until March 2019, so as an existing EU member on 1 in relation to MTD for VAT. These documents can be found at January 2019, the UK must implement the Directive. https://tinyurl.com/yaebw9j8 and were: 1. Draft Regulations: these Regulations are relatively brief, and How will the EU Vouchers Directive change the current include matters such as the commencement provisions (1 position in the UK? April 2019 or the first VAT return period starting after that The UK VAT rules on vouchers are set out in Schedule 10A of the VAT date), the requirements (such as to use ‘functional compatible Act 1994 (https://tinyurl.com/yaoaq7wq). The UK legislation uses the software’ to record transactions and to submit the VAT terms ‘face-value vouchers’, ‘retailer vouchers’ and ‘credit vouchers’, return), and relevant exemptions (broadly speaking, the same with only paragraph 7A referring to single purpose vouchers (‘SPV’), exemptions as now for online filing of VAT returns, together whereas the Directive uses the terms single purpose voucher and with a turnover threshold to exempt voluntary registrations). multi-purpose voucher (‘MPV’), so alignment of these terms will be 2. Draft Explanatory Memorandum to the Regulations: which needed in UK legislation. provides some background information and context to the Single Purpose Voucher (SPV) 3. Draft VAT Notice: which seeks to explain the MTD The Directive broadens the definition of a SPV (Article 30A(2)) from requirements, such as who is in scope, what is meant by the current UK definition, as it does not limit the scope to ‘goods or ‘functional compatible software’ etc, and how VAT returns, services of one type’ as it does in paragraph 7A of Schedule 10A. This voluntary updates, and supplementary data should be means that if a supplier currently sells different types of goods that submitted. are subject to a single VAT rate, a retailer voucher would not currently 4. Draft Addendum to the VAT Notice: which explains, and be a SPV as the goods sold are not the same. However from 1 January illustrates using ‘customer journeys’, the extent of the digital 2019, the broader scope of the Directive’s definition means that such links between software and spreadsheets, the process of vouchers must be brought into scope of the SPV definition. submitting VAT returns in different scenarios, and how the first year ‘soft landing’ will operate in practice. Multi Purpose Voucher (MPV) The Directive defines an MPV (Article 30A(c)) as a voucher that isn’t We will be providing HMRC with comments on the above an SPV. In effect, this is a voucher that can be used to pay for goods documents by the deadline of 9 February 2018 (so if you have and services where the VAT cannot be determined at the time of sale any comments, please be quick!), but in the meantime some of of the voucher, for example the retailer sells products subject to the the headline points are: standard, reduced and zero rates of VAT and where the voucher could zz The requirements of MTD will apply to VAT return periods be used to buy any combination of these goods. (‘prescribed accounting periods’) beginning on or after 1 April 2019. So, if you or your clients have VAT quarters VAT treatment ending March, June, September and December (stagger 1), VAT will be due at the point of sale of an SPV and thereafter on each then the April to June 2019 VAT return period will need to occasion where such vouchers are sold and purchased in a supply comply with the MTD requirements. Thought will need to chain. The final sale of goods or services in exchange for the SPV be given to which software businesses will need to be using, would not create a tax point for VAT purposes, as the output VAT and when. For example, if a business on stagger 1 has a 30 would have already been declared by the supplier at the time of the June 2019 year end, it will really need to be using the right original sale of the voucher. MTD-compatible software from 1 July 2018, to ensure it can The sale of an MPV will not be subject to VAT at the time of sale, use the same software package for its entire accounts period, nor is VAT due on any subsequent sale and purchase of the MPV in a without having to change software from 1 April 2019. supply chain. The final sale of goods or services to the consumer will zz As expected, the only exemptions are (i) those which be the point at which VAT is declared by the supplier. currently apply in relation to online filing of VAT returns and Businesses will need to review the VAT position for vouchers (ii) those businesses with a taxable turnover below the VAT currently treated as MPVs but which will come into the scope of the registration threshold. But beware, the latter exemption SPV definition. needs to be monitored on a month-by-month basis, so businesses who are currently (say) voluntarily VAT registered Next steps will need to monitor their taxable supplies, because if The consultation document can be found at on GOV.UK (https:// those supplies go over the VAT registration threshold, the tinyurl.com/y9g3u7x6). Please send any comments to CIOT at requirements of MTD apply from the start of the next VAT
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return period. And such businesses will then remain within the timetable/ requirements is not easy, as they have not been requirements until they deregister. published in a single place, but require a series of calculations zz HMRC has listened to feedback and relaxed the level of detail based on Budget/ Autumn Statement documents. Our they require to be recorded in relation to each individual calculations, based on these published figures, show a revenue transaction. Their original proposal was particularly onerous yield of around £400m per annum once MTD for VAT is fully (such as requiring the invoice total to be broken down into embedded and a ‘steady state’ is reached. These figures are sub-totals for each rate of VAT chargeable, and recording the surprisingly high, considering the ‘steady state’ revenue benefits VAT charged at each rate on the invoice). That proposal has for the original MTD proposals were around £900m per annum, been relaxed and the requirements now broadly reflect the included income tax, and that around 80% of the tax gap in existing record keeping obligations. relation to error and failure to take reasonable care (which MTD zz Perhaps the largest ‘concession’, albeit a result which was is intended to address) is said to arise in the business population clearly the most practicable from the outset, relates to the which trades below the VAT registration threshold (and so extent of the digital links between types of software and therefore not within the current scope of MTD for VAT). spreadsheets, and this is helpfully illustrated in HMRC’s We will continue to provide updates on MTD through draft ‘customer journeys’. In general, MTD will require a Technical Newsdesk, and on the CIOT website MTD pages at digital (that is, not manual) link between the source records www.tax.org.uk/MTD. (maintained in software or on a spreadsheet), and HMRC, where the information being transferred is the data which is Richard Wild Emma Rawson mandated to be kept digitally. So for example, if a business [email protected] [email protected] has recorded output VAT of £10,000 and input VAT of £6,000 in its digital records, those amounts must flow digitally to HMRC (either directly from the software or spreadsheet, or via some form of bridging software) because those Large Business compliance: output and input values are required to be kept digitally. If that business is partially exempt, and needs to restrict enhancing our risk assessment (say) £2,000 of its input VAT, it has broadly two options. One option (example six in HMRC’s customer journeys) is approach to journal the £2,000 adjustment into the record keeping software, which can then digitally submit the VAT return LARGE CORPORATE TAX MANAGEMENT OF TAXES showing output VAT of £10,000 and input VAT of £4,000. The second option (example four in HMRC’s customer journeys) is The CIOT has responded to HMRC’s recent consultation to digitally export the £10,000 output VAT and £6,000 input document which considered how their Business Risk Review VAT into a spreadsheet, undertake the partial exemption (BRR) approach can be improved so it can continue to support calculation in the spreadsheet, and submit the VAT return a shift in large business tax compliance behaviours and provide digitally from the spreadsheet, showing output VAT of greater clarity and confidence for large businesses. £10,000 and input VAT of £4,000. The consultation explored whether the BRR model can be zz So where is the ‘concession’? HMRC recognise that software refreshed, potentially with more risk categories tailored to the is not widely available to digitise some of the VAT return tax risks encountered in the large business population. ‘journeys’, especially where this involves exporting data from The CIOT agrees that the BRR is an important part of the software to spreadsheets, and it is those links (and those way HMRC deliver their Large Business Strategy. In line with alone) which will benefit from a ‘soft landing’ in the first our stated objectives for the tax system, the CIOT believes year of MTD – allowing businesses more time to adapt their that overall the BRR process should aim to be providing large systems to make the VAT return journey an entirely digital businesses with greater certainty, so they can plan ahead with one. Notwithstanding this proposed ‘soft landing’, businesses confidence. should start planning now how they will make their VAT In our response we note that problems can arise when the return process an entirely digital one in the future. process is not applied properly in practice. We point out that whilst the design can be modified, ensuring that CRMs operate it Costs and revenue benefits correctly is more urgent. It is also worth focusing briefly on the revised costings for We agree that it makes sense for HMRC to profile large MTD, which were published by HMRC in a technical note on 1 businesses at the whole-of-business level as well as risk assessing December 2017 (see https://tinyurl.com/ycf46vhz). These are particular tax returns, so the BRR underpins resourcing to risk, the first costings which have been published since the revised ensuring HMRC direct resources where they will get the best MTD timetable was announced on 13 July 2017. Headline points from these HMRC figures, which now reflect only the MTD for The BRR should also be providing HMRC with a better VAT requirement, are: understanding of a business’s commercial objectives, business HMRC have calculated a transition cost of £131m in total, processes and appetite for tax risk. It should provide the business across a mandated population of 1.2m businesses. This with a clear view of where the business lies by reference to averages at just £109 per business; a surprisingly low figure, different aspects of compliance with its tax obligations and considering the level of change and familiarisation needed for HMRC’s concerns in each area. Best practice is that HMRC should the new regime. actively help and businesses should actively manage this so that HMRC recognise that there will be net additional ongoing it provides a framework for the ongoing relationship between costs for businesses of around £37m per annum in total, the business and HMRC. represented by additional software costs of around £52m, offset In our view, the frequency of BRRs should be for HMRC to in part by administrative savings of around £16m (subject to decide. However, it makes sense to do reviews less frequently roundings). Time will tell whether these costs are in the right where a business is judged to be lower risk and to be able to ballpark, but again we believe they are rather low. do them only for tax regimes that are thought to be higher risk Identifying the expected revenue benefits from the revised where the risk may vary between taxes within a business.
