Missed our SME Tax Web-updates in February? Here is a summary of the month.
SME Tax News
Hello,
February has been an extremely busy month and this is reflected in the content of this week's Web-update. We are taking a look at HMRC's latest Agent Update and Employer Bulletin, having a speed-read-refresher on the key measures in the new Finance Act, there are a couple of new consultations from HMRC on administration and powers and, of course, we have reviewed some interesting cases, including two from the Upper Tribunal (UT).
Another umbrella company’s pay model has not survived the hard scrutiny of the tax tribunal. A lack of evidence of sufficient 'mutuality of obligation' during downtimes meant no overarching contract of employment and therefore all worker travel costs were ordinary commuting.
The Court of Appeal ended a couple's attempt to claim stamp duty land tax under a deceptively simple sub-sale relief scheme. The scheme just did not work. A company incorporated to purchase a property and then transfer it to its individual owners by way of a capital reduction did not avoid any tax as the subscription price of their shares formed consideration for the property.
New research shows that 40% of HMRC's list of deliberate tax defaulters are involved in engineering and construction. Gross Payment Status (GPS) is conditional on tax compliance, new Construction Industry Scheme (CIS) registration tests apply from 6 April 2024.
HMRC have launched a new call for evidence ‘The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards’. This explores wide-ranging possibilities for reform, with an emphasis on simplification and modernisation.
In Gareth Evans vs HMRC [2023] TC08946, the First Tier Tribunal (FTT) found that information requested by HMRC in regards to Mr Evans's use of a tax avoidance scheme was 'reasonably required' to assess his overall tax position.
HMRC has published a response to its consultation ‘Simplifying and modernising HMRC's Income Tax services through the tax administration framework’. Several improvements and legislative changes are planned to promote a 'digital by default' approach and improve systems around tax codes.