HMRC have published their annual estimates of the 'tax gap'. Ignorance of tax law as in 'failure to take reasonable care' by small businesses is blamed for a large percentage of the tax gap primarily through a lack of Income Tax and Corporation Tax receipts.
SME Tax News
In Marie Guerlain-Desai v HMRC [2024] TC9203, a taxpayer successfully persuaded the First Tier Tribunal that a 12-acre woodland behind a dwelling did not form part of its grounds for Stamp Duty Land Tax (SDLT) purposes. As such, the lower non-residential rate applied to the purchase.
With the P11D deadline of 6 July fast approaching, HMRC have issued a reminder for employers needing to declare they have no Class 1A return of National Insurance contributions (NIC) to make.
In Joanne Lunn and Vanilla Monsoon Ltd v HMRC [2024] TC09197, clients of the discredited Christopher Lunn failed to make disclosures when invited by HMRC following the enforcement of a search warrant. It led to HMRC making Discovery Assessments with the addition of tax-geared penalties for failure to take reasonable care.
Last month we reported some self-employed taxpayers who made voluntary class 2 National Insurance Contributions (NICs) for 2022/23 and received an unexpected refund from HMRC, which may have been an error. HMRC has now provided an update regarding this issue.
The Welsh Government has published a summary of responses to its earlier Land Transaction Tax (LTT) consultation which considered extending the LTT higher rates three-year exception and refund period, in specific circumstances.
In JTI Acquisition Company (2011) Limited v HMRC [2024] EWCA Civ 652, the Court of Appeal (CoA) agreed with the Upper Tribunal (UT) and the First Tier Tribunal (FTT) that while the appellