Taxing small Sought-after May 2018 businesses skills in tax exam results
Paul Morton Andy Richens Georgiana Head R I www.att .org.uk
Excellence in Taxation August 2018 www.taxadvisermagazine.com
The three stages
Keith Gordon when a contract sett lement with HMRC is formally
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Welcome Features 3 Editor’s welcome R Chris Matt os OTS Research & Development 8 The business lifecycle Paul Morton and 18 Change the focus Tom Haberfi eld and 4 President’s page Andy Richens provide an overview of the Mar� n Hook consider how the UK R&D S OTS report on the business lifecycle and tax regime can be improved Ray McCann discuss their recommenda� ons 6 ATT page OMB LARGE CORPORATE TAX I OMB Jeremy Coker Education May 2018 exams 26 CIOT results 31 ATT results Technical From the Technical team Spotlight on the Working Together technical subcommi� ee VAT and property Making Tax Digital Professional skills 22 Working it out Neil Warren considers the Treasury Commi� ee 10 Navigati ng the future Georgiana Head VAT issues relevant to an accountancy Inquiry and Treasury considers the skills which make good tax prac� ce that decides to sell a commercial Sub-Commi� ee Inquiry advisers and future-proof careers building that it owns SOFT SKILLS Treasury Commi� ee INDIRECT TAX OMB concerns on childcare Charity Tax Commission Transfer pricing Contract sett lement Paul Sutt on examines call for evidence 14 Stacking the odds The 64-8 Questi on Keith Gordon looks at how corporate governance fl aws 24 Cash and digital a case which considers when a contract exacerbate transfer pricing risks payments se� lement with HMRC is formally Self-funding work- LARGE CORPORATE TAX INTERNATIONAL TAX concluded related training MANAGEMENT OF TAXES Workplace charging tax e x e m p � o n VAT: Alterna� ve method of VAT collec� on Business/non-business li� ga� on cases Scotland update Briefi ngs From Ar� llery House 52 Branches programme 53 CIOT AGM minutes Enterprise Investment 55 Lord Mayor’s Tax Debate Schemes 17 Childcare vouchers 56 CIOT Outgoing President’s A domino eff ect? Bill Dodwell considers Ian Goodwin speech recent cases in which one relief has been 38 Not exactly child’s play con� ngent on another examines the tax challenges of paying for 57 ATT summer conferences childcare PERSONAL TAX OMB EMPLOYMENT TAX 58 ATT President’s inaugural EMPLOYMENT TAX speech 59 ‘No Vote, No Tax’ 59 Richard Todd 60 Bridge the Gap Branch events 61 Dates for your diary Recruitment 62 Looking at the best industry jobs www.taxadvisermagazine.com 1 2018 ANNUAL RETURN CHANGES ATT AND CTA MEMBERS
W hat y ou need to k now
n em e e ill e i ng t u s ing u t mplete t e nnu l etu n n p u mem e s ip su s ip n
e e e unli e in p e i us e s e ill n t e i ng t u in eg ing t e nnu l etu n
e nnu l etu n ill e mplete n len e l ing t t e pe i st nu t st e em e
A ny q ueries please write to membership@ tax . org . uk Welcome from the editor-in-chief
[email protected] Editor-in-chief, Tax Adviser Read me!
perhaps fi tti ngly it is also the 65th that I T Most importantly has been to conti nue to tax practi ce to publishing was a big change initi ally but over the past fi ve years a big team go to all those who have contributed arti cles, B I N I I I I I magnifi cent seven!) who each brought their own we present tax content when I att ended Nicky focuses and encouragements. In parti cular, I S would like to thank both John and Ray for their I I the team at Arti llery House and due to the I I content in as an att racti ve a way as possible; in these pages, explanati ons to clients or writi ng thank everyone but I would like to thank: Peter for his conti nued support and challenge, Sophia, who conti nues to do a fantasti c job uploading S our readers to read our arti cles include Tax Policy Directors, especially to John C, to Lisa, S R S ‘inhouse’ content on ti me, to the membership encouraging authors to include illustrati ve E B The latt er has someti mes been the most Adviser Sub Committ ee, especially Yvett e and R B My thanks go to all of the producti on team at LN, and parti cularly to Jo, who do a great job in making our arti cles look really interesti ng. B N E I We all need a subtle taxati on magazines, with Paul at Tax Journal TAXATION I way of saying appreciati ve of the ti me and energy that the Chris Matt os “Read me!” late Chris Jones always had for Tax Adviser E Tax Adviser
Journal of The Chartered Insti tute of Taxati on and The Associati on of Taxati on Technicians F Tax Adviser magazine subscripti on Arti llery House, 11-19 Arti llery Row, London, SW1P 1RT. tel: 020 7340 0550 sources. Reproducti on, copying or extracti ng The CIOT is a registered charity – No. 1037771; The ATT is a registered charity – No. 803480 F publicati on must not be undertaken without EDITORIAL Offi ces LexisNexis, Quadrant House, the writt en permission of the publishers. Editor-in-chief Chris Matt os The Quadrant, Sutt on, Surrey SM2 5AS. to Juliett e Walker, This publicati on is intended to be a general Jelena Sevo Publisher Magazine Distributi on Administrator guide and cannot be a substi tute for Editor E R juliett [email protected] N UK print subscripti on rate 2018 Reprints: Any arti cle or issue may occasioned to any person acti ng or refraining Web editor S B Europe print subscripti on rate 2018 from acti ng as a result of material contained in Charlott e Scott this publicati on. charlott e.scott @lexisnexis.co.uk ADVERTISING & MARKETING ISSN N O/S print subscripti on rate 2018 Adverti sing Manager Charlott e Scott © 2018 Chartered Insti tute of Taxati on (CIOT). adverti [email protected] Printed by Stones Ashford Ltd, Commercial Marketi ng Director Sanjeeta Patel PRODUCTION Producti on Assistant Nigel Hope Design & Technology Manager Elliott Tompkins Designer Jo Jamieson President’s page [email protected] R
Summer of change
quoted 65,000! Perhaps the most vocal group P EB B It is difficult to be sympathetic to those involved F B tinkering but at least it’s slim! EB This month we say goodbye to Chris Mattos particularly where ‘out of time’ years are Tax Adviser. During his five EB years in charge, Chris has overseen a significant treated very favourably under the EBT settlement Tax Adviser, opportunity and forgiven ‘out of time’ Tax and NIC I liabilities in very many cases whilst nevertheless is returning to his tax practice and I am sure we all remuneration provisions introduced in 2010. In contrast those affected by the 2019 charge have B NI time’ years. The 2019 loan charge applies whether approval). It is going to be an exciting few months as Bill settles and he has ambitious plans to make The use of settlement facilities by HMRC has Tax Adviser been controversial since they first appeared almost I them or not they have provided an effective means Artillery House coming to an end the opportunity of settling open cases involving tens of thousands of a new office space that will provide a larger and of taxpayers. However, they must be consistent more dynamic environment for the CIOT staff and in their application and the inconsistency in the provide better drop in facilities for volunteers was settlement arrangements offered to those within I be in the new office, only a few minutes’ walk from makes it more difficult for them to settle their our current location, around Christmas. liabilities. Many of these schemes were sold by the Last month was also a busy time for me with promoters against whom the ‘High Risk Promoter’ S B and GAAR were targeted and whose activities were (with Richard Wild to talk about MTD) and to in the sights of Professional Conduct in a Relation Leeds for the Yorkshire branches tax dinner. These to Tax (PCRT) when it was amended. As they say, F ‘two wrongs do not make a right’, the settlement I strategy should facilitate a speedy resolution of Rachel O’Connor with her prizewinner’s certificate I the Innholders Hall in London was the venue for F I I S E doubt embarrassed by their situation. F insightful after dinner talk. Just before the dinner in the exam room in Artillery House signing the Roz Baxter (our Head of Education) and I had a letters to those CTA candidates who had been N G successful in the May exams (hundreds of them!) been a member of the Institute since 1964! It was My congratulations to you all on your brilliant humbling to hear what the CIOT still means to him Many of and talk about a fraction of his career in tax going time, please don’t give up – I am really glad I didn’t! us are HMRC and the other professional bodies to discuss interested in the the Agent Strategy and in particular unaffiliated tax Treasury Select sub-committee Select sub-committee enquiries on tax avoidance enquiries on tax and HMRC’s handling of disputes. There remains avoidance and of open cases so it was disappointing that HMRC’s R HMRC’s handling estimate – given in evidence to the Committee – President, CIOT of disputes
4 www.taxadvisermagazine.com 7-9 September 2018 Book online at: University of Warwick www.tax.org.uk/artuc2018
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Save the date - Wednesday 3 October 2018 Full day conference at etc. venues, County Hall, Belvedere Road, London SE1 7PB
Topics to be discussed: Ma ing Tax Digital for AT: Are ou Propert & construction: Current read hat must ou do to be issues, domestic re erse charge compliant Case la update EU Action Plan: biggest prospecti e AT Single & multiple supplies change since the Single Mar et Brexit: latest information on ris s, actions and opportunities
Boo online at: tax org u indirecttaxes
Conference fee: £440 www.taxadvisermagazine.com 5 ATT welcome [email protected] Jeremy Coker
It’s just not cricket
By the time you read this, Tracy Easman will be President of the ATT and England will, VAR I permitting, have done really well at the World client work. Within the ATT, I chair the Education Cup. I will also be ATT Deputy President. Steering Group, which oversees our educational I I was appointed Vice President. It is not that I did the Examinations Steering Group, I was part of I Pathway. I recently had the pleasure of attending I have since been asked quite often whether I the ATT Annual conference. These continue I to be a most excellent way to get your CPD. The approach is practical and the quality of time’ for ATT. This is why I would not be true to officers (Will, Helen and Emma), is impressive; myself if I did not use my first article to thank I finally got to watch LITRG’s Victoria Todd I I appear before the Treasury Sub-Committee I and resolution of tax disputes. The amount of that volunteering does definitely give you the work that LITRG does, representing those who committee that day touched on an aspect of the I tax system that continues to give a lot of our I for concern – penalties! Their incidence and N seeing as you ask), there are a large number of G ex officers willing to assist. As I look forward to In this regard, I hope that an observation, B that penalties were not imposed often on post-OPBAS tax world will be, do we still do larger entities (as they had not ‘failed to take reasonable care’) means that, even if this So how exactly did I get here? Well, after discussion may still have some way to run, there not particularly impressing in a game against a junior Nigerian national football team, the great World Cup run by England, perhaps HMRC, only other option was to train as a chartered having been gifted the powers to impose really accountant. Post qualification, I moved to the harsh penalties, should consider their own I I R ‘colourful and animated’ face to face interactions I meeting as many of you as I can in the coming entrepreneurial clients in rural Hampshire that I year. Have a good month. N I would be remiss of me not to mention that the A quick look I down the list of past holders [of F Tolley’s Tax Guide, Tax Tables and a mouse mat) this post] indicates Jeremy Coker that the bar has I Deputy President, ATT of direct taxation in relation to owner managed [email protected] been set very high
6 www.taxadvisermagazine.com
OFFICE FOR TAX SIMPLIFICATION
OFFICE FOR TAX SIMPLIFICATION
KEY POINTS zz What is the issue? S across the lifecycle, from formati on, The business zz What does it mean to me? lifecycle existence, with complexiti es deterring zz What can I take away? S and which areas should be prioriti sed. Background he Offi ce of Tax Simplifi cati on (OTS) Paul Morton Andy Richens T S and implementati on is for HM Treasury and HMRC and our role is only to advise, but our recommendati ons can be very helpful in their recommendati ons reviews, the simplifi cati on observati ons are web incorporati on a mix of technical matt ers on the tax system next generati on. We are keen to ensure that of third party soft ware, so that as much ti me and eff ort as possible is Reliefs: general accounts fi ling service, would S administrati on! From the ti me of the very fi rst OTS to encourage innovati on and investment. However feedback showed that some Financing I various complexiti es regarding business asset reliefs. In 2014 the OTS Competi ti veness entrepreneurs relief (ER) could act as a B disincenti ve for founder shareholders to B Start of the business recommendati ons to improve the UK’s already A key observati on was that while there are a consultati on announced at Spring statement competi ti ve tax system. ER diluti on in this way is very welcome. a consultati on on opti ons to help innovati ve The enterprise investment scheme (EIS), UK businesses access pati ent capital, i.e. relati ves and friends investi ng at the ti me of (SEIS) have proved popular, but the OTS has starti ng up. venture capital reliefs with a view to bett er S S targeti ng towards innovati ve fi rms. schemes. A number of complexiti es are Alongside this, at a ti me when the UK built into the legislati on which can catch Drawing on an IPSOS Mori study and our out businesses, resulti ng in relief being S denied, or even withdrawn some ti me aft er lifecycle, from formati on, through growth was a primary considerati on in deciding to S introducti on of the dividend tax in April 2016 complexiti es. has, of course, reduced the signifi cance of EIS S taxati on in deciding which medium to use. SEIS and venture capital trusts (VCTs) have a and representati ve organisati ons, as well as When incorporati ng, the OTS would like a number of diff erent rules meaning they tend HM Treasury and HMRC teams. to att ract diff erent types of investors – it is S the company at Companies House, and for S HMRC taxes. Applying this for both the gov.uk
8 www.taxadvisermagazine.com
OFFICE FOR TAX SIMPLIFICATION
PROFILE Name Andy Richens Position Senior Policy Adviser Company Offi ce of Tax Simplifi cati on Tel Email P r o fi l e R II S B F Professionals Forum, and is a regular speaker on the professional conference circuit.
Name Paul Morton Position Company Offi ce of Tax Simplifi cati on Email [email protected] Profi le Paul was appointed Tax Director of the Offi ce of Tax Simplifi cati on on 1 March 2017. Prior to that he was Tax Director for RELX Group plc (formerly Reed Elsevier), the global informati on and analyti cs group, for 12 years. He was acti vely E S N EU level on tax policy matt ers relati ng to the digital economy and many other aspects of tax policy. He is a Fellow of the Chartered Insti tute of Taxati on, a member of the Council of the Insti tute for Fiscal Studies and the Tax Law Review Committ ee, an adviser to the Internati onal Chamber of Commerce Taxati on Commission, a member of the Executi ve Committ ee of the Internati onal Fiscal Associati on and a past President of the Confédérati on Fiscale Européenne.
and ER are the same, restricti ng the non- F trading element to 20% of the whole, IHT BPR 2016 targeted anti -avoidance rule on uses a diff erent defi niti on, based on being distributi ons can result in an income tax not wholly or mainly (50%) investment. These S that the HMRC guidance is unclear about improvement in administrati on processes F EIS businesses. Notably, furnished holiday letti ngs SEIS and granti ng the relief for investors. G but not so for IHT. Conclusion A consultati on was launched in December Disposal I The OTS wonders whether ER is fulfi lling its explaining that HMRC will keep the advance ti tle, in encouraging investment in young and the applicati on is clearly part of a capital with complexiti es deterring some from preservati on arrangement. Conti nued making a claim. With the ti me now ripe additi onal conti ngent considerati on received for encouraging innovati on and supporti ng digiti sati on and relaxati on of legislati ve at a later point, by electi ng for a value to be S infl exibiliti es could also contribute to improving the administrati on. business maximise these opportuniti es. considerati on principle was established in Succession Marren v Ingles views from readers. How do you feel this Passing on a trading business or shares in infl uence the business owner to sell for cash a trading company can be eff ected with no when a sale with considerati on ti ed to future parti cular areas which you feel should be immediate tax liability provided conditi ons prioriti sed? We also wonder whether there for CGT gift relief and IHT business property bett er structure. Simplifi cati on of treatment relief are sati sfi ed. On entering a CGT gift could remove this business distorti on. the various reliefs to the att enti on of Advisers will be aware of the alternati ve business owners. In parti cular, it would be benefi cial if more businesses were aware of currently planning how best to conti nue our Alternati vely, a claim to ER at the point of the gift would result in the reduced rate rather than the potenti al risks of purchasing recipient – simplifi cati on of the interacti on the existi ng company. Could aligning tax The summary of the OTS’s Business of these reliefs would be benefi cial here. treatments help reduce these diffi culti es? Lifestyle report was fi rst published in Whilst the defi niti on of ‘trading’ Tax Journal and is reproduced here with company for the purpose of CGT gift relief permission. www.taxadvisermagazine.com 9 PROFESSIONAL SKILLS
KEY POINTS zz What is the issue? Whether you have recently qualifi ed, are considering a move into practi ce from HMRC or are further on in your career it is always good to sit down and refl ect on your progress from ti me to ti me. zz What does it mean to me? It is parti cularly perti nent to review Navigating your skills and capabiliti es as the Tax Digital and the fall out of the anti avoidance legislati on and the GAAR. zz What can I take away? the future Georgiana Head
I Iin this issue on page 26) it seems G R I Common themes: practice from HMRC or are further on in Communication skills I competency based frameworks for Plcs zz S when they are looking to recruit Heads I I zz E I I zz I B and independent firms). I looked at both I zz E zz I tax team. Your communication and
10 www.taxadvisermagazine.com PROFESSIONAL SKILLS
PROFILE Name Georgiana Head Position Company Georgiana Head Recruitment Tel Email P r o fi l e Georgiana is a director at Georgiana Head Recruitment Ltd. She worked and trained in tax and has 20 years’ experience recruiti ng tax professionals.
