In Marlborough DP Ltd v HMRC [2021] TC08246, the First Tier Tribunal (FTT) held that loans funded by a remuneration trust were not earnings, or disguised remuneration taxable under part 7A of ITEPA 2003. They were taxable as distributions so no Corporation Tax deductions could be claimed by the contributing company.
SME Tax News
HMRC have updated their CT600 guidance to cover the declaration requirements for Coronavirus Job Retention Scheme (CJRS) payments for companies and advised that this will require tracking on both the accruals and cash basis.
The current annual limit on the provision of tax-free staff parties and events by an employer last increased from £75 to £150 in 2003. Allowing for the effects of inflation, this limit might be expected to increase to at least £243 today. Bearing in mind that many employers and employees have not been partying at all due to COVID-19, should we ask the Chancellor to increase the £150 annual staff parties (or functions) limit?
Legislation has been laid before parliament which will end the COVID-19 Statutory Sick Pay (SSP) rebate scheme on 30 September 2021. Eligible employers must claim their rebates by 31 December 2021.
As part of its National Data Strategy, the government has launched a consultation, 'Data: a new direction' on reforms to create a pro-growth and trusted data regime.
Hello
All change in the world of tax this week as the Treasury reverts back to holding two Budgets in a year, and the Prime Minister announces election-manifesto-breaking tax rises.
In September 2021 the prime minister announced a 1.25% rise in National Insurance Contributions (NICs) and dividend tax from 6 April 2022. As the dust settles, it becomes clear that the tax rises are wider-reaching measures than they first appeared.
In Diane Nice and Ron Robinson v HMRC [2021] TC8228, the First Tier Tribunal (FTT) found that the market value of shares gifted to charity was 46.5p and not £1.05 per share (as claimed for Income Tax relief), after considering and dismissing conflicting expert witness statements.
In Smallman & Sons Limited, Lisa Garrity & Brian Garrity v HMRC [2021] TC8242, the First Tier Tribunal (FTT) held that Income Tax and Class 1A National Insurance was due on cars leased by the employer company but paid for by the directors using them. There was no carelessness, so the four-year time limit applied and some liabilities and penalties fell out of charge.
The Department for Work and Pensions (DWP) has published a new consultation ‘Strengthening The Pensions Regulator's Powers: Notifiable Events (Amendments) Regulations 2021’ which seeks views on changes to the type of events that trustees and employers are required to notify to The Pensions Regulator (TPR).