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A Radical Departure Matt Stringer and Amanda Collinson Consider the Implications of the New Digital Services Tax, Page 16 Capital 12 Domicile 28 First VAT 34 allowances issues return Alun Oliver on developments Andrew Titchener on the Neil Warren on how to ensure from Budget 2018 and practicalities faced by HNWIs, that a first VAT return is implications on investment families and entrepreneurs accurate and runs smoothly www.tax.org.uk www.att.org.uk Excellence in Taxation NoDecembervember 2018 www.taxadvisermagazine.com A radical departure Matt Stringer and Amanda Collinson consider the implications of the new Digital Services Tax, page 16 PLUS AML supervision visits – Tax and Scotland – ER anti-dilution protection – IR35 for private sector GIVE YOURSELF A FLYING START Tolley®Exam Training: The ATT/CTA Tax Pathway The Tax Pathway enables students to study for both ATT and CTA qualifications and become members of both bodies in less time, without reducing the quality and rigour of your qualifications. Benefits of the Tax Pathway > Cost effective – students following the Tax Pathway route will spend less time out of the office as they will have one less exam. The cost of qualifying is likely to be less than following the sequential qualification route for ATT and CTA. > Early qualification – as the Tax Pathway provides a combined route to both the ATT and CTA qualification, students will be able to sit more exams earlier. > More choice – students can choose which ATT papers they sit, as papers are no longer mandatory. > No prerequisites – students don’t have to hold any particular qualifications or have any specific experience before starting the Tax Pathway. Pass your examinations confidently the first time with Tolley®Exam Training’s expert knowledge. Start achieving success with Tolley today Visit tolley.co.uk/taxpathway Email [email protected] Call 020 3364 4500 RELX (UK) Limited, trading as LexisNexis®. Registered office 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. © 2017 LexisNexis SA-0117-027. The information in this document is current as of March 2017 and is subject to change without notice. CONTENTS C ONTENTS Welcome Features 2 President’s page Christmas time comes around again Professional skills Scottish taxes Ray McCann 6 Calming the tempest Jo Maughan 22 Ongoing change Charlotte Barbour 4 ATT page provides practical tips for managing provides an update on recent strong emotions in the workplace developments Compliments of the season Jeremy Coker PROFESSIONAL SKILLS in Scottish taxation MANAGEMENT OF TAXES Budget Technical 8 Budget 2018 round-up Bill Dodwell From the Technical team considers the implications of Budget 2018 38 Spotlight on the Property LARGE CORPORATE TAX OMB PERSONAL TAX Taxes Sub-committee EMPLOYMENT TAX INDIRECT TAX 39 CIOT meeting with the FST MANAGEMENT OF TAXES 39 CIOT sends its analysis of the Autumn Budget 2018 to the Treasury Committee Bridge the Gap 40 LITRG Budget summary: is 26 Seasonal work spells confusion austerity really coming to an Julie Cameron looks at how people on end? low incomes can face real tax problems 41 Voluntary Tax Returns from modern working arrangements 41 Making Tax Digital: an GENERAL FEATURE update 42 Carried forward corporation Domicile tax losses: compliance 28 Regular review Andrew Titchener provides requirements an overview of the practical issues faced by high net worth individuals, families and 43 HMRC’s Employment Taxes Anti-money laundering entrepreneurs regarding domicile Forums 10 An inspector calls Jane Mellor looks at the PERSONAL TAX INTERNATIONAL TAX 43 Agents road test HMRC common issues anti-money laundering digital forms supervision visits raise and provides guidance on how to ensure that your firm Research & Development 44 Welsh rates of income tax meets AML requirements 30 Spot the difference Kathie Haunton and 44 Costs in the Upper Tribunal Sarah Goodman provide guidance in PROFESSIONAL STANDARDS 45 LITRG support NHS personal determining which supplier costs can be included in an R&D claim budget holders to use CEST Capital allowances tool 12 Integral to investment Alun Oliver LARGE CORPORATE TAX OMB 45 Professional Standards provides an overview of the capital updates allowances changes in the recent Budget LARGE CORPORATE TAX OMB Briefings Digital Services Tax From Artillery House 16 A radical departure Matt Stringer 47 Christmas carol service and Amanda Collinson consider the implications of the new Digital Christmas office hours 47 Services Tax 47 CIOT and ATT 2019 subscription rates INTERNATIONAL TAX LARGE CORPORATE TAX Entrepreneur’s relief 48 East Midlands Branch 32 Breaking barriers Stephen Woodhouse charity event examines the impact of FB 2019’s dilution 49 Merseyside Branch event protection for entrepreneurs’ relief 49 ATT Foundation OMB Qualification 49 Sharpen Your Tax Skills