UK tax implications of FRS 101; FRS 102: HMRC papers
Global Tax Update:November 2016/United Kingdom
HM & Revenue and Customs(“HMRC”) have revised their two papers which summarise the key accounting changes and tax implications that arise for companies that change from old UK GAAP to FRS 101 or FRS 102. (Global Tax Update:November 2016/United Kingdom)
This newsletter explains the following topics;
1. UK tax implications of FRS 101; FRS 102: HMRC papers
They were last updated in August 2016. It seems that neither paper has yet been updated for changes included in Finance (No.2) Act 2015 or Finance Act 2016.
2. Creative industries reliefs: updated guidance
HMRC have published updated guidance about how to qualify for and claim the corporation tax creative industry tax reliefs: film tax relief; animation tax relief; high-end television tax relief; children’s television tax relief; video games tax relief; theatre tax relief and orchestra tax relief.
3. FRC Annual Review of Corporate Reporting 2015/16
The Financial Reporting Council (“FRC”) has issued its Annual Review of Corporate Reporting for 2015/16. As a result of concerns identified in previous years, the Council undertook a review of companies’ tax disclosures by pre-informing 33 companies of an intention to look at those disclosures in their next set of accounts.
4. VAT: First-tier Tribunal decision in agent/ principal case
The First-tier Tribunal has released its decision in the case of Hotels4U.com Limited (“H4U”). The case concerned whether H4U was supplying travel services to travellers as agent of a disclosed principal (in which case the supplies made would not be liable for Value Added Tax (“VAT”) in the UK) or as principal (in which case H4U would have to account for VAT under the Tour Operators’ Margin Scheme.
5. Procedural irregularities do not prevent exemption for despatch: CJEU judgment
The CJEU has delivered its judgment in the German case of Josef Plöckl, about an intra-Community movement of goods (a car) where Mr Plöckl did not comply with the formalities of evidencing the intra-Community movement.