situati ons in order to provide the best practi cal indirect tax advice. sell them to a client base. Communicati on zzz You will apply criti cal reasoning to bring development and marketi ng and the key to great questi ons, listening and drawing Of all the att ributes this was the most eff ecti ve client service and work referrals on our collecti ve knowledge and widely distributed and oft en menti oned one bullet point menti ons verbal and This competency was prett y much writt en communicati on skills and another talks about negoti ati ng skills or building specifi cati on, all areas of tax and both long term relati onships. Across both practi ce and industry. It is really diffi cult industry and practi ce there is menti on to know how to improve analyti cal skills of building long term relati onships and – some things improve with practi ce – I legislati on or analysing a set of accounts. to a client service role in practi ce. This on the tax rate or who are aff ected by the tax rate of the business so fi nance, legal, I G HR, payroll, procurement, the board, the in a Constructi on Group ‘’Excepti onal sales force etc. To make Head of Tax you need to be able to arti culate your opinions noise and come up with a soluti on. A not develop excellent client relati onships’’. In dissimilar skillset to a Police Detecti ve but also infl uence and negoti ate. The I gain informati on from fi nance teams and ulti mate in communicati on aft er all is the out how to improve this skill set; you can Group Tax Policy of a FTSE 100. go on a report writi ng course to help your communicati on skills, but analyti cal skills Analytical skills are harder to both quanti fy and train – an and indeed to HMRC. element of this is defi nitely innate. However Once upon a ti me tax advisers could G zz Analyti cal skills with detail orientati on. zz Strong analyti cal skills. zz you have done to your clients. You can’t zz www.taxadvisermagazine.com 11 STRAP
PROFESSIONAL SKILLS
N Process improvement Team work I R F collaboration and Partner, Director and platinum sponge?), that firms and in- Head of Tax roles talk about leading I zz S across multi ple functi ons. zz I N zz B I zz S zz You will understand the services zz I zz zz R Transfer pricing I zz moment then it is transfer pricing (TP). ERP and systems experience zz R I B I I a desire for experience of ERP systems F I I really well such as meeti ng deadlines and preparing and submitti ng tax returns and S zz E E knowledge of an ERP system (e.g. of this. You can however help improve Oracle) and tax software is highly months in a TP team can be what gives I I I accountancy fi rms use personality tests B I I is parti cularly common when looking at used by HMRC to identify risk and then Pricing for the next 10 years will be and promoti ng someone to partnership – try I this free test to fi nd out where you fall: I htt ps://www.16personaliti es.com. Of all also be demand from HMRC and practice I the soft skills training, management courses I I E B you to prioriti se running a portf olio, with Risk management a team of fee earners. It gave me ti ps on Process improvement and systems I B ti me management and working out what I moti vates diff erent members of a team, I ti ps that I sti ll use some 15 years later. with (CONSUL (ESFJ-A). It is an enjoyable ‘Permanent Establishment’ by setting four that caught my att enti on were:
12 www.taxadvisermagazine.com STRAP
Commerce & Industry Group Annual Conference Managing business tax demands from Corporate Boards and Revenue Authorities
I n partnership with: Wednesday 19 September 2018 Freshfields Bruckhaus Deringer, Northcliffe House, 26-28 Tudor Street, London EC4Y 0BQ K indly hosted by : Topics to include:
• Ta is and overnance • Ta eform an update and practical overview • mployment ta considerations for business • Transfer pricing the latest developments and • a ing ta digital for AT and other AT practices considerations • igital economy
Boo online at: tax org u commerceandindustr
Conference fee: £285 (booking before 15 August 2018) £335 thereafter
European Branch 11th Young International Corporate Tax Practitioners Conference
SAVE THE DATE - Friday 28 September 2018 Book online at: www.tax.org.uk/11thyoung The Auditorium, Deloitte Offices, 2 New Street Square, London EC4A 3BZ
This will be the 11th running of this very popular conference: This year’s conference will highlight the impact of a fast changing world. In association with the Y oung I F A • TH E U K W I TH I N O R O U TSI D E O F • TH E TR U MP TA X •A H I G H L E V E L P A N E L D I SC U SSI O N O N TH E TA X N etwork E U R O P E : R E F O R MS: C O N SE Q U E N C E S O F TH E D I G I TA L E C O N O MY : W hat will be the conseq uences f or W ill they help or This will cover whether a multinational approach to the multinationals in arch 2 0 1 9 , the hurt multinationals tax ation of dig ital prof its can be achieved whilst impact of tate Aid provisions, the preserving the international tax f ramework, tog ether A nti Tax Avoidance D irective and with the identification of new value g eneration the G eneral D ata P rotection activities, the conseq uences of a dig ital services tax and R eg ulation? the impact on competitiveness.
www.taxadvisermagazine.com 13 TRANSFER PRICING
Stacking the odds
KEY POINTS zz What is the issue? From a legal perspecti ve, a multi nati onal group is a collecti on of legal enti ti es, each make, and how they are arrived at, are sti ll zz What does it mean to me? Part of the problem is that board meeti ngs usually just record the discussions and deliberati ons behind those decisions. This has ramifi cati ons looks at how individual group enti ti es zz What can I take away? documentati on that produces clear audit Paul Sutton I possible protecti on against challenges to
recorded in detail. Part of the problem is I H S decade. High profile corporate collapses, E S I S F R F F HMRC secured £5.9 billion of additional E I which businesses operate, so HMRC’s
14 www.taxadvisermagazine.com TRANSFER PRICING
PROFILE Name Paul Sutt on Position Company N Tel Email Stacking the odds P r o fi l e Paul is the co-founder of LCN Legal, an independent law fi rm specialising in advising clients on the legal design and implementati on of corporate structures. During his legal career prior to establishing LCN Legal, Paul held positi ons as a director at KPMG’s UK law fi rm and as a corporate partner in the London offi ces of McGrigors and of Pinsent Masons. During his ti me at KPMG’s law fi rm, Paul legal implementati on of restructuring projects for large corporates. This has included projects such as Eurobond listi ngs, corporate migrati ons, cross-border mergers and © IStockphoto/Jane_Kelly I agreements (ICAs) in place. ICAs can I I financial services and insurance sectors); risk; improving the corporate governance I of companies throughout the group; directors; supporting the external and I I implementation of the OECD’s BEPS I F I E ‘Contractual arrangements are the starting point for determining which party to a transaction bears the risk associated with it. Accordingly, it (and for what price), how relevant assets would be a good practice for associated enterprises to document in writing I their decisions to allocate or transfer significant risks before the transactions with respect to which the risks to be I borne or transferred occur…’ Previously, external advisers have I B had it succeeded, cannot be quantified). N I I N whether I how I (e.g. dated board minutes) of transfer F of risk) and the pricing of the supply.
www.taxadvisermagazine.com 15 TRANSFER PRICING
Complicated change control or reporting TOP TIPS FOR TAX ADVISERS zz E transfer pricing position if they are not zz E followed in practice. a matter of good practice I zz Press clients to put in place inter-company agreements (ICAs) consistent with the legal and beneficial zz While the tax reasons for ICAs are compelling, emphasize the need for a holistic zz N I transactions. For example, an intra-group arrangements are operated and managed in practice zz ICAs must address the transfer pricing functionality required, so generic template accounting entries, rather than promoting F I matching ownership and flow of IP; not adequately reflecting group structures; commercial objectives. The legal agreements should reflect termination provisions; and overlooking each participating company can properly approve as promoting the interests of that particular company. This means be problematic – such as arrangements which would involve a particular entity incurring ongoing losses; being exposed to liabilities or cashflow demands which it does not have the financial resources to meet (such as indemnities for product I liability, or an obligation to repay loans on demand); or ‘giving away’ assets or value, agreements being too complicated; not The Worshipful Company of Tax Advisers
Join us in the magnificent Livery Hall of the Worshipful Taxation in the Medieval City Company of Skinners for our next history of tax event. of London (c1066 - 1500) This talk will consider how, in the medieval period, the wealth of London was tapped for the common good Date: 15th October 2018 whether national or local. Time: 5:45pm for 6pm start Professor Caroline Barron is an Emeritus Professor of Speaker: Professor Caroline Barron the History of London at Royal Holloway, University of London and the President of the British Association for Venue: Skinners’ Hall 81/2 Dowgate Hill, Local History. London EC4R 2SP Professor Caroline Barron Her research interests lie in the area of late medieval Cost: £18 for members of the Worshipful Company of Tax British history, particularly the history of the City of Advisers and their guests, £20 for non-members London, the reign of Richard II and the history of Supper: There will be no supper organised after the women. She has written on Richard II for the New lecture to allow you time to enjoy a glass of wine in the Cambridge Medieval History and on London for the beautiful surroundings of Skinners’ Hall. Cambridge Urban History of Britain. Her book London in the Later Middle Ages: Government and People The event is open to everyone with an interest in the 1200-1500 was published by the Oxford University history of tax. For more information and to book your Press in 2004. She is also interested in urban literacy place please visit www.taxadvisers.org.uk and in the ways in which the ‘small people’ of London expressed their concerns and priorities.
Please contact Ann Bailey on [email protected] to book your place
16 www.taxadvisermagazine.com PAYMENTS BY ONLINE PLATFORMS
ENTERPRISE INVESTMENT SCHEME
© IStockphoto/BrianAJackson
A domino effect? Bill Dodwell considers recent cases in which one relief has been conti ngent on another
relief where the share subscripti on E I S did. HMRC turned him down, though. As was just £316. HMRC also said that ‘in WEIS and its litt le cousin Seed EIS well as arguing (and losing) on the technical I of HMRC’s refusal to allow a late claim for University, HMRC considered that the income tax relief. Mr Justi ce Fancourt and purpose of the share issue was an att empt EIS SEIS Judge Greg Sinfi eld decided to quash the I The Tribunal faced litt le diffi culty in HMRC’s care and management powers dismissing HMRC’s arguments. The SEIS under secti on 5(1) of the Commissioners legislati on did not set out a minimum subscripti on. There is a capital gains tax R subscripti on level and there was no basis exempti on on sales aft er three years – but it to accept late claims. The HMRC offi cer I whether this was one of those ‘…excepti onal the company’s qualifying business acti vity. cases that do not meet these conditi ons and HMRC’s argument about the purpose for inheritance tax exempti on too. parti cular claim or electi on, where it may sti ll failed, not least because HMRC had not be unreasonable for HMRC to refuse a late claim or electi on.’ I R The judges ordered HMRC to remake its of a quite unnecessary restricti on in the was likely to be suffi ciently excepti onal to only claim exempti on from capital gains G permitti ng capital gains tax exempti on. legislati on clearly provides for a range of tax I Oxboti ca share subscripti on. Fortunately, the Upper F contributi ng to a qualifying company S EIS EIS ups. Oxboti ca was founded to acquire Although it’s disappointi ng to fi nd subscripti on, as his income that year was Ames) going before the allowance, which was given automati cally F in HMRC’s online Self Assessment system, draft ed. There seems litt le doubt that G Parliament intended off ering income HMRC thus refused Mr Ames capital gains SEIS EIS SEIS compliance certi fi cate to three individuals, who had subscribed £316 for shares. HMRC tax benefi t is available only where turned down the applicati on, asserti ng I F hearing that Mr Ames could have submitt ed Parliament would have intended granti ng do with HMRC’s administrati on than Parliament’s intenti on. Surely if we’d PROFILE Name Bill Dodwell P r o fi l e Bill is a past president of the Chartered Insti tute of Taxati on. should be conti ngent on obtaining Unti l 31 May, he was head of tax policy at Deloitt e, responsible for consultati ons and representati ons to the OECD, HM Treasury and in the negati ve. Each relief is perfectly HMRC. He expects to conti nue working in taxati on. Email HMRC reconsider their overall approach www.taxadvisermagazine.com 17 RESEARCH & DEVELOPMENT
RESEARCH & DEVELOPMENT
KEY POINTS zz What is the issue? The Research & Development (R&D) Tax Relief regime was first introduced in businesses to engage in scientific and Change technological innovation. The objective to entice companies to undertake R&D activities that might not have otherwise the focus zz What does it mean to me? However, many common costs, most Tom Haberford Martin Hook often directly related and pivotal in the delivery of R&D activities, fall R S omitted intentionally or just overlooked zz What can I take away? S R If so, how could HMRC make changes R
R (R&D) Tax Relief regime was first T in scientific and technological innovation. Following suit of other jurisdictions such F looked to incentivise companies investing in R&D by allowing additional tax deductions on eligible R&D expenditure. The objective to entice companies to undertake R&D activities that might not have otherwise economic progression. R&D activities not initially feasible for a company to undertake outcomes not just benefiting the company software. However, many common costs, individual has been supplied by a staff most often directly related and pivotal in provider or staff controller. the delivery of R&D activities, fall outside With the objective in mind, it could be So what happens if you have an individual, such a sole trader, who regime’s potential ‘net’ might act more S E provides R&D services? Provided Workers (EPW) for example. These R legislation that are defined in legislation R I (Corporation Tax Act 2009 s1078 and R s1128 respectively) and which represent stand up and take notice, signifying a two specific but different scenarios within supervision, direction and control of our R an R&D process. The first represents the client, are inherently regarded as EPWs until completion of a task, clearly defined at the Being sole traders, individuals fail the ‘staff R a separate entity, the ‘staff provider’, between a claim, such as staff, consumables and R&D claimant and the individual worker)
18 www.taxadvisermagazine.com RESEARCH & DEVELOPMENT
RESEARCH & DEVELOPMENT
PROFILE Name Tom Haberfield Position R Company Tel Email Profile R
PROFILE Name Martin Hook Position I Company Email Tel Profile As Managing Director of Ayming UK, Martin oversees all aspects of building the business; from driving strategy and building the brand, bring new services to market, as well as delivering consistent sales growth and client project delivery. Martin is a member of Ayming’s Group Executive Committee, supporting the group’s global growth ambitions. Martin is a fellow of CIMA in the UK; he speaks English and French.
construction clients. In this example, the against the intention of the regime and so trading specialist to coordinate a specific R&D I ask: what other essential expenses are project in conjunction with its own internal staff. Upon preparing the claim, however, R R R R cost, this particular individual working under the supervision, direction and control of the client failed to be classified as an EPW R relating to the rental of premises or technical the provision of staff provider/controller. equipment is passively (not explicitly) Although seemingly counterintuitive to the excluded from the regime; due only to the R fact that the legislation fails to provide an conjunction with the obvious inability to attributable expenditure category. Renting of workspace or hiring of equipment is often R clients as an essential cost in the process R highly innovative and advancing activities will But how could this be? equipment and/or additional/designated mentality at the time the legislation was floor space; most often unavailable or first drafted. Back in the late 1990’s, self- unfeasible to purchase for the finite duration employment was an unappealing proposition, of an R&D project. This situation is very with job security and paid entitlements being common for construction and manufacturing seen as the far more attractive employment clients who often require extra space or requirement of an EPW. Not a huge problem, option. Fast forward this a decade or two and it is clear the priorities within society are essential to our client’s R&D process – to of the ‘gig economy’ and potentially higher automotive clients who needed to rent additional warehouse space to develop way; but they are not. As it stands, when you any desire for long term stability. This shift take into account the nature of the obligation in priorities has not just confined itself just internal service providers, you find they also happen to fail the basic definition of strategy to reduce costs. The introduction of mentioned earlier, the additional rental cost ‘subcontracted R&D activities’. Although R seemingly counterintuitive, failure to satisfy either of these two definitions can only lead So, if common and obviously important, the claim entirely. the general obligation to pay employee have these costs been omitted A specific example of this occurred entitlements. intentionally or just overlooked by the regime?
www.taxadvisermagazine.com 19 RESEARCH & DEVELOPMENT
Similar to the priority shift in employment, genuine incentive for companies to invest a proportion of assets can be written off in innovation in the first place. Australia, were used for R&D purposes). The point themselves with the often large and of eligible expenditure, providing holistic support through a clear appreciation for applicable to a small proportion of claiming R direct and indirect expenditure we find in R outsourcing has become far more attractive How does it do this? So is R&D tax support in the UK industries with highly technical applications therefore currently missing the mark? such as construction, IT and biotechnology. R I think yes, and believe HMRC should re- As we are now seeing, subcontracting of which fail to align with the more specific R labour to undertake specialised or one-off The immediate path for HMRC should be tasks is common practice across highly include proportions of expenses such as consultation with industry and advisors to gain a better understanding of what ‘other’ even subscriptions. Although not the focus R of the R&D itself, these costs are often projects and in addition, to recognise the R R R lead to exclusion. Only through consultation R will HMRC gain the necessary insight and Just to be clear, this is not questioning an interesting position to take as it seems R support being irrationally overlooked and obvious that when subcontracting an this is merely highlighting its focus. activity (whether R&D or otherwise) you R Holistic support is the first step in opportunities for support. These can ability to incentivise R&D. It is true some R of the current outlying ‘generosities’ may required to undertake R&D projects; by the UK claimant), or tapping into the is incentivising and so will direct support assuming its intention was to provide a
SHARPEN YOUR TAX SKILLS!
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SPEAKERS: FEES: Michael Steed £ 2 00, AAT and ATT Members; £ 450, Non-members Co-chairman of the ATT Technical Steering Group & Head of Tax, BPP
V isit www. att. org . uk / aat- att2 018 f or more details and to book y our place
20 www.taxadvisermagazine.com
Scotland Branch Annual Conference 2018
Friday 2 – Saturday 3 November 2018 Book online at: Doubletree Hilton Dunblane Hydro www.tax.org.uk/scotland2018
Topics include: • The F inance A ct and topical tax issues • B usiness G rowth and E ntrepreneurial • C riminal F inance A ct 2 017 Tim P almer, P almer C onsultancy Tax R elief R ay McC ann, P resident, C hartered P artnership N eil N orman, C hiene + Tait I nstitute of Tax ation • C apital Tax es update • E mploy ment tax ( all chang e! ) • Manag ement B uy outs E mma C hamberlain, P ump C ourt Tax P aul Tucker, Smith & W illiamson D emy stified C hamber • P ractical uses of trusts P ete Miller, The Miller P artnership • V A T update B ob Trunchion, MH A MacI nty re • Scottish tax es Maria McC onnell, F rench D uncan L L P H udson C harlotte B arbour, I nstitute of C hartered A ccountants of Scotland Full Conference: ( both day s plus accommodation on F riday nig ht and dinner) Members £440 (£400); Students £280 (£250) Conference: ( one day only ) Members £190 (£170); Students £120 (£100) E arly bird discount ( prices q uoted in brackets) apply to booking s on or bef ore 3 0 September 2 018.
