Notice: VAT Notice 700: the VAT guide

Updated: This notice has been updated. Full details of the changes can be found in paragraph 1.2 of this notice.

This notice cancels and replaces Notice 700 (November 2016). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.

Source: HMRC

News story: Webinars and emails on the Construction Industry Scheme

Updated: Updates made to times and dates of webinars.

Webinars

Webinars can last up to an hour. You can ask questions during the presentation and get answers from your HMRC host.

Register and log in at least 5 minutes before a live webinar is due to start.

You can watch recorded webinars at any time but you’ll need to register first.

CIS for contractors

How the scheme works, taking on and paying subcontractors, and how to meet your tax obligations.

Live webinar:

Please note there are no dates currently available for this live webinar.

Watch this webinar recorded in March 2017.

CIS for subcontractors

How to join the scheme, what deductions will be made from your payments and what records you need to keep.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in February 2016.

Construction, contractors and the CIS

HMRC and Health and Safety Executive (HSE) working together for you – in construction, with contractors and using the CIS.

Watch this webinar recorded in July 2016.

Help and advice

Check to make sure you have a compatible computer or mobile device to watch webinars.

Search for help if you have technical problems with webinars.

Contact HMRC online for other webinar help.

Emails

You can register to get business help and education emails from HMRC.

Source: HMRC

News story: Agent toolkits, digital meetings, webinars, e-learning and videos

Updated: Updates made to times and dates of webinars.

Agent toolkits

The agent toolkits annual update has begun for 2017. Our experts are looking at the toolkits and over the next 6 months will be making changes.

Toolkits have checklists of the most common errors HMRC sees in returns and tells you how to avoid them.

Don’t forget to check out the current 20 toolkits regularly so that you don’t miss the changes as they happen.

Videos

YouTube videos

What is Research and Development (R&D) tax relief?
Outlines what R&D relief is who and how to claim it.

What expenses qualify for R&D tax relief?
Provides a very simple explanation of what costs qualify for R&D, and some simple errors made by customers.

How to claim R&D tax relief when you receive a grant
Addresses one of the most common queries regarding R&D and how it interacts with grants.

There’s more detailed guidance, including case studies at R&D tax relief: making R&D easier for small companies.

Agent Talking Points

Agent Talking Points are weekly online digital meetings for tax agents and advisers and complement HMRC’s quarterly Working Together online agent meetings.

They usually last 45 minutes to an hour and focus on topics agents have said they’re interested in or on new issues identified by agents and HMRC that may have widespread impact. HMRC experts will be available to answer questions.

Register quickly and easily at least 5 minutes before a meeting is due to start.

Paying the right amount of tax through Pay As You Earn (PAYE)

This meeting will cover the changes being implemented in May. HMRC will improve the way we use Real Time Information to make automatic adjustments to PAYE tax codes as they happen, rather than waiting until the end of the tax year. This event will explain how this will affect employers and their staff.

Register for this meeting on Wednesday 5 April 2017, 11am to midday.

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on Wednesday 5 April 2017, 2pm to 3pm.

Annual Tax on Enveloped Dwellings (ATED)

This meeting will cover the new digital service released by ATED. They will be demonstrating the service from registration through to submitting returns.

Register for this meeting on Tuesday 11 April 2017, 11am to midday.

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on Tuesday 11 April 2017, 2pm to 3pm.

What’s new in 2017 to 2018 for employers

This meeting will give an overview of the payroll changes from 6 April 2017.

Register for this meeting on Wednesday 19 April 2017, 11am to midday.

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on Wednesday 19 April 2017, 1pm to 2pm.

Negligible value

This meeting will cover an introduction to negligible value claims and share loss relief.

Register for this meeting on 27 April 2017, midday to 1pm.

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on 27 April 2017, 2pm to 3pm.

Changes to Inheritance Tax

This meeting will provide an overview of recent changes to Inheritance Tax, including Residence Nil rate Band (RNRB) and Transferrable nil Rate Band (TRBRB).

Register for this meeting on 4 May 2017, midday to 1pm.

The New Trusts Registration Service

This meeting will look at how to register a new trust and how to update the registered information for existing trusts.

Register for this meeting on 4 May 2017, 2pm to 3pm.

National Minimum Wage: Common errors made by employers

Employers must pay the National Minimum Wage and National Living Wage at the right rate. Sounds simple doesn’t it, but there are a number of errors that employers make which tip them into non-compliance. Sign up to find out more.

Register for this meeting on 9 May 2017, 10:30am to 11:30am.