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Using the BRR to encourage businesses to move down has had no previous involvement with the case and no previous the risk spectrum is a sensible approach. Having more contact with the case worker. Feedback from our members differentiation in markings can help with this, as long as it does indicates that in the vast majority of cases the performance of not divert resources into arguments about borderline cases. It HMRC’s mediators is very good indeed, and in general the HMRC does need to be recognised, though, that large businesses are caseworker has a good understanding of the case and of the generally inherently complex, and for this reason there may be technical aspects involved. relatively few businesses that can truly ever be in the lowest Whilst the view of the tax profession towards ADR remains band of risk. generally positive, we note that certain common themes have We also say that HMRC need to ensure that they do not give emerged in cases where taxpayers and their advisers have adverse incentives. Becoming low risk has sometimes led to been dissatisfied with the behaviour of the HMRC ‘side’ (that is, HMRC ceasing to pay attention to businesses. This can damage excluding the HMRC mediator) and therefore have felt that the a business which needs an answer to a complex question process was unsatisfactory. commercially when the answer cannot be delivered in a timely These include: manner. Fear of this may drive some businesses to ensure they (a) It becoming clear on the day of the ADR itself that the do not become low risk in the current ranking system. The best relevant HMRC decision-maker/policy specialist is not way to overcome this would be to ensure the BRR discussion present and/or cannot be reached so that HMRC are not covers the resources HMRC and the business agree need to be in a position to settle. allocated to support and monitor the business’s tax compliance (b) Intransigence on the part of the HMRC case worker. efforts so that the business can have more confidence that (c) Lack of preparation on the part of the HMRC case worker. moving down the risk scale will help provide more certainty, (d) HMRC’s governance position not having been made clear to the taxpayer or their advisers in advance so that it The full text of the CIOT’s response can be found at www. becomes apparent only on the day of the ADR itself that tax.org.uk/ref369 there is an additional step that needs to be taken on HMRC’s side before a settlement can be concluded. Margaret Curran (e) Lack of communication in advance on the part of HMRC [email protected] about their ‘red lines’.
When ADR results in a settlement of the dispute, this has been shown by data collected by HMRC to save time and costs for both The future role of Alternative sides. Conversely, there can be significant cost consequences for both sides if ADR is not successful in resolving a tax dispute, and the Dispute Resolution in civil case proceeds to the Tax Tribunal. This is particularly frustrating for the taxpayer if the reason for the failure to reach agreement on the justice day is due to HMRC’s behaviour. We have previously recommended, and continue to recommend, MANAGEMENT OF TAXES to HMRC that they publicise, promote and explain ADR better both externally and within HMRC, and that they give consideration to The CIOT has responded to the Civil Justice Council’s (CJC) widening the scope of ADR. We have also suggested that they review interim report on the future role of Alternative Dispute cases where ADR has not been successful in resolving tax disputes Resolution (ADR) in civil justice, focusing specifically on how in order to identify common causes of failure and put in place ADR is used in resolving tax disputes by agreement between processes to address them, as necessary. HMRC and taxpayers. We also sent a copy of our response to Our response also quoted the feedback on ADR we received from HMRC. CIOT members when we conducted our survey into HMRC’s Powers ADR was introduced as part of HMRC’s ‘business as usual’ in in 2015, and recent HMRC statistics. autumn 2013. Since then, the use of ADR as a tool for resolving The full text of the CIOT’s response can be found at www.tax.org. tax disputes between taxpayers and HMRC has gradually uk/ref392 become more prevalent. On the whole, it has been successful and the experiences of those who have used it (on both sides) Margaret Curran are positive. In our view, carried out properly, ADR has a [email protected] valuable role to play in dispute resolution involving tax matters. We consider that the main reason for the success of ADR in tax disputes has been a willingness on both sides to make the process work. However, there is still a lack of awareness of ADR Penalties for enablers of tax amongst taxpayers, their advisers and HMRC. ADR can help where a dispute has become ‘bogged down’. avoidance: HMRC guidance This can occur where the facts have not been completely established, information is incomplete, the facts have been and FAQs misunderstood or misinterpreted and/or there is technical disagreement. Most cases would otherwise be headed towards MANAGEMENT OF TAXES the Tax Tribunal. Unsurprisingly, experience has shown that the best results are obtained where both sides enter into the ADR HMRC have published their final guidance on the new penalties process in a spirit of open-mindedness and compromise, and for enablers of tax avoidance and the ATT and CIOT have when there is a genuine commitment to resolving a case and/or produced some accompanying Frequently Asked Questions for narrowing the issues in dispute. members. In the majority of cases, the mediator is an HMRC employee Finance (No.2) Act 2017 Schedule 16 introduced new penalties who has been specially trained by the Centre for Effective for enablers of defeated abusive tax arrangements (the ‘penalties Dispute Resolution (CEDR), works in a dedicated ADR team and for enablers’ rules) with effect from 16 November 2017.
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These new penalties extend beyond those who promote tax avoidance schemes to those involved at any step in their Dividend Waivers: a development, design, management or implementation. On 22 December 2017 HMRC published their final guidance on ‘Reserved Activity’? the penalties for enablers rules which can be found at https:// tinyurl.com/ycd7g6yo. This followed a period of consultation on PROFESSIONAL STANDARDS draft guidance, to which both the ATT (www.att.org.uk/ref273) and the CIOT (www.tax.org.uk/ref377) responded. Members should be aware of the ‘reserved activity’ rules before The final guidance is comprehensive and stretches to 62 getting involved in drafting a deed, such as a dividend waiver. pages. It covers several key areas of the rules, including: In November’s Tax Adviser I discussed new guidance recently zz The definition of abusive tax arrangements. produced by the CIOT for members to use when HMRC suggest zz When arrangements are deemed to be defeated. using a deed to settle a tax enquiry. The guidance, which can be zz The calculation of penalties. found on our website at www.tax.org.uk/deeds, explains that zz Administrative procedures around assessing a penalty and the drafting, preparation and execution of deeds is a ‘reserved making referrals to the GAAR panel. activity’ under the Legal Services Act 2007 (‘the Act’) which can only be carried out by an authorised or exempt person. In general, The guidance also looks closely at each category of enabler members of the CIOT are not authorised to carry on a reserved defined in the legislation (designers, managers, marketers etc.) activity unless they are also members of the Law Society or the and includes examples to illustrate the types of behaviour which HMRC believe may or may not constitute enabling. This prompted one member to get in touch to ask whether the An area of particular interest for ATT and CIOT members is the same rule applies to the position where members assist clients interaction with Professional Conduct in Relation to Taxation (PCRT). with drafting deeds of dividend waiver and whether this work is Although the enablers legislation does not specifically exempt those still permissible following the issue of our recent guidance. who act in accordance with the requirements of PCRT from being an Dividend waivers are only effective if executed by deed because enabler, HMRC’s guidance states that if they conduct their business there is no consideration to support a contract. in accordance with PCRT and act wholly within the spirit of the Our guidance does not specifically address deeds used in any standard for tax planning, it is unlikely that such a person will come other circumstances, but does have some relevant references to within the scope of the enablers legislation. the statutory conditions applicable to deeds in general. To assist members in considering what the penalties for Section 4 of the guidance explains when the preparation of a enablers rules may mean in practice the ATT and CIOT have deed is a reserved legal activity. In the CIOT’s view, it is likely that produced a document considering some Frequently Asked the drafting, preparation and execution of a deed of dividend Questions (FAQs). These cover a variety of areas, including waiver would be a reserved activity under the Act, assuming it whether providing certain services (including tax return filing, is intended to be executed as a deed. The waiver of a dividend is second opinions, referrals, exit strategies) may result in a more likely than not to relate to a person’s ‘personal estate’. member being an enabler and what responsibilities advisers have CIOT members would therefore only be authorised to draft, under the new rules. The FAQs document can be found on the prepare and execute a deed of dividend waiver if they are ATT website www.att.org.uk/PEFAQ and the CIOT website www. authorised to do so under the Act, or exempt. Paragraph 5 of the tax.org.uk/PEFAQ. guidance explains when members are authorised or exempt, and when they are not. As mentioned above, CIOT members are not Emma Rawson Margaret Curran authorised simply by virtue of being CIOT members. [email protected] [email protected] It would be advisable for members who are not authorised or exempt under the Act to check the rules relating to ‘reserved activity’ before undertaking any work involving a deed.