European Branch Milan Conference 2018
SAVE THE DATE – Friday 19 October 2018, 2:00 pm E E R F Topics to be discussed: E C N E R E F N O C
• The D ig ital E conomy • State A id • The E U A nti A voidance D irective
F ollow us on our website www. tax . org . uk and Twi er @ C I O TE uropeTax f or the latest updates on topics and speakers or j oin our F acebook g roup. W e also have a g roup on L inkedI n.
www.taxadvisermagazine.com 21 VAT AND PROPERTY
VAT AND PROPERTY
KEY POINTS zz What is the issue? In most situati ons, VAT will be charged building and has made an opti on to tax electi on on the property in questi on. Looking But there are situati ons when the opti on is overridden, e.g. if the buyer or use it for a relevant residenti al or closely G zz What does it mean to me? I could have implicati ons for input tax zz What can I take away? Neil Warren relevant to an accountancy practi ce on known facts at the ti me of the retrospecti ve acti on.
o pick up the story from the fi rst his intenti on to convert the building into arti cle I wrote on VAT and property dwellings or for RRP use. The form must T Tax Adviser June 2018), Duran and Co Accountants bought is legally fi xed, i.e. before exchange of zz If I change my mind aft er I have bought the freehold of a property (plus VAT) contracts (VAT Noti ce 742A, para 3.4). the building and never convert it to residenti al use, will I have to repay the years, before renti ng it out to a fi rm of Here are the answers to some VAT I saved? solicitors following their relocati on to a questions that you might be asking: all about the buyer’s intenti on at the I zz If I am the buyer, must I have obtained ti me of the supply. If these intenti ons planning permission to convert the property into dwellings before I can complete form VAT1614D? intenti on at the ti me of the deal. The Convert building into residential use Charitable use Let us fi rstly consider the situati on where Conditi on 2 of the form, which says: ‘I The second situati on when Duran and Co’s convert opti on to tax electi on will be overridden of the building menti oned above with vacant building. As an opening questi on, can you think of two situati ons when the residenti al purpose’. than as an offi ce.’ In this situati on, there VAT, despite Duran’s opti on to tax electi on zz What if my intenti on as the buyer is is no offi cial HMRC form to complete, so to only convert part of the building the charity will confi rm its intenti on to the into dwellings? seller in writi ng. The fi rst situati on is if the buyer intends the seller’s opti on to tax electi on can The phrase ‘other than as an offi ce’ be partly overridden to refl ect the residenti al use but VAT will sti ll be be used by the charity for head offi ce type residenti al purpose’ (RRP). The latt er functi ons e.g. dealing with the charity’s There is no specifi ed method of output accounts, administrati on, IT issues etc. home, student or nursing accommodati on. tax apporti onment in the legislati on However, if the offi ce use is, for example, I to provide a base for staff operati ng a to residenti al use is planned for the footage or fl oor split calculati on. So if VAT1614D to the seller, which confi rms one fl oor out of two will sti ll be used (VAT Noti ce 742A, para 3.5).
22 www.taxadvisermagazine.com STRAP
VAT AND PROPERTY
PROFILE Name Neil Warren Position I Company Warren Accounti ng Services Ltd P r o fi l e N a past winner of the Taxati on Awards Tax Writer of the Year. Neil worked at HMRC for 13 years unti l 1997.
tenanted and vacant. VAT Noti ce 700/9, the ti me of the deal. zz I Capital goods scheme and TOGC if a TOGC situati on applies, namely that completed and submitt ed to HMRC’s Opti on to Tax Unit in Glasgow. goods scheme (CGS) adjustments of the zz The buyer must also confi rm to the seller. You may recall from my fi rst arti cle seller in writi ng that the opti on to tax electi on he has made will not be for £600,000 plus VAT fi ve years ago, so disapplied. This is an anti -avoidance measure – see VAT Noti ce 700/1, para zz S rental business’ in place at the ti me year period to refl ect any change in use I between taxable and exempt acti viti es (and non-business acti viti es as well since January 2011). So if Duran and Co bought landlord, which did not consti tute a G are sti ll outstanding for the buyer in the G B Here is a teaser for you: what would conti nues to use the building wholly for use of the building can be clearly defi ned be the VAT positi on if a ten fl oor building for each specifi c area – seeExample 1: Animal Charity and building use. opti on to tax electi on in place, but only one out of the ten fl oors had a tenant Transfer of a going concern (TOGC) in place at the ti me of the sale i.e. nine Input tax issues for seller We have so far considered the potenti al fl oors were sold with vacant possession? I G Your initi al thought might be that there vacant but what would be the situati on if seller i.e. there are no parti al exempti on it was sold with a tenant or tenants sti ll in G B occupati on i.e. the solicitors in our case as the conditi ons above are met. The of the charitable or residenti al use issue, G HMRC guidance refers to this situati on certain conditi ons: as a ‘parti ally let building’ and it makes The fi rst challenge will be for Duran and zz no diff erence what the split is between BOX 1: DENTIST SUBLETTING. EXAMPLE 1: ANIMAL CHARITY GS AND BUILDING USE S a three fl oor building and the seller has converti ng the property into dwellings, S £300,000. The Charity will use each fl oor the input tax i.e. the fi nal fi ve years of the zz The ground fl oor will be a shop to sell as being relevant to exempt acti viti es zz The fi rst fl oor will be used to treat and look aft er sick animals zz The second fl oor will be used as the S head offi ce of the charity, dealing with administrati on issues. the rules of parti al exempti on e.g. estate www.taxadvisermagazine.com 23 N R SE E EN
KEY POINTS zz What is the issue? A basic grasp of contract law is essenti al to any tax practi ti oner as the existence determinati ve of many tax questi ons, zz What does it mean to me? I an objecti ve reader. zz What can I take away? of discussions with HMRC so that a
he late Leo Price QC was once Tcommitt ee of the House of Lords (the predecessor to the Supreme Court). He opened his submissions as follows: ‘My E The three components to a valid contract: an off er, Keith Gordon acceptance and considerati on.’ The fi ve judges looked at Mr Price suspiciously before I a contract sett lementlement withwith contract law.’ Without hesitati on, Mr Price stages HMRC is formally concludedconcluded I A basic grasp of contract law is essenti al to any tax practi ti oner as the existence or N Mr Kyte applied to the High Court for a absence of a contract can be determinati ve advisers and HMRC embarked on a course of declarati on that a binding contract had been of many tax questi ons, ranging from capital correspondence with a view to the parti es entered into on 12 January 2016 (by the F reaching a possible sett lement. advisers’ acceptance of HMRC’s earlier off er the arti cles I write consider disputes which I on Mr Kyte’s behalf) and that the subsequent follow a formal determinati on or assessment HMRC wrote to Mr Kyte on 4 January 2016 with calculati ons identi fying how much sati sfi ed Mr Kyte’s relevant tax liabiliti es. additi onal tax HMRC expected Mr Kyte contract sett lement. to pay for each of the years in questi on. The High Court’s decision Kyte v HMRC The additi onal tax and interest came to EWHC 1146 (Ch) concerns discussions with (A Master is, eff ecti vely, a junior judge within such a contract sett lement in mind. the Royal Courts of Justi ce.) His judgment following week (12 January 2016) confi rming Facts of the case were largely agreed by the parti es. In I sett lement on those terms and asked HMRC parti cular, it was agreed that the concept of parti cipated in what I shall describe neutrally for a sett lement deed. They also asked off er and acceptance should be interpreted as a fi lm scheme. I express no opinion as objecti vely rather than by reference to the to pay the additi onal £316,955.30 over a subjecti ve intenti ons of either of the parti es. moti vated or simply made more att racti ve by the potenti al tax reliefs available to He cited one recent High Court case N arrangements, Mr Kyte claimed a signifi cant instalment arrangement would aff ect the wording of any sett lement deed. However, he sought to set off against other income of the criti cal event took place on 28 January 2016 when HMRC announced that they had discovered an error in their fi gures as binding. However, that same authority provided on 12 January. This announcement conti nued to note that, where an agreement led to Mr Kyte’s advisers asserti ng that has been reached by the parti es, the courts 2010/11, 2011/12 and 2012/13 tax years). As reached. As this was not accepted by HMRC,
24 www.taxadvisermagazine.com N R SE E EN
PROFILE Name Keith Gordon Position B Company Tel Email Profile Keith M Gordon MA (Oxon), FCA CTA (Fellow) is a barrister, of the Year category at the 2009 Tolley Taxation awards. He was also awarded Tax Writer of the Year at the 2013 awards. He provides litigation support and advises on tax and related matters to accountants, tax advisers and lawyers.
consideration. what liabilities were being resolved through R relatively informally although formality Commentary definitely increased in the latter half I N possible for a different conclusion to have been reached on the status of the 4 January considered that the 4 January letter put 2016 letter, I am not suggesting that the Chief forward ‘computations’ rather than any formal settlement offer. The letter was N simply the next iteration of the calculations predecessors, the figures were not headed with ‘indicative’, the Master considered that of 12 January. the discussions were still some way short of wording of discussions with HMRC so that a no offer. I consider the remaining objections put I forward by HMRC to Mr Kyte’s claim. any actual intention to treat the 12 January N response as an acceptance until it was later the alternative. realised that it might be beneficial to do so. He considered that the 12 January (However, as previously noted, the parties’ contractual effect – such a conclusion is very intentions are not determinative of the issue F as to whether a contract has been formed.) F principle with a couple of observations of F Secondly, Mr Kyte requested a settlement reason why HMRC cannot put forward an will generally take a pragmatic approach deed, suggesting that he considered matters offer, which the taxpayer later accepts. to filling in gaps in the contract when it is still be to ‘subject to contract’. Thirdly, However, advisers will recognise that HMRC clear that the parties intended to enter into there remained one unresolved matter generally insist upon any offer emanating S – the payment date(s), which the Master N considered to be an essential part of an offer attach to one or both of the parties. In the contention) a court will not be precluded context of HMRC, he noted that it operates that terms can sometimes be implied so as from finding that a contract has been formed to fill a gap. However, in the circumstances, by the taxpayer accepting an offer made by and with statutory duties to collect tax. (He HMRC. did not consider that HMRC’s statutory role wide to be filled. Accordingly, even if HMRC would be a significant feature in the context could be said to have made an offer on 4 What to do next of commercial agreements that HMRC January, the response on 12 January was not I might reach, for example in relation to its an acceptance of that offer; if anything, it buildings or the supply of goods or services.) amounted to a counter-offer. N arguments put forward by HMRC which would be reached by an objective reader. Of settle a tax liability in the same way as any such agreement would also benefit from a review, in case it can be argued that a critical For example, although the 4 January and rigid concepts of offer and acceptance computations had calculated interest until Different issues might arise if you are dealing (etc.) will often require a court to take 31 January 2016, it was not clear that that S I a flexible (the Master said ‘practical’) constituted a contractual payment date and In the meantime, always remember those was instead one identified for the sake of the straitjackets of offers, acceptance and convenience. It was also not entirely clear was alleged) the Court of Appeal did not. www.taxadvisermagazine.com 25 CHARTERED INSTITUTE OF TAXATION RESULTSEXAM Results and prizes May 2018
he Chartered Institute of Taxation, like to offer my congratulations to all the members of the Institute in the near future. T Of the 529 Tax Pathway candidates who sat a taxation, announced on 18 July the results combination of ATT and CTA papers 8 have from its examinations taken by 1,550 2018 examination. 296 candidates have now fully completed the Tax Pathway by The Institute President, Ray McCann, examinations (including 11 who were on F commenting on the results said: ‘I would the ACA CTA Joint Programme) and very
CTA prizes and awards The Ronald Ison Medal for the candidate and Interaction Paper. The Institute Medal for the candidate with with the highest mark in the Advisory Paper E the best overall performance attempting on Taxation of Individuals. winner of the Spofforth Medal. the Awareness Paper and two Advisory The Chris Jones Prize for the Papers (all at the same sitting). Hutchinson Dean of London, where he candidate with the highest total has been awarded to Helen Kaminski of marks in two Advisory Papers (taken Bristol, where she is employed by PwC LLP. at the same sitting). The Gilbert Burr Medal for the candidate The John Tiley Medal for the candidate with been awarded to James Rogers of with the highest mark in the Advisory the highest mark in the Advisory Paper on Paper on Taxation of Owner-Managed Taxation of Major Corporates. by EY. Businesses. has been awarded to Chris Jepson of The Croner-I Prize for the candidate to Jonathan Bradford of Basingstoke who B with the highest distinction mark. is employed by KPMG in London. The Wreford Voge Medal for the candidate The Victor Durkacz Medal for the with the highest mark in the Advisory to Jonathan Bradford, winner of the candidate with the highest mark in the Paper on VAT on Cross-Border Transactions Gilbert Burr Medal and Chris Jepson, Advisory Paper on VAT on UK Domestic & Customs Duties. winner of the John Tiley Medal. Transactions, IPT & SDLT. awarded to Elliott Lomas of Leeds, where has been awarded to Helen Jackson of he is employed by EY. The John Beattie Medal has not been The Ian Walker Medal for the candidate Deloitte. with the highest mark in the Awareness The Medals, Prizes and Distinctions Paper. The Spofforth Medal for the candidate are awarded for each examination B with the highest mark in the Advisory paper subject to the discretion of employed by BPP Professional Education Paper on Inheritance Tax, Trusts & Estates. Council and the attainment of a E satisfactory standard, regardless The Avery Jones Medal for the candidate of whether the examination Saffery Champness in Harrogate. with the highest mark in the Application
CTA distinctions (Advisory: Taxation of Owner Managed Chris Jepson (BDO, London) (Advisory: Distinctions Businesses) Taxation of Major Corporates) Declan O’Connell (Menzies, Leatherhead) Helen Kaminski (PwC LLP, Bristol) (Advisory: Taxation of Owner Managed (Advisory: Taxation of Major Corporates) (Haines Watts, Leeds) Matthew Barton Businesses) (Advisory: Taxation of Owner Managed Alexander Rigg (Mazars LLP, Birmingham) Businesses) James Rogers (EY, Liverpool) (Advisory: (Advisory: Taxation of Major Corporates) Taxation of Owner Managed Businesses) Jonathan Bradford (KPMG, London) Rebecca Rogers (Bristol) (Advisory: (Advisory: Taxation of Owner Managed Elliott Lomas (EY, Leeds) (Advisory: VAT on Taxation of Major Corporates) Businesses) Cross Border Transactions & Customs Duties) Amber Westmoreland (EY, Manchester) Patrick Edward Michael Croft Emily Sheridan-Vigor (EY, London) (Advisory: (Advisory: Taxation of Major Corporates) (Macfarlanes LLP, London) (Advisory: VAT on Cross Border Transactions & Customs Distinctions are awarded to candidates Taxation of Owner Managed Businesses) Duties) whose answers reflect an exceptional Adam Beasy (EY, London) (Advisory: Taxation Jack Davies (Kirk Newsholme, Leeds) level in the Advisory Papers and the of Major Corporates) (Advisory: Taxation of Owner Managed Application and Interaction Paper. Businesses) Harry Challands (EY, Luton) (Advisory: Distinctions are not awarded for the Andrew Jones (Rayner Essex LLP, St Albans) Taxation of Major Corporates) Awareness Paper.
26 www.taxadvisermagazine.com E RES S
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
(Leigh-On-Sea) J E (Buckley) + = Prizewinner (Milton Keynes) +Jackson H (Liverpool) Moore J (Lurgan) * = Distinction E (Kingston) Jackson O (London) S (Thamesmead) Duncan J (Guildford) Jacob D (London) Mordecai P (Billericay) (London) Jastrzebski D (King’s Lynn) S N (Bristol) Jebb A (Shrewsbury) (Edinburgh) E Jeffrey L (Belfast) R (Belfast) E (Frinton On Sea) Jenkins K (Poole) (London) A Etienne J (Hainault) Jones L (Sully) Abbott C (Greenhithe) *Jones A (Shefford) N (Stockton On Tees) F Jones R (Ellesmere) Nash J (Hounslow) (London) F N (London) Jones E (Barnsley) N (Reading) (London) Fendall H (Denton) Noble J (Bristol) Austin C (Lurgan) F (London) K (Romford) Finn J (Birmingham) +*Kaminski H (Bristol) O Fitt A (Ampthill) S (London) F (Newbury) B Flashman J (Guildford) (Leytonstone) (Enfield) B S (Barnsley) Fletcher H (West Wickham) S (Burton-On-Trent) B (Burton On Trent) F (London) Kativu T (Great Yarmouth) P Bathia H (Edgware) F (London) Kemp J (Coventry) Parker A (Windsor) B (London) F S (Liverpool) (Belfast) Patel A (Elstree) B (Chatham) F (Christchurch) (Wokingham) Patel V (West Molesey) B R (St. Neots) Kitch J (Winchester) Paterson L (Tranent) B S E (London) G Kocierz J (Rainham) Paterson C (Edinburgh) B E (London) G (London) (Reading) Paton J (Prestonpans) B S (Bury) G (Liphook) (Edinburgh) Peck A (Reading) +*Bradford J (Basingstoke) G (Newtownabbey) R (Rickmansworth) Phillips I (Walton On Thames) B S (Reading) G (Ardglass) Picton J (Northampton) Brough J (Wirksworth) Gillham J (Manchester) L Polyakova M (Sidcup) B R (Lancaster) G G (London) Larsen H (Bristol) Prior A (Perth) G (Bexleyheath) G (York) Purves T (Derby) C Gordon H (Paisley) (Bishop’s Stortford) (Glasgow) G (Belfast) (London) Q (London) G (Cambuslang) (Nuneaton) S (Glasgow) (Trowbridge) G (Saltash) Levenson Y (Salford) *Challands H (Luton) Light J (Winchester) R S (London) H S (Maidstone) R S (Bromley) E (Sheffield) Haines E (Sidcup) Link J (Shipley) R (Gomshall) B (Manchester) Han Y (New Malden) Little C(Birmingham) Rawcliffe D (London) (Nottingham) Handley L (Manchester) (Northampton) R (London) B (Broxbourne) Harris R (Leeds) (Sutton Coldfield) R (Harrogate) Clifford O (Gloucester) Harrisson E S S R E (London) (Belfast) Guernsey) M R (Edinburgh) (Rugby) Hasselberg-Langley C (Haywards (Slough) R (Knebworth) S (London) Heath) Mander J (Harefield) R (Taunton) (Manchester) Hattersley M(London) Marie P (London) R B (Stevenage) *Croft P(London) Hay R (Glasgow) (York) R R (Bristol) (Lutterworth) Heron N (Wokingham) (Peterborough) Rogers J (Wolverhampton) Heugh V (Godalming) Martin N(London) +*Rogers J (Liverpool) D Hickey R (Glasgow) Martin N(Burgess Hill) R (Stowmarket) S (Colchester) Hodgkinson T (Sudbury) Martino Martinez D (London) Rostron H (Chelmsford) (Sanderstead) Hodgson S (London) (Dorchester) R R (Stoke On Trent) G (Caernarfon) Holford S (Wainfleet) Mazrae-Khoshki H (Bournemouth) (Bristol) Hollett M (Sittingbourne) McBennett J (London) S De Greeff L (Bridport) Howie K (Glasgow) G (Aberdeen) S (East Grinstead) S (Manchester) Hsu C (Croydon) (Newry) S N (London) (Lewes) Hume F (Stevenston) McDermott G (Glasgow) Scorgie J (Selby) Diss H (Great Gransden) Hurford R (Shipley) G (Poole) Scott B (London) Dobson P (Rotherham) +Hutchinson Dean K (London) N (Edinburgh) S (Southall) (Sutton) Middlemass J (Royston) S (Heston) S (Edinburgh) I (Teignmouth) S (Cumbernauld) Dowding J (London) I (London) I (Tamworth) Shutt P (London) N (Belfast) (Rugby) S R (Dartford)
www.taxadvisermagazine.com 27 E RES S GIVE
S S (Coventry) Thomas H (Rochford) R (Swindon) S (Chippenham) S (London) (Bourton On The Water) YOURSELF S (Sheffield) (March) (Carshalton) S (Liss) Thomas-Hui C (Ramsbottom) (Bristol) S S (Lisburn) (Carterton) (Clevedon) A FLYING S (London) R (Hinkley) S (Banbury) S N (Glasgow) S (Callington) Witter R(Stretford) S (Ilford) (Theydon Bois) (Kettering) START S (Croydon) S (Dunstable) N (Northampton) S (Archway) (London) R (Shiptonthorpe) ® S (London) S (Sidcup) Tolley Exam Training Soomal P (Willenhall) V S (Sheffield) S R (Lincoln) S (Leicester) Delivering unrivalled results S (London) G (London) X S (Didcot) I (London) Xie J (London) S (Guildford) R (Droitwich) ® S (London) Vyas P (London) Z Pass your examinations confi dently the fi rst time, with Tolley Exam Training’s Stotter F (Petersfield) Zhang Y (London) expert knowledge. Our dedication to helping our students succeed has resulted in S S (Polegate) W our pass rates once again signifi cantly outperforming the national average, giving S (Hamilton) Wain H (Southampton) our students the knowledge and skills they require to progress their careers in tax. S S (Southampton) (London) S R (Reading) (Sunderland) S (Bury St. Edmunds) E (Lewes) S (Nottingham) (Gillingham) ATT - MAY 2018 S S (Derby) (London) S B (Barnsley) (London) Whatton S (Bromsgrove) TOLLEY NATIONAL T S (Loughborough) EXAM TRAINING* AVERAGE (Jarrow) N (Durham) Overall 92% 75% Tarbun P (Morecambe) (London) (Uxbridge) R (Birmingham) Our students achieved 7 of the 10 ATT N (Edgware) G (Bristol) prizes awarded CTA - MAY 2018
TOLLEY NATIONAL EXAM TRAINING* AVERAGE Extraordinarily Overall 72% 59% Our students achieved 7 of the 11 CTA Adapted. prizes awarded
*Students who have studied with our Guaranteed Pass Scheme
Specialists in Tax Recruitment Start achieving success with Tolley today To discuss your next Practice or In-House Tax role contact... Visit tolley.co.uk/examtraining North West England: Scotland: Email [email protected] Sandra McKinnon Amy Borthwick No1. Spinningfields . Manchester . M3 3JE 69a George Street . Edinburgh . EH2 2JG Call 020 3364 4500 [email protected] [email protected] 0161 503 0035 0131 603 8111
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28 www.taxadvisermagazine.com RELX (UK) Limited, trading as LexisNexis®. Registered offi ce 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © 2018 LexisNexis SA-0718-015. The information in this document is current as of July 2018 and is subject to change without notice.
