The House of Common's Public Accounts Committee (PAC) has launched a new call for evidence, ‘Progress with Making Tax Digital' (MTD). This is as part of an inquiry in which they will question Jim Harra, Chief Executive at HMRC about progress made towards MTD and whether the latest plans provide confidence that the programme will deliver value for money.
SME Tax News
In HMRC v SSE Generation Limited [2023] UKSC 17, the Supreme Court found that items constructed for the collection and transmission of water in connection with a hydroelectric power station were neither a tunnel or aqueduct. The expenditure qualified for capital allowances.
HMRC close their VAT registration helpline on Monday 22 May 2023. They say that 85% of callers to the helpline were just ringing to track the progress of VAT registration applications and now call handlers will be redeployed to process VAT registration applications instead. Outstanding applications can now be chased up via email. It's unclear how HMRC will deal with the queries of the other 15% of callers.
Following the Bank of England’s announcement on 11 May 2023 that the base rate will rise to 4.5%, HMRC interest rates are also increasing by 0.25%, to 7% for late payment interest and 3.5% for repayment interest, from 31 May 2023.
In Zoe Shisa Events Limited v HMRC [2023] TC8805, the First Tier Tribunal (FTT) found that backdated payslips could be used for an employee Coronavirus Job Retention Scheme (CJRS) claim as the pay was evidenced by bank statements for that period. A director's salary increase could not be evidenced and the CJRS claim was restricted for that part of the claim.
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This week we have a new 2023-24 guide for Landlords, the ICAEW calls for a re-think on Making Tax Digital for Income Tax (MTD ITSA) and film scheme investors fail in their attempts to sue for negligence.
The Institute of Chartered Accountants in England and Wales (ICAEW) has written to HMRC with new views on the introduction of Making Tax Digital for Income Tax Self Assessment (MTD ITSA), including the conclusion that quarterly reporting is a disproportionate administrative burden. It echoes the concerns of other leading tax bodies and calls for a re-think.
HMRC say they're extending the trial of using text messages to redirect helpline callers to online services. They claim this method is a successful one as 38% of taxpayers do not phone back.
In Edward Lam Shang Leen v HMRC [2023] TC8812, the First Tier Tribunal (FTT) dismissed an appeal against a Schedule 36 information notice that required a doctor's Personal Service Company to provide it with details of consultancy income received via the company.
In Louis Daniel Moore v HMRC [2023] TC8806, the First Tax Tribunal (FTT) dismissed a claim that an award of Restricted Stock Units (RSUs) was received as consideration for the disposal of shares in a takeover. The evidence revealed that they were no more than an incentive offered to retain senior employees of the business and as such they were employment-related securities options.