Van benefit (p11d)

We have many questions from clients on the van benefit situation: if there is ordinary commuting only, is there a benefit?

Broadly, ordinary commuting to a permanent place of work, or a place of work that can be deemed permanent would give rise to van benefit (EIM22735). However, no benefit is chargeable if restricted private use condition (EIM22795) is met. The key one is the commuter use requirement (EIM22800):

the terms on which the van is available to the employee at the time prohibit its private use otherwise than for the purposes of ordinary commuting or travel between two places that is for practical purposes substantially ordinary commuting

In practice this means asking employees to confirm their use of the vans, prohibiting private use through employment contracts, mileage records, trackers on vehicles (if checked) etc.

Form 17

HMRC have replaced many of their downloadable PDF forms, with fill-out-on-screen-then-print forms. Form 17 for the declaration of beneficial interests in joint property and income is one such form.

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 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.