Margaret Curran Update of Engagement Letters: [email protected] Statement issued by the joint working party between AAT, HMRC Employment Forum
ACCA, ATT, CIOT and STEP EMPLOYMENT TAX
PROFESSIONAL STANDARDS A round up of recent HMRC employment taxes related consultative forum meetings, including the Employment and Members may like to be aware that ‘Engagement letters for Payroll Group, Student Loan Consultation Group, and IR35 tax practitioners’ are currently being worked on jointly by AAT, Forum. ACCA, ATT, CIOT and STEP. A number of changes are required Employment and Payroll Group (EPG) including legislative changes such as the EU General Data The EPG is HMRC’s main employment taxes forum and generally Protection Regulation (GDPR). The working party of these focuses on high-level policy issues. It met in early December to professional bodies is working towards issue of the updated discuss Making Tax Digital for individuals (MTDi), the Real Time guidance and template letters in early summer 2018. Information (RTI) Post-Implementation Review (PIR), and IR35. In the meantime please contact [email protected] if you As part of MTDi, HMRC are using 2016-17 data received on have any queries. single named savings accounts from banks and building societies to populate interest for the 2016-17 tax year, for example for Jane Mellor P800/Simple Assessment purposes, and estimate interest in the [email protected] 2017-18 tax year, for example for tax code review purposes. We
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also understand the process whereby ‘in-year adjustments’ are to a worker’s personal service company, which are subject to included in a tax code to collect estimated underpayments where employment tax deductions at source (ie IR35 applies and the a tax code number is reduced will be paused from January 2018 to public sector body/agency withholds income tax and NICs under the end of the tax year to prevent excessive tax deductions arising. PAYE), has been referred to HMRC’s Tax and Accounting Forum with The RTI PIR was an internal review commissioned by HMRC’s a view to publishing improved guidance. RTI programme board at closure of the implementation phase of RTI reporting and was undertaken by the HMRC business area Matthew Brown most impacted by the changes to the PAYE system. The review [email protected] was designed to check that the programme achieved what it set out to do and how the changes are working in normal businesses. Although HMRC found the programme achieved what it set out to do (and considering the scale and pace, the introduction of RTI HMRC Counter-Avoidance went relatively smoothly), the review acknowledges there was unease about the impact of real time reporting on small business, Activity: an update with many smaller employers feeling unready for its introduction and implications, and that there have been a number of data MANAGEMENT OF TAXES quality issues and mismatches between HMRC and employer records which continue to create discrepancies that can be time HMRC provided an update at a recent meeting attended by the CIOT consuming and costly to resolve. The full report can be read at: and other professional bodies. https://tinyurl.com/y7zxju8l. As announced in the Autumn Budget the government is moving New policy measures on from the changes to IR35 introduced in April 2017 for the Serial tax avoidance regime (STAR): Finance Act 2016 Sch 18 public sector and focusing on the private sector (and the £1.2bn The STAR technical guidance was published on GOV.UK on 12 per annum tax leakage predicted by 2025). A consultation will be January 2018. Factsheets will follow. published in 2018 and we understand the government is open- The first set of ‘Warning Notices’ (to taxpayers who have used a tax minded as to how best to tackle the private sector so long as the avoidance scheme defeated since 5 April 2017) will be issued soon. The tax leakage is addressed. notices will be copied to agents. Collection of Student Loans Consultation Group (CSL) Errors in taxpayers documents (failure to take reasonable care): The CSL also met in early December and discussions focused on Finance (No.2) Act 2017 s64 HMRC’s processes. From April 2018 HMRC will mandate that the Guidance is now available in the compliance handbook at CH81122, student loan plan type must be included in RTI submissions. This CH81123 and CH81124 on the changes to inaccuracy penalties in information will be used to identify when the employer is using the Finance Act 2007 Sch 24 when the taxpayer has used an avoidance wrong plan type (threshold) for deductions and, where necessary, arrangement. Factsheets will follow. HMRC will issue a prompt to the employer to correct the plan type. Partial closure notices: Finance (No.2) Act 2017 Sch 15 HMRC and the Student Loans Company are also beginning work on For now, a low key ‘test and learn’ approach is being taken. moving from an end of year transfer of data on employer student Penalties for enablers of defeated tax avoidance: Finance (No.2) loan repayment deductions to more frequent data transfers (that Act 2017 Sch 16 is real time exploitation of RTI data). This is likely to commence in HMRC’s operational planning in this area is well underway focussing 2019-20. on ‘promote and prevent’ activity. The student loan repayment threshold for Plan 2 loans will Regulations were laid on 10 December 2017 regarding declarations increase from April 2018. A Written Ministerial Statement around legally privileged communications which came into force on 2 confirming the new earnings threshold can be found at: https:// January 2018: https://tinyurl.com/y7a2l4fc. tinyurl.com/yby8hama. HMRC’s guidance was published on 22 December 2017 (see separate article in this month’s Technical Newsdesk). Factsheets will IR35 Forum follow. The IR35 forum met in mid-December and the meeting focused on the direct collection of employment taxes in the public sector DOTAS where a public body determines that an ‘off-payroll worker’ falls HMRC has extended DOTAS to IHT avoidance, avoidance of the within the IR35 rules. External members of the forum raised Apprenticeship Levy and incorporated these changes into the rules issues around the time taken by public bodies to assess whether that apply DOTAS to avoidance of NICs. Regulations were laid on 30 an engagement falls within or outside of IR35 and where they November 2017 but come into force on different dates. take a blanket decision that workers are caught by IR35 but then zz The IHT hallmark comes into force on 1 April 2018. reconsider on a case-by-case basis if the worker objects. There zz The NICs rules apply from 21 December 2017, apart from the was also considerable concern that some agencies were ignoring employer reporting requirement which applies for 2018/19 the new rules and that the public sector was not supporting onwards. reputable agencies. We understand that HMRC is undertaking zz The Apprenticeship Levy changes apply from 21 December 2017. ‘robust’ compliance activities to address non-compliance with the Promoter Channel Update Additionally, concern was raised that HMRC’s ‘Check Recent successes in tackling avoidance schemes were noted – employment status for tax’ (CEST) tool fails to check the mutuality (i) DOTAS non-compliance (HMRC v Root2tax [2017] UKFTT 696); position as it is HMRC’s view that it would ‘rarely if ever be (ii) The first four GAAR Panel opinions which have all found the case in a public sector hiring’ so HMRC would not consider that the entering into and carrying out of the referred tax mutuality of obligation to be present. We think this is a major arrangements was not a reasonable course of action in failing that needs to be addressed, not least because CEST can be relation to the relevant tax provisions; used for current or future engagements in the public or private (iii) The Advertising Standards Authority ruling on Knight Wolffe’s misleading advertising using HMRC’s logo (see Spotlight 40 Finally, we understand the accounting treatment of payments https://tinyurl.com/y7not2ce).
February 2018 www.taxadvisermagazine.com 59 TECHNICAL
HMRC are continuing to use their data gathering powers in Finance At the end of November, a CIOT representative attended Act 2011 Sch 23 to obtain lists of introductory fees/commissions paid the Scottish Government’s Air Departure Tax (ADT) Forum in by promoters. Letters have recently been sent to promoters covering Edinburgh. the tax years 2014/15, 2015/16 and 2016/17. This followed the announcement that the introduction HMRC are engaging with promoters and agents, and report an of ADT in Scotland will be deferred until issues raised by the increasing willingness to work towards settlement. HMRC report Scottish Government in relation to the Highlands and Islands receiving a lot of intelligence on avoidance schemes and that agents exemption have been resolved. The UK Government will maintain are a good source of information. This helps them to issue ‘Spotlights’ the application of Air Passenger Duty (APD) in Scotland in the and take other action, as appropriate, more promptly. interim. The intention had been that APD would be ‘switched off’ in Scotland on 1 April 2018, with ADT taking effect from that date. Disguised Remuneration (DR) The Cabinet Secretary for Finance and the Constitution, Derek Ongoing projects: Mackay MSP, explained why he felt the deferral was necessary. 1. Tackling DR – ‘operationalising’ the 5 April 2019 loan charge He also confirmed the Scottish Government’s policy intention to legislation; reduce the tax burden of ADT by 50% by the end of the current 2. Rangers planning group – focusing on the consequences of the Parliament and to replicate the current Highlands and Islands Supreme Court’s judgement: exemption. (a) Follower notices; Much of the discussion during the meeting concerned the (b) Spotlight 41 https://tinyurl.com/y8l8ug8k; decision to defer introduction of the tax and possible solutions. (c) Leveraging settlements and terms (see terms published on 7 Concerns were also raised by stakeholders about the lack of a November 2017 https://tinyurl.com/y7baqcv6). timescale for resolving the issue and the insufficient lead-time in terms of rates of ADT when it is introduced. HMRC expressed a willingness to work with agents to reach settlement and that they are prepared to share documentation and Administrative Justice Working Group templates for contracts. Specialist teams have been set up within A LITRG representative attended the meeting of the Scottish HMRC to deal with this work. Government’s Administrative Justice Working Group in December 2017. Insolvency in Counter Avoidance (CA) The main substance of the meeting was a presentation on An overview was provided of how CA use insolvency powers to tackle Social Security devolution by Scottish Government officials. avoidance. Key points: The new Social Security Agency will be located in Dundee, with zz There is support to help taxpayers with genuine difficulties paying a second office in Glasgow. Accessibility workshops are to be their liabilities, as insolvency is never an easy option. carried out with a view to seeking a location in the heart of the zz HMRC has resources, and determination, to identify taxpayers who community, which is public-facing, open, and accessible. The simply ‘won’t pay’ including promoters who try to use insolvency Scottish Government also intend there to be local delivery to to help users of avoidance schemes avoid their liabilities. complement the central services. zz HMRC are much more likely now to intervene before a company The Social Security Committee’s call for evidence on the Social goes into liquidation to ensure tax is paid. Security Bill produced 150 responses; the Stage One report for zz HMRC will also work with other agencies to get directors the Social Security Bill was published in December (https://tinyurl. disqualified in appropriate cases. com/y8p5mq2f). There will be a public consultation in 2018 on zz No longer working with insolvency practitioners who may have the new social security chamber for the Scottish Tribunals. The used or promoted avoidance schemes, or worked with promoters intention is that the culture of the Social Security Bill, with a focus on enabling schemes involving the use of insolvency. This is at the on dignity and respect, should be carried over to the chamber. moment a CA initiative. They are looking to broaden the approach The social security delivery system is being co-designed across HMRC. with the public, to ensure it works for both simple and complex zz A discussion document will be published in 2018 on insolvency benefits. The social security system in Scotland is to have 7 core and phoenixism risks from taxpayers who deliberately abuse the principles, which are based around social security being a human insolvency regime to avoid or evade their tax liabilities. right. These principles will be embedded throughout policy, operations and local delivery. It is intended that the Charter Margaret Curran will be a means of putting the principles into action. It will bind [email protected] the Scottish Government to specific commitments, measurable where possible, and will act as a bridge between principles and operation. Consideration is being given to redress, in the event a person believes their rights as set out in the Charter are Scotland update: Air Departure breached. In other news, a successor to the Administrative Justice Forum Tax Stakeholder Forum; is being set up, and will be known as the Administrative Justice Council (https://tinyurl.com/ydheslvb). It will have a wide remit on Administrative Justice Working administrative justice matters. The Tribunals and Administrative Justice Policy Team (Scottish government) has asked for a seat on Group; Scottish Draft Budget the Council.