SA-0718-015 Update exam pass rates .indd 1 24/07/2018 11:46 PM GIVE YOURSELF A FLYING START Tolley ®Exam Training Delivering unrivalled results
Pass your examinations confi dently the fi rst time, with Tolley®Exam Training’s expert knowledge. Our dedication to helping our students succeed has resulted in our pass rates once again signifi cantly outperforming the national average, giving our students the knowledge and skills they require to progress their careers in tax.
ATT - MAY 2018
TOLLEY NATIONAL EXAM TRAINING* AVERAGE Overall 92% 75%
Our students achieved 7 of the 10 ATT prizes awarded CTA - MAY 2018
TOLLEY NATIONAL EXAM TRAINING* AVERAGE Overall 72% 59%
Our students achieved 7 of the 11 CTA prizes awarded
*Students who have studied with our Guaranteed Pass Scheme
Start achieving success with Tolley today Visit tolley.co.uk/examtraining Email [email protected] Call 020 3364 4500
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SA-0718-015 Update exam pass rates .indd 1 24/07/2018 11:46 PM ACA CTA JOINT PROGRAMME
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 May 2018 examination session and are eligible to apply for membership of both bodies subject to meeting the experience requirement.
B F M S B G (Bristol) F (Birmingham) (Bristol) Sarantis S (Bromley) S (London) C J O (London) Jellow C (Thornton Heath) (Bradford) W N (St. Albans) D L (London) B G (Richmond)
The following candidates have met the ACA CTA Joint Programme examination requirements for the Chartered Institute of Taxation as a result of the CTA May 2018 examination session.
A G L R R (Windlesham) Guo Y (Bromsgrove) E (Leeds) R (London)
C H M S (London) Holie S P (Southampton) McGarvey B J (Portsmouth) S E (Radlett) B (London) Mill J V (Taunton) K D (London) P (London) Koay L P (London) Peacock M (London)
TAX PATHWAY
In addition to success in the required ATT Certificate papers, CTA examination papers and Computer Based Examinations the criteria of experience must be satisfied to be eligible for membership of the Institute. The following candidates have fully completed the Tax Pathway and have met the examination requirements for CIOT membership.
B L R B R (Forres) Layton-Henry R (Seaford) Robson J (Chelmsford) E (Leeds) H S Hossain M M (Enfield) O Shah P (Harrow) (Snodland) K I (Luton)
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30 www.taxadvisermagazine.com ASSOCIATION OF
www.att.org.uk TAXATION TECHNICIANS
RESULTSEXAM Results and prizes May 2018
T compliance, announced on 18 July the B E January 2018. Of the 142 mentioned The Association President, Tracy B E E ATT element of the Tax Pathway. I I I held at the House of Lords.’
ATT prizes and awards B best overall performance when passing Deloitte LLP in Aberdeen. The Collingwood both the Computer Based Examinations in The Association Medal The Association Medal is awarded to the candidate with Professional Responsibilities & Ethics and the highest mark in Paper 3 – Business Law within a six month period. E F B Compliance. employed by Frank Hirth plc in London. The Tolley Prize The Tolley Prize has been The Association Medal is awarded to The Stary Medal S awarded to Dominic Hazell of Ipswich the candidate taking three written awarded to Jane Gareze of Haywards papers at one sitting obtaining the best Heath, where she is employed by JG The Tolley Prize is awarded to overall result including having passed Accounting Services. The Stary Medal is the candidate taking three written papers both Computer Based Examinations in awarded to the candidate with the highest at one sitting and obtaining the highest Professional Responsibilities & Ethics mark in Paper 4 – Corporate Taxation. total marks on those three papers. and Law. The Kimmer Medal The President’s Medal The President’s The Ivison Medal I B Medal has been awarded to James has been awarded to Charlotte Page S E G B RS The Kimmer Medal is awarded to the B NI B The President’s by Price Bailey LLP. The Ivison Medal candidate with the highest mark in Paper Medal is awarded at the discretion is awarded to the candidate with the 5 – Inheritance Tax, Trusts & Estates. of the President to an outstanding highest mark in Paper 1 – Personal candidate or candidates not otherwise Taxation. The Gravestock Medal G eligible for a prize. Medal has been awarded to Julia Garbutt The Jennings Medal The Jennings Medal Prizes and Medals are only awarded has been awarded to Peter Daniels G The Gravestock Medal is provided the papers are of a sufficiently RS awarded to the candidate with the highest B The Jennings Medal mark in Paper 6 – VAT. is awarded to the candidate with the Distinctions Passes with Distinction for highest mark in Paper 2 – Business The Johnson Medal The Johnson Medal Taxation & Accounting Principles. has been awarded to Sarah Moffat of G The Collingwood Medal and Tait LLP in Edinburgh. The Johnson Medal is awarded to the candidate with the
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.
A B B (Leeds) C E (Cullompton) B R (Bideford) Blackman J V (Andover) (Guildford) (Meerut, India) Battersby B(Glasgow) B R (London) (Taunton) N (Manchester) B (Eastbourne) B I (Wincanton) R (Cardiff) B R (Selby) B (Barking) Corteen M J (Northampton) B B (Chichester) Cracknell J (Langport) www.taxadvisermagazine.com 31
E RES S
D I (Basildon) N S G (London) Davie J F (Montrose) Ivey J (Tonypandy) N N (Bedford) Statt K (Blaydon-on-Tyne) (Dromore) N S (Bangalore, India) S (Dagenham) J N (London) S (Bridgend) F Jones L (Ramsey, Isle of Man) N (London) S (Douglas, Isle of Man) Freeman H (Banstead) Nutt M (Sheffield) K T G S (Hyderabad, India) O E (Manchester) Garbutt J (Cambridge) S (London) (London) F (London) Girling J (Bexleyheath) S G (Twickenham) G S (New Tredegar) Korny J (Hyde) P W G (Lutterworth) N (Bangalore, India) Patterson V (Upton upon Severn) (Oxford) R (Bangalore, India) Ponton S (Edinburgh) G (York) H S (Witney) Hafeez S (Luton) L Q Williams H (Stockport) Heald K (Hyde) R (Newcastle upon Tyne) (Burton-on-Trent) (Huntingdon) Higinbotham A (Congleton) G E (London) (Shepton Mallet) Hospet Venkatesh Murthy N R (Bangalore, India) M R S (London) Y Hughes A F (Pwllheli) S (Birmingham) R S (Bristol) Yule S (Aberdeen) Hull J D (Bexleyheath) N (Luton) Matl J (Milton Keynes) S I I E (Norwich) Sanghera H (Ilford) I (London) S (Nottingham) S (Watford) I (Sturminster Newton) N (Leicester) S (Cheltenham)
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 G Logunova Y (Luxembourg) S (Norwich) (Datchet) G (Glasgow) Lynch B J (Sutton Coldfield) S (Slough) Allan J (Reading) G (Bedford) S S (Waltham Cross) (Leeds) Gove H A (Aberdeen) M S S (London) Graham J (Hayes) (Glasgow) S N (Bedford) B G (North Baddesley) S R (Uxbridge) B (Rugby) G S (Bristol) N S (Fareham) B (London) Grist H (Salisbury) Neal J (Leeds) S (Aberdeen) B B (Liversedge) G (London) N (Mansfield) B (Deeside) T H P (Harrogate) C Harrison K (Manchester) Pandit D A (Stanmore) R F (London) Chattaway G(Bromley) Hernandez O (London) Pascoe E L (Thatcham) (Stanford-le-Hope) Corby P (Twickenham) Hibbitt J (Sandy) Paton D (Fareham) Hodges C (St Albans) Patrick A (Penarth) D Petrusev C (Dunbar) U Davies J J (Swansea) J Pincott E J(Nottingham) (Erith) Dickinson J (Aldershot) Jeffers L (London) Pledger R (Carlisle) (Reading) Pratschke S (London) W K S (Worcester) E (Leavesden) R R (London) E (Reading) Khoo P (Worcester Park) R (Guildford) Wong J (Rickmansworth) Korta J A (London) R (Colchester) F Y Francis S P (Winchester) L S Yi S (Bristol) F E (Beckenham) (Horley) S (London)
Since 1 January 2018 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 (Paisley) Aust C J (Bath) B S S (Luton) S (Sunderland) B S (Edinburgh) S (Reading) Ando H (London) B S (Greater Manchester)
34 www.taxadvisermagazine.com E RES S
B I (Watford) G N (Nottingham) (Harrow) R S (Altrincham) Bartlett L (Attleborough) Manickam J (Pollachi) Rydzewski P (Newcastle upon Tyne) B (Birmingham) H S (Bangalore) B (Milton Keynes) Halai N (London) E (Edinburgh) S B G (Sheffield) Hale A (Reading) F (Stockport) S (Milton Keynes) B E (Glasgow) Hanan L (East Grinstead) Martin A (Guildford) S (Bristol) B G (Leeds) Haran J (Nelson) Matson J (Dunfermline) S (Stratford-upon-Avon) B S (London) Harris H (Ipswich) Mattacott (Rochester)K Scott A (Yarm) B (Guildford) Harrison E (Norwich) May J J (Sheerness) S S F (London) B R (Liverpool) Haynes R K (York) (London) S B (Ely) B G (St. Columb) Hayward N (London) McBride C P (Waterlooville) S (Wembley) B (Leicester) Henriksen C (Diss) McGaw J (Newport) S (Southampton) B (Egham) Hewett C (Hitchin) McGraffin A L (Workington) S R (Newcastle upon Tyne) B (Broxbourne) Hewitt K (Tamworth) (Belfast) S (Benfleet) B R (London) Hickey-Brown S N E (Lancaster) S I (London) B G (Leighton Buzzard) Thames) McPherson K (Frome) S (Poole) B (Kings langley) Hicks A (Redditch) (Huddersfield) S (London) B (Aylesbury) Higgins C (Reading) S (London) S B (Gateshead) Hill A (Bury) Milroy J M M (Glasgow) S (Ipswich) C Ho C L Y (Watford) (Edinburgh) Smith J W (London) Cai Y (Exeter) Hodgkiss T J (London) F (Pwllheli) S (Plymouth) Carey P (Cardiff) Holden W (Reading) Moseley J (Farnham) S N (Bushey) (Didcot) Holland A (Portsmouth) Mottershaw J(Telford) S (London) Cawsey K J (Holcombe) Hopkins J (Bromsgrove) Moyeen J (London) S (York) B (Liverpool) Howley L A (Melton Mowbray) (London) (High Wycombe) Hughes C (St Albans) T (Paignton) Hume L (Livingston) N (Hayes) (Limassol, Cyprus) N S (Langley) G (London) Connor J E (Northampton) J Naker J (Leicester) (Maidenhead) R (Bolton) Jackson L A (Norwich) Newnes P (Birkenhead) (Towcester) (Ashington) Jewitt E (Leeds) Nottingham (London)A R (Milton Keynes) (Salford) Jones H A (Ely) (Surrey) (Lisburn) Jones D (Wrexham) O G (Newcastle upon Tyne) Cross J (Rugby) (Stratford) (Malton) K Oldfield M (Bristol) (Croydon) D F (Powai) (Edinburgh) (Bromley) (London) Kalirai J K (Southampton) B (Woodford Green) (Hornchurch) I (Luton) U Duffy E (London) Kasem H (Nottingham) P S (Crayford) (Ely) (Banbury) Paget L (Bristol) B (Rugby) (Ipswich) Pan Y (Exeter) V Dunn J M (Ellesmere Port) B (Sale) Panigrahi B K B S (London) (Gateshead) (Cambridge) India) (Watford) Pathak M (Ilford) W E (London) Paul R J (Spalding) R R (Dover) E (Tunbridge Wells) King H (Braintree) Phillips J (London) B (Wokingham) Eldridge S J (Potters Bar) (West Malling) Pike C (Birtley) (Exeter) E B (London) Kozhuharov S H (Buckhurst Hill) Pleasance H (Loughton) (Warrington) (Beckenham) Pope D A (Manchester) (Ipswich) F (London) Prudhoe E (Gateshead) E (Cardiff) F R (Oldham) I (London) Fattah H (Glasgow) L R B (Dartford) F (Brentford) Langtree H (Barnoldswick) R (Chippenham) Wood P A (London) F N (St Andrews) S (Crawley) Raghuraman J (Carshalton) (London) Finch H J (Port Erin) Layton-Henry R (Seaford) R R R (London) (Towcester) F E (London) Ledingham H G (Ramsgate) Rainford J L (Chorley) G (Bristol) Ranahan A J (Newcastle upon Tyne) Z G S (Coventry) Ransome J (Milton Keynes) E (Sutton Coldfield) Gallagher-Kennett G Lloyd H (Fleet) R (Portsmouth) (Kidderminster) S (Beaconsfield) R (London) Glassey H R (Newcastle upon Tyne) (Eastleigh) R S (Malpas) G (Kilsyth) Rimmer A J (Warrington) G R (London) M R I (Renfrew) G R G (Steyning) (Watford) R (Reading) G (Swindon) (Newcastle upon Tyne) R I (London) G S I (Mildenhall) (Epsom) R (Loughborough) G (Glasgow) S (Newbury) R N (Deeside) www.taxadvisermagazine.com 35 E RES S You can read the latest issue of Tax Adviser READ at www.taxadvisermagazine.com from ATT distinctions the first of the month – featuring all of the 2 – Business Taxation & Accounting 4 – Corporate Taxation Principles 1 – Personal Taxation B monthly features and technical content, (Deloitte, London) S E Pensions, Leeds) TAX ADVISER B (RSM, Reading) Basingstoke) (Rouse Partners LLP, Beaconsfield) and accessible for desktop, tablet and Harry Barnfield (Hazlewoods LLP, Cheltenham) B (EY, Newcastle upon Tyne) S E Ian James Beeden (Aviva plc, Norwich) R B (Mazars LLP, Nottingham) Basingstoke) mobile. B (A B Accountancy Ltd, Sale) ONLINE B (Deloitte, London) Harry Barnfield (Hazlewoods LLP, Cheltenham) You can also find our iOS and Android Joshwey Bong (BDO LLP, Birmingham) (EY, London) Joanne Elizabeth Basting(Configure Accounting R B (Mazars LLP, Nottingham) Peter Daniels (RSM, Birmingham) and Taxation, Horley) apps in the app stores now. E B (PwC, Newcastle upon Tyne) James Gillan (BDO NI, Belfast) B (A B Accountancy Ltd, Sale) (RSM, Crawley) Dominic Hazell (Westleton Drake Ltd, London) Jane Gareze (JG Accounting Services, Haywards Jordan Ivey (Grant Thornton, Cardiff) B (PwC, Belfast) Heath) Ye Sol Lee (Morgan Stanley, London) F (Foot Davson Ltd, Tunbridge Wells) James Gillan (BDO NI, Belfast) N (Haines Watts LLP, London) E F (Frank Hirth Dominic Hazell (Westleton Drake Ltd, London) Bethany Martin (RSM, Basingstoke) plc, London) Alaw Fflur Hughes E Jonathan Musty (VWV, Bristol) G (RSM, London) Accountants, Porthmadog) Christopher Paul Nisbet S Miles Hamilton (Deloitte, Reading) David Richard Jones (Old Mill Accountancy LLP, Edinburgh) Andrew Hart (M + A Partners LLP, Norwich) Yeovil) N (PwC, London) Dominic Hazell (Westleton Drake Ltd, London) Stephen O’Conchuir (Watts Gregory LLP, Lisa Pollack (EY, London) Sophia Diane Hillman (Francis Clark, Salisbury) Cardiff) Jamie-Leigh Shorthouse (PwC, Birmingham) (Henderson Loggie, Dundee) Matt Hodgetts (Deloitte, London) G S G S (Henderson Loggie, Dundee) (Manchester) Jamie Holmes (Wilkins Kennedy FKC, Ashford) Ella Xiaoman Rao Stott (Aberdeen) E (Gazprom Marketing & Trading Ltd, Jeffrey Jordan (Deloitte, London) Jonathan Travis (HM Treasury, London) London) (Deloitte, Aberdeen) (PwC, London) Yasmin Lakin (Deloitte, London) (PwC, Reading) 5 – Inheritance Tax, Trusts and Estates Bethany Martin (RSM, Basingstoke) (RSM, Bury St. Edmunds) (Mazars LLP, Leicester) 3 – Business Compliance (Mercer & Hole, London) (Mercer & Hole, London) E S (Deloitte, London) R (Joseph Hage Aaronson LLP, (Royal Mail plc, London) (Deloitte, London) London) G (MHA MacIntyre Hudson, B (Deloitte, London) R (M+A Partners LLP, Norwich) Birmingham) Matt Hodgetts (Deloitte, London) Harsimrat Sanghera (Carter Backer Winter LLP, N (MHA MacIntryre Hudson, Jieming Jin (Deloitte, London) London) Bedford) Jeffrey Jordan (Deloitte, London) S (Ballard Dale Syree Watson LLP, Charlotte Page(Price Bailey LLP, Cambridge) (Deloitte, Aberdeen) Hampton Lovett) Evie Procter (Moore & Smalley, Lancaster) E I B (PwC, Reading) E R (PwC, Belfast) LLP, Norwich) Phil Smith (Critchleys, Oxford) S (Deloitte, Reading) 6 – VAT E S (Deloitte, Manchester) N (PwC, London) B (Grant Thornton, Manchester) Henry John Sturges (Deloitte, London) (Francis Clark LwLP, Taunton) Julia Garbutt(Grant Thornton, Cambridge) (Deloitte, London) Yumi Sasagawa (KPMG, London) I (RSM, Birmingham) Jade Varden (Magma Partners Ltd, Rugby) R S (Gabelle LLP, London) Yuliya Logunova (Rakuten Europe, Luxembourg) (Deloitte, London) Henry John Sturges (Deloitte, London) Carla Piu (Metropolitan Housing, London) Benjamin James Walker (KPMG LLP, London) (Deloitte, London) Kayleigh Statt (Grainger plc, Newcastle upon Tyne)
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RELX (UK) Limited, trading as LexisNexis®. Registered offi ce 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © SA-0518-068 The information in this document is current as of May 2018 and is subject to change without notice.
