成人影音

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Exemption 鈥� sport and physical recreation 鈥� commercial influence

Exemption 鈥� sport and physical recreation 鈥� commercial influenceThe following steps will assist the organisation with determining whether a supply of sport or physical recreation services is the subject of commercial influence for VAT purposes.Step 1 鈥� relevant periodWhat is the relevant period? This must be determined every time the organisation charges for an initial or renewed playing subscription, or provides other sport of physical recreation services.A relevant period is defined as follows:鈥�if the sports supply was made from 1 January 2003 onwards, the relevant period runs for the three years leading up to the period of the sports supply鈥�if the sports supply was made between 1 January 2000 and 31 December 2002, the relevant period runs from 14 January 1999 to the time of the sports supplyStep 2 鈥� relevant supplyDid the organisation receive a 鈥榬elevant supply鈥� during the 鈥榬elevant period鈥�?A relevant supply is as defined as follows:鈥�a grant of either:鈼�any interest in, right over land, or licence to occupy any land which at any time during the relevant period was, or was expected to become, sports land, or鈼�the use of sports land, where rent is paid, under leases granted, varied or renewed after 31 March 1996鈥�the supply of any services in managing or administering the sports facilities鈥�the supply of any goods or services for more than the normal open market

Flat rate scheme (FRS) 鈥� operating the scheme

Flat rate scheme (FRS) - operating the schemeThis guidance note sets out how to operate the flat rate scheme (FRS). For an overview of the FRS more broadly, see the Flat rate scheme (FRS) - overview guidance note.See also De Voil Indirect Tax Service V2.199B and V2.199C.Operating the FRS - the basicsA business operating the flat rate scheme (FRS) must choose, from a prescribed list of sectors, the sector which most closely describes its type of business. A set 鈥榝lat rate percentage鈥� is applicable to each sector.In simple terms, this flat rate percentage is applied to the VAT inclusive turnover of the business to calculate VAT due to HMRC for a period. This means that the business is not required to keep detailed input tax records to work out exactly how much VAT can be reclaimed on costs. Instead, a notional amount of VAT recovery is built into the flat rate percentage.For example, an accountant operating the FRS is likely to choose 鈥榓ccountancy or book-keeping鈥� as its type of business. The applicable flat rate percentage is 14.5%. If the accountant has a VAT inclusive turnover of £120,000, VAT due will be £17,400 (£120,000 x 14.5%).Various factors can complicate the basic operation of the FRS. For example, when choosing an appropriate sector there may be multiple possibilities or a business may have more than one kind of business activity. There are also special 鈥榣imited cost trader鈥� rules which mean that businesses with low levels of costs must use a higher

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure. Some are disallowed under specific statutory rules. For guidance on these, see the Adjustment of profits 鈥� overview guidance note. In this guidance note, unless otherwise stated, references to ITTOIA 2005 are relevant for sole traders / partners and references to CTA 2009 are relevant for companies.Salaries and wagesThe costs of employing staff is typically allowable provided it meets the criteria of being 鈥榳holly and exclusively鈥� for the purposes of the trade. This includes wages or salary, plus any benefits in kind. Where remuneration is excessive, it is possible that a deduction may be challenged on the basis of not being for the purposes of the trade. This will normally only be applicable to remuneration of individuals who are connected to the business in some way.When considering the level of remuneration, the whole package of remuneration, comprising salary, wages, benefits in kind, pension contributions and other perquisites must be considered. This does not include dividends received.It is rare for remuneration to be disallowed on the grounds that it is capital. However, it might apply where employees have devoted significant time to the creation or acquisition of capital assets. This is most likely to relate to situations where construction workers perform work on their own premises or legal advisers

