SME Tax News

In Hexagon Properties Ltd v HMRC [2022] TC08468, the First Tier Tribunal (FTT) found that the write off of a loan relationship debt was not subject to tax under the loan relationship code as the profit which arose related to a compensation claim brought by the taxpayer against their bank and not to the debt.

With the second payment on account for the 2021-22 tax year due by 31 July 2022, Self Assessment taxpayers may wish to set up a budget payment plan to help manage their tax payments.

Many taxpayers will be unable to file their Self Assessment returns online for the year ended 5 April 2022 due to software specification issues from HMRC. The list of filing exclusions as at 31 May 2022 has recently been published. 

In David Hackmey v HMRC [2022] TC8487, the First Tier Tribunal (FTT) partially allowed an appeal against a Schedule 36 information notice. The information requested was not reasonably required to satisfy HMRC’s remaining suspicions of fraud.

In JTI Acquisition Company (2011) Limited v HMRC [2022] TC08493, the First Tier Tribunal (FTT) found that the appellant was party to a loan relationship purely to gain a tax advantage. As such the loan had an unallowable purpose and the associated interest payments amounting to over £40 million were disallowed.

HMRC have issued a press release warning new homeowners about cold calls from repayment agents advising them to make spurious Stamp Duty Land Tax (SDLT) refund claims.

Missed our SME Tax Web-updates in May? Here is a summary of the month.

In Michael Breen v HMRC [2022] TC08482, the First Tier Tribunal (FTT) dismissed an appeal against late filing penalties finding that a debilitating fear of making a mistake was not a reasonable excuse for the late filing of tax returns.