36 www.taxadvisermagazine.com You can read the latest issue of Tax Adviser READ at www.taxadvisermagazine.com from the first of the month – featuring all of the TAX ADVISER monthly features and technical content, and accessible for desktop, tablet and ONLINE mobile. You can also find our iOS and Android apps in the app stores now.
CHILDCARE VOUCHERS
CHILDCARE VOUCHERS
KEY POINTS zz What is the issue? F a further arrangement (in additi on to Not exactly childcare vouchers) to help parents with F diff er and what the future of the employer child’s play zz What does it mean to me? F there is a potenti al lack of clarity about Ian Goodwin how the schemes aff ect them. This arti cle analyses the two arrangements zz What can I take away? F month (or £55 per week) where certain responsibiliti es from the employer, it conditi ons were met. The scheme has choices and considerati ons. But F net pay. It is esti mated to have helped over Employers have and conti nue to typically operate the scheme on a ‘salary sacrifi ce’ now working full ti me and living basis to manage the costs of operati ng W vouchers. The parti cipati ng employees then could sacrifi ce up to £243 of their salary B E G NIC deducti ons (subject to how their pay interacts with the Nati onal Minimum Wage NIC deducti ons. The complexiti es around (NMW). In exchange, employees would then setti ng up appropriate systems to accurately costs as it benefi ts from income tax and B E Class 1 Nati onal Insurance Contributi on (NIC) led to errors in calculati ons. As a result, a exempti ons. number of employers have received penalti es However, from 2017, the Government from HMRC for giving certain employees too introduced an additi onal arrangement to NI for an employer which off ers access to the F NI tax and NIC exempti on remained the same. zz B schemes diff er and what the future of the week (£243 a month) tax and NIC exempt zz Higher rate taxpayers can have up to as a parent with fi ve. However, where both £28 a week (£124 a month) tax and NIC F is a potenti al lack of clarity about how the zz Additi onal rate taxpayers can have up to schemes aff ect them. This arti cle analyses £25 a week (£110 a month) tax and NIC the two arrangements in detail. Please NI note that this arti cle does not assess the interacti on with child tax credits or other The April 2011 changes G F B E What is the employer-supported The Basic Earnings Assessment childcare scheme (childcare vouchers)? related to restricti ng the income tax and R NI categorised as higher or additi onal rate including allowances, guaranteed overti me HMRC has confi rmed that performance- have brought a signifi cant administrati ve arrangement on or aft er 6 April 2011. If related discreti onary bonuses and non- an employee was already parti cipati ng in guaranteed overti me payments do not need to be included. Similarly, overti me NI NI
38 www.taxadvisermagazine.com www.taxadvisermagazine.com F vouchers after 4October 2018. will continue to be able to receive childcare and participating prior to4October 2018 F the scheme willbe available to4 joinuntil for employers to offer to employees and childcare schemecontinues to be available The current position obligation. time. Employers therefore need to have they agree to jointhescheme at adifferent information that they have available on year, inwhichcase therequired time isthe the ‘required time’. Thisisthe start of the assessment When tocarry outthebasicearnings important to establish the characteristics STRAP F
© iStockphoto/Imgorthand approach to supportingchildcare costs, NI F following conditions to be eligible for the Tax I Eligibility criteriafor Tax Free Childcare F F G provided allparticipants meet theeligibility F can be added to each child’s account). every 80pthe parent(s) pays into anewly- individual appliesfor thisonline at: https:// G following legal challenges andpetitions F Tax Free Childcare payments, gender pay, expenses and benefits and all payroll aspects. payroll all and benefits and pay, gender expenses payments, IR35),termination (including status levy,employment apprenticeship effectiveness, Wage,reward Minimum National compliance, tax employment sacrifice, salary including areas on organisations sector public and businesses owned family SMEs, sector,particularly public and private the both in employers advises He efficiently. cost engagement pay, and reward improving whilst compliant remain employers helps He PROFILE zz zz Please note, any cash putdirectly into a I B F F S To beinwork –orgetting parental leave, I birthday) anddisabled children Profile Tel Email Company Position Name Ian Goodwin G G I E N E I S CHILDCARE VOUCHERS CHILDCARE workplace nursery would bea more effective assessing whether the introductiona of on thechanges. This is particularly relevant reward strategy andcommunications Government. Additionally, many employers the information made available by the F and are therefore directing employees taking care notto be givingfinancialadvice F have noobligation to doso, even where arrangement isavailable. However, they be doing? What shouldemployers andemployees scenarios for both.Seethe illustrative example scheme ismore cost effective if youqualify effectively have two choices– continue to I Which scheme shallIchoose? year until they are 17underthe Tax Free zz zz zz at least theNMW for 16hours aweek; S Employers providing information are I Please note, ifachildisdisabled the ‘entitlement period’. Confirmation ofmeeting the qualifying income over £100,000; and childcare; 39 STRAP
CHILDCARE VOUCHERS
solution, given one can be provided tax/ responsibilities from the employer, it does NIC free either via salary sacrifice or as an additional ‘perk’ (subject to meeting certain and considerations. Providing support to qualifying conditions). This is in addition to employees can help ensure they continue to F that they are participating in Tax Free remain motivated, understand their reward Childcare. The employee is still able to use An employee has an obligation to tell in their childcare voucher account after they F participate in Tax Free Childcare if they are F I I Taking the next step F have elected to benefit from the Tax Free
EXAMPLES 1 Husband and wife, both employed with access to childcare 2 Husband and wife, both employed with access to childcare vouchers, both 20% tax payers with two children under the vouchers, both 20% tax payers with two children under the age of 12. Childcare costs each year £5,000 (£2,500 per child). age of 12. Childcare costs each year £8,500 (£4,250 per child).
Childcare Vouchers Childcare Vouchers Husband Husband R E R E Salary Sacrificed Salary Sacrificed NI NI Total net cost to the parents £3,400 Total net cost to the parents £6,636
Tax Free Childcare Tax Free Childcare G G Total net cost to the parents £4,166 Total net cost to the parents £7,084 Result – Childcare vouchers more cost effective Result – Childcare vouchers more cost effective
3 Husband and wife, only the husband with access to childcare 4 Husband and wife, both employed but only wife has vouchers, both 20% tax payers with three children under the age access to childcare vouchers, husband a 20% tax payer of 12. Childcare costs each year £7,500 (£2,500 per child). and wife a 40% tax payer (joining the scheme after April 2011), with two children under the age of 12. Childcare Vouchers Childcare costs each year £5,000 (£2,500 per child). Husband R E Childcare Vouchers N Husband Salary Sacrificed R E N N NI N Salary Sacrificed Total net cost to the parents £6,568 N NI N Total net cost to the parents £4,376 Tax Free Childcare Tax Free Childcare G G Total net cost to the parents £6,249 Result – Tax Free Childcare more cost effective Total net cost to the parents £4,166 Result – Tax Free Childcare more cost effective
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F F Welcome to the Technical Team August Technical Newsdesk Newsdesk Articles Author(s) Today is the morning after the night before. S Richard, Wild, Helen No doubt the dust will have settled by the technical sub-committee GENERAL FEATURE time you read this, albeit with lots of commentary and analysis in the interim, but England lost in the World Cup semi-final to Croatia. A MANAGEMENT OF TAXES PERSONAL TAX wrong on the night? Maybe it was because in the entire 120 minutes The Trust Registration Service: Helen Thornley, John Stockdale S I I INHERITANCE TAX GENERAL FEATURE could say that our interactions with the revenue authorities are Treasury Committee Inquiry into VAT S E shots on target (OK, they aren’t ‘targets’, but bear with me…). Our and Treasury Sub-Committee Inquiry R shots are recommendations for improvements to the tax system, or G to influence the nature or direction of change during a consultation resolution of tax disputes Henderson, S process, or to help minimise systemic problems with HMRC’s INDIRECT TAX MANAGEMENT OF TAXES up with a better tax system with fewer inequities and unintended GENERAL FEATURE consequences. So, even though the final whistle blew on England’s G World Cup aspirations, our tax ‘match’ continues. You could say that Committee concerns on childcare the calls for evidence and consultations, which should take place as GENERAL FEATURE part of the policy development process, represented the first half. We R are therefore in the early part of the second half, as draft clauses for R the Finance Bill 2018-19 were published on Friday 6 July (see https:// tinyurl.com/y8q4yxjp). There is no extra time or penalties (erm, save GENERAL FEATURE for those set out in draft clauses 30 and 31…). There are 40 draft clauses in total, meaning a potential 40 shots GENERAL FEATURE on goal during this current phase of play which runs until 31 August. Tax Abuse and Insolvency: HMRC In practice, some of these clauses are on quite niche issues (HGV E S B road user levy anyone?), but there are around 20 clauses where we the existing security deposit legislation might have suggestions for amendments / improvements to the draft to include CT and CIS deductions legislation. And even better, instead of having just 11 players on the MANAGEMENT OF TAXES pitch, we have around 24,500 (members across CIOT and ATT), all of whom can provide an assist. So if you spot something in a draft clause Helen Thornley, PERSONAL TAX OMB Matthew Brown org.uk or [email protected]. Having taken up so much space on my World Cup analogy, there’s Workplace charging tax exemption draft Matthew Brown, not room for me to say more about the articles in this month’s I E R N S I EMPLOYMENT TAX I I RG SDLT residential rates: HMRC’s view on I into HMRC, we need to have something insightful to say, based on GENERAL FEATURE technical expertise and / or real life experiences of tax practice and VAT: Alternative method of VAT collection F administration. So do feel free to get in touch with us at technical@ INDIRECT TAX ciot.org.uk or [email protected] or [email protected]. Help us Business/non-business litigation cases: E R HMRC policy discussion paper INDIRECT TAX F S Joanne Walker Spotlight on the Working Scottish taxpayers; Carer’s Allowance S GENERAL FEATURE PERSONAL TAX Together technical sub- MANAGEMENT OF TAXES committee
GENERAL FEATURE : This month, in our series of articles about the CIOT technical sub- S committees, Richard Wild outlines the work of the joint CIOT and N ATT Working Together Sub-committee. In his article (https://tinyurl.com/ycuh49nk) in the February 2017 edition of Tax Adviser, Jon Stride explained the history of the Working www.taxadvisermagazine.com 41 TECHNICAL
Together initiative, how it was changing, and took a look at the new currently exist in income tax self-assessment and corporation tax. The forum then being piloted (more on that below). So, what do you do when you are frustrated by HMRC’s systems, G there are delays in progressing matters, or something just doesn’t seem to be working efficiently? Grin and bear it? Bang your head on the payment was due until the date that the payment is received the proverbial brick wall? Well, there are other options. Interest on amounts due to taxpayers: HMRC will pay repayment The joint CIOT and ATT Working Together sub-committee seeks to help identify and gather evidence in relation to this ‘grit’ in the should. By the time you read this article, we are expecting that the I VAT Notice should have been issued which will explain in more detail how MTD will work for VAT, and the consultation on how MTD will zz Representation on the Issues Overview Group (https://tinyurl.com/ work for corporation tax should also have been published. We would yah3d68q), a forum comprising professional bodies and HMRC very much welcome your comments on this consultation to help us representatives where we seek to identify, address and/or escalate deliver a comprehensive response on the proposals to HMRC. Please systemic problems with HMRC’s systems. send your comments to [email protected] and atttechnical@att. zz Representation on the Virtual Communications Group, again a forum of professional body and HMRC representatives where we Because our Technical Newsdesk articles are written a few weeks seek to ensure HMRC communications are as effective as possible Tax Adviser zz Posting and reviewing issues on the Agent Forum with a view to understanding the issue, and communicating to the wider MTD and www.att.org.uk/MTD. membership, gathering additional evidence regarding its impacts CIOT/ATT Webinar Thank you to everyone who took part in our webinar on 7 June 2018. E I environment, the Working Together sub-committee meets on a months. It can be accessed at the following link https://tinyurl. (physically or by conference call) to share experiences and agree its priorities. HMRC representatives often attend relevant parts of the websites – see https://tinyurl.com/yacggujc and https://tinyurl.com/ meeting, enabling two-way direct feedback to be given. The sub-committee is always keen to take on new members, During the webinar we received over 70 questions. We were able with HMRC. Have a look at the CIOT website (https://tinyurl.com/ means. We have therefore compiled a list of Questions and Answers, y73ua5uu) or ATT website (https://tinyurl.com/y9w5k9nh) for more which we have posted on our websites – see https://tinyurl.com/ information. y6v2sc4w and https://tinyurl.com/y9lspeyh. Whether or not you can join the sub-committee, please do There are a few questions where we have sought HMRC’s input, F I and how it operates can be found at https://tinyurl.com/agentforum. you have any further questions about MTD, please email them to [email protected] or [email protected]. are captured and evidence is gathered as to its implications and N and February/March 2019 and will publicise the dates nearer the time on our website and in our regular member communications. We also Richard Wild Helen Thornley [email protected] [email protected] [email protected] Making Tax Digital
MANAGEMENT OF TAXES PERSONAL TAX The Trust Registration Service: At the time of writing (early July), there is only one new where are we now? development to report on the MTD front since our update piece in June’s Technical Newsdesk: the draft legislation to deal with INHERITANCE TAX GENERAL FEATURE penalties for failing to make returns, penalties for late payment, and the way that interest is charged and repaid for VAT was published Following a number of issues with the Trust Registration Service on 6 July 2018. (TRS) in 2016-17, where are we for 2017-18 registrations? In summary, the legislation for penalties for failing to make returns Those involved in the first round of trust registrations for 2016- returns (including MTD updates) with a regular filing frequency, for generously, be called ‘teething problems’ with the implementation of the Trust Registration Service (TRS). Both the ATT and CIOT, Late payment penalties will be harmonised across corporation other professional bodies, and many individual firms made strong tax, income tax self-assessment and VAT. The penalties will consist representations about the implementation of the TRS throughout the process. While many agents may well still feel dissatisfied, it is only agreements to pay in the first 30 days after the payment due date and fair to say that these representations have been acknowledged at the very highest levels within HMRC, who say that lessons will be learned. after the 30 days. In the meantime, TRS registrations for 2017-18 need to be
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zz the first registrations for any new trusts created in 2017-18. understand that HMRC are planning to give overseas agents access zz the first registration of any trust where 2017-18 is the first year agents very limited time to file online by the 31 January 2019 deadline zz the review of existing data for trusts with a tax consequence in for any 2017-18 updates, or registrations of trusts which are not in self-assessment. It is also after the 5 October 2018 deadline for trusts registering for self-assessment for the first time in 2017-18. Trust Tax Returns for 2017-18 At the time of writing (early July), it is not yet possible to update Unnecessary returns existing registrations on the TRS. This has a knock-on effect on the It was reported to us that registration of a trust which had not submission of the SA900 trust return, as question 20 of the return requires the trustees to confirm that the TRS has been updated for required a tax return) often triggered the issue of unnecessary the year. HMRC have confirmed that until the facility to update is SA900 tax returns for earlier years. HMRC are aware of this problem available this question should be left blank. We are assured that and the recommendation is to contact the Trust helpline to get any trustees will not be penalised for not answering question 20. S In the meantime, if the name or address of the lead trustee changes then HMRC needs to be notified so that they have the correct procedures, but find after one or more tax years that an estate return details to correspond with the trust. Trustees can write to HMRC, RS B E and even if the income or gains were small in those years. HMRC inform us Changes to guidance I G F is not, HMRC require a return for each tax year in the administration of ATT and CIOT. HMRC are still working on updating GOV.UK. Some G Future Changes – more registrations needed? The final text of the 5 Money Laundering Directive was published in June 2018, and the UK government has until January 2020 to Non-UK resident trusts transpose this into national law. This Directive will extend the HMRC has changed its guidance on the position for some non-UK registration requirements to any resident trusts. Where a non-UK resident trust incurs an IHT liability also to any non-EU trust which holds UK property. A consultation on S I this is expected to be held in 2019. These new rules have the potential by Schedule 10 of Finance (No 2) Act 2017), but no other UK tax is to significantly increase the number of registrations and both ATT and due by the trustees in relation to trust assets or income, then this will CIOT will be contributing to the consultation. RS Helen Thornley John Stockdale company which, in turn, holds UK residential property. Following the [email protected] [email protected] changes to the definition of excluded property it is possible for an IHT RS We are expecting GOV.UK to be updated to reflect this change in due Treasury Committee Inquiry into VAT and Treasury Sub- Pension schemes Revised guidance for pension schemes has been issued in HMRC’s Committee Inquiry into The Pension Scheme newsletter 98, published 3 May 2018 (https://tinyurl. com/yb44m8w2). conduct of tax enquiries and Penalties the resolution of tax disputes At a meeting in June with HMRC, it was confirmed that HMRC are still operating a ‘light touch’ policy with penalties for late 2016-17 returns. INDIRECT TAX MANAGEMENT OF TAXES GENERAL FEATURE Penalties for late filing for this year are being considered on a case- by-case basis. We cannot assume that a light touch will continue into The CIOT, LITRG and ATT have responded to the Treasury Committee’s wide-ranging Inquiry into VAT and its Sub-Committee’s I Inquiry into The conduct of tax enquiries and the resolution of tax element of the penalty for failure to register is not proportionate to disputes. In addition to our written responses we have also given RS oral evidence to the Committees Last month we reported on some of our work submitting written Access to the TRS evidence to the Treasury Committee Inquiry into VAT and the Treasury The digitally excluded Sub-Committee Inquiry into The conduct of tax enquiries and the There were problems for some agents, particularly legal firms, who resolution of tax disputes. This month we complete the picture with reports on two further submissions of written evidence, together with Services Account (ASA) for their firm. These firms had to file on paper I for 2016-17. We are informed that this issue is now fixed. If you are I I RG still struggling to obtain an ASA for your firm please let us know. VAT Inquiry Overseas agents In addition to the CIOT and ATT responses reported in July’s edition, LITRG submitted a written response to the VAT Inquiry, which RS S www.taxadvisermagazine.com 43 TECHNICAL
E ATT then suggests that the effectiveness of the statutory review bound by EU VAT law. LITRG’s recommendations included extending process could be significantly improved by the provision of clear and VAT zero-rating for construction services, transportation costs and concise guidance from HMRC on GOV.UK explaining: workplace modifications, supporting the government’s objective of zz the process for requesting a statutory review; getting one million more disabled people in work over the next ten zz reviewing officer to do; F I RG zz goods which benefit disabled people but fall outside the existing representations which they make with their request so that the F reviewing officer has an appropriate understanding of why they purchased specifically to aid or relieve a disability, but if they cannot are seeking the review; solely zz the possible merit of providing the reviewing officer with contact details in case additional information is required. In addition, LITRG has recommended that the government introduce VAT reliefs on goods aimed at alleviating or treating Finally, ATT suggests that the provision by HMRC of an optional use standard form for requesting a statutory review which led the equal footing as those with a physical impairment. Most existing ensure that review officers had the information which they needed Stephen Taylor (Chair of VAT Sub-Group) and Emma Rawson in order to undertake reviews efficiently and in a manner which was (Technical Officer) of the ATT gave oral evidence to the Treasury likely to assist the resolution of tax disputes. Committee regarding the VAT Inquiry on 3 July alongside Daniel In addition to the written evidence, Victoria Todd from LITRG Lyons (representing Deloitte) and Richard Allen (Retailers Against gave oral evidence to the Treasury Sub-Committee on 18 June VAT Abuse Schemes). The ATT’s evidence focused on the issues alongside Keith Gordon (in a personal capacity) and Paula Ruffell S E G I RG noted that the £3.5m figure for tax lost due to errors in VAT returns unrepresented taxpayers are dealt with by HMRC during disputes. could cover anything from technical to simple arithmetical or LITRG noted that HMRC’s Litigation and Settlement Strategy doesn’t N Enhanced Support (NES) service that HMRC operate to help people who have additional needs. HMRC need to engage more with small businesses, providing advice LITRG suggested that bringing the NES service to the attention of taxpayers during the dispute process was essential and that there The ATT highlighted that small businesses find it very difficult to should be a clear mechanism for referral from the Officer dealing engage with HMRC over VAT. In particular, HMRC statistics show NES proceedings can be found on the CIOT website https://tinyurl.com/ down on the grounds that HMRC do not believe there are genuine points of uncertainty. Better help and assistance from HMRC would CIOT President Ray McCann was scheduled to give evidence to the Treasury Sub-Committee’s inquiry into the conduct of tax reducing the VAT gap attributable to errors. inquiries and the resolution of tax disputes on 9 July, but the session I here: https://tinyurl.com/ya4bsakx.
The conduct of tax enquiries and the resolution of tax S E R disputes [email protected] [email protected] In addition to the CIOT and LITRG responses reported in July’s edition, ATT submitted a written response to the Disputes Inquiry. G ATT’s submission built on the written evidence submitted by LITRG G and focused on the need for guidance in relation to the statutory review process. LITRG’s written evidence drew attention to the Tom Henderson Sacha Dalton and the significance of new information being provided to HMRC I RG in which taxpayers actually activated the review process might represent only a small proportion of situations where a review Government responds to ATT’s written evidence identified three factors which work Treasury Committee concerns against an HMRC reviewing officer asking pertinent questions when the information available to them was inconclusive: on childcare zz There is no statutory provision entitling (or obliging) the reviewing officer to ask the pertinent questions – their duty is to GENERAL FEATURE ‘take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider An update on the Treasury Committee’s inquiry on Childcare, them’; including the interactions between the various schemes, following zz The 45-day timeframe in which HMRC must complete a review publication of the Government’s response to the Committee’s discourages any request by the officer for further and better report. particulars; In March 2018, the Treasury Committee published their report zz The under-resourcing of HMRC means that there is no incentive on Childcare. This was following a call for written evidence which on reviewing officers to do anything which they are not obliged
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childcare service website – and their previous failures. The Committee recently launched its call for evidence and we submitted our response also sought views on the overall package of government initiatives on 4 July. Thank you to those who contributed to our submission. that aim to make childcare affordable, how the initiatives interact with each other and their effectiveness and whether they have delivered comments on VAT and Gift Aid, whilst also making brief remarks on an adequate provision of affordable childcare that facilitates parental As an educational charity, our primary purpose is to promote LITRG submitted written evidence to the inquiry (see https:// education in taxation. One of the key aims of the CIOT is to work for tinyurl.com/yapoppdp). Although supportive of the childcare help a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. Our stated objectives for the tax system, include (amongst other things): zz A legislative process which translates policy intentions into statute accurately and effectively, without unintended consequences. introduction of Tax-Free Childcare, the childcare landscape is made zz G more complex. Not only do the rules differ between the different schemes (for example the ages of children covered by the scheme) zz G but in some cases parents need to work out which is the best financial with confidence. support through a series of complex calculations. Getting it wrong can not only mean they miss out on additional Whilst the CIOT benefits from some charity tax reliefs, our financial support, but they could lose current support. For example, submission reflected our charitable aims and objectives for the tax claiming Tax-Free Childcare automatically brings to an end any tax system, rather than seeking in isolation to encourage, extend, or credits claim (both working tax credit and child tax credit) even if We support the Charity Tax Commission’s effort in collecting information on existing charity tax reliefs. Thorough evidence I RG gathering is vital before informed recommendations can be made In their report (see https://tinyurl.com/yc7pqw3a), the Committee Whilst the core elements of many tax reliefs work relatively well, made a number of recommendations including ensuring the online most still contain areas of significant complexity or require detailed calculator can take account of UC and ensuring applications for all steps to make a valid claim. These cause complications both for charities and their donors. Whilst larger charities may have the resources to implement systems to deal with these complexities, and of support for childcare costs and address the complex interactions between different schemes and ensure the post-implementation smaller charities. The severe complexities may render only a select F group of charities actually capable of properly navigating these rules, shortcomings that are identified by the review. potentially frustrating the policy intent behind the relief. We believe In their response (see https://tinyurl.com/y8g7lo5z), the this issue requires substantial investigation and resolution. I RG G reliefs have not ‘moved with the times’, and therefore warrant further zz increasingly outsourced to charities and similar bodies; and zz advertising through the use of the internet and social media; enter their UC entitlement (calculated on a third party calculator that zz numerous values and thresholds within legislation which have they link to) into the calculator so that they can compare all of the offerings.
[email protected] some cannot be estimated with sufficient accuracy to be published by the government. This makes it difficult to determine whether used in the way intended. This is symptomatic of many tax reliefs. Charity Tax Commission call for spending, though the latter would ensure that financial support for evidence: Review of Charitable charities could be accurately targeted and the cost reliably calculated. Tax Reliefs this tension is justified, and how the cost and use of charity tax reliefs GENERAL FEATURE In addition to some of the complexities and anomalies caused by The CIOT has responded to the Charity Tax Commission’s call is (both generally and for tax purposes). This can cause confusion for evidence for a review of charity taxation and tax reliefs. In both for donors and the organisations themselves. There needs to be our response we focused on our objectives for the tax system, greater education and guidance so that donors can make informed highlighting the complexity of many reliefs, their inconsistent decisions regarding their charitable giving, and organisations are clear application, and how they have not kept up with changes in how public services are delivered. Most of these complexities and anomalies are ‘home grown’ and can benefit from immediate attention. However there are certain undertake a full review of the impact of the tax system on charities. It matters that are tied to EU Law. Therefore, when the UK leaves the www.taxadvisermagazine.com 45 TECHNICAL
E does not become a more expensive alternative to using digital address these other areas of charity taxation (particularly in the field of VAT and its zero rates and exemptions), which might currently be vulnerable groups in society, possibly causing further financial constrained by our membership of the EU. Regardless, we would still recommend a more thorough review once the UK’s responsibilities The LITRG submission is available on the LITRG website https:// are clearer post EU exit. Specifically in relation to VAT, we endorsed tinyurl.com/y8exkf8z. the comments made by the Office of Tax Simplification (OTS) in its recent VAT simplification review. [email protected]
R [email protected] Tax Abuse and Insolvency: HMRC Discussion Document Cash and digital payments in the and Extension of the existing new economy security deposit legislation to GENERAL FEATURE include CT and CIS deductions The LITRG submitted a response to HM Treasury’s call for evidence on how digital technology is changing the way people MANAGEMENT OF TAXES make payments with a general transition away from cash to using digital payment methods. The call for evidence was very CIOT, LITRG and ATT all responded to the consultation on proposals wide-ranging and LITRG only responded to questions which we to extend the existing security deposit legislation and the discussion have experience to answer such as on how the government could document exploring ways to tackle abuse of the insolvency regime reduce tax evasion and the hidden economy. to avoid or evade tax liabilities, including through the use of LITRG considers that tax education would be the most useful phoenixism, noting the interconnection between the two proposals I HMRC published a consultation document on proposals to extend the existing security deposit legislation to corporation tax The government needs to encourage tax education by changing and construction industry scheme deductions. This was followed in the national curriculum to devote more time to and prioritise April by the publication of an HMRC discussion document exploring the importance of financial education and ensuring that school liabilities, including through the use of phoenixism. As there is an enable them to teach these topics with confidence. HMRC have element of interconnection between the two topics, they are both made a positive start with this by producing short ‘Tax facts’ films dealt with in this article. economy. However, LITRG have concerns that in a target-driven, Tax abuse and insolvency overcrowded school curriculum these films will not be shown or The CIOT, LITRG and ATT each responded to HMRC’s discussion Our response suggested the government tackles the perception CIOT and LITRG met with HMRC in June to discuss the proposals and then both submitted written responses. Overall CIOT’s view is that HMRC’s approach looks sensible in cases where the insolvency system. Until this perception is tackled, it will be harder for the regime is being intentionally abused resulting in tax liabilities that are properly due deliberately not being paid, and existing powers morality in relation to tax compliance. A possible way to do this available to HMRC are insufficient to tackle the problem. The key is by highlighting to the general public how much tax revenue is challenge will be in defining the mischief to be addressed, so that lost to tax evasion, criminal activities and the hidden economy legislation is sufficiently well targeted to ensure companies that are not engaging in such behaviour are not adversely affected. We also gap for 2015-16). urge HMRC to make full use of existing powers to collect unpaid tax Our response noted that the publication of the final report liabilities and impose security deposits before introducing further on the Business Record Checks initiative would be very useful legislation. when trying to understand the record-keeping position of small I I RG businesses. We consider that the publication of this report would provide a key source of information for this call for evidence when companies. However, LITRG recommended that prior to making any HMRC should make more and better use of their existing powers, in the 2017/18 tax year) have sometimes been promoted as such as the discrete debt transfer provisions that exist in relation to an opportunity for the taxpayer to cut back on administrative burdens, LITRG have been working with HMRC to try and improve G deterrent effect, as prevention is surely better than cure. I RG to work. If, after a time, the evidence suggests that new rules are Also, the government must continue to give a choice to people still required, HMRC need to think holistically about making them. I
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I RG officials in the meeting. LITRG explained that this could be relevant avoid paying awards/settlements in relation to employment tribunal IS matters. Unless this type of abuse is also dealt with, it is likely that one of PAYE. In such cases, HMRC could hopefully take a pragmatic IS I The draft legislation to extend the regime to both CIS and CT was Instead of submitting a written response, ATT met representatives published on 6 July 2018. of HMRC in May to consider the discussion paper and identify key issues. ATT highlighted the need to distinguish between the various S types of abuse identified by HMRC (tax avoidance, evasion and [email protected] [email protected] phoenixing) and to target the counter-measures accordingly. By way of simple example, ATT suggested there is limited merit in attempting Matthew Brown to attach an unpaid corporate tax debt to an individual company [email protected] officer or other person whose abusive behaviour had caused the non- ATT emphasised the importance of differentiating between Tax relief for those self-funding situations where there was abusive intention (however defined) and those of ‘genuine commercial difficulties’ and drew particular work-related training attention to cases where such genuine commercial difficulties PERSONAL TAX OMB fully compliant business but which had hit trading difficulties might be The ATT and CIOT have recently responded to a consultation on how I best to extend the tax relief available to individuals paying for their that situation, there would have been no intention to default on tax own work-related training who cannot obtain relief under current liabilities when the problems arose – so seeking to impose personal rules. liability in that situation would appear inappropriately draconian. The ATT and CIOT have responded to the HMRC consultation ATT also noted the sometimes inconsistent approach by HMRC to on the taxation of self-funded, work-related training costs. The requests for time to pay arrangements which meant that companies consultation looked at ways that tax relief could be extended to those that were in genuine (as distinct from intended) financial difficulties were often professionally advised not to contact HMRC because of the inherent unpredictability of HMRC’s response. I The full LITRG response can be found at https://tinyurl.com/ consequences. However, if an employee pays for their own training Extension of the existing security deposit legislation to include corporation tax and construction industry scheme deductions The CIOT and LITRG met with HMRC in June to discuss the F proposals. The CIOT then submitted a written response on the costs are incurred to update the individual’s existing skills, but denied IS I I R IS obligations. This already applies for PAYE, VAT and other indirect the above situations is unfair. Equally, the government is keen to career or earn more money, and therefore the consultation sought tax/VAT obligations and knowingly use the tax/VAT monies to run the business. We agree that protection of the current and future revenue in those cases is a real concern and HMRC should legitimately take a As educational bodies, both the ATT and CIOT appreciate the obtaining high quality qualifications. difficulties and where HMRC should help them trade out of their I difficulties rather than require a security deposit. In these cases, we that, as far as possible, there is a level playing field for tax-relief for think HMRC must not take a blinkered approach to protecting the training costs for the employed and self-employed. Illustrating the case by reference to the CPD requirements of our members, and highlighting how some employed members have to self-fund some of need help rather than applying ‘the stick’ the legislation should clearly their CPD, the response stressed the importance of ensuring that any extension to existing reliefs is available for maintaining existing skills as where it is ‘appropriate and proportionate’ to do so. I I I the security deposit regime to CIS and CT, HMRC commissions deposits and the effect demands for a deposit have had on struggling encompass both maintaining and updating existing skills and businesses. HMRC should take on board lessons to be learned from knowledge and upskilling and retraining. We suggested adapting the existing definition of work-related training at ITEPA 2003, section 251 While LITRG did not make a written response, they highlighted the problem of false self-employment in the construction industry to the when performing the duties of a current or future employment, and www.taxadvisermagazine.com 47 TECHNICAL
which is not undertaken wholly or mainly as a recreational or leisure from the benefit of the exemption seems unnecessarily restrictive. activity, and which constitutes an approved course of study. Overall the ATT recommend that, if the intention of the exemption I is to truly to incentivise the use of electric cars, consideration be given learner loans, and grants and bursaries etc. The suggestion we put CIOT comments In their submission the CIOT also note that it is difficult to comment provide a greater incentive to retrain and upskill than the existing tax on guidance without being able to cross-reference to the legislation relief system, especially for the lower-paid who may pay little or no and thought that the draft legislation should have been published tax and where cash-flow is likely to be a key issue. alongside the draft guidance. The full ATT response can be found here: www.att.org.uk/ref298 The CIOT is concerned that the scope of the exemption, as I indicated in the draft guidance, may limit the effectiveness of the exemption. We think the scope of the exemption should be as Helen Thornley Matthew Brown broad as possible to encourage the adoption of electric vehicles [email protected] [email protected] or a high-capacity appliance outlet should also benefit from the exemption. We add that as technology improves the need for Workplace charging tax The draft guidance indicates that the exemption will not apply where the charging facilities are at the employee’s home. The CIOT exemption draft guidance – query the position if the employee’s workplace is his or her home and recommends that the exemption include any charging facilities ATT and CIOT comments EMPLOYMENT TAX The CIOT also queries the need for charging facilities to be available The ATT and CIOT have submitted comments on draft guidance condition fails if the employer does not install sufficient charging covering the workplace charging tax exemption for electric and plug-in hybrid vehicles. on selective criteria (e.g. those who use their own car for business B journeys, distance from workplace, etc.). I I a benefit-in-kind. ownership the benefit-in-kind exemption for charging an employee’s The exemption will apply to electricity provided in workplace relevant legislative changes to the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 will be made in Finance Bill 2018-19 and will have retrospective effect from 6 April 2018. The draft legislation was Emma Rawson Matthew Brown published on 6 July 2018. [email protected] [email protected] As reported in June’s Technical Newsdesk (see https://tinyurl.com/ ya2j9v66) HMRC previously published for consultation a draft update to the Employment Income Manual (EIM) to cover this workplace charging tax exemption. This draft guidance can be found on GOV.UK SDLT residential rates: HMRC’s (https://tinyurl.com/ybavlm4x). The ATT comments on this draft guidance can be found at www. view on gardens sold separately att.org.uk/ref300 and the CIOT comments at www.tax.org.uk/ref467. and other areas of uncertainty ATT comments In their submission the ATT note that it is difficult to provide GENERAL FEATURE comprehensive comments on draft guidance without sight of the underlying legislation. In particular, it is not possible to comment on The CIOT and the STPG have been working with HMRC to seek whether the draft guidance accurately reflects the law, or whether clarification of some aspects of the definition of residential property for SDLT. It is disappointing that the exemption set out in the draft guidance The CIOT and the Stamp Taxes Practitioners Group have been working with HMRC to clarify certain aspects of the definition of the Autumn Budget. In particular, that announcement referred residential property in FA 2003 section 116. The distinction between to an exemption for ‘electricity that employers provide to charge what is meant by residential versus non-residential or mixed property employees’ electric vehicles’. However, the draft guidance indicates is now very significant given the disparity in rates between the the exemption will be narrower than this, and apply only to charging charging a car elsewhere (for example at a motorway service station). the meeting on 11 June 2018. This note has been agreed with HMRC The ATT are also concerned by the requirement in the draft and published on both the CIOT and STPG websites at https://tinyurl. com/ydahp4we and https://tinyurl.com/ycvcb8jm. N S many electric cars can (amongst other ways) be charged directly from Gardens sold separately a traditional mains socket. Precluding this simple recharging approach HMRC’s view is that if garden/grounds are sold separately from the
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dwelling, the acquisition by the purchaser will be treated as residential It will be necessary to weigh up all the factors in a particular irrespective of whether that part of the garden/grounds has been case to establish whether or not an identifiable use precludes fenced/walled off or otherwise made physically inaccessible to the enjoyment by the occupier(s) of the dwelling. vendor. However, a subsequent sale by the purchaser may be non- Actual use at the effective date overrides past or future use. residential if there is no building within section 116(1) (a) on the plot at The intention of the purchaser is generally irrelevant (except in the the effective date of the subsequent sale. case of the higher rates). HMRC’s guidance will be updated to more fully reflect HMRC’s position. Section 116 (7) – The ‘six or more’ rule In terms of the meaning of a ‘single transaction’ in the sub- Derelict or demolished dwelling section, HMRC’s view is that it means a single contract as opposed HMRC’s view is that if, at the effective date, there is no longer a to a single land transaction. The fact that completion takes place section 116(1)(a) building that is used or suitable for use as a dwelling, at different times for different properties under a single contract does not affect the analysis. Therefore, the acquisition of six or more flats under one contract with completion at different times will follow that the garden/grounds are no longer residential. as the flats come on stream is a single transaction for section 116(7). When does the construction/adaptation process start? The following example was raised with HMRC: In practice In relation to ‘in the process of being constructed’ HMRC confirmed a purchaser may enter into multiple identical contracts for S several dwellings with completion occurring at different dates, perhaps as the dwellings become vacant. Completion therefore HMRC’s guidance on this aspect is under review. occurs on different dates. Multiple identical contracts avoid the conveyancing complexities. The multiple contracts form part of The relevance of how a property is marketed the same bargain or deal. A discount may be given for the multiple SDLTM00365 (fourth paragraph) reads ‘Where, at the effective date, acquisitions. The purchaser cannot cherry pick the properties. an existing building is being adapted or marketed for HMRC’s view is that where there is an overarching contract, domestic use, it is treated as residential property.’ that contract would form a single transaction for the purposes of HMRC acknowledge that the reference to marketing is misleading. section 116(7); the essence is whether there is a single contractual obligation to take six or more dwellings and in fact six or more are for’ is not part of the test albeit that any marketing material may the effective date. [email protected] Planning permission in itself does not determine whether a building is residential or non-residential unless implemented at the effective date. VAT: Alternative method of VAT Businesses/trades carried on at home This area forms part of HMRC’s review of the current guidance. collection – split payments F for business purposes, a distinction is drawn by HMRC between INDIRECT TAX purposes (the office at home example) and the scenario where the Whilst split payment might accelerate and secure the payment of an amount representing VAT to HMRC, it will inevitably bring for residential and trade purposes (the house part converted into a complexity for businesses, payment handlers, advisers and HMRC. surgery example). It is vital that these complexities and costs are fully understood In situations similar to the ‘home office’ example HMRC before split payment is progressed, to ensure that the benefits consider that the rooms used for office work remain suitable for sufficiently outweigh the costs. The CIOT has responded to HMRC’s second consultation on in use as a dwelling. Therefore, the home office/study is not mixed Alternative method of VAT collection – split payments. See www. The ‘converted into a surgery’ example is more nuanced. HMRC Initially launched alongside a package of measures to combat VAT loss from online sales, HMRC explores how it can use card payment may still be used for and suitable for use as a dwelling depending HMRC. The aim of this would be to significantly reduce the challenge back into residential areas and there would have to be a clear of enforcing online seller compliance and, say HMRC, offer a separation between the residential and non-residential areas. simplification for businesses. I the dwelling itself) or land that would otherwise form part of the that because of a lack of understanding, complexity of legislation or garden or grounds. The question is whether an identifiable use deliberate non-compliance. However, the extent of current levels B the dwelling because there is no other identifiable use. A meadow that has been planted as a wild flower meadow as part of a grant scheme is still for the enjoyment of the occupants; there is no would in turn better inform the policy aims. other identifiable use. On the other hand, a formal arrangement involving the granting of a lease or licence to graze the land is more What are the three options under consideration? Option 1 – standard rate split: this assumes that every transaction www.taxadvisermagazine.com 49 TECHNICAL
input tax deduction. This would involve withholding 20% of each Business/non-business We do not support Option 1 as it does not meet the design principles of a fair and proportionate litigation cases: HMRC response. Option 2 – Flat rate scheme: HMRC suggests mandating policy discussion paper overseas sellers to use the flat rate scheme using one of a small number of new flat rates for this purpose. This could include INDIRECT TAX allowing overseas businesses to participate in the flat rate scheme over the existing turnover threshold (£150,000 a year excluding VAT The ATT and CIOT have commented on a draft discussion paper or the in-scheme eligibility cap of £230,000). This approach may be which sets out HMRC’s policy views following a number of recent difficult to justify if overseas businesses are allowed a competitive court decisions concerning whether activities are business or non- We do not support business for VAT purposes. Option 2 as it legislates to put UK companies at a competitive I disadvantage. whether activities are business or non-business for VAT purposes Option 3 – net effective rate: HMRC’s preferred option (and the related impact on input tax recovery) which HMRC have not involves each individual overseas business calculating its own specific net-effective rate, based on the previous year’s outputs In response to questions from members of the Joint VAT and inputs; using this rate to make advance instalments with an Consultative Committee (JVCC), HMRC have produced a draft paper annual reconciliation. This rate would be applied to all sales by that setting out their views on some of these cases. This paper presents a business, carried out by the party effecting the split payment. If this basic summary of each case and a short statement on HMRC’s view information is not forthcoming, then option 1 would be invoked. of the implications for VAT policy. It covers nine cases including Sveda We have a number of questions about HMRC’s preferred Option 3. Iberdrola I Our questions and concerns The ATT and CIOT have made written submissions which are not currently available on the ATT/CIOT websites due to the confidential the split payment reflects an amount of VAT (paid in advance/ on account) or it is the actual payment of VAT. Any proposals to I I significant complexity, which, in our view, would not be necessary purpose and intended final use of the paper is. In particular, it is The cash flow impact on business of options 1 and 2 needs their agents, or kept within the JVCC. We would like to see it result much greater analysis. If output tax is to be paid on a real time in published guidance to assist everyone (including HMRC) in dealing VAT return, then businesses will become effectively repayment I traders on a cash flow basis. Free cash flow is a key business metric or identification of themes in the paper, giving the impression that and split invoicing could have an impact on business valuation and S noting that the paper asserts HMRC policy views in a number of cases dealt with. There are cash flow issues as well as compliance and commercial risks from having to rely on third party information in cases are still being appealed. Given that in several instances HMRC’s order to fulfil VAT obligations. S and CIOT have queried what benefit taxpayers and advisers would principles of HMRC seeking to collect the right amount of tax from the right person at the right time. I paper. In particular, it is regrettable that the paper does not refer to What happens next? the CJEU judgement in Gemeente Borsele Wakefield College Greater clarity is still needed on the scope of this proposal. We notable omission is the CJEU’s decision in Finland consultation and, anecdotally, it seems there is a still a vagueness principles relevant for deciding whether there is economic activity. around precisely who and what type of transactions these new I rules are aimed at. This is, we feel, detrimental to the effectiveness I of the consultation process. ‘business’ or ‘non-business’ are used when what is often meant is To keep in line with the policy objective of combatting fraud ‘economic activity’. Activity can be either economic or non-economic, and ensure a fair and proportionate response, we think that split with different VAT consequences. It would be helpful to clarify the stage. This will enable the model to be targeted at the population with the (assumed) greatest risk of non-compliance and ensure that legislation. Both the ATT and CIOT are concerned that in one case HMRC say sales to UK customers) will be unaffected. that they strongly disagree with a decision of the First-tier Tribunal The CIOT has indicated to HMRC that we would like to attend (FTT) which they call ‘irrational’, but have chosen not to appeal. If a HMRC’s stakeholder meeting to explore the issues raised in further case is considered to be of sufficient importance as to be included in a policy document, then HMRC should consider appealing that decision F decision of the court. HMRC’s own Litigation and Settlement Strategy [email protected] framework guides HMRC staff to apply the law fairly and consistently
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and, where HMRC decide not to persist with litigation, concede to client permission), so that we can approach HMRC, in case I Please send any feedback to [email protected]. taken by HMRC, in particular with respect to whether supplies Carer’s Allowance Supplement I RG S G S I HMRC as to their views on the impact on VAT recovery of a to carers about the Carer’s Allowance Supplement (CAS), which business receiving grants or subsidies. It is noted that HMRC’s S G S S receiving subsidies (such as a train operator or a farmer) often S S S S S S Renewable Heat Incentive) often having a percentage of the Department for Work and Pensions (DWP)) on the relevant R I CAS will also be taxable. However, CAS will not be counted special JVCC meeting on 18 July to discuss the paper in more S E R F months) per tax year. The first payments cover 2018/19, with [email protected] [email protected] S G S Prior to the meeting LITRG provided feedback on a draft Scotland update: tax coding S S issues for Scottish taxpayers; G I RG Carer’s Allowance Supplement GENERAL FEATURE PERSONAL TAX MANAGEMENT OF TAXES S S S S The CIOT requests feedback on issues with tax codes experienced by Scottish taxpayers and the LITRG reports back holding events such as roadshows during July and August. Stage on a Scottish government meeting on the Carer’s Allowance Supplement. S S S S S Tax coding issues for Scottish taxpayers S We have come across an issue in relation to PAYE tax codes S S S S I S S S S S S S S G I S I S Joanne Walker [email protected]
Recent submissions Further information Date sent CIOT Extension of security deposit legislation Taxation of self-funded work-related training I Alternative method of VAT collection: split payment Draft guidance: reform to workplace charging tax exemptions LITRG Taxation of self-funded work-related training https://tinyurl.com/ https://tinyurl.com/ www.taxadvisermagazine.com 51 BRIEFINGS
CIOT/ATT Spotlight on Branches: Branches Programmes 2018-19
BRANCHES I Malachy McLernon, Chairman I of Branches Network and B the Joint Branches Sub- chairs and their committ ees for Committ ee, gives us a taster the ti me and energy that they of the forthcoming branch programmes. B I Tax Branch Programme that each Adviser B committ ee has put together, B I the ever increasing soft er skill in the Branches secti ons of I I I S I interested in getti ng involved, B N B changing to conti nue to meet the event to confi rm that it is sti ll to take place at the same will also conti nue to extend the venue and ti me. The Branches F I Programme is published almost working staff at head offi ce N I B I chairman, myself or Head Offi ce ti me, some of the events may be I B B I method as it removes signifi cant administrati ve responsibiliti es
CIOT/ATT
Tax exam success for Northern Ireland 2017 EXAMS Institute of Taxation (CIOT) and cessfully passed their recent ATT look forward to welcoming these The Northern Ireland Branch Association of Tax Technicians or CTA exams. The qualifi cations students into our Institute and in of the Association of Taxation (ATT) fi nal examinations. Malachy are the gold standard qualifi ca- particular to the local NI branch. I Technicians and the Chartered McLernon, pictured, Chairman tion in professional tax expertise was delighted that Hays Recruit- Institute of Taxation congratu- of the Northern Ireland Branch of and can be relied upon to provide ment sponsored this event and I lated students on their recent the CIOT said: ‘I am delighted to the highest level of tax advice to look forward to working on future success in passing the Chartered congratulate all students who suc- business and personal clients. I events with the Hays team.’
Back row Left to Right: Cathy Kelly (ATT/CIOT committ ee member), Bridie Bradley (ATT/CIOT committ ee member), Alice Bergin, Stephanie Bell, Helen McFerran, Christopher Bradley, Chris Hodgett , Stephen Kennedy, Anna Holmes, Helen McDermott , David Walker, Mark Downey (Hays Recruiti ng and event sponsor), Callum McKnight (Hays Recruiti ng and event sponsor. Front Row Left to Right: Alana Breen, Jessica Barnes, Laura Angus, Claire Austi n, Aisling McArdle, Malachy McLernon (Chairman, NI Branch), Kathryn Kelly, Catriona
52 www.taxadvisermagazine.com BRIEFINGS
Members voting at the AGM Minutes of the 25th AGM of the CIOT CIOT AGM
Minutes of the annual general meeting of members of the Chartered Institute of Taxation held at One Great George Street, London SW1P 3AA
Present: The President, John Preston in the Chair. 31 Members. The Secretary was in attendance.
APOLOGIES S
NOTICE CONVENING THE MEETING At the invitation of the President, it was agreed that the Notice convening the meeting be
MINUTES OF LAST MEETING The President reported that the Minutes of the last Annual General Meeting were approved for signing as a correct record by the President at the meeting of the Council held on 4 July 2017. The President reminded those present that only members who had paid their 2018 subscriptions were permitted to vote and if any member in the room had already voted electronically they must refrain from voting in the room. He confirmed that the CIOT was pleased that electronic voting has again encouraged greater member participation in the voting process with 1,800 members voting.
ORDINARY BUSINESS
ANNUAL REPORT AND FINANCIAL STATEMENTS No questions were raised on the Annual Report and Financial Statements. On the proposal of Peter Rayney, seconded by Chris Brydone, it was RESOLVED that the Annual Report and Financial Statements for I
ELECTION OF MEMBERS OF COUNCIL On the proposal of Anthony Thomas, seconded by Jonathan Riley, it was RESOLVED that a single resolution be put to the meeting for the re-election of all the under-mentioned members of Council, namely: a. B b. E c. B d. Ian Hayes e. f. I g. Jennie Rimmer h. John Voyez On the proposal of Keith Bell, seconded by Mike Thexton, it was further RESOLVED that the under-mentioned members of Council, all of whom retired under Members’ Regulation 21 and offered themselves for re-election, be and were thereby re-elected members of a. B b. E c. B d. Ian Hayes e. Moira Kelly f. I g. Jennie Rimmer h. John Voyez I www.taxadvisermagazine.com 53 BRIEFINGS
The incoming President, Ray McCann, retiring President, John Preston
On the proposal of Ian Hayes, seconded by Bill Dodwell, it was RESOLVED that a single resolution be put to the meeting for G R a. Paul Aplin b. E c. On the proposal of Graham Batty, seconded by Peter Rayney it was further RESOLVED that the above members of Council, R I a. Paul Aplin b. E c.
APPOINTMENT OF AUDITOR On the proposal of Mike Thexton, seconded by Claire Hooper it was RESOLVED that Buzzacott LLP be and were thereby re-appointed auditor to the Institute to serve from the termination of the meeting until the G I
RETIRING PRESIDENT’S ADDRESS The President delivered an address, the text of which appears in this issue of Tax Adviser.
INVESTITURE OF NEW OFFICERS John Preston, the retiring President, invested, Peter Rayney as Vice-President, Glyn Fullelove as Deputy President and Ray McCann as President. Ray McCann then took the chair.
INCOMING PRESIDENT’S ADDRESS The incoming President, Ray McCann, presented an illuminated scroll and a Past President’s badge to the retiring President, John Preston, as a mark of the Council’s appreciation of his services to the Institute. Ray McCann delivered an address, the text of which appeared in the July issue of Tax Adviser
VOTE OF THANKS S F I RES E membership be accorded to the Officers and the Council of the Institute for their work during the past year.
