Missed our SME Tax Web-updates in January? Here is a summary of the month.
SME Tax News
HMRC have announced a late filing penalty relaxation for some taxpayers affected by Basis Period Reform, where details of overlap profits remain outstanding. HMRC says that over another one million taxpayers were not so lucky when they missed the 31st January deadline. That means HMRC will send out late filing penalties worth over £100 million next month.
Hello,
We are anything but short of news this week. Our highlights include the new review of Loan Charge settlements and a twist in a long-running LLP court battle. In case you did not notice, 31st January is the filing deadline for Self Assessment (and also the last day to make a Time to Pay agreement).
MPs on the Treasury Committee have raised concerns that the newly established Office for Value for Money (OVfM) is unlikely to provide value for money. It is under-resourced, operating in too tight a timeframe and duplicates the work of other departments.
Prime Minister Kier Starmer and Chancellor Rachel Reeves, have announced new rules designed to give increased flexibility over how occupational defined benefit pension schemes are managed.
In Scottish Power Ltd v HMRC [2025] EWCA Civ3, the Court of Appeal (CoA) overturned a decision made by the Upper Tribunal (UT). The court found £28 million of settlements paid to customers were made in the course of business and were not penalties: they were an allowable deduction for Corporation Tax purposes.
In Hoopla Animation Ltd v HMRC [2025] UT00028, the Upper Tribunal (UT) dismissed an appeal relating to the eligibility of shares in a pre-school film venture's Special Purpose Vehicle (SPV) for EIS relief purposes. A member of a group of companies who had provided subcontracting services to the SPV was 'party to' the arrangements.
Following a technical consultation on 'Improving the data HMRC collects from its customers', HMRC have confirmed that proposals to require more detailed employee hours data to be reported through Real-Time Information (RTI) will be scrapped.
HMRC are contacting employers with a PAYE Settlement Agreement (PSA) who have not yet submitted PSA calculations for 2022-23.
The number of live cases being investigated and reviewed under the Corporate Criminal Offences (CCO) regime for the failure to prevent the facilitation of tax evasion has remained static, for the second time.
