Extra-statutory concessions (ESCs) covering input VAT prior to insolvency, non-resident trusts and inheritance tax on woodlands will be enacted into legislation from 6 April 2017.
SME Tax News
The ICAEW have published Tax Representation 15/17 ‘Workers’ Services provided to public sector through intermediaries’. It highlights a number of concerns with the proposed changes for Personal Service Companies (PSCs) working in the public sector, and suggests that they be postponed until 2018.
HMRC have published their Employer Bulletin for February 2017. We summarise the key content for you, with links to our detailed guidance on the topics covered.
In M Najib & Sons Limited v HMRC [2017] TC5641 the First-Tier Tribunal (FTT) agreed with HMRC that mileage payments for commuting and health insurance payments were earnings and subject to Class 1 NIC despite later repayment by the Directors.
In Richard Thomas v HMRC [2016] UKFTT 0735 the First Tier Tribunal (FTT) allowed the taxpayer to make late Class 2 NIC payments and carry them back to earlier years.
The Scottish Government have confirmed that all Scottish income tax rates will be frozen for 2017/18, and the higher rate threshold will remain at £43,000.
In Marilyn May Phillipou v HMRC [2017] TC 05586 the First Tier Tribunal (FTT) upheld, but amended Schedule 36 information notices issued by HMRC.
The December 2016 Agent Update gave details of HMRC’s Online Agent Forum: a pilot digital channel set up to enable discussion of tax issues in real time.
HMRC have published a response to their consultation on ‘Tackling the hidden economy: Extension of data-gathering powers to Money Service Businesses’.
In Macleod and Mitchell Contractors Limited and William Mitchell v HMRC [2017] TC 05633 the First Tier Tribunal (FTT) found that insurance premiums paid by a company where the contracts were in a director’s name were taxable as earnings. This decision was reversed by the Upper Tribunal in 2019.