Hello,
This week we have a mini update on Scottish Taxes together with a couple of topical case reviews. We will be back next week with our usual web-update mix of news, case reviews and practical guides.
SME Tax News
In Patel v HMRC [2015] TC04617, the first tier tribunal (FTT) ordered HMRC to suspend penalties for careless inaccuracy on condition that he engaged a qualified accountant or adviser.
Car manufacturer Volkswagen (VW) has admitted that it has "totally screwed up" having been caught rigging emissions tests on diesel vehicles in the US. Whilst the company's share price has dropped over night and there could be tax implications for business car owners and company car drivers.
In Julian Blackwell v HMRC [2017] EWCA the Court of Appeal upheld the decision of the the Upper Tier Tribunal (UTT) in concluding that a payment of £17.5 million claimed as a deduction from consideration received on a disposal of shares was not enhancement expenditure.
The decision in David Alexander Keyl v HMRC [2015] FTC/97/2014, in which The Upper Tier Tribunal (UTT) upheld the decision of the First Tier Tribunal to deny the appellant's Annual Investment Allowance claim for the final period of trade. It highlights the importance of planning ahead when ceasing or incorporating your business.
In JR Scott v HMRC [2015] TC04597 the First Tier Tribunal (FTT) allowed a special relief claim on the basis that HMRC had not addressed the appellant’s argument that determinations raised were unreasonably excessive.
In Deadoc Construction Ltd & Anor v HMRC [2015] TC 04610 the First Tier Tribunal allowed in part an appeal against HMRC’s refusal to allow input tax due to the relevant invoices not being compliant with regulation 14 of the Value Added Tax Regulations 1995 (SI 1995/2518).
HMRC says that they are concerned by the number of cases in which a company has registered a share scheme for the tax year 2014/15 but has not submitted an annual return online.
The Chancellor will make his Autumn Statement on Wednesday 25 November 2015, and will also publish an Office for Budget Responsibility forecast and Spending Review.
Both the Institute of Chartered Accountants In England and Wales (ICAEW) and the Association of Taxation Technicians (ATT) have asked HMRC to consider postponing next April's changes to the employee benefits and expenses reporting systems.