GENERAL FEATURE PERSONAL TAX INDIRECT TAX Scottish Draft Budget for 2018/19 The Scottish Government published its Draft Budget for 2018/19 The CIOT and LITRG report back from the Air Departure Tax on 14 December 2017, including its proposals for income tax. The Stakeholder Forum, the Administrative Justice Working Group and Draft Budget documents are available at: https://tinyurl.com/ on the Scottish Government’s Draft Budget for 2018/19. yb6cv7u6. As a reminder, income tax is partially devolved to Scotland, with Air Departure Tax Stakeholder Forum the Scottish Parliament having the power to set rates and bands
60 February 2018 www.taxadvisermagazine.com TE N A
for non-savings and non-dividend income of Scottish taxpayers. arise for Scottish taxpayers and there are several areas where it The UK Parliament retains control of the tax base, reliefs, is likely that consequential amendments will be required to UK exemptions and allowances. legislation to ensure that Scottish taxpayers do not lose out by From 6 April 2018, provided the Scottish Government’s comparison with those in the rest of the UK in relation to certain proposals are approved by the Scottish Parliament, Scottish reliefs. In particular, without changes to Income Tax Act 2007 s taxpayers will have a five-band income tax structure for their non- 55A ff., no Scottish taxpayers may be eligible to claim Marriage savings and non-dividend income, as set out below: Allowance in 2018/19, due to the introduction of the starter rate band. In addition, changes will be needed to Finance Act 2004 Income Band Rate and the Income Tax Act 2007 in relation to tax relief on pension £11,850 - £13,850 Starter 19% contributions and Gift Aid donations, to ensure the appropriate £13,851 - £24,000 Basic 20% bands are extended. £24,001 - £44,273 Intermediate 21% In a response to the UK Government’s Autumn Budget £44,274 - £150,000 Higher 41% announcement of a stamp duty land tax relief for first- £150,001 and above Top 46% time buyers, the Scottish Government will consult on the introduction of a relief from LBTT for first-time buyers of The Scottish Government was keen to point out that as a result properties in Scotland. The relief will raise the zero tax rate of these changes, Scottish taxpayers earning less than £26,000 will threshold for first-time buyers from £145,000 to £175,000, pay slightly less income tax in 2018/19 than if they lived elsewhere meaning that those first-time buyers purchasing properties in the UK. It should be noted though that Scottish taxpayers in with values in excess of £175,000 will also benefit from the receipt of Universal Credit or means-tested benefits are unlikely to relief. benefit to the same extent, since the increase in their net after tax income will lead to some of their benefits being clawed back. Joanne Walker Moreover, there are a number of complications that will [email protected]
Recent submissions Further information Date sent CIOT Draft legislation: The Income Tax (Pay As You Earn) Regulations 2017 www.tax.org.uk/ref393 28/11/2017 Penalties for enablers of defeated tax avoidance www.tax.org.uk/ref377 30/11/2017 Treasury Committee inquiry into the 2017 Autumn Budget www.tax.org.uk/ref397 30/11/2017 Consultation on the Business Risk Review www.tax.org.uk/ref369 06/12/2017 Attributes of good guidance: Joint submission to Welsh Revenue Authority with ATT and www.tax.org.uk/ref394 15/12/2017 LITRG Interim report and Future Role of ADR in Civil Justice www.tax.org.uk/ref392 15/12/2017 www.tax.org.uk/ref392 Fair taxation of the digital economy www.tax.org.uk/ref385 15/12/2017 Draft Legislation: the Pension Schemes (Application of UK Provisions to Relevant Non-UK www.tax.org.uk/ref417 15/12/2017 Schemes) (Amendment) Regulations 2018 The Fulfilment Business (Approval Scheme) Regulations 2018 www.tax.org.uk/ref378 20/12/2017 Draft legislation: The Venture Capital Trust (Exchange of Shares and Securities) Regulations www.tax.org.uk/ref413 03/01/2018 2017 Taxing gains made by non-residents on UK immovable property – the anti-forestalling rule – www.tax.org.uk/ref422 10/01/2018 CIOT letter Finance Bill 2017-18 – Briefings on various Finance Bill clauses to Public Bill Committee www.tax.org.uk/ 11/01/2018 refFBB1719 ATT Penalties for enablers of defeated tax avoidance www.att.org.uk/ref273 29/11/2017 Attributes of good guidance: Joint submission to Welsh Revenue Authority with CIOT www.att.org.uk/ref277 15/12/2017 and LITRG Finance Bill 2017-18 Clause 14: EIS, SEIS and VCT reliefs: risks to capital www.att.org.uk/ref282 09/01/2018 Finance Bill 2017-18 Clause 41: Relief for First-Time Buyers www.att.org.uk/ref283 10/01/2018 LITRG Employment support for carers inquiry www.litrg.org.uk/ref290 22/11/2017 Attributes of good guidance: Joint submission to Welsh Revenue Authority with ATT and CIOT www.litrg.org.uk/ref291 15/12/2018
Scottish Government Discussion Paper: The Role of Income Tax in Scotland’s Budget www.litrg.org.uk/ref289 24/11/2017
February 2018 www.taxadvisermagazine.com 61 R E N
CIOT/ATT At the Christmas Carol Service
Members and guests at the Carol Service
EVENT Williamson conducted the service and John Preston (CIOT More than 75 Members and President), Graham Batty (ATT guests celebrated the festive President) and some of the CIOT season at the Joint CIOT/ATT and ATT Members and staff, Carol Service at St Peter’s read a total of seven lessons. Church, Eaton Square, London A small reception in the SW1 on Wednesday 13 Parish Hall with mulled wine December 2017. and mince pies concluded the The Reverend Ralph evening.
Youngers guests with ATT President, Graham Batty (left) and CIOT President, John The readers at the Carol Service. Left to right: John Preston, Glyn Fullelove, Natalie Preston (right) Miller, Graham Batty, Nikki Reale, Michael Ashdown and Chris Brydone
62 February 2018 www.taxadvisermagazine.com BRIEFINGS
CIOT/ATT East Midlands branch stays at the forefront of MTD conversation!