HMRC Payment Strategy

This meeting will focus on reducing cheque payments and the elimination of payable orders

Register for this meeting on 18 May 2017, midday to 1pm.

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on 18 May 2017, 2pm to 3pm.

Tax avoidance: an update on current measures to tackle tax avoidance and how HMRC can help your client’s settle

This digital meeting provides an update on current measures to tackle tax avoidance and how HMRC can help your clients settle their tax affairs.

Register for this meeting on 23 May 2017, midday to 1pm.

Capital allowances and vehicles

This meeting mainly covers the special rules for cars.

Register for this meeting on 25 May 2017, 11am to midday

As this meeting is likely to be oversubscribed we’ve added a second meeting later.

Register for this meeting on 25 May 2017, 1pm to 2pm.

Recordings

Self Assessment 2017 (SA17)

Watch this meeting from 20 December 2016 – income from Property covering expenses and deductions, allowances and reliefs.

Find out more in the HMRC property rental toolkit.

Your income from property tax return

This video shows how and where to show property income on your Self Assessment tax return. Areas covered include:

  • entries for Rent a Room
  • claiming for running costs and expenses

It also shows how profits are calculated and losses shown.

Watch this meeting from 5 January 2017 covering trade losses.

Find out more in the HMRC Income Tax losses toolkit.

Watch this meeting from 12 January 2017 covering Self Assessment and paying HMRC.

Watch this meeting from 18 January 2017 covering capital allowances and vehicles.

Agent services 7 December 2016 recording

Watch this meeting from 7 December 2016.

Watch this meeting from 14 September 2016.

Agent Account Manager service

Watch this meeting from 1 June 2016

Apprenticeship Levy

Watch this meeting from 14 February 2017 covering when you need to pay the levy, how much you need to pay and how to report a payment. The meeting also covers changes to Apprenticeship Funding in England from May 2017 and the new Apprenticeship Service.

Automatic Exchange of Information

Watch this meeting from 14 July 2016 to find out more about what the UK’s Automatic Exchange of Information with other countries may mean for you.

Capital Gains Tax

Watch this meeting from 29 September 2016 on Entrepreneurs’ Relief.

Class 2 National Insurance reform

Watch this meeting from 15 June 2016.

Watch our new Youtube video regarding the impact on Self Assessment returns.

National Living and National Minimum Wage

Watch this meeting from 14 March 2016 covering both areas.

Pensions Regulator

Watch this meeting from 17 March 2017 which looked at how to support your clients through automatic enrolment.

Watch this meeting from 17 March 2017 which looked at how you can support your clients through re-enrolment.

R&D tax relief

Watch this meeting from 24 August 2016 on Advanced Assurance.

Residence

Watch this meeting from 8 April 2016 covering non-UK domicile reforms.

Watch this meeting from 7 October 2016 on Statutory Residence Test – split year treatment cases 1 to 3.

Watch this meeting from 14 October 2016 on double taxation for individuals with dual residency.

Watch this meeting from 3 February 2017 which gave an overview of domicile, why it’s relevant for income and Capital Gains Tax and the impact of the new reforms.

Security

Watch this meeting from 21 April 2016 covering security awareness.

Watch this meeting from 26 May 2016 covering cyber security.

Specialist agent managers

Watch this meeting from 9 June 2016 to find out more about the specialist agent managers role.

Tax Avoidance

Watch this meeting on contractor loans from 30 March 2016 discussing what a recent policy announcement means for individuals who may be involved in disguised remuneration avoidance schemes.

Watch this meeting from 10 May 2016 on disguised remuneration for small and medium enterprises.

Watch this meeting from 1 November 2016 on settling the tax avoidance bills of small and medium enterprises.

Watch this meeting from 16 November 2016 on the new serial tax avoidance regime.

Watch this meeting from 7 February 2017 in which HMRC outlined some of the common issues that arise in insolvency proceedings where tax avoidance is at play and HMRC’s stance.

Watch this meeting from 7 February 2017 where HMRC looked at settling the tax avoidance bills of individuals that might have been involved in tax avoidance schemes.

Trade losses

Watch this meeting from 1 March 2017 which looked at the different ways that trade losses may be relieved.

VAT – changes to the VAT Flat Rate Scheme (FRS)

Watch this meeting from 1 March 2017 which covered the introduction, from 1 April 2017 of the new 16.5% FRS for businesses with limited costs. Businesses using the FRS or new businesses joining the FRS will complete a simple test to work out whether they must use this new rate.

Your Tax Account

Watch this meeting from 1 March 2016.

In partnership with other government bodies

Companies House

Watch this meeting from 10 November 2016 covering helping agents file accounts right first time.

