Interest received on Payment Protection Insurance (PPI) claims is taxed at source at the basic rate meaning non-taxpayers have to submit a repayment request to HMRC. Due to the level of claims received, HMRC is developing a new automated process for dealing with these requests.
SME Tax News
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This week we discovered there is an international group, the Joint Chiefs of Global Tax Enforcement or ‘J5,’ comprising the heads of tax enforcement from the UK, Australia, Canada, The Netherlands and the US.
HM Treasury has published, 'Statutory Debt Repayment Plan: Consultation', which looks at a new statutory debt solution focused on repayment of debt, rather than debt relief.
The ICAEW has reported that HMRC has suspended or delayed payment of some R&D tax credit claims due to 'irregularities'.
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.
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.
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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.