In WT Banks & Co (Farming) Ltd v HMRC [2021] TC08124, the First Tier Tribunal (FTT) found amounts paid by one company to another with a common shareholder were neither non-trading loan relationship debits when written off, nor loans to the controlling participator of the lender.
SME Tax News
In Northern Light Solutions Ltd v HMRC [2021] UKUT134, the Upper Tribunal (UT) agreed that IR35 applied to a Personal Service Company (PSC). The control and mutuality tests were met and an obligation for personal performance made the right of substitution almost theoretical.
VAT registered businesses were able to defer VAT payments, due to the arrival of Covid-19 for the periods from 20 March 2020 to 30 June 2020. Businesses that have not repaid this VAT are required to take action by 21 June 2021 to avoid a penalty.
HMRC have released additional data on the number of live cases being investigated and reviewed under the Corporate Criminal Offences (CCO) for the failure to prevent the facilitation of tax evasion legislation. It has 28 ongoing potential investigations, a slight drop from the 31 cases in October 2020.
Finance Bill 2021 received Royal Assent on 10 June 2021 and became Finance Act 2021.
HMRC have announced a trial relaunch of the Agent Dedicated Line (ADL) from 14 June 2021, providing priority access for agents.
Hello,
As we gear up for Making Tax Digital (MTD) for Income Tax, one question many are asking is whether or not it would be easier for us to end the tax year on a sensible date, such as 31 March, or maybe, as so many other countries do, make it 31 December, the end of a calendar year. The Office of Tax Simplification (OTS) is exploring the issue in a new review.
US President Joe Biden has given an $80 billion boost to the US Internal Revenue Service budget in the expectation that enhanced tax compliance is a better way of increasing tax revenue than raising tax rates.
Finance Ministers from the G7 countries have all agreed a proposal for a minimum international Corporate Tax rate of 15% which will be combined with the ability of nations to tax the largest multinationals in the countries in which they operate rather than on the normal principles of corporate tax residence.
HMRC have published their Employer Bulletin for June 2021. We summarise the key content for you, with links to our detailed guidance on the topics covered.