Department for International Trade

Watch this meeting from 24 November 2016 covering free help to grow businesses overseas

Intellectual Property Office

Watch this meeting from 28 July 2016 providing an overview of trademarks, patents, designs and copyright and how to protect intellectual property.

Watch this meeting from 30 November 2016 covering trademarks.

Watch this meeting from 16 February 2017 covering copyright.

Webinars

Webinars can last up to an hour. You can ask questions during the presentation and get answers from your HMRC host.

Register and log in at least 5 minutes before a live webinar is due to start.

You can watch recorded webinars at any time but you’ll need to register first.

Capital gains: land and property

The webinar covers common areas such as reliefs and common errors.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in June 2016.

Find out more in the HMRC Capital Gains Tax for land and buildings toolkit.

Help and advice

Check to make sure you’ve a compatible computer or mobile device to watch webinars.

Search for help if you’ve technical problems with webinars.

Contact HMRC online for other webinar help.

E-learning

Complete the online course to find out how to resolve disputes with reviews and appeals.

Source: HMRC

News story: Videos, webinars, e-learning, and emails if you’re self-employed

Updated: Updates made to times and dates of webinars.

Videos

YouTube videos:

Self Assessment

Short videos on Self Assessment help and deadlines.

Find out if you’re employed or self-employed.

Research and Development

What is Research & Development tax relief?

What expenses qualify for Research & Development tax relief?

How to claim Research & Development tax relief when you receive a grant.

E-learning

You can use HMRC’s free online guides to help you get things right first time:

Emails

Register to get business help and education emails from HMRC.

Webinars

Webinars can last for up to an hour. You can ask questions during the presentation and get answers from your HMRC host.

They’re aimed at sole traders and business partnerships. They’re not suitable for directors of limited companies.

Register and log in at least 5 minutes before a live webinar is due to start.

You can watch recorded webinars at any time but you’ll need to register first.

Getting started

How to tell HMRC you’re self-employed, what National Insurance you’ll pay, how to keep records and budget for your first tax bill.

Watch this webinar recorded in May 2016.

Business expenses

What kind of business expenses you can claim, for example, working from home or paying for things you need for your business.

Watch this webinar recorded in November 2015.

Capital allowances

How to claim tax relief when buying or improving things, for example, vehicles or equipment that you need for your business.

Watch this webinar recorded in June 2016.

HMRC and Department for Work and Pensions (DWP) – working together for you, starting a business

Moving from claiming benefits to New Enterprise Allowance, you can get up-to-date guidance from DWP and HMRC.

Watch this webinar recorded in April 2016.

HMRC and Department of Work and Pensions (DWP) – Leaving the Work Programme and starting in Business

Work Programme Customers, you can get up to date guidance from DWP and HMRC

HMRC digital services

How to access and make the most of record-keeping apps and other digital support tools.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in September 2015.

Record-keeping

How to keep records, set up a records system and how long to keep records.

Watch this webinar recorded in April 2016.

How to complete your online tax return

How to register for Self Assessment online and complete your tax return.

Watch this webinar recorded in June 2016.

Your payments to HMRC

This webinar tells you how your first tax bill is calculated and payable.
It also explains how you can budget for your first bill and covers options for paying HMRC.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in April 2016.

Cash Basis for the self employed

This webinar will explain the Cash Basis scheme, available for the self-employed, which is designed to make tax simpler for sole traders and business partnerships. It’s not suitable for limited liability partnerships (LLP) or limited companies.

Watch this webinar recorded in January 2017

Childminders

There’s no date for a live webinar at the moment.

Watch this webinar recorded in April 2016.

Foster carers’

How to use qualifying care relief, keeping records and what to put on your tax return.

Watch this webinar recorded in September 2016.

Foster carers’ tax returns

This short webinar helps foster carers to fill in the self-employment section of an online tax return.

Watch this webinar recorded in December 2016.

Shared Lives carers

For those in Shared Lives care, for example, Adult Placement care, Kinship care, staying-put care and parent and child arrangements. How to use qualifying care relief, keeping records and what to put on your tax return.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in June 2016.

Supported Lodgings

Find out what Supported Lodgings are and how you deal with them. We will also tell you what records you need to keep.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in July 2015.

Alcohol Wholesaler Registration Scheme

This has information for small and medium businesses. If your business buys or sells alcohol, the Alcohol Wholesaler Registration Scheme tells you how to register.

There’s no date for a live webinar at the moment.

Watch this webinar recorded in December 2015.

Help and advice

Check to make sure you have a compatible computer or mobile device to watch webinars.

Search for help if you have technical problems with webinars.

