SME Tax News

Following the Autumn Budget 2017, HMRC have issued new consultations and also responded to old ones.

In Muhammed Hafeez Katib v HMRC [2017] TC06149 the First Tier Tribunal (FTT) permitted an out of time appeal due to the taxpayer’s reliance on an incompetent adviser. The case was overturned by the Upper Tribunal in July 2019.

On 1 December 2017, HMRC published a summary of responses to their consultation “Tackling offshore tax evasion: A requirement to notify HMRC of offshore structures", which closed on 27 February 2017.

The EU have released draft changes to the VAT Directive which simplify VAT for micro businesses, introduce Mini One Stop Shops for distance sales, and bring further changes for online market places.

The government has published Call for evidence - rent a room relief, aimed at obtaining information as to how it is used, whether it works as intended and what alternatives their might be.

HMRC have published Making Tax Digital for Business: Survey of small businesses and landlords, the results of research conducted in 2016 with 2,900 businesses and landlords, regarding Making Tax Digital (MTD) for business.

HMRC has published ‘Non-resident companies chargeable to Income Tax and non-resident CGT: summary of responses’. This explores whether non-resident companies with UK sourced property income or gains should pay corporation tax. It concludes that these companies should move into corporation tax.

In HMRC v Benham (Specialist Cars) Limited [2017] UKUT 0389 (TCC) the Upper Tribunal (UT) confirmed that HMRC needed to issue a discovery assessment (allowing losses to be utilised) when a provisional claim to rollover relief lapsed.

HMRC has published a response on 'Tax-advantaged venture capital schemes – streamlining the advance assurance service'. Following its recent consultation on the advance assurance service for tax-advantaged venture capital schemes.