BRANCHES
Hot off the heels of their record-breaking Making Tax Digital event back in the Spring of 2017, the East Midlands Branch held their MTD update event in November 2017 by special request. The event was led once again by the ever-popular Rebecca Benneyworth MBE, and she was supported by the CIOT’s Head of Technical, Richard Wild, and Steve Reynard from the accountancy and bookkeeping software house, Quickbooks. Representati ves from the regional professional bodies ICAEW, ACCA and AAT were also invited to join in the MTD debate along with many members and non-member Richard Wild, Rebecca Benneyworth, Stephen Foulkes and Steve Reynard practi ti oners att ending. Commenti ng on the event, on MTD here in the East CIOT East Midlands Branch Chair, Midlands not only for our Stephen Foulkes, said: ‘I am CIOT/ATT members, but also again absolutely delighted for the benefi t of non-member New Council with how this event turned practi ti oners and the general out. In view of HMRC’s public alike, and I am delighted member announcement back in July that we are once again at the last year in postponing the forefront of that conversati on elected to initi al April 2018 phasing- and delivering on that aim.’ in date, there was an air of In responding to Stephen’s apprehension that our MTD comments, Head of the CIOT’s Council Mary Monfries update would not be as Technical Team, Richard Wild, “current” or as “relevant” as said: ‘What a great branch in January UK Private Client practi ce and the previous one. event! It was parti cularly is a member of the UK fi rm’s ‘The event actually interesti ng to hear a diff erent 2018: Mary Supervisory Board. exceeded all our expectati ons perspecti ve on MTD from Mary has always retained with another fabulous both Rebecca Benneyworth a client-facing relati onship att endance. Questi ons from and Steve Reynard. Whilst the Monfries partner role alongside her the audience also came in CIOT and ATT are working very leadership responsibiliti es, MEMBERS thick and fast and we had a closely with HMRC on MTD, focussing primarily on privately very lively debate! We have things are moving quickly owned businesses, families and listened to the comments, and there’s always something Mary Monfries BA (Mus) ACA private clients. concerns and feedback from new to take on board or an CTA (Fellow) is a partner of PwC Her love of music (she our members and it was clear alternati ve point of view to in the UK and was a member of originally did a music degree!) from Rebecca’s message that understand. the fi rm’s tax leadership team comes through prominently MTD is sti ll out there, it is ‘It was also good to have for eight years, fi rstly as Market in her social life as well as the sti ll coming, and we all need plenty of interacti on with Leader for Private Business two chariti es where she is a to turn what can easily be members and non-members and then leading across the Trustee. In her spare ti me she seen as a ‘nightmare’ into an who att ended the event, fi rm’s tax practi ce on policy enjoys ti me with her family and opportunity. and we very much welcome and reputati on. She now leads friends, travelling when she can ‘One of the key aims during feedback on their experiences on tax reputati on for PwC’s (both for work and leisure) and my ti me as Branch Chairman (good and bad) as MTD is global tax network, leads the spending ti me outdoors! is to lead the conversati on rolled out.’ www.taxadvisermagazine.com February 2018 63 BRIEFINGS
CIOT HMRC Chair offers departing thoughts at CIOT roundtable
EVENT ti mes) and was ‘not exactly CIOT hosted a speech and burnished and shining for roundtable discussion with the modern age’. The current HMRC Chair Edward Troup context was high demand from and a small group of senior citi zens for high quality – and representati ves from the tax therefore expensive – public At the Roundtable (Photograph by Paul Aplin) profession in December. Mr services and ever greater Troup (as he then was, ahead globalisati on, including the rise transacti on’. Any client who modern world for an adviser of his receipt of a knighthood of digital businesses. came to a professional adviser that makes their money from in the New Year Honours Mr Troup defended HMRC’s with something like this now the ineffi ciency of their clients. List) was speaking ahead of someti mes controversial would be laughed out of the A fair chunk of the resistance his reti rement from HMRC descripti on of taxpayers as door, he said. This led him to to MTD came from such at the end of the year. At ‘customers’ saying that he the questi on: are there things advisers, he thought. the event he talked about genuinely believes the tax taking place now – schemes Finally Mr Troup turned to how he saw HMRC and the authority is a customer- being advised on – where the relati onship between an tax profession developing centric business. He described people will say, in 30 years’ adviser and his or her client. To in the future, including his the customer looking at the ti me, do you know what they what extent can you do your belief that government was totality of his or her own were doing in 2017? While we job by pulling together a return likely to be tempted to put aff airs and wanti ng to deal might not see the same extent to HMRC which accurately further responsibiliti es on tax with the tax system as a of changes in atti tudes over the refl ects what you have been advisers in the future. Most whole. This aff ected the whole next 30 years as over the last told but takes no responsibility eye-catchingly he thought of HMRC’s ‘plumbing’ and 30, he thought it was unlikely for what is behind that, one possible directi on was was central to the thinking that atti tudes in 30 years’ ti me he asked. To what extent segmentati on of tax agents, around Making Tax Digital would not have moved on at does a good adviser have categorising them with (MTD). He acknowledged that responsibility to go further diff erent levels of ‘risk rati ng’, digitalisati on had been ‘a bit of HMRC had ‘ridden the and say to their client, on with their clients being a journey’ for the department. wave’ of this atti tudinal occasion, ‘frankly this doesn’t scruti nised accordingly. It had begun as just digiti sing change, argued Mr Troup, look plausible’? He threw the Mr Troup began by paper – providing forms that identi fying avoidance schemes questi on out to the profession, refl ecti ng on the early part of could be downloaded, printed sooner and closing them saying: ‘I do think that the his 38 years in and around tax, out, fi lled in and sent to HMRC down quicker. He also praised adviser profession should observing that he was marked for them to scan and upload PCRT (Professional Conduct think to what extent they out for tax when he qualifi ed at their end. MTD, by contrast, in Relati on to Taxati on, rules should share responsibility for as a lawyer on the day in 1981 went far further, and was followed by members of CIOT, what lies behind returns.’ He when the Ramsay verdict (a about reducing tax payments ATT and other professional personally thought that was landmark tax avoidance case) to the same broad process or bodies), saying he genuinely the way the wind was likely was delivered in the House experience as online banking believed it was ‘a great thing’. to start blowing, describing it of Lords. Since then he had or dealing with your gas bill. However, he added, there as placing a greater degree of become involved with the Law He described this journey as remained advisers out there responsibility on those who Society and Insti tute for Fiscal ‘completely unstoppable’. sti ll promoti ng avoidance know taxpayers bett er. How far Studies, had advised Kenneth The ‘extraordinary societal schemes. Oft en these advisers that will go is a genuinely open Clarke during his chancellorship changes’ in atti tudes to tax argued: ‘if I didn’t supply this questi on, he said, ‘but I think and, aft er a further spell in avoidance were also discussed market somebody else would’, that is where thinking will go’. practi ce, lately returned to the by Mr Troup, who reminisced but this was not an argument During discussions, Treasury and to HMRC. Overall that in the early days of his he accepted. the outgoing HMRC Chair he thought he had been career there were advisers Mr Troup also criti cised a elaborated on what he thought ‘extraordinarily lucky’ to have who worked on avoidance subset of advisers who have a this greater responsibility could had such a career. schemes which ‘literally came ‘business model that is based mean in practi ce. ‘The quid Setti ng the context, he said in booklets with perforated on the ineffi ciency of manual pro quo of the logic of what I HMRC was trying to administer tear out pages’. The client record-keeping’. Emphasising imply, which is that actually we a system which had its origins ended up with ‘a stack of that HMRC do see an ongoing should be holding professionals back in the 19th century (and 20 pieces of paper which role for advisers, he thought more to account for in some respects back in Tudor amounted to the totality of the there was no place in the responsibility for the behaviour
64 February 2018 www.taxadvisermagazine.com R E N
performance of the adviser… is quite a provocative statement when you put it like that… There is scope for discussion.’ In his closing remarks Mr Troup painted a picture of a ‘brave new world’ where the taxpayer ‘effectively just runs sensible accounting software or is linked up to an app on their iphone and every few months we tell them this is where you are and here’s what your likely bill is going to be for the year. Where do the advisers fit in? They do, in all sorts of ways.’ He invited the professionals present to ‘think proactively about where you fit in. Clearly there would be a role helping clients to get into of their clients, which could of engagement – I use the the tax returns of firm B’s the right place, he said, but start with neglecting to call words neutrally – for advisers clients while adopting a lighter HMRC’s perspective is that ‘we out something you knew is and hence their customers touch to firm A’s. He thought do not want to have to check wrong, right the way through who have reached different individual returns. We want a spectrum through to actively levels of risk-rating.’ Taken to immediate prospect but he felt to know that the integrity of taking responsibility for what its ‘logical extreme’, he could there was ‘a really interesting the data is sound.’ HMRC was you were being told being right envisage a scenario where debate’ to be had on this, already a long way down that and in accordance with the firm A might get five stars for acknowledging that it might road with large businesses, tax rules. I think that sits quite the quality of its consistent be controversial and different he said, checking the integrity well alongside a model which auditing of its clients, while parts of the tax profession of the system and acting risk-rates the advisers and firm B were not rated so might hold differing views. ‘more like system auditors’. which fits into our compliance highly. The consequence of this ‘Differentiating our degree of Segmentation of the agent strategy which is effectively to would be that HMRC would scrutiny of a client because community could take that give differing degrees of rules spend more time looking at of the historic, assessed further.
