HMRC have announced a change to the extension of the off-payroll rules (IR35) to the private sector which will now only apply to payments made for services provided on or after 6 April 2020.
SME Tax News
In Nicholas Walewski v HMRC [2020] TC7554, the First Tier Tribunal dismissed an appeal against a reallocation of the profits of mixed-member LLPs to an individual partner. There was no evidence the profit allocations were for any reason other than the individual’s power to enjoy them.
The Law Commission has published a new report about the use and validity of electronic signatures on documents.
Scottish Public Finance Minister Kate Forbes announced the draft Budget for 2020/21 on 6 February 2020.
Hello,
Last week, the government published draft legislation detailing the 6 April 2020 changes to National Insurance thresholds. Disappointingly, they have decided to diverge the thresholds at which employee and employer make contributions. We see the divergence of the thresholds as an added and unwelcome complication and something that is really annoying if you are programming software and tools.
The House of Lords Finance Bill Sub-Committee has published a new call for evidence on the extension of the Off-Payroll Working rules to the private sector. The Treasury announced the review in January in the hope of ensuring smooth implementation of the rules which come into force in April 2020.
Missed our SME Tax Web-updates in January? Here is a summary of the month.
In X Ltd, Y Ltd, Z Ltd and 17 individuals v HMRC [2020] UKUT 0029 (TCC), the Upper Tribunal (UT) confirmed that it would be fruitless for the tribunal to consider a taxpayer's applications for a closure direction. HMRC was actively investigating and had issued notices to third parties requiring further information. It also confirmed that the First Tier Tribunal (FTT) does have the authority to order an ex parte hearing to heard in public.
In Pervez Akhtar v HMRC [2020] TC07545, the First Tier Tribunal (FTT) found that a taxpayer's excuse of 'bank error' was reasonable. It upheld the appeal against a penalty for failure to provide bank statements in response to an Information Notice from HMRC.
In HMRC v Ardeshir Naghshineh [2020] UKUT0030, the Upper Tribunal (UT) refused sideways relief for farming losses. A competent farmer would have had a reasonable expectation of profits several years before the loss-making periods.