Requirement for estate accounts

Requirement for estate accountsDuty to prepare estate accountsThe personal representatives鈥� (PRs) legal obligation to prepare accounts is set out in Administration of Estates Act 1925, s 25. Their prescribed duties include:鈥淲hen required to do so by the Court, exhibit on oath in the Court a full inventory of the estate and when so required render an account of the administration of the estate to the Court.鈥滱nd indeed that obligation (鈥榯o keep a full account of how the estate has been distributed鈥�) is repeated in every statement of truth leading to a grant of representation.However, the law does not provide any further guidance as to how the duty is to be fulfilled. There are no statutory requirements as to the format of the estate accounts or the degree of detail. Consequently, PRs or their advisers may choose a presentation which best suits the circumstances.A recommended format for estate accounts is described in the Format for estate accounts guidance note.Who are the accounts for?Primarily, the estate accounts are intended to be the PRs鈥� account to the beneficiaries of the estate. All residuary beneficiaries are entitled to see the accounts. Legatees are not, (unless their legacies cannot be paid in full.) Where professional advisers are acting, they will prepare accounts for the PRs' approval, and they will be subsequently distributed to the residuary beneficiariesThere is no requirement to file estate accounts with a government agency. The initial valuation of the estate at death is provided to HMRC, where inheritance tax is payable,

Agricultural buildings

Agricultural buildingsThis guidance note summarises the treatment of agricultural buildings in farms including what capital allowances can be claimed, the assessment of farm buildings which are let out, repairs and renewals and the possible effect of having redundant farm buildings on tax reliefs.More details of the IHT position of specific buildings can be found in the following guidance notes:鈥�Agricultural tenancies鈥�APR and the farmhouse鈥�APR and farmworkers' cottages鈥�Agricultural value and development valueDefinition of plant not buildingA large amount of expenditure in relation to a modern building relates to items of plant and machinery. The farmer or landowner may identify such expenditure and claim the appropriate capital allowances and annual investment allowance (AIA) in accordance with the rates available. These are generous with the AIA limit at £1,000,000. All appropriate conditions must be met. See the Annual investment allowance (AIA) guidance note for more information.The ability to claim AIA on plant applies as much to a second-hand building as a new one. It can be quite normal practice for farmers to buy second-hand barns. The apportionment between the categories depends on the valuation techniques and requires knowledge of building construction.The 鈥榓fter-tax鈥� cost of funding a new diversified venture will be affected by whether expenditure is treated as buildings or plant. There may well be borderline cases where planned expenditure could be regarded as plant. However, there are certain items of expenditure where the legislation is clear as to what it deems to be plant alterations to buildings incidental

Operating the margin scheme

Operating the margin scheme This guidance note provides an overview of how the margin scheme operates. Note that there are special rules in places when a margin scheme is used in respect of:鈥�second-hand vehicles 鈥� see the Margin scheme 鈥� second-hand motor vehicles guidance note鈥�horses and ponies 鈥� see the Margin scheme 鈥� horses and ponies guidance note鈥�houseboats and caravans 鈥� see the Margin Scheme 鈥� houseboats and caravans guidance note鈥�items that have been pawned 鈥� see the Margin scheme 鈥� agents and pawnbrokers guidance note鈥�high volume, low price items 鈥� in this instance the Global Accounting Scheme may be used, which is a simplified version of the VAT margin scheme - see the Global accounting margin scheme guidance noteVATA 1994, s 50A; De Voil Indirect Tax Service V3.531, V3.535; SI 1992/3222, Article 2; SI 1995/1268, Article 12; FA 1995, s 24; VATMARG02000There are also different rules:鈥�for auctioneers 鈥� see the Margin scheme 鈥� auctioneers guidance note鈥�for agents see the Margin scheme 鈥� agents and pawnbrokers guidance note鈥�if a business buys and sells goods in Northern Ireland and the EU 鈥� see the Margin Scheme 鈥� Northern Ireland and imports and exports guidance noteWhen a business wishes to use the margin scheme for any of the above categories, the relevant guidance note should be read in conjunction with this guidance note.Margin scheme 鈥� what are margin schemes?Margin schemes are an optional VAT accounting methods that can be adopted by relevant businesses.