ATT Making Tax Digital – UK and Irish Perspectives
EVENT digital tax accounts as well as On 28 November 2017 the issues to consider around data ATT and Irish Tax Institute mining, cybersecurity and the (IT)) held two joint briefings digitally excluded. on Making Tax Digital – a Helen Thornley presented a breakfast event in Dublin double session in Belfast which followed by an evening event provided an update on the in Belfast. current position of MTD in the The ATT were represented UK before going on to consider at these briefings by their the practical next steps for Executive Director Jane ATTs and practitioners. These Ashton, Executive Officer Sue sessions generated lively Fraser and Technical Officers debate in the audience. Emma Rawson and Helen The events were well Thornley. attended, with the Dublin Emma Rawson spoke at event so popular that it sold both events, giving a recap of out and was live-streamed. the UK story so far including Following this success the ATT the introduction of Real and ITI intend to hold more
Time Information (RTI) and joint events in the future. Emma Rawson and Helen Thornley www.taxadvisermagazine.com February 2018 65 BRIEFINGS
BTG News from Bridge the Gap
TAX CHARITIES and corporate. Several FTSE Members of the Bar have raising events such as the 100 Tax Directors and their been parti cularly supporti ve London Legal Walk or events Alison Lovejoy brings the teams have given fi nancial and these include Pump Court within their fi rm. latest news from the two tax and practi cal support. These Tax Chambers, Gray’s Inn However, despite all chariti es include Shell, RELX, Unilever, Tax Chambers, Temple Tax the help listed above more Vesuvius, BAE, Wolesley and Chambers, Field Court Tax fi nancial help is needed just As menti oned in the briefi ngs GSK. In the tax corporate Chambers and the Chambers to keep these two chariti es secti on of the November world, PwC, KPMG, Deloitt e of John Gardiner QC 11 New on a sound footi ng. At least 2017 issue of Tax Adviser and EY feature strongly, with Square – as well as a number £250,000 is needed each year Bridge the Gap campaign was many individuals within these of individual contributi ons. to help maintain the level launched to fi ll in the gap organisati ons additi onally In additi on to this other fi rms of service which is currently between fi nancial support making personal contributi ons such as Lexis Nexis, Absolute provided and, if possible, to raised or received by TaxAid or arranging events within Accounti ng Soft ware, PTP extend it. and Tax Help for Older People their organisati on on behalf Training and Pure Search are on In future reports, I hope for their work providing a of Bridge the Gap. Deloitt e the expanding list of donors. to bring you news of ongoing ‘safety net’ to vulnerable are working parti cularly The important task is to events and to give you people who criti cally need closely with the chariti es raise awareness of the two more informati on about the tax advice. In March 2018 the with a view to adapti ng the chariti es. Right from the start, campaign’s plans. Bridge the campaign will be three years volunteer model so that staff Bridge the Gap recruited Gap works closely with the old so it is now appropriate to have greater opportunity to ‘Ambassadors’ from those CIOT and the ICAEW and I report on the fi nancial progress volunteer for the two chariti es. well-known in the tax world. will detail this work and bring made so far and to give you There is a lot of detailed and The Patrons are Steve Edge you more informati on about some news of who has helped systems work involved in and Sir Andrew Park – they how the chariti es operate, Bridge the Gap to reach this this but the aim is a fl exible work with the Ambassadors the individuals involved in point. model that could be used who include Sir Stephen each charity, the work of It is expected that £250,000 for volunteers from other Oliver, Jonathan Peacock QC, the Ambassadors and the will have been raised by the organisati ons as we conti nue Penny Hamilton, Paul Morton volunteers who help run Bridge three-year point (31st March to increase the number of fi rms and Philip Moss; and these the Gap. 2018) – £62,000 in year 1, wanti ng to provide volunteers. Ambassadors have been If you would like to be part £73,000 in year 2 and at the Among the Law fi rms, spreading the word, talking of these future plans please get ti me of going to press £115,000 Bridge the Gap was given a at seminars and generally in touch. As well as donati ons, has been received or fi rmly tremendous boost right from seeking support from people the campaign needs ti me and promised this year already so the start with fi nancial and in the profession. They are skills, for example, experience practi cal help from Slaughter supported by a working group in writi ng, website design, fi rst quarter million by end and May. More recently of very engaged volunteers social media, fund raising March. Freshfi elds and Linklakers have who help run the campaign. and accountancy. If you feel This fi gure could not have become important donors, Many of the organisati ons you could help out with any been reached without the together with a number of menti oned above have taken of these, please contact Rose excellent support from a range other fi rms which we hope part in breakfast events to Over at bridgethegap@taxvol. of donors both individual will result in further support. raise awareness and fund
ATT Peter Gravestock retires from ATT
PEOPLE of the Joint ATT/CIOT Audit ATT’s Technical Steering Committ ee before stepping Group said farewell to Peter down from Council in 2002. Gravestock at its fi nal meeti ng ATT marked Peter’s 27 years of 2017. Peter originally joined of service with a celebrati on ATT Council in 1990, was cake – we didn’t realise ATT’s President from 1995 to 1997, Executi ve Director, Jane and was the fi rst Chair of the Ashton, is such a talented cake then Technical Committ ee decorator – and a glass of fi zz following its formati on in July for all members of Technical
1999. Peter also served as Chair Steering Group. Peter Gravestock
66 February 2018 www.taxadvisermagazine.com Branch events FEB–MAR 2018 Where do you get your CPD?
Does your firm provide your CPD needs? Have you tried a local Branch event before? Would you like the opportunity to meet with CTAs, ATTs and other professionals in your local network? Why not go along to a local Branch event. Below we have listed branch events taking place up to 15 March 2018. However, please visit your local branch website as there may be some events which have been planned since this list was sent to print.
Please note that advance Essex London Tax investigations update booking is essential for all Tuesday 27 February Tuesday 6 March Richard Alderson Branch events. Finance Act update Using the legislation: tips and 15.00-16.45 Michael Steed tricks for the CTA and ATT Aberdeen 16.45-20.00 exams Sheffield Monday 5 March Nicole Neville Tuesday 20 February R&D: an Aberdeen perspective Glasgow 18.00-19.00 Finance Act update Moira Kelly Tuesday 6 March Giles Mooney 12.30-13.45 Scottish Budget Tuesday 13 March 14.00-17.00 Robert Buchan and James Hot topics for May exams Birmingham & West McLellan Juliet Smith South London & Surrey Midlands 12.30-13.30 18.00-19.00 Monday 5 March Thursday 22 February Tax implications as a result Capital Allowances Hampshire Manchester of Brexit (individual and Clive Searle Thursday 22 February Monday 12 March corporate) 16.00-18.15 MTD: new developments and What’s hot for OMBs – an Guildford making clients digital examination of topical issues 18.30-20.00 Thursday 15 March Richard Wild Dean Wootten Property update 18.00-20.00 16.00-19.00 Wednesday 14 March Martin Jahreiss VAT update and Stephanie Churchill Harrow & North London Merseyside Croydon 16.00-18.15 Thursday 22 February Tuesday 20 February Les Howard EIS/SEIS/Investors’ Relief – an Personal tax update 18.30-20.00 Bristol update Private Client Team, BDO Thursday 15 March David Brookes and Mark Ward 16.00-18.00 South Wales IHT planning for 18.45-20.15 Tuesday 6 March businesses Thursday 1 March Property tax issues Robert Jamieson Thursday 1 March Annual dinner Andrew Campbell and Andrew 15.45-19.00 Trusts – back to basics 18.45-23.00 Evans refresher 14.00-17.00 Commerce and Industry Bob Trunchion Mid-Anglia Monday 12 March 18.45-20.15 Tuesday 20 February South West England Tax governance MTD and developments in Wednesday 21 February Louisa Gonzalez Kent professional services Charity tax update 16.45-19.00 Monday 19 February Heather Brehcist and Graham Batty Year end tax planning Charlotte Ali 15.45-19.00 Cumbria & SW Scotland Michael Steed 13.00-17.00 Thursday 1 March 14.00-17.15 Sussex Topical tax topics Wednesday 14 March Saturday 10 March Tim Good and Leeds HMRC investigations (and Spring conference Giles Mooney Wednesday 21 February AGM) Neil Owen and Michael Ripley 09.00-16.30 IHT and trusts (half day Ian Shirley and Sean Wakeman 09.30-13.00 conference) 18.00-20.00 East Anglia Robert Jamieson Thames Valley Tuesday 20 February 13.00-17.00 North East England Monday 26 February Employment issues Thursday 8 March Capital Allowances Mark Morton Wednesday 7 March Annual dinner Oxford 16.00-19.00 Pub quiz John Lovell Thursday 15 March 18.30-20.00 East Midlands Wednesday 14 March Tax savings from Capital Monday 19 February Tax investigations Allowances & land remediation Wednesday 7 March Employment taxation (incl the Scott Gilbert Alan Oliver VAT update Gig Economy) – current issues 18.00-19.30 17.30-19.30 Reading Ros Martin Neil Owen 16.00-20.00 Scottish Borders 18.30-20.00 Thursday 1 March
www.taxadvisermagazine.com February 2018 67 To place an advertisement contact: Recruitment [email protected]
RESULTS MATTER MAKE THEM COUNT MAGNETIC
Congratulations, the wait is over and your results are here. Make the most of your hard work by taking the next step in achieving your career goals. With the exam season behind you, now’s the perfect time to focus on your future. NORTH Don’t leave it to chance by wishing for an opportunity to come along, talk to the experts. GUIDING YOU TO THE BEST TAX JOBS IN THE NORTH OF ENGLAND We specialise at all levels within tax, working with leading organisations to oer you access to a wide range of jobs across the UK. So whether you’re looking to make your INTERNATIONAL TAX AM/MANAGER M&A TAX MANAGER first step into industry or move to another accountancy practice, we can help achieve LEEDS To £48,000 plus benefits MANCHESTER To £50,000 plus bens your career ambitions. Truly varied corporate tax role focussing on international tax advisory work including dealing Rare opportunity for an external candidate to join this market leading M&A tax team To find out about the opportunities we can oer you, contact Karen Young with restructuring, transfer pricing and transactions. Would suit a recently qualified CTA or an based in Manchester. You will either be an experienced M&A Tax Manager or a Corporate on 07834 260029 or email [email protected] experienced Manager. Rapid future progression available for the right candidate. Tax Manager looking to specialise in transactions. Strong communication skills are essential. REF: A2756 REF: A2734