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CIOT/WCOTA
Lord Mayor’s Tax Debate
Paul Morton, Kevin Nicholson and Robert Palmer
EVENT N E Fair Tax Mark S G I G F I President, said that all sides House heard that the UK’s in the Base Erosion and Profit Shifting (BEPS) project. More I takeaway from June’s Lord Grace Perez-Navarro argued B N would not happen; through I PCRT rules, there was now S S N Robert Palmer welcomed BEPS as a ‘laudable’ head of tax at PwC, Robert (and audio) can be found on Palmer, executive director of I Tax Justice UK, Grace Perez-
Members’ Support Service
• The Members’ Support Service aims to help those with work-related personal problems • An independent, sympatheti c fellow practi ti oner will listen in the strictest confi dence and give support • The service is available to any member of the CIOT and ATT • There is no charge for this service To be put in touch with a member of the Support Service please telephone 0845 744 6611 and quote ‘Members’ Support Service’ www.taxadvisermagazine.com 55 BRIEFINGS
CIOT EVENT Outgoing G I President’s President’s Page of May’s Tax Adviser I speech I I sitting just over there nervously waiting to take on the Presidential role. Inevitably I but only briefly. The important thing is to continue to move I to hear what our new President I I G I I key to our continued success relationships with, and add I I John Preston delivering his G I R House this year has been a However, I am also delighted might expect in relation to our relationship with HMRC, significant upgrade of our IT to announce that after an I I border and with STEP as well competitive appointment our volunteers and staff who dedication by our Director of process past President Bill Finance and Operations Paul Davies – has been relatively a few formalities – been Internationally, we have offered and accepted the B our relationships with fellow I Tax Institutes in Australia and I is – I am confident all our I I introduction of our new students will see benefits in brand but also the Institutes S E terms of significantly enhanced contribution he has made to S consultations and an enormous F Singapore, Hong Kong, the I N make it easier for us to offer I much greater administrative B excellent relationship with the Chief Executive, Peter Fanning I I E I B go to past President, John and we continue to look for Beattie, for leading this review. opportunities to collaborate. productive initial visit. Our ADIT qualification The Chinese in particular, continues to grow extremely Joint Programme between idea I mentioned last year newer members in particular our two qualifications and the developing this qualification numbers continue to grow. even further. ADIT continues to Both Paul Aplin who takes over as ICAEW President in exciting tool to help us fulfil June and Mary Monfries, the our charitable objectives and that Chris Mattos has advised I E operate. Effectively a sort of us that after five years in Faculty Committee, joined international version of PCRT. I It is still early days, but we are E Tax all optimistic that discussions Adviser I Faculty Committee. We also up a huge amount of time have excellent relationships amongst the staff at Artillery a fantastic job for so long. with ICAS, particularly as you initiative working with other
56 www.taxadvisermagazine.com BRIEFINGS
F I I E I S I I Peter Fanning and all the F Tax Adviser House for their help over the G I E B I your President. It has also of my Presidency which was objective of any President is I President Chris Jones. I was one on tax) which can’t I I I I Nexis in January. Chris made R I R I
ATT ATT annual summer conference season roundup
EVENT S Regional variations slot was a more interactive presentations were tailored to a close at the end of June. A B total of 560 delegates attended VAT and Brexit B B kept digitally, the practical B Narain (a Non-Executive Stirling, London, Haydock, B B N what information will be Welsh Revenue Authority) provided to HMRC as part to provide an interesting explanation of the two Welsh S more information on MTD- by ATT Technical Officers compatible software would be rounded off with a number of Land Transaction Tax and E R S Landfill Disposals Tax. and Helen Thornley, as well In Stirling, there was much as a representative from the Owner Managed Business more emphasis on Scottish Professional Standards team of (OMB) matters, particularly the Charlotte Ali, Jane Mellor and B Property new Scottish income tax Heather Brehcist. I legislative changes concerning B the TAAR) using examples Finance Act update residential mortgage interest Senga Prior acting as Chair. restriction which delegates S F practice as they tackle 2017/18 S I the Scottish Government and R S Employment Tax update F Closing Making Tax Digital Professional standards delegates tried to distinguish lively affairs with plenty of The Professional Standards audience interaction, which team representative gave process importance of getting the car/van classification to the Events and Marketing correct for benefit in kind team in Artillery House who sessions. The first looked at it’s not just been all GDPR. aspects such as timescales IR www.taxadvisermagazine.com 57 BRIEFINGS
ATT
ATT Offi cers for 2018-19: Jeremy Coker (Deputy President), Tracy Easman (President) and Richard Todd (Vice-President)
ATT President’s inaugural speech I at the AGM, 5 July 2018 EVENT public benefi t. It is vital everyone – HMRC, RTI, AML, GDPR, MTD F I You may know that the I minefi eld of legislati on we have. I President. I will do my very I President (!!) Ralph Pett engell of our tax legislati on. When I oft en referred to the ATT R I who work in tax. Professional Green or Yellow and Orange descripti on. Thank you to of you sit before me now). G I I months as our President. I will I mean HMRC can look at our on my shelf. Hopefully the move In writi ng this, I googled I to one fi scal event will ease the I Huey, Dewey and Louie was I In my view the Professional For those who cannot aff ord an excellent fi rm doing their S SE S I heroes and my ti me with them chariti es, LITRG and Tax Help and Pop from Rice Krispies for Older People. I menti oned I our colleagues at CIOT, HMRC B G Luke Skywalker, Han Solo in my penulti mate Tax Adviser and Princess Leia. So, to my PCRT and PRPG – they allow deputy Jeremy – thank you for I R I taxati on technicians. cannot aff ord our services have R President, Richard, welcome to I advance public educati on in of the Professional Standards I F I administrati on and practi ce of Artillery House. My of taxati on, to prevent crime thanks to Jane Ashton, Sue F administrati on of the law for the Artillery House who make Associati on.
58 www.taxadvisermagazine.com BRIEFINGS
ATT ‘No Vote, No Tax’ presentation goes Global
EVENT a specific group campaigning for female suffrage solely on In June, ATT Technical officer Helen Thornley spoke at Praxity’s Global Tax and Fiscal voting rights under the slogan B ‘No Vote, No Tax’, the title R of Helen’s talk. Delegates League. Praxity members Mazars LLP invited Helen Richard Todd, new ATT presentation to the London Vice-President network for International S was well attended. Afterwards OFFICERS Praxity are a global alliance what inspiration women today thought it was time to move firms, while the League on the G F N to warmer (?) climes, and R A longer article about the I B suffrage movement in the UK. League was published in July’s R KPMG’s Belfast office, he Tax Adviser the local PAYE Office. Very the ATT qualification in 1996 ‘Scrabble’ without the benefit I small accountancy practice N After two years of life in R to work in another PAYE Office, but this time north of B N I R B S The Association of Taxation B – he noticed that quite a the letters ATT in their S G letterhead. Part funded by the Professional Standards I R Committee, of which he Chairman. He was elected to R title of Taxation Technician. B N He sat and passed his first Ireland in January 2018, and E stood for election to the office of ATT Vice-President. After five years of living He wonders what the author B S B Helen Thornley www.taxadvisermagazine.com 59 BRIEFINGS
BTG
R R News from Bridge the Gap
TAX CHARITIES
Alison Lovejoy brings us news of the progress of the Bridge the Gap appeal kindness of strangers offering UPDATE ON GIVING S Breakfast Yoga B G office got down on their yoga fielded a team and raised over B G N £250,000 over the first three kept me going. It was also pretty Help from our donors B F B G additional donations and a up after about 22 miles. Whilst generous donation from the G I I firm’s charitable trust brought joined our existing corporate I Deloitte, KPMG, PwC, EY, Georgina Jones who would, I am Slaughter & May, Freshfields, heartfelt thanks. In my previous Linklaters, Pure Research, article, I promised to bring you B G N similar in your company. Her I Tax Adviser Richmond Runfest S GS Richmond Half Marathon and Support from LexisNexis Future events N listed below are before any gift supportive to Bridge the Gap, Yoga at dawn articles. For example, Dominic Eversheds raised £1,200 from a RE London Marathon sponsored Yoga session Taxation Awards where nearly Judge Jonathan Cannon ran the E R B London Marathon, raising £1,735. S Association will support us at He wrote of his experience: London Legal Walk which will include a raffle for B G I Penny Hamilton. If you wish to E of pro bono charities, which the line after 5 hours 44 minutes S S
60 www.taxadvisermagazine.com Branch events AUG–SEP 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 local Branch event. Below we have listed branch events taking place up to 15 September 2018. However,
Bristol Profit extraction for SMEs S Matt Appleton New tax professionals event G Cumbria & SW Scotland S S Capital taxes/IHT Farming CGT for non-residents Phil Collington East Anglia S Property tax and SDLT Suffolk masterclass S Caroline Fleet Tax enquiries Anne Grundy Edinburgh S Thames Valley Top tips for OMBs S Mike Martin Making Tax Digital Richard Wild Harrow & North London S Capital Allowances refresher S Steven Bone Residential property update Lakshmi Narain *If you would like to attend the R technical meetings, they are
Leeds S Welcome back!
Manchester S Recent FA and FB update Robert Jamieson
Northern Ireland F S 21 key tax areas people get wrong (but shouldn’t) Tim Good
Sheffield S R&D: It’s not rocket science! Chris Humphreys
South London & Surrey S www.taxadvisermagazine.com 61 To place an advertisement contact: Recruitment [email protected] MAGNETIC NORTH For career advice, jobs and to GUIDING YOU TO THE BEST TAX JOBS IN THE NORTH OF ENGLAND upload your CV, register now PERSONAL TAX SENIOR CORP. TAX COMPLIANCE AM / M free at: SOUTH MANCHESTER To £32,000 MANCHESTER / REMOTE To £52,000 plus bens Fantastic opportunity for an ATT or recently qualified CTA to join this thriving local The specialist corporate tax compliance and reporting team at this Big 4 firm is practice with an excellent reputation and friendly team. You will take full responsibility looking to recruit several candidates at either AM or M level with strong corporate www.taxation-jobs.co.uk for the compliance work on portfolio of personal tax clients and assist senior team tax compliance and tax accounting skills. Remote /flexible working and part time roles members with ad-hoc advisory work. are available. REF: A2706 REF: A2838 M&A TAX CONSULTANT IN HOUSE CORP. TAX SPECIALIST NEWCASTLE £48,000+ car & benefits MANCHESTER £55,000 to £65,000 plus car Global practice with an exciting opportunity for an Assistant Manager or Manager An experienced corporate tax manager is sought by a large international group with an experienced in M&A tax. You will be the day to day project lead on a variety of established in-house tax team. You will primarily be responsible for managing the tax transactions including vendor and purchaser due diligence. Significant future promotion compliance process, including monthly reporting, quarterly forecasting and SAO and CFC. The opportunities available. role also offers the opportunity to get involved in a range of other interesting tax projects REF: S2757 REF: R2827 EXPAT TAX AM / M PERSONAL TAX ASSISTANT MANCHESTER / REMOTE To £50,000 plus bens LEEDS To £28,000 Big 4 firm looking to recruit Assistant Managers and Managers with strong expatriate tax Opportunity to join a Top 10 firm in a personal tax compliance role. Ideally you will be AAT/ compliance skills into roles that will primarily involve reviewing expatriate tax returns ATT qualified or part qualified with client facing exposure and experience of completing personal prepared by junior team members. Flexible working, including part time and remote tax returns. A great opportunity to take your career to the next level! working and an excellent package add to the attraction of this fantastic opportunity. REF: S2825 REF: A2735
IN-HOUSE TAX ACCOUNTANT INTERNATIONAL TAX MANAGER CHESTER £40,000 - 50,000 +bonus - dep on exp NEWCASTLE To £50,000+ car & benefits This is a super opportunity for a qualified corporate tax specialist to move in-house and A fantastic opportunity for an ACA or CTA qualified Tax Manager to join this global practice. join a dynamic and professional in house tax team, reporting to an experienced senior You will be responsible for managing a portfolio of international clients and get involved manager. The role will involve Tax reporting compliance, transfer pricing documentation, in a wide variety of work including advising on restructurings and refinancings, transfer preparing annual corporate tax returns and reviewing monthly VAT returns. pricing and M&A projects as well as managing / coaching junior staff members. REF: R2808 REF: S2780 @TaxationJobs www.taxation-jobs.co.uk
From the publishers of Tel: 0333 939 0190 Web: www.taxrecruit.co.uk Mike Longman FCA CTA: [email protected]; Ian Riley ACA: [email protected]; Alison Riordan: [email protected]; Sally Wright: [email protected] 62 www.taxadvisermagazine.com MAGNETIC NORTH GUIDING YOU TO THE BEST TAX JOBS IN THE NORTH OF ENGLAND PERSONAL TAX SENIOR CORP. TAX COMPLIANCE AM / M SOUTH MANCHESTER To £32,000 MANCHESTER / REMOTE To £52,000 plus bens Fantastic opportunity for an ATT or recently qualified CTA to join this thriving local The specialist corporate tax compliance and reporting team at this Big 4 firm is practice with an excellent reputation and friendly team. You will take full responsibility looking to recruit several candidates at either AM or M level with strong corporate for the compliance work on portfolio of personal tax clients and assist senior team tax compliance and tax accounting skills. Remote /flexible working and part time roles members with ad-hoc advisory work. are available. REF: A2706 REF: A2838 M&A TAX CONSULTANT IN HOUSE CORP. TAX SPECIALIST NEWCASTLE £48,000+ car & benefits MANCHESTER £55,000 to £65,000 plus car Global practice with an exciting opportunity for an Assistant Manager or Manager An experienced corporate tax manager is sought by a large international group with an experienced in M&A tax. You will be the day to day project lead on a variety of established in-house tax team. You will primarily be responsible for managing the tax transactions including vendor and purchaser due diligence. Significant future promotion compliance process, including monthly reporting, quarterly forecasting and SAO and CFC. The opportunities available. role also offers the opportunity to get involved in a range of other interesting tax projects REF: S2757 REF: R2827 EXPAT TAX AM / M PERSONAL TAX ASSISTANT MANCHESTER / REMOTE To £50,000 plus bens LEEDS To £28,000 Big 4 firm looking to recruit Assistant Managers and Managers with strong expatriate tax Opportunity to join a Top 10 firm in a personal tax compliance role. Ideally you will be AAT/ compliance skills into roles that will primarily involve reviewing expatriate tax returns ATT qualified or part qualified with client facing exposure and experience of completing personal prepared by junior team members. Flexible working, including part time and remote tax returns. A great opportunity to take your career to the next level! working and an excellent package add to the attraction of this fantastic opportunity. REF: S2825 REF: A2735
IN-HOUSE TAX ACCOUNTANT INTERNATIONAL TAX MANAGER CHESTER £40,000 - 50,000 +bonus - dep on exp NEWCASTLE To £50,000+ car & benefits This is a super opportunity for a qualified corporate tax specialist to move in-house and A fantastic opportunity for an ACA or CTA qualified Tax Manager to join this global practice. join a dynamic and professional in house tax team, reporting to an experienced senior You will be responsible for managing a portfolio of international clients and get involved manager. The role will involve Tax reporting compliance, transfer pricing documentation, in a wide variety of work including advising on restructurings and refinancings, transfer preparing annual corporate tax returns and reviewing monthly VAT returns. pricing and M&A projects as well as managing / coaching junior staff members. REF: R2808 REF: S2780
Tel: 0333 939 0190 Web: www.taxrecruit.co.uk Mike Longman FCA CTA: [email protected]; Ian Riley ACA: [email protected]; Alison Riordan: [email protected]; Sally Wright: [email protected] MEET YOUR ADVISERS
GEORGIANA HEAD ALISON TAIT
Director Director
Tel: 0113 280 6766 Tel: 0113 280 6764 Mob: 07957 842 402 Mob: 07971627 304
[email protected] [email protected]
Tax Accountant – In-house Capital Allowances Ipswich – £45,000 to £50,000 + benefits Manchester – £excellent Great in-house role for a qualified tax accountant (ICAS, ACA, Large Accountancy form seeks a capital allowances ACCA or CTA). The successful candidate will work as part of the specialist. You may be a surveyor or a tax advisor, but will finance team, contributing to the timely and accurate provision need either a background in corporate tax or surveying and of information to the management team. This role will be a key a genuine interest in capital allowance work. Our client is an element in the finance team, reporting to the Head of Finance excellent employer, and has capacity for a full time or part ensuring the business’ Tax Compliance and also the day-to- time role. Excellent quality clients from major manufacturers day management of its tax liabilities. Really interesting role to property groups to public sector and not for profit. Plenty which would suit someone who lives near Ipswich but perhaps of opportunity for personal and professional development. currently commutes to London. Call Georgiana Ref: 2666 Call Georgiana Ref: 2658
Senior Manager – Property Clients Corporate Tax Assistant Manager Manchester – £50,000 to £75,000 Harrogate – £excellent + benefits Our client is a rapidly growing accountancy firm which Great role for a recently qualified (ACA, ICAS or CTA) to join a rapidly specialises in dealing with clients with property/real estate growing practice in Harrogate. You will become involved in a investments. As part of its growth, the firm now needs a Senior wide range of compliance and advisory work for entrepreneurial Tax Manager to help partners run the tax team and manage businesses, private equity backed businesses and Plcs. As well the client base. This role has clear scope for future promotion as main stream corporate tax, you will work on transactions and to partnership. Would suit someone with OMB experience projects such as R&D and transfer pricing. Plenty of scope for and ideally experience of dealing with clients in the real progression and a great mentoring programme make this a great estate and property development sectors. Would consider role for someone looking to develop their career in tax. Would someone with a corporate tax or mixed tax background. also consider someone more experienced who is looking for a 4 Call Georgiana Ref: 2675 day week. Call Georgiana Ref: 2664
Tax Accountant In-house Expatriate Tax Senior or Manager Selby, Yorkshire – £contract role Manchester – £excellent Our client is the in-house tax team of a Plc. They seek a tax Our client is the Global Mobility team of a Big 4 accountancy firm. accountant to join on a temporary basis to cover a maternity They are looking for several hires at a range of levels, from Tax leave, likely initial contract of 10 months. Whilst this is intended Senior through to Assistant Manager and Manager. A range of to be a full time position, our client will consider a part-time. You backgrounds considered, including personal tax, but their ideal will need proven UK corporate tax compliance experience – is someone with proven expat tax experience gained in a large ideally some tax reporting skills and good Excel skills. Could suit firm. These roles are advisory focused, with some compliance someone with a UK corporate tax background who is looking review. Would consider someone looking to relocate from for a return to work. Would consider a full or part qualified London. Our client is able to offer part time and flexible working. individual (ACA, ICAS, ATT, or CTA). Call Georgiana Ref: 2665 Call Georgiana Ref: 2661
www.georgianaheadrecruitment.com