HMRC have changed their view as to how they calculate penalties for error or mistake in a tax return. They have updated a number of compliance checks factsheets over recent weeks and this has lead to confusion as to what extent penalties will be reduced for the timing of a disclosure.
SME Tax News
In Barker v Baxendale Walker Solicitors (a firm) & Ors [2017] EWCA Civ 2056 the Court of Appeal found that the solicitors advising on an EBT structure were negligent in not warning their clients that the scheme could fail.
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This time we are having a closer look at late filing penalties. We also have new guides on the disguised remuneration loan charge.
HMRC has published a response to its consultation, ‘Scope of VAT Grouping’, looking at whether changes should be made to the rules on forming a VAT group should be changed following European Court decisions.
HMRC has published the outcome of its call for evidence in relation to tackling fraud on goods sold online, ‘Alternative method of VAT collection’. This explored the prospect of real time VAT collection.
This is a subscriber guide.
In D Nnaji v HMRC [2017] TC06233 the tribunal cancelled late filing penalties: no notice to file a tax return was delivered to the taxpayer and HMRC was out of time to assess the penalties.
In Johnston v HMRC [2017] TC06238, the First Tier Tribunal (FTT) held that no penalties were due as HMRC had sent the notice to file to the incorrect address.
Following the introduction of the Trust Registration Service (TRS) in 2017, HMRC have issued more guidance about how to deal with existing trusts, access for agents who cannot use the online system and 2016/17 tax returns for new trusts.