VAT return An impressive start Neil Warren gives 50 CIOT/IFS Debate 34 practical tips on making sure the first VAT 51 New ADIT module return submitted by a business is 51 News from the WCOTA accurate 52 The Two Ethels: First Ladies INDIRECT TAX OMB of Tax and Accountancy IR35 20 Putting your house in order Paul Holdover relief Mason considers the effect of IR35 in the The bright red line Keith Gordon looks at Recruitment private sector 36 a case which identified an absurdity in EMPLOYMENT TAX OMB the holdover relief rules 53 The best industry roles LARGE CORPORATE TAX MANAGEMENT OF TAXES OMB www.taxadvisermagazine.com | December 2018 1 President’s page [email protected] Ray McCann Christmas time comes around again s it just me or does it feel like no time at all since If you are a regular attendee why not encourage the Christmas tree was packed up and dragged a colleague to come next time? Dunblane was Iinto the loft? followed by a ‘meet the President’ round table The first present of the season arrived in the discussion with the Aberdeen Branch kindly hosted form of the Budget. It is disappointing that the by Deloitte. Chancellor seems to have been too busy to read My other really big event was the Northern last month’s Tax Adviser so numerous tinkering Ireland Branch dinner together with ATT President changes and a 400-page (or more) Finance Bill Tracy Easman. The two of us seem to have an will follow. Also, I am sure few of you welcomed odd effect on the weather; earlier in the year we the 30th January closure date for the review of were trapped in Edinburgh due to the ‘Beast from trusts. Frankly it is not good enough that an area as the East’ and this time it was storm something or complex as trusts is subject to a consultation slap other that resulted in the flight carrying the guest bang in self-assessment return time when you are speaker being diverted to Glasgow before it ran often at your busiest. out of fuel! All was well in the end and thanks go The sharp intake of breath announcement was to Malachy McLernon and all the members of the the Digital Service Tax (DST). To use ‘technobabble’, Branch Committee for what was a truly memorable Apple, Google, Facebook and Amazon must night, notwithstanding the single Jamieson’s with download a ‘critical upgrade’ to their UK tax ice that no matter how much I tried never seemed liability, or, maybe not. It seems clear that the DST to diminish! It was great meeting so many new is a ‘shot across the bow’ that will never see the members and students and hearing the exciting light of day if international consensus emerges on things they are doing. To paraphrase HMRC, ‘tax how to tax companies that are everywhere and does not need to be rewarding, but it very often nowhere at the same time. Here we should perhaps is’. Malachy quite properly has great pride in what be concerned; ‘America First’ will not make finding the Branch has achieved and as he said, ‘it can hold consensus easy so it could be the UK faces unhappy its head up with the best of our Branch network’. I tech giants and a US Government threatening have no doubt that the Scottish and Northern Irish retaliation whilst those critical of online companies branches are in good hands. campaign for tougher measures still! We also had our CIOT Council offsite meeting. The other big (expected) announcement was This is an occasion when the members of Council making the end (private sector) ‘client’ responsible are able to really challenge each other and examine for status within IR35. This was the intended how the CIOT fulfils its charitable objectives. This approach originally but as we know responsibility year the discussion focused on Council itself: is it was instead put on the individual. On its own this too big, small, representative, and so on. As usual will not resolve disguised employment issues; a the discussion was lively and it will influence how much deeper review is required. In the meantime, we ensure the CIOT lives up to our claim to be the the burden of ensuring that those operating ‘leading body for tax professionals’. Equally we through personal service company arrangements must always remember a point passionately made are compliant will be significant and costly. If the in Aberdeen: many of our members value the Government really wants to reduce the number ‘family atmosphere’ the CIOT and ATT have always of individuals operating through companies, had and we must not lose this as we grow and more flexible disincorporation relief needs to expand in the UK and overseas. be introduced so that tax liabilities that would And on that family note, all that remains is for otherwise arise can be rolled over. me to wish all of you, your families and loved ones, Aside from Budget concerns, last month was wherever you are, the happiest of times over again a busy one.
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