In Civic Environmental Systems Ltd v HMRC [2023] EWCA Civ 722, the Court of Appeal (CoA) confirmed that loss relief claim made in the year following submission of a tax return did not form part of that return, and therefor the claim could not be amended in line with any assessments amending that tax return by the tribunal.
SME Tax News
Following the Bank of England’s announcement on 22 June 2023 that the base rate will rise to 5%, HMRC interest rates are also increasing by 0.5%, to 7.5% for late payment interest and 4% for repayment interest, from 11 July 2023.
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We are focusing on tax and interest costs this week, we have another HMRC Agent update and HMRC is taking down several key services for essential IT migration this weekend. Mysteriously, many other services are also down over the period, which by co-incidence coincides with the Glastonbury festival weekend.
In a new report on Tax Simplification, the Treasury Committee concludes that the UK's tax system is overcomplicated and is an obstacle to economic dynamism and that the Chancellor must now take personal responsibility for simplification that he has pledged.
In David Hamill v HMRC [2023] TC08827, the First Tier Tribunal (FTT) found that an individual who had ceased to trade in the 2018-19 tax year was not eligible for support under the Self-Employment Income Support Scheme (SEISS). HMRC's assessments were valid.
In 3D Crowd CIC v HMRC [2023] TC08837, the First Tier Tribunal (FTT) partially upheld the appeal of a business established during the pandemic to provide free PPE to the NHS. The claim for input VAT was denied by HMRC on the basis that the free supplies were not taxable supplies.
HMRC have announced downtime in their online systems for PAYE and National Insurance between Friday 23 June and Monday 26 June 2023. Many other online and telephone HMRC services will also be affected.
In Raystra Healthcare Limited v HMRC [2023] TC08838, the First Tier Tribunal (FTT) found that a failure to file Real-Time Information (RTI) returns on or before 19 March 2020 due to a software issue, invalidated a claim under the Coronavirus Job Retention Scheme (CJRS).
In William Archer v HMRC [2022] EWCA Civ 626, the Court of Appeal dismissed an appeal against penalties for late payment of tax following a judicial review of closure notices. The judicial review amounted to a reasonable excuse for late payment but not throughout the period of non-payment and the delay in making payment once that excuse ended was unreasonable.
HMRC have issued their Agent Update for June 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.