hays.co.uk/taxation PERSONAL TAX SENIOR IN-HOUSE TAX MANAGER SOUTH MANCHESTER To £32,000 dep on exp EAST CHESHIRE £To £55,000 + car + bens Forward thinking independent firm looking to add an experienced personal tax senior to its Hugely exciting time to join this group in a role which will involve supporting the Head of friendly tax team based in South Manchester. You will take responsibility for the compliance Tax. You will have responsibility for group tax reporting, managing the UK tax compliance SF-50631 Tax Adviser_02-02-18.indd 1 24/01/2018 17:01 work on portfolio of personal tax clients and assist with ad-hoc advisory work. and co-ordination overseas tax compliance, via third party advisors, and for dealing with TP REF: A2706 documentation for the group. REF: R2760 SENIOR MANAGER (IN-HOUSE) VAT MANAGER Editor-in-chief WARRINGTON £55,000 - £65,000 MANCHESTER £ Negotiable A large and growing Global Group are seeking an ambitious tax professional with energy & This is a great career move for a Manager to join the VAT team of this large international Tax Adviser/Tax Adviser Online drive who wants to grow with them. Reporting to the Head of Tax, you will take responsibility accounting firm (Top10). The North-West VAT team works as part of a national VAT practice for the group’s UK corporate tax compliance, including CFC reviews as well as transfer pricing offering services to our diverse client base. You will have experience of identifying project work issues (with a focus on changes coming into force following BEPS). with clients. First-class career development opportunities on offer. REF: R2751 REF: R2709 C I O T w is h e s t o ap p o int a C h ar t e r e d Tax A dv is e r ( C TA ) as e dit o r - in- c h ie f o f Tax A dv is e r and Tax A dv is e r O nl ine . SENIOR TAX MANAGER (WITH PROSPECTS) IN-HOUSE TAX ACCOUNTANT CHESHIRE To £65,000 dep on exp NEWCASTLE To £45,000 dep on exp A�er ve successful years, Chris Ma�os has decided to stand down and spend Our client, a leading regional practice, seek an experienced Senior Manager for a varied and Great first move in-house for a recently qualified CTA with strong corporate tax compliance interesting role heading up the firm’s tax advisory service offering. You will have broadly based and accounting skills. You will primarily be responsible for the preparation of CT computations, more time with his practice experience in the OMB and private client arena. Great prospects for progression to partner – liaising with HMRC and assisting in ad-hoc advisory work. Prior Big 4 / Top 10 experience but candidates who don’t have those aspirations will be equally welcomed. preferred but not essential. Chris Ma�os and senior staff at CIOT will be delighted to discuss ideas with those REF: M2732 REF: A2755 int e r e s t e d. The successful candidate will be able to articulate their vision for the future of the journal and demonstrate the professional and leadership skills to deliver it If you are interested, please express your interest by 28 Fe r ary 2018 by sending an email to Rakhi our HR O cer on r ora ciot org k Tel: 0333 939 0190 Web: www.taxrecruit.co.uk Mike Longman FCA CTA: [email protected]; Ian Riley ACA: [email protected]; Alison Riordan: [email protected] 68 February 2018 www.taxadvisermagazine.com MAGNETIC NORTH GUIDING YOU TO THE BEST TAX JOBS IN THE NORTH OF ENGLAND INTERNATIONAL TAX AM/MANAGER M&A TAX MANAGER LEEDS To £48,000 plus benefits MANCHESTER To £50,000 plus bens Truly varied corporate tax role focussing on international tax advisory work including dealing Rare opportunity for an external candidate to join this market leading M&A tax team with restructuring, transfer pricing and transactions. Would suit a recently qualified CTA or an based in Manchester. You will either be an experienced M&A Tax Manager or a Corporate experienced Manager. Rapid future progression available for the right candidate. Tax Manager looking to specialise in transactions. Strong communication skills are essential. REF: A2756 REF: A2734 PERSONAL TAX SENIOR IN-HOUSE TAX MANAGER SOUTH MANCHESTER To £32,000 dep on exp EAST CHESHIRE £To £55,000 + car + bens Forward thinking independent firm looking to add an experienced personal tax senior to its Hugely exciting time to join this group in a role which will involve supporting the Head of friendly tax team based in South Manchester. You will take responsibility for the compliance Tax. You will have responsibility for group tax reporting, managing the UK tax compliance work on portfolio of personal tax clients and assist with ad-hoc advisory work. and co-ordination overseas tax compliance, via third party advisors, and for dealing with TP REF: A2706 documentation for the group. REF: R2760 SENIOR MANAGER (IN-HOUSE) VAT MANAGER WARRINGTON £55,000 - £65,000 MANCHESTER £ Negotiable A large and growing Global Group are seeking an ambitious tax professional with energy & This is a great career move for a Manager to join the VAT team of this large international drive who wants to grow with them. Reporting to the Head of Tax, you will take responsibility accounting firm (Top10). The North-West VAT team works as part of a national VAT practice for the group’s UK corporate tax compliance, including CFC reviews as well as transfer pricing offering services to our diverse client base. You will have experience of identifying project work issues (with a focus on changes coming into force following BEPS). with clients. First-class career development opportunities on offer. REF: R2751 REF: R2709
SENIOR TAX MANAGER (WITH PROSPECTS) IN-HOUSE TAX ACCOUNTANT CHESHIRE To £65,000 dep on exp NEWCASTLE To £45,000 dep on exp Our client, a leading regional practice, seek an experienced Senior Manager for a varied and Great first move in-house for a recently qualified CTA with strong corporate tax compliance interesting role heading up the firm’s tax advisory service offering. You will have broadly based and accounting skills. You will primarily be responsible for the preparation of CT computations, experience in the OMB and private client arena. Great prospects for progression to partner – liaising with HMRC and assisting in ad-hoc advisory work. Prior Big 4 / Top 10 experience but candidates who don’t have those aspirations will be equally welcomed. preferred but not essential. REF: M2732 REF: A2755
Tel: 0333 939 0190 Web: www.taxrecruit.co.uk Mike Longman FCA CTA: [email protected]; Ian Riley ACA: [email protected]; Alison Riordan: [email protected] Senior Tax Consultant / Tax Manager
We are the world’s leading chemical company because interpersonal skills are key, being able to liaise e ectively In-house Tax and Compliance Executive Personal Tax Manager we o er intelligent solutions for our customers and for a internally and externally and crucially having the ability to Near Bradford – To £31,000 + exible working Altrincham – To £50,000 + bene ts sustainable future. We link and develop people with diverse give clear, jargon free tax advice. talents all over the world. For you, this means a variety of • You enjoy taking ownership, are a self-starter and able to Fantastic rst move into industry! Working for this international is is a fantastic opportunity to join a rm that deals with a ways to advance. Not only your performance but also your deliver solutions and information in a timely manner. group, you will work on direct and indirect tax issues. You will range of interesting and highly technical tax work. ey are personality matter to us. At BASF, careers develop from prepare the indirect tax returns, and assist in the preparation looking for an ACA/CTA quali ed personal tax manager to opportunities. We o er of direct tax returns for the Group’s UK companies and the undertake a predominantly compliance focussed role, although • Responsibility from day one in a challenging work worldwide subsidiaries. You will also manage the Group’s you will be involved with advisory projects during quieter periods. BASF plc, BASF Group’s main operating company in the environment and “on-the-job” training as part of a internal reporting requirements and controls and have exposure Clients include HNW individuals, partnerships, trusts and non United Kingdom, supplies performance chemicals in addition committed team. to one-o projects including M&A work, dealing with ad-hoc domiciles. You will manage a small team and the compliance to raw materials to most industries. We market a wide range of • Competitive compensation including attractive bene ts as transactions and the preparation of the group R&D tax claim. work undertaken by these individuals, and be responsible for products, including chemicals, construction chemicals, crop well as excellent career opportunities in an international Study support can be given. Call Alison Ref: 2554 building client relationships. Call Alison Ref: 2553 protection products, dispersions and pigments, pest control company. solutions, plastics, polyurethanes systems, leading edge coating • Full time or 4 day week considered. In-house Group Tax Manager Trust Manager products, mining and water treatment chemicals. Newcastle-upon-Tyne – To £60,000 + car + bens Tunbridge Wells – To £60,000 + bene ts Expect to be surprised by the exciting range of career What you can expect opportunities at BASF. Reporting to the Head of Tax, you will be responsible for You will manage the administration of a portfolio of trusts, • To provide a comprehensive, in-house professional tax supporting the UK businesses of this large group. You will deal with all aspects of trust tax compliance and undertake the service primarily dealing with the corporation tax a airs For further information please contact Georgiana Head manage all UK corporate tax compliance issues, maintain the associated advisory work (IHT, CGT and income tax advice). of a portfolio of BASF Group Companies in the UK and at Georgiana Head Recruitment on 07957 842 402 or at SAO le, undertake regular project work, provide tax support You will act as the rst point of contact for your clients, will Ireland. is will include the preparation, submission and [email protected] on M&A projects, including dealing with tax warranties and attend client meetings and be responsible for building your agreement of the corporation tax returns and computations indemnities. You should be ACA/CTA/ACCA quali ed, with client relationships. You will ideally be CTA or STEP quali ed, with the tax authorities and advising the business as experience of dealing with a broad range of UK corporate tax with a minimum of 5 years’ experience in trust administration, appropriate. issues (R&D, group relief, M&A, transfer pricing etc) in a large although individuals quali ed by experience are also encouraged • To estimate and report current and deferred for both accountancy rm and/or industry. Call Alison Ref: 2559 to apply. Call Alison Ref: 2555 internal quarterly management accounts and statutory accounts. In-house Tax Accountant In-house Tax Assistant Manager • To proactively advise on UK employment tax matters
