The UK's main professional tax and accountancy bodies have made a joint statement in support of the mandatory registration of tax agents.
SME Tax News
In Paul Baxendale-Walker v HMRC [2024] UK154, HMRC found its case struck out by the Upper Tribunal (UT) which decided they had 'no reasonable prospect of success' in imposing £14m of tax-geared penalties for failure to provide information because the conditions for a Paragraph 50 Schedule 36 Information Powers penalty could not be met.
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We have something for everyone this week! We look at remittances, IR35, closing tax enquiries, electronic sales suppression, company size changes affecting over 40,000 companies and HMRC changes impacting response times for VAT. Don't forget to sign up for our live CPD webinars: there are two next week. See more information below.
HMRC has regularly been updating ‘List 3’; its list of approved professional organisations and learned societies. Many new organisations have been added over the last six months.
Over 30 countries have created and implemented so-called 'Fiscal Till Systems' to crack down on tax fraud by Electronic Suppression of Sales (ESS), but the UK shows no sign of following suit. Is the slow-burning rollout of Making Tax Digital into a direct tax to blame?
A consultation on ‘Simpler corporate reporting’ considers amending the scope of the company size definitions. This aims to benefit up to 43,000 medium-sized companies and 2,000 large companies. These are separate proposals to the Companies Act changes already announced for implementation in October 2024.
In Mr Benoit d’Angelin v HMRC [2024] TC09186, the First Tier Tribunal (FTT) dismissed the appeal on the grounds there was an extraction of value under the legislation on the Remittance Basis.
In HMRC v Basic Broadcasting Limited [2024] UKUT 00165, the Upper Tribunal (UT) decided that presenter Adrian Chiles' Personal Service Company, Basic Broadcasting Limited was within IR35. This leaves the presenter exposed to a combined Income Tax and National Insurance Contributions liability of over £1.7m.
Continuing their current campaign of one-to-many letters, HMRC have begun issuing another, this time concerned with Electronic Sales Suppression (ESS).
In Afzal Alimahomed v HMRC [2024] TC09178, the First Tier Tribunal (FTT) found that a taxpayer had accidentally converted 'clean capital' into mixed funds in terms of the remittance basis and then had accidentally remitted funds by using an offshore credit card in the UK by purchasing goods in the UK and paying for them from an offshore account.