Contact HMRC online for other webinar help.

Source: HMRC

Detailed guide: Offshore disclosure facilities

Updated: This page has been updated with information about the Requirement to Correct.

Overview

There’s nothing wrong with having investments overseas as long as you declare all taxable income and gains on your UK tax return.

The government is getting tougher in its approach to tackling those who don’t declare the correct amounts of tax due on their offshore income and assets. New international collaboration to share information and laws to tackle non-compliance has started. However, there’s still a chance to bring all your tax affairs up to date if you have worldwide income that’s not been taxed before.

Requirement to Correct

The Requirement to Correct change enables HM Revenue and Customs (HMRC) to tackle those who don’t declare the correct amounts of tax due on their offshore income and assets. The legislation, which is included at Section 67 and Schedule 18 of the Finance (No.2) Act 2017, requires any person who has undeclared chargeable income in respect of offshore interests to correct that situation by disclosing the information to HMRC.

HMRC expect the majority of taxpayers to meet their obligation under the Requirement to Correct by making a disclosure using the Worldwide Disclosure Facility (WDF) and the online Digital Disclosure Service (DDS).

Undeclared income offshore

If you need help to decide whether you’ve paid the right amount of tax, ask your tax adviser (if you have one). They can help you check your affairs and discuss the options if you need to make a disclosure. For any further queries you can contact HMRC .

If you do have undeclared income and gains from your overseas accounts, go online to the DDS now to clear up your past tax affairs. You should also make sure that you declare all relevant income and gains in your next Self Assessment tax return.

If you’re not resident in the UK for tax purposes (a UK taxpayer) you may still have to pay tax in the UK on some income and gains. You should check what’s taxable and check your residency status.

Why you should disclose now

Over 100 countries have committed to new international agreements that will let HMRC see more about overseas accounts held by you. If you’ve declared your taxable income and gains you have nothing to worry about.

If you haven’t declared your income and gains and HMRC finds out later, you’ll face an investigation and will have to pay the undeclared tax with a penalty (of up to double the tax you owe), and could even face prosecution.

Using the WDF to make a full disclosure of all undeclared offshore liabilities may avoid the need for an investigation in the future where you may pay a higher penalty.

Financial institutions are already collecting information on your overseas accounts.

HMRC will get much more information about your:

  • overseas accounts
  • insurance products
  • other investments, including those held through overseas structures such as companies and trusts

The information includes details of either:

  • who’s holding the account or asset
  • who owns the entity holding the asset including their:

    • name
    • address
    • date of birth
    • the balance of the account
    • payments made into it

HMRC will use this information to tackle those who’ve not paid their taxes, so tell them before they come to you.

Worldwide Disclosure Facility

If you haven’t paid the right amount of tax you may be able to tell HMRC using a disclosure facility.

The WDF is available to anyone who is disclosing a UK tax liability that relates wholly or in part to an offshore issue. This includes:

  • income arising from a source outside the UK
  • assets situated or held outside the UK
  • activities carried on wholly or mainly outside the UK
  • where the funds connected to unpaid tax are transferred outside the UK

Agents wishing to make a notification for a client should use the agent disclosure online service.

Find out who will be eligible to use the facility

Anyone who wishes to disclose a UK tax liability that relates wholly or in part to an offshore issue is allowed to use the facility under the terms:

  • to make a full disclosure of all previously undisclosed UK tax liabilities within 90 days of notifying your intention to disclose
  • calculate interest and penalties due based on the existing legislation

In specific circumstances it may not be appropriate to allow full reductions for disclosure. For example, where a person has taken a significant period to correct their non-compliance. If they’ve previously have been able to make their disclosure through one of HMRC’s offshore facilities they can no longer expect HMRC to agree full reduction for disclosure.

In such cases it is unlikely that HMRC would reduce the penalty by more than 10 percentage points above the minimum of the statutory range. For this purpose we would normally consider a ‘significant period’ to be over 3 years or less where the overall disclosure covers a longer period.

The WDF is aligned to this updated treatment and guidance.

What to do next

You can make a disclosure online via the DDS and you’ll need to notify your intention to disclose first.

You only need to tell HMRC that you will be making a disclosure. Once you’ve notified an intention to make a disclosure, you will have 90 days to:

  • collate the information needed to complete the disclosure
  • calculate the final liabilities including tax, duty, interest and penalties
  • complete the disclosure, using the unique disclosure reference number provided when notifying

Details of the previous facilities now closed by HMRC

The Liechtenstein Disclosure Facility (LDF)

The LDF was available to anyone who owned an asset in Liechtenstein at the time that they registered to use the LDF. It didn’t matter when you acquired the asset in Liechtenstein provided you owned it when you registered.

