SME Tax News

In Stuart A Cormack v HMRC [2021] TC08289, the First Tier Tribunal (FTT) struck out the appeal in part, finding that SEIS and EIS had been incorrectly claimed but in light of alleged agent fraud, HMRC had failed to prove that the discovery assessments issued were valid.

HMRC are writing to taxpayers who received one of the first three grants under the COVID-19 Self Employment Income Support (SEISS) scheme and have not filed a Self Assessment return for 2019-20. HMRC are urging them to do so within 30 days or face having to repay the grants.

In Michael & Bridget Brown v HMRC [2012] TC08158, the First Tier Tribunal (FTT) concluded a Stamp Duty Land Tax (SDLT) avoidance scheme did not work. That the property was transferred to the Appellants by way of capital reduction did not avoid an SDLT charge.

In DNAE Group Holdings Limited v HMRC [2021] TC08227, the First Tier Tribunal (FTT) found that the claimant company was a Small or Medium-sized Enterprise (SME) for R&D relief. Its main investor was a Venture Capital company so it did not have to include the investors’ assets and employees when assessing its own size.

HMRC have released a policy paper extending the circumstances where information can be provided to HMRC in place of full Inheritance Tax (IHT) accounts. Certain definitions have also been clarified and time limits extended.

HMRC's interpretation of the employer travel rules for foreign workers appears to provide a limited scope for any workers who come to the UK on temporary work visas to obtain tax relief on the costs of living accommodation. Some foreign workers might well question that interpretation.

As part of the new global deal on corporate tax reform from the OECD, the UK has agreed a means of transitioning out of the newly implemented Digital Services Tax (DST). It will be replaced with the new minimum global Corporation Tax rate of 15%.

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