In Dorothy Johnson v HMRC [2021] TC08346, the First Tier Tribunal (FTT) dismissed a claim that a nurse’s salary paid during a university training period was non-taxable scholarship income. The individual had remained employed throughout and the payments were taxable earnings.
SME Tax News
A new report by MPs on the Public Accounts Committee on 'Challenges in implementing digital change' packs some hard punches. It concludes that there's a chronic lack of digital skills and capability among the government’s senior non-specialist leadership which means there is a lack of understanding of the scope of its vast IT programmes. Many of these have embedded ‘legacy’ systems dating as far back as the 1970s.
HMRC have updated their guidance on what constitutes a 'reasonable' excuse as grounds for appealing a tax penalty.
The Public Accounts Committee (PAC) has released a report covering DEFRA's proposals to replace farming subsidies following Brexit. The PACs says Defra itself concedes “its confidence in the scheme looks like blind optimism”, noting that Defra has given no detail about how either the necessary productivity increases or environmental benefits will be brought about, nor how these will offset the new Environmental Land Management Scheme’s dramatic effect on English farmers, who will see their income from direct payments reduce by more than half by 2024-25.
Following changes to the excepted estates rules from 1 January 2022, certain Inheritance Tax (IHT) forms can no longer be used for deaths after 31 December 2021 where the estate is non-taxpaying. A different process must be followed.
The 2022 Budget is due to be held on Wednesday 23 March 2022. The Chancellor of the Exchequer has commissioned the Office for Budget Responsibility (OBR) to produce an economic and fiscal forecast for that day.
You will be able to find full budget coverage here.
Happy New Year,
The year has kicked off with the welcome announcement by HMRC that there will be a penalty waiver for late-filing and payment of Self Assessment returns.
What a year! 2021 saw the government make many significant tax announcements as it aimed to revive the economy in the wake of the COVID-19 pandemic and the handing out of unprecedented levels of financial state aid. It was a year of total contrast for businesses and their owners.
To ease COVID-19 pressures HMRC have announced that they will waive penalties for late filing and payment of 2020-21 Self Assessment returns and tax liabilities as long as returns are filed by 28 February and payments made by 1 April 2022.
In a recent press release, HMRC have confirmed that their Fraud Investigation Service (FIS) has collected over £1 billion from the proceeds and crime and tax offenders since it was established in 2016.