The prime minister has announced tax rises to fund the costs of Social Care and the NHS. Breaking two election pledges, the government's paper, 'Build Back Better: Our Plan for Health and Social Care', reveals plans to raise the rates of both National Insurance Contributions (NICs) and Dividend tax by 1.25% from 6 April 2022.
SME Tax News
Missed our SME Tax Web-updates in August? Here is a summary of the month.
Hello
This week we look at an unsuccessful judicial review of an accidently repaid disguised loan charge. We consider changes to the Trust registration service, we look at capital allowances, recent issues relating to COVID-19 grants and we warm up for our very first Virtual Tax Partner conference.
On 1 September 2021, the Trust Registration service became available for non-taxable trusts to register with HMRC. Previously it had only been available to taxable trusts and those non-taxable trusts registered for the HMRC pilot of the service.
The Scottish government's second funding tranche under the DigitalBoost Development Grant has closed on the day it opened. The £25m DigitalBoost fund is Scotland’s national digital upskilling programme helping businesses to use digital technologies effectively.
The rate of VAT on food, accommodation and entry fees to attractions is scheduled to increase from 5% to 12.5% from 1 October 2021.
In Centrica Overseas Holdings Limited v HMRC [2021] UKUT 0200, the Upper Tribunal allowed the cost of professional fees incurred on the disposal of a subsidiary by an investment company. The directors were acting on behalf of the company that incurred the expenditure and not for its ultimate parent when they approved the sale. The expenses were not capital in nature.
Employers claiming the Employment Allowance may have received double relief if also claiming Coronavirus Job Retention Scheme (CJRS) payments due to the pandemic. The ICAEW Tax Faculty has consulted with HMRC to provide clarification.
In The Queen (on the application of Iain Clamp and Jeremy Beck) v HMRC [2021] EWHC 2360, the Court of Appeal dismissed an application for judicial review of HMRC’s decision to deny a request to reinstate loans repaid to avoid the Loan Charge and allow them to be redrawn without a tax charge.