In Bull Brand Ltd v HMRC [2023] TC8928, the First Tier Tribunal (FTT) refused the application for an out-of-time appeal against HMRC's rejection of an error correction notice in relation to the correct VAT rate for e-cigarettes. The prejudice to the appellant did not outweigh the seriousness of the delay.
SME Tax News
In Delpha Derivatives Limited v HMRC [2023] TC8912, the First Tier Tribunal (FTT) dismissed an appeal against penalties for inaccuracies in PAYE returns for contributions to an Employee Benefit Trust (EBT). The taxpayer had acted carelessly initially, and then deliberately, by continuing to contribute after HMRC had already opened an enquiry into the scheme as well as issuing a Spotlight about their views on the scheme.
In Henderson Acquisitions Ltd v HMRC [2023] TC08922, HMRC's argument that for SDLT purposes a property that was a dwelling will continue to be a dwelling unless it is so uninhabitable that it requires demolition allowed the FTT took a more nuanced view. It nevertheless ruled a run-down property retained its character as a dwelling.
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The tribunals are back for a new term and we have some fascinating tax tales to share with you this week.
HMRC have announced that from 2 October they will be removing the ten-minute average wait time standard on their Agent Dedicated phone line.
In Olivia Wilkinson and others v HMRC [2023] TC 08887, the First Tier Tribunal (FTT) decided that HMRC was not able to deny Capital Gains Tax (CGT) relief on a share-for-share exchange that subsequently allowed the daughters of a company's owner to claim Entrepreneurs' Relief (ER) after a take-over. The CGT planning exercise was not one of the main purposes, nor the main purpose, of the deal.
A Private Members Bill, the Local Electricity (No. 2) Bill, aims to pave the way for small generators of low-carbon energy to sell their energy locally and to sell power back to the grid. To most people this idea seems like a 'no brainer' however there are considerable hurdles in its path.
In HMRC v Bluecrest Capital Management (UK) LLP [2023] UKUT 110, the Upper Tribunal found that one of the three conditions that categorise LLP members as deemed employees, the lack of significant influence over the affairs of the LLP, was not met by the traders and portfolio managers, meaning they were not subject to PAYE and NICs.
In James Scott v HMRC [2023] TC08784, the First Tier Tribunal (FTT) confirmed the extended time limits for Discovery Assessment applying to the Requirement to Correct (RTC) rules.
The Administrative Burdens Advisory Board has released 'Tell ABAB report 2022 to 2023', which shows that businesses are finding compliance with Off-Payroll Working rules and Making Tax Digital is an increasing burden and they have seen no benefits from digitalisation.