Holding companies 鈥� setting up a management services arrangement

Holding companies 鈥� setting up a management services arrangementThis guidance note looks at some practical points that a holding company should consider when setting up a management services arrangement.When shares are acquired in a subsidiary (or subsidiaries), it is common for a holding company to be set up as an acquisition vehicle. Often this acquisition vehicle will decide to provide taxable management services to the subsidiary (or subsidiaries) in order to try to secure VAT recovery on the acquisition costs (such as professional fees).For an overview of VAT and holding companies generally, see the Holding companies 鈥� overview guidance note. See also the following guidance notes for discussion of some of the key principles associated with holding companies and VAT recovery:鈥�Holding companies 鈥� VAT status of activities鈥�Holding companies 鈥� is there a direct and immediate link?鈥�Holding companies 鈥� who is the recipient of the supply?鈥�Holding companies 鈥� VAT groupingPractical points 鈥� management services arrangementsFrom a VAT perspective, the

Exemption 鈥� finance 鈥� dealing in money, credit and debts

Exemption 鈥� finance 鈥� dealing in money, credit and debtsDue to the complex nature of financial services and the number of different types of transactions that are possible, the subject of exempt finance has been covered in a number of guidance notes. This guidance note provides an overview of the VAT treatment of financial services transactions involving dealing in money, credit and debts within the UK. If financial services are provided to customers located in other countries, then the Reverse charge 鈥� buying in services from outside the UK guidance note may be of further assistance. Under VATA 1994, Sch 9, Pt II, Group 5, Item 1, the following supplies are exempt from VAT:鈥楾he issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.鈥橦owever, note that under VATA 1994, Sch 8, Pt II, Group 11, Item 1, the issue by a bank of a note payable to the bearer on demand is zero-rated; see De Voil Indirect Tax Service V4.279.The exemption does not cover:鈥�the supply of coins or banknotes as:These supplies are normally liable to VAT on the full selling price, whether or not they are sold for more than their face value. Examples include banknotes, proof coins, Maundy money and precious or base metal coins. However, it may be possible to use the second-hand goods margin scheme for supplies of collectors鈥� pieces (see the Margin schemes - overview guidance note for more information).

Managing your client鈥檚 trust 鈥� overview

Managing your client鈥檚 trust 鈥� overviewThis guidance note gives an overview of the 鈥楳anaging your client鈥檚 trust鈥� sub-topic. Why should trust accounts be kept and in what format? How do you prepare the accounts? It also considers payments of income and capital to beneficiaries in cash or in specie and the considerations to be made by trustees when making such a distribution. The support for beneficiaries in receipt of state benefits and the rules in respect of accumulating income are considered.Payments to trust beneficiariesThe Payments to trust beneficiaries guidance note considers the trustees鈥� powers to make payments and whether the payment made is income or capital. It is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not targeted at lawyers. It considers the issues that trustees should take into account before making a payment in respect of their powers and in respect of the different types of trust. It also considers whether the payment is of capital or income and the effect of the Trustee Act 1925, s 31 on the income entitlement of minor beneficiaries. There is a link to a sample

Preparing a set of accounts 鈥� accounting conventions and double entry bookkeeping

Preparing a set of accounts 鈥� accounting conventions and double entry bookkeepingOverviewThis guidance note details the basics of double entry bookkeeping and the accounting conventions used to prepare a simple set of trust accounts. It is not targeted at accountants, but at tax advisers who have little or no accounting experience.Accounting conventionsAccounting date and periodMost trust accounts are prepared annually to each 5 April to match the tax year. This is not set in stone however, and in the unlikely event of a different date suiting the circumstances better, this could be used. Income would still need to be calculated on a tax year basis for the accounts.AccrualsThe extent to which the trustees adopt the accruals basis of accounting will depend on the nature of the assets and income. It obviously makes sense to prepare the accounts on the same basis that is used for tax purposes to avoid time consuming tax adjustments.Rental income is calculated on an accruals basis. See the Property income guidance note. Remember that the property allowance is not available to trustees.Trading income is usually computed on an accruals basis, but has the option of a cash basis. See the Trading income guidance note. Investment income will be recognised on a cash basis, again to reflect tax rules.The tax liability for the year of the accounts should be accrued so that it is matched to the income to which it relates. Where a trust makes payments on account, part of the tax liability for the