Despite an upbeat and confident review of HMRC's annual report and accounts for 2022 to 2023 by its executive, the results of HMRC's annual customer satisfaction survey revealed that taxpayers are still dissatisfied with the HMRC's performance and demand for phone contact with HMRC remains buoyant.
SME Tax News
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Is it time to reform the tax rules on employee expenses? There are some very harsh rules that determine whether an employee can obtain tax relief for the costs expended for the purposes of an employment.
HMRC have advised that sole trader and partnership businesses and their agents will soon be able to use an online form to request details of overlap relief available for offset during the transition to the new tax year basis period rules.
In HMRC v Jayanth Kunjur [2023] UKUT 154, the Upper Tribunal (UT) confirmed no tax relief is available for the accommodation expenses paid by a junior doctor. While renting accommodation close to his hospital enabled him to perform some of his duties, the expense was not incurred in the course of the performance of his duties.
As part of a new trial, HMRC has launched a new issue resolution service to process postal correspondence over 12 months old for agents.
In the six months to 31 December 2022, HMRC issued fines of £3.2 million to 419 businesses for failures to follow the Anti-Money Laundering (AML) regulations and have 'named and shamed' 240 of the worst offenders. The single biggest fine of £1.4 million went to Xpress Money Services Ltd who apparently failed at every stage of the compliance routine.
In Laing O’Rourke Services Limited v HMRC & HMRC v Willmott Dixon Holdings Limited [2023] UKUT 155, the Upper Tribunal (UT) held that Class 1 NICs paid in respect of car allowance payments to employees were refundable where the employees had undertaken business mileage.
A review of Anti-Money Laundering (AML) supervision by HM Treasury has concluded that although technical compliance with AML Regulations (MLRs) has significantly improved, the effectiveness of supervisory interventions across Professional Body Supervisors (PBSs) is inconsistent and there is a big case for reform.
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Tax-geared news of the sort that we think you might want to know about is quite thin on the ground this week. It's 'the calm before the storm', as 'L-day' (Legislation Day) is on the 18th July. This is the day when the government will unfurl (in the digital sense) the new draft finance bill for 2023. In the meantime, we have been updating our website and devising new tax workshops for you.
HMRC's latest round of tax statistics shows the impact that the Cororonavirus pandemic and government policy on certain elements of taxation. Excess deaths due to COVID-19 have led to a record high in Inheritance Tax receipts whilst many Non-Domiciled individuals stayed outside of the UK and remitted less taxable income back.