The Government has released its responses to the Public Accounts Committee (PAC) enquiry entitled ‘HMRC’s Management of Tax Debt’. The PAC recommendations have been accepted and HMRC aims to better handle the number of customers with tax debt.
SME Tax News
In Marcus and Marcus Limited v HMRC [2022] TC08476, the First Tier Tribunal (FTT) determined that the main property in an estate purchase qualified for Multiple Dwellings Relief and that the apportionment of consideration based on floor area was just and reasonable.
In Stephen Hoey & Ors v HMRC [2022] EWCA Civ 656, the Court of Appeal agreed that no PAYE credit was available for payments made to an Employee Benefit Trust. The courts had no jurisdiction to challenge HMRC’s discretion in not pursuing a deemed employer for PAYE and the appellant’s judicial review claim failed.
In Inferno Films Limited v HMRC [2022] TC08472, the First Tier Tribunal (FTT) upheld the appeal of a Welsh film company. It found that there were objectives to grow the business and as such the risk to capital criteria was met, allowing Enterprise Investment Scheme (EIS) status to be claimed.
Hello
The week we have a new guide to company sales, a handy freeview flowchart for Plastic Packaging tax, and a number of updates and topical case reports.
HMRC has updated its Residence, Domicile and Remittance Basis Manual to confirm that acting on Foreign and Commonwealth (FCO) advice to avoid certain countries will qualify as exceptional circumstances for the purpose of the Statutory Residence Test (SRT). Its interpretation of the SRT conditions may be in doubt.
In Zipvit Limited v HMRC [2022] UKSC12, the Supreme Court issued a second judgement dismissing the appellant's appeal to reclaim input VAT on services where the supplier, Royal Mail, had incorrectly not charged VAT. The judgement was made after the case had been referred to the Court of Justice of the European Union (CJEU).
In Alexander Beard v HMRC [2022] TC08460, the First Tier Tribunal (FTT) found that distributions of share premium by a listed PLC incorporated in Jersey were subject to UK income tax as dividends and not capital gains tax.
Following the most recent announcement by the Bank of England to raise the base rate from 0.75% to 1%, its highest level in 13 years, HMRC have also announced that the late payment interest rate will rise to 3.5% from 24 May 2022.
HM Treasury has published a policy paper 'Potential Reforms to UK’s Capital Allowance Regime – Inviting views'. Following the 2022 Spring Statement, which set out illustrations of the types of changes Government could make to the current capital allowances regime, this new publication invites interested parties to provide their views on such reform.