Hello,
The introduction of Making Tax Digital for Income Tax (MTD for ITSA) for individuals has been postponed yet again. It will now commence on 6 April 2024. General partnerships will not be mandated to join until 2025. The date at which all other types of partnerships will be required to join will be confirmed later. The Financial Secretary to the Treasury, Lucy Frazer, made the announcement to parliament this morning.
The government has opened a new consultation ‘Making flexible working the default unless employers have good reasons not to’ which seeks views on proposals to reform flexible working regulations as part of their ‘Build Back Better’ approach to dealing with the COVID-19 pandemic.
The government has published draft legislation for the Residential Property Developer Tax. The legislation will be open for technical consultation until 15 October 2021.
The Institute of Fiscal Studies (IFS) has published 'The tax tribunals: the next ten years'. A review the past ten years of operations of the First Tier Tribunal (FTT) reveals that there is still a backlog of cases which is caused by staff shortages and a lack of judge's time.
The House of Commons' Finance Bill Sub-Committee has issued a call for evidence seeking views on the draft legislation published in Finance Bill 2021-22 for the Reform of Basis Periods and the Uncertain Tax Treatment provisions.
In HMRC v Redbox Tax Associates LLP [2021] TC8235, the First Tier Tribunal (FTT) held that a loss scheme should have been notified under the Disclosure of Tax Avoidance Scheme (DOTAS) rules. There were arrangements, premium fees were charged and it was a standardised tax product.
In Grangewood Enterprises Limited/Anthony Marsden v HMRC [2021] TC08264, a director transferred an intangible asset to his company for £4m, to clear his outstanding director's loan account. Finding no evidence of such a valuable asset the First Tier Tribunal (FTT) confirmed HMRC assessment of a penalty and Personal Liability Notice (PLN) on the director, personally. The company had deliberately submitted inaccurate accounts and CT600 with the director's knowledge.
In Shinelock Ltd v HMRC [2021] TC08261, the First Tier Tribunal (FTT) dismissed the taxpayer’s appeal contending that a payment to a non-resident director shareholder was an allowable non-trading loan relationship deduction in computing the profits of a company. Properly documenting the loan relationship or a deed of trust that was intended to keep beneficial ownership with an individual could have avoided a tax liability.
In HMRC v Professional Game Match Officials [2021] EWCA Civ1370, the Court of Appeal concluded that the First Tier Tribunal (FTT) and Upper Tribunal (UT) had both erred in law when considering the control and mutuality tests in deciding whether football referees were employees. It refused to decide the employment status of the referees and instead remitted the case back to the FTT.
Hello,
We have a good mix of cases this week, with yet another ‘wrong forms for SEIS’ case where this time the First Tier Tribunal (FTT) took a pragmatic approach and allowed shares to be issued under the Seed Enterprise Investment Scheme (SEIS) despite forms being incorrectly filed for Enterprise Investment Scheme (EIS) relief.