In Roger Whitlock v HMRC [2021] TC08136, the First Tier Tribunal (FTT) held that the appellant had clearly under-declared income from his sole trader business in 2015/16. The fact that the pattern was repeated allowed 'the presumption of continuity' that enabled discovery assessments to be raised for the previous five years.
SME Tax News
As for previous years, many taxpayers will be unable to file their Self Assessment returns for the year ended 5 April 2021 online due to software specification issues from HMRC.
The Office of Tax Simplification (OTS) has issued a policy paper ‘Potential for moving the end of the tax year - Scoping document’. It offers two options to replace 5 April as the end of the tax year, 31 March or 31 December.
Hello,
This week we take a closer look at the criteria for the sign up to the Making Tax Digital (MTD) for Income Tax pilot, we summarise details of the fifth Self-Employment Income Support Scheme (SEISS) grant and we report on some bad news for people with unsettled disguised remuneration loans.
In Anthony Outram & Ross Outram v HMRC [2021] TC8107, the First Tier Tribunal (FTT) dismissed appeals against discovery assessments relating to a tax avoidance trading loss scheme. The taxpayers were not trading, deliberately filed inaccurate returns and the discovery assessments were valid.
In Golamreza Qolaminejite (aka Anthony Cooper) v HMRC [2021] UKUT 0118, the Upper Tribunal (UT) found the FTT had not considered all the relevant evidence in determining that unexplained receipts were subject to tax as business income. It also concluded that the FTT had considered a contract appropriately and that an input VAT claim was blocked as there was no evidence of a supply being made.
Recent reports suggest that some Disguised Remuneration scheme and Contractor loans are being called in for repayment following changes to the lenders. Taxpayers affected are advised to seek specialist advice before agreeing to repay their loans.
HMRC have published a policy paper giving details of the fifth Self-Employment Income Support Scheme (SEISS) grant which will be available from late July 2021.
In John Tenconi v HMRC [2021] TC08088, the First Tier Tribunal (FTT) found that the transfer of a beneficial interest in guarantee rights was a chargeable disposal subject to Capital Gains Tax (CGT) and the rights could not be considered shares for the purposes of Entrepreneurs’ Relief.
In James and Barbara Mobey v HMRC [2021] TC08103, the First Tier Tribunal (FTT) denied Stamp Duty Land Tax (SDLT) Multiple Dwellings Relief (MDR) on the purchase of a substantial property with a basement annexe. The annexe did not offer the required facilities to be a dwelling in its own right and compromised the privacy of the main house.