Registering with HMRC for self-assessment

Rather than call up HMRC, you can register for self-assessment (to get your UTR) by completing this web form.

Applying for a dispensation with HMRC

This may not be needed if in the future, the Office of Tax Simplification gets its way, but for now, this is the best way to apply for dispensation.

Why a dispensation? It means that employers can avoid the need to record every expense reimbursed to staff in the normal course of their business, and then correspondingly, the staff won’t need to claim those business expenses against their income on their tax returns.

PAYE Settlement Agreement Form PSA1

HMRC have an official form to submit your PSA (PAYE Settlement Agreement) calculations. It is called PSA1 and is located on HMRC’s website.

WordPress themes for accountancy practices

Our firm’s website is in need of a refresh.  The current website is hosting on the server that is owned by the web developer and it runs an old version of Drupal. Although we can log in to post content, it isn’t very user friendly and we cannot update the back-end ourselves.

We are therefore thinking of transitioning the website to wordpress.org and so the search is on for an appropriate business style template to form the base of the site.  The site will fundamentally be a brochure style accountancy firm website, with the main page being a welcome or about us page and the blog part relegated to a sub page.

Suggestions welcome …

AIA on assets introduced personally to a business

Can you claim an Annual Investment Allowance (AIA) on assets introduced personally to a business.  E.g. by a sole-trader on incorporation?

Answer: No.  AIA is denied in several circumstances as part of an anti-avoidance rule, including transactions between connected persons:

Connected persons transactions: if a person incurs expenditure in a transaction with a connected personCA28800, no AIA is due (CAA01/S214 & S217). There is an example of a connected person transaction (where brothers attempted to exploit the legislation to obtain more allowances than was intended) at CA28100. This anti-avoidance rule prevents such exploitation and denies an AIA in all cases where the parties to the relevant transaction CA28200 are connected.

Clarification on the supply of exhibition stands in the UK to EU business customers

HMRC have clarified the VAT treatment of business to business supplies of land related to exhibition stands when supplied with other services, so that the UK is not at a disadvantage.  This was because other EU countries were interpreting the recent changes to the place of supply slightly differently.

Currently HMRC regards the supply of specific stand space at an exhibition or conference as a supply of land. This policy will continue where the service is restricted to the mere supply of space without any accompanying services.

However, where stand space is provided with accompanying services as a package, this package (stand and services) will no longer be seen as a supply of land with land related services but will be taxed under the general place of supply rule (customer location) when supplied to business customers.

Are penalties and/or interest allowed as deductions for corporation tax purposes?

From Section 1303 of CTA2009:

1. In calculating profits for any corporation tax purpose, no deduction is allowed for any penalty or interest mentioned in the first column of the following table.

2. The table:

Penalty or interest Description of tax, levy or duty
Penalty under any of sections 60 to 70 of VATA 1994 Value added tax
Interest under section 74 of VATA 1994
Penalty under any of sections 8 to 11 of FA 1994 Excise duties
Penalty under any of paragraphs 12 to 19 of Schedule 7 to FA 1994 Insurance premium tax
Interest under paragraph 21 of that Schedule
Penalty under any provision of Part 5 of Schedule 5 to FA 1996 Landfill tax
Interest under paragraph 26 or 27 of that Schedule
Penalty under any provision of Schedule 6 to FA 2000 Climate change levy
Interest under any of paragraphs 70, 81 to 85 and 109 of that Schedule
Penalty under any provision of Part 2 of FA 2001 Aggregates levy
Interest under any of paragraphs 5 to 9 of Schedule 5 to, paragraph 6 of Schedule 8 to and paragraph 5 of Schedule 10 to FA 2001
Penalty under section 25 or 26 of FA 2003 Customs, export and import duties
Penalty under any provision of Part 4 of FA 2003 Stamp duty land tax
Interest under any provision of that Part
Interest required to be paid by regulations made under section 71 of FA 2004 (construction industry) Income tax

3. In calculating profits for any corporation tax purpose, no deduction is allowed for any surcharge under section 59 of VATA 1994.



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