Newcastle-upon-Tyne – To £45,000 + car + bens Leeds – To £45,000 + bene ts What we expect Great rst move into industry! Working in the in-house A classic tax accountant role! Our client seeks a CTA/ACA/ICAS • You will be educated to degree level, be a quali ed tax team, you will have responsibility for handling the UK quali ed tax professional with a background in UK corporate accountant (either ACA, ACCA or CIMA quali ed) and day-to-day tax a airs of companies within this large group. tax to move in to an all-round in-house position dealing with hold a UK Tax quali cation, preferably CTA. is includes corporation tax compliance work, liaising with corporate tax, VAT and PAYE. Working to the Head of Tax, you • You will ideally have at least 5 years’ post quali cation work HMRC, assisting in ad-hoc UK tax planning projects, the will gain exposure to a wide range of compliance, tax reporting, experience in UK Corporation Tax, with some if not all of preparation of group tax payments and providing tax support transfer pricing and advisory work. More experienced candidates that experience gained in-house. to the wider UK business. You should be ACA/CTA quali ed, who are looking for a part time role would also be considered. • Equally as important to us are your personal competencies. with experience of working in the corporate tax team at a large You must have good communication skills and be able to work We are looking for an approachable individual to join accountancy rm. Call Alison Ref: 2560 independently. Call Alison Ref: 2519 our small in-house tax team. Your communication and Senior Tax Consultant / Tax Manager
We are the world’s leading chemical company because interpersonal skills are key, being able to liaise e ectively In-house Tax and Compliance Executive Personal Tax Manager we o er intelligent solutions for our customers and for a internally and externally and crucially having the ability to Near Bradford – To £31,000 + exible working Altrincham – To £50,000 + bene ts sustainable future. We link and develop people with diverse give clear, jargon free tax advice. talents all over the world. For you, this means a variety of • You enjoy taking ownership, are a self-starter and able to Fantastic rst move into industry! Working for this international is is a fantastic opportunity to join a rm that deals with a ways to advance. Not only your performance but also your deliver solutions and information in a timely manner. group, you will work on direct and indirect tax issues. You will range of interesting and highly technical tax work. ey are personality matter to us. At BASF, careers develop from prepare the indirect tax returns, and assist in the preparation looking for an ACA/CTA quali ed personal tax manager to opportunities. We o er of direct tax returns for the Group’s UK companies and the undertake a predominantly compliance focussed role, although • Responsibility from day one in a challenging work worldwide subsidiaries. You will also manage the Group’s you will be involved with advisory projects during quieter periods. BASF plc, BASF Group’s main operating company in the environment and “on-the-job” training as part of a internal reporting requirements and controls and have exposure Clients include HNW individuals, partnerships, trusts and non United Kingdom, supplies performance chemicals in addition committed team. to one-o projects including M&A work, dealing with ad-hoc domiciles. You will manage a small team and the compliance to raw materials to most industries. We market a wide range of • Competitive compensation including attractive bene ts as transactions and the preparation of the group R&D tax claim. work undertaken by these individuals, and be responsible for products, including chemicals, construction chemicals, crop well as excellent career opportunities in an international Study support can be given. Call Alison Ref: 2554 building client relationships. Call Alison Ref: 2553 protection products, dispersions and pigments, pest control company. solutions, plastics, polyurethanes systems, leading edge coating • Full time or 4 day week considered. In-house Group Tax Manager Trust Manager products, mining and water treatment chemicals. Newcastle-upon-Tyne – To £60,000 + car + bens Tunbridge Wells – To £60,000 + bene ts Expect to be surprised by the exciting range of career What you can expect opportunities at BASF. Reporting to the Head of Tax, you will be responsible for You will manage the administration of a portfolio of trusts, • To provide a comprehensive, in-house professional tax supporting the UK businesses of this large group. You will deal with all aspects of trust tax compliance and undertake the service primarily dealing with the corporation tax a airs For further information please contact Georgiana Head manage all UK corporate tax compliance issues, maintain the associated advisory work (IHT, CGT and income tax advice). of a portfolio of BASF Group Companies in the UK and at Georgiana Head Recruitment on 07957 842 402 or at SAO le, undertake regular project work, provide tax support You will act as the rst point of contact for your clients, will Ireland. is will include the preparation, submission and [email protected] on M&A projects, including dealing with tax warranties and attend client meetings and be responsible for building your agreement of the corporation tax returns and computations indemnities. You should be ACA/CTA/ACCA quali ed, with client relationships. You will ideally be CTA or STEP quali ed, with the tax authorities and advising the business as experience of dealing with a broad range of UK corporate tax with a minimum of 5 years’ experience in trust administration, appropriate. issues (R&D, group relief, M&A, transfer pricing etc) in a large although individuals quali ed by experience are also encouraged • To estimate and report current and deferred for both accountancy rm and/or industry. Call Alison Ref: 2559 to apply. Call Alison Ref: 2555 internal quarterly management accounts and statutory accounts. In-house Tax Accountant In-house Tax Assistant Manager • To proactively advise on UK employment tax matters
Newcastle-upon-Tyne – To £45,000 + car + bens Leeds – To £45,000 + bene ts What we expect Great rst move into industry! Working in the in-house A classic tax accountant role! Our client seeks a CTA/ACA/ICAS • You will be educated to degree level, be a quali ed tax team, you will have responsibility for handling the UK quali ed tax professional with a background in UK corporate accountant (either ACA, ACCA or CIMA quali ed) and day-to-day tax a airs of companies within this large group. tax to move in to an all-round in-house position dealing with hold a UK Tax quali cation, preferably CTA. is includes corporation tax compliance work, liaising with corporate tax, VAT and PAYE. Working to the Head of Tax, you • You will ideally have at least 5 years’ post quali cation work HMRC, assisting in ad-hoc UK tax planning projects, the will gain exposure to a wide range of compliance, tax reporting, experience in UK Corporation Tax, with some if not all of preparation of group tax payments and providing tax support transfer pricing and advisory work. More experienced candidates that experience gained in-house. to the wider UK business. You should be ACA/CTA quali ed, who are looking for a part time role would also be considered. • Equally as important to us are your personal competencies. with experience of working in the corporate tax team at a large You must have good communication skills and be able to work We are looking for an approachable individual to join accountancy rm. Call Alison Ref: 2560 independently. Call Alison Ref: 2519 our small in-house tax team. Your communication and Private Client Tax Senior Assistant Manager, Personal Tax London London To £44,000 To £50,000 Are you ready to take your career forward with one of Step up to Assistant Manager grade with one of the UK’s London’s premier Private Client teams? eir multi award- most respected Private Client teams. Take responsibility for winning Personal Tax department advises a prestigious list of a portfolio of domestic and international HNW/UHNW new-money entrepreneurs, non doms, celebrities and landed individuals. Act as their primary point of contact and build wealth. ey are thriving, growing and keen to appoint strong client relationships. Develop your technical and non- a CTA Tax Senior with strong HNWI experience. Full technical skills and be supported to Manager level. CTA support with fast-track development to Manager. Ref 4614 and some UK res non dom experience essential. Ref 4598 Assistant Tax Manager – Escape Busy Season! Personal Tax Manager – Advisory Focus London London c.£48,000 + Bens To £70,000 Join the in-house Tax Technical team of one of Deliver high-end tax planning advice to international, London’s high-pro le accountancy practices. is new-money private clients. Typically entrepreneurs with broad role includes researching Tax legislative varied business and property interests, they seek advice developments, updating the tax technical database and on domicile, residence, remittance and international providing ongoing technical guidance to advisers and structuring. You will also have the opportunity to Partners. You will also assist at Tax seminars and draft participate in networking and business development material for the rm’s website and client newsletters. initiatives. Genuine scope exists to progress swiftly to No time-sheets! Ref 4585 SM and Director. Four-day week considered. Ref 4615 Senior Manager, Private Client Tax Director – Short Route to Partner London London To £90,000 £Six Figures Join a high-pro le team of advisers, based within one of Award-winning London accountancy rm seeks a CTA London’s premier Private Client teams. You will handle Personal Tax Director, as part of ongoing Partner succession ad hoc advisory work for an impressive client base of planning. e individual will provide tax advisory services to UHNW entrepreneurs, non doms, PE clients and landed UHNW new-money entrepreneurs. e successful candidate wealth. A broad range of challenging planning work is could be a talented Director looking to step up to Partnership therefore on o er. Scope exists to progress to Director in the short-term. Alternatively, a strong Senior Manager with genuine partnership opportunities. Ref 4608 ready for a Director role would be considered. Ref 4616
Many of the instructions we receive are on an exclusive basis. For details of these and other opportunities, please visit our website or contact:
E: [email protected] T: (020) 7408 9474 www.howellsconsulting.co.uk