In GE Financial Investments Limited v HMRC [2023] UKUT 146, the Upper Tribunal (UT) held that a UK-incorporated company was also US resident under the UK/US Double Tax Agreement (DTA) although it had no Permanent Establishment (PE) in the US. That was enough to allow a claim for Double Tax Relief (DTR) in the UK.
SME Tax News
In Sentinel Fire and Security Systems Limited v HMRC [2023] TC08849, the First Tier Tribunal (FTT) confirmed that HMRC were able to clawback a Coronavirus Job Retention Scheme (CJRS) payment for a new employee who joined the business in February 2020 but did not appear its payroll for RTI purposes until after the March cut-off date.
In Mr Meades v HMRC [2023] TC088440, the First Tier Tribunal (FTT) found that, despite HMRC’s misunderstanding of the legislation, a taxpayer was subject to the High-Income Child Benefit Charge (HICBC) as he was still ‘entitled’ to Child Benefit paid to his divorced wife.
Missed our SME Tax Web-updates in June? Here is a summary of the month.
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Keeping up with your tax compliance obligations can seem akin to trying to learn to drive a high-speed bulldozer. While it's relatively easy to get started, steering in the right direction can be tricky and you are likely to crash if you take your eye off the road!
The new annual Income Tax statistics from HMRC show a 99.2% increase in additional rate Income Tax payers in the tax year 2023-2024 over 2020-2021. The freezing of tax bands, along with higher wages, showed an increased tax take across all types of taxpayers.
It's that time again! 6th July 2023 marks the filing deadline for 2022-23 P11Ds. You must complete and file a P11D return in respect of each of your employees who have been in receipt of taxable benefits and expenses. Complete form P11Db: the employer's National Insurance declaration. There are special rules for 'Payrolled benefits' and HMRC is concerned about some underreporting of Car Benefits.
The Adjudicator’s Office Annual Report 2023 highlights that HMRC’s complaints handling performance has not fully recovered post-pandemic and a divergence in service levels between departments. In a separate letter to the Treasury Committee, HMRC said the suspension of Self Assessment helplines was a pilot project.
In Foreign National v HMRC [2023] TC8835, a non-resident and non-domiciled individual was unsuccessful in his attempt to prevent HMRC from gaining access to his UK bank statements. He was unable to explain certain property ownership and transactions and may have been trading in UK property.
In Ameet Shah (As Executor of the Estate of Anantrai Maneklal Shah deceased) v HMRC [2023] TC08442, the First Tier Tribunal (FTT) found that the deceased had acquired a domicile of choice in England before his death. His estate could offer no evidence to prove that he planned to move to back to India.