In Jones Bros Ruthin (Civil Engineering) Co Ltd and Britannia Hotels Ltd v HMRC [2022] TC08378, the First Tier Tribunal (FTT) ruled a remuneration scheme using a financial derivative product aimed to avoid PAYE and NICs did not work. The arrangement had no commercial purpose and the likely outcome was that the employees received a cash bonus.
SME Tax News
There has been an interesting recent development in the meaning of 'substantial' when determining whether a company is trading or not for the purposes of Business Asset Disposal Relief (BADR).
In Dr C Ewan H Crawford v Revenue Scotland [2022] FTSTC3, the First Tier Tribunal for Scotland (FTT) found that two people purchasing their first house together did not meet the conditions for a repayment of Additional Dwelling Supplement as one of them had failed to sell his old home within the right timeframe, ironically they would have met the conditions if they had shared a home pre-purchase.
In Bagri Services Ltd v HMRC [2021] TC08357, the First Tier Tribunal (FTT) confirmed that HMRC could not revoke gross payment status under the Construction Industry Scheme (CIS) on the basis of false information. There was no requirement to notify Companies House that there was a shadow director of the company and the information on which gross payment status was granted was not therefore false.
Many employers have had difficulty reconciling and reporting their coronavirus support payments. HMRC is also having difficulties and 'nudge' letters are being issuedwhere they cannot reconcile Coronavirus Job Retention Scheme (CJRS) payments paid with those declared on the Corporate Tax returns. These letters require a response within 30 days.
HMRC have recently published research that explors the impact of record-keeping behaviour change in response to Making Tax Digital for VAT. The findings indicate that experiences of the costs and benefits varied considerably.
Hello,
This week we report on a new tax, take a closer look at property ownership and trading styles, and what works best when running a business, as a sole trader or via a company? Late payment interest rises again and you can still book for our latest Tax Work-out.
The Department for Work and Pensions (DWP) has published a 'Call for evidence, Second State Pension age review'. It seeks views on what metrics should be considered when setting the State Pension age.
The Department for Environment, Food and Rural Affairs (DEFRA) has issued responses to its consultation, ‘Direct Payments to farmers: Lump sum exit scheme and delinked payments in England’, outling the state support which will replace the existing direct payments to farmers.
In Jason Callen v HMRC [2022] TC8392, a tax adviser who copied and pasted tax return entries on the advice of a tax scheme promoter without further independent thought on the merits of those entries, was careless. His actions allowed Discovery tax assessments by HMRC.