The 3 British Crown dependencies’ facilities

The 3 British Crown dependencies’ facilities were:

  • Isle of Man
  • Guernsey
  • Jersey

They were available to anyone who owned an asset in the relevant territory at any time between April 1999 and 31 December 2013.

Source: HMRC

Detailed guide: Landfill Tax: rates, exemptions and taxable activities

Updated: Rates for Landfill Tax have been updated for 2017 to 2018 tax year.

Overview

You’ll have to pay Landfill Tax if you operate a landfill site that has a licence or permit authorising disposals in or on the land under:

  • part II of the Environmental Protection Act 1990
  • regulations made under section 2 of the Pollution Prevention and Control Act 1999
  • part II of the Pollution Control and Local Government (Northern Ireland) Order 1978 (SI 1978 No. 1049 (N.I. 9))
  • regulations under Article 4 of the Environment (Northern Ireland) Order 2002 (SI 2002 No. 3153 (N.I. 7))

Occasionally, the licence or permit holder for the landfill site isn’t directly involved with operating it. In these cases the ‘controller’ of the site is jointly and severally liable for Landfill Tax.

Aside from exemptions, you need to pay Landfill Tax on all material disposed of at your site:

  • as waste – this is any disposal a person makes with the intention of discarding the material
  • by way of landfill – where material is deposited on the surface of your land, on a structure set into the surface, or under the surface

You’ll need to register with HM Revenue and Customs (HMRC) if you need to pay Landfill Tax.

Taxable activities

You need to pay Landfill Tax on material used in a number of taxable activities on the landfill site. If you’ve already paid Landfill Tax on the materials you use in these activities, you won’t need to pay a second time.

Activity description What is taxable What isn’t taxable
Daily cover Material used to cover the disposal area while it’s temporarily not being used. Mineral material used around the side or bottom of a disposal area, or used to permanently cap it.
Temporary haul roads Material used to create of maintain a temporary road haul. Material used to create or maintain a permanent road.
Temporary hard standings Material used to form the base where waste recycling, treatment or other similar activities take place. Material used to create or maintain a permanent hard standing.
Temporary screen bunds Material used to create or maintain a structure that reduces the visual or noise impact of individual activities on site. Material used to create or maintain a structure that performs a function for the landfill site as a whole, or using material that naturally occurs at the site.
Drainage layer/liner protection Soft material (such as household waste) placed against the drainage layer or liner of the disposal area to prevent damage to the layer or liner. No tax exemptions.
Temporary storage of ashes Including pulverised fuel ash and furnace bottom ash, designed so the ashes can be retrieved for use or permanent disposal. No tax exemptions.
Other site restoration materials You need to tell HMRC which area material will be deposited in – if it’s not deposited in this area you’ll need to pay Landfill Tax. No tax exemptions.

Rates

There are 2 different rates of Landfill Tax:

  • less polluting wastes as listed in the Landfill Tax (Qualifying Material) Order 2011 – £2.70 per tonne
  • all other wastes – £86.10 per tonne

Loss on Ignition (LOI) testing regime

The ‘Loss on Ignition’ (LOI) testing regime was introduced on 1 April 2015 to improve compliance by helping prevent mis-description of waste fines for landfill tax purposes.

If your landfill site accepts waste fines, you may need to carry out a loss on ignition test to help determine the rate of tax to pay.

From 1 April 2015 to 31 March 2016:

  • if the LOI is 15% or less, the lower rate of £2.60 is charged
  • if the LOI is more than 15% the standard rate of £82.60 is charged

From 1 April 2016:

  • if the LOI is 10% or less, the lower rate of £2.65 is charged
  • if the LOI is more than 10% the standard rate of £84.40 is charged

More information on the LOI testing regime can be found at Excise Notice LFT1: a general guide to Landfill Tax.

Mixed loads

You’ll normally pay the standard rate for mixed loads, unless there’s an incidental amount of standard waste in a mainly lower rate load. For example:

  • sub-soil with small quantities of grass
  • sub-soil and stone from street works containing tarmac
  • mineral dust packaged in polythene bags
  • bricks, stone and concrete with small amounts of wood and plaster

You need to justify any decisions you make to apply the lower rate to mixed loads. This will usually be based on the size of the standard rated waste it contained and the difficulty in separating it from the rest of the load.

Exemptions and claiming back tax

The following areas of waste are exempt from Landfill Tax, provided that all the required circumstances are met:

You can also claim back Landfill Tax you have previously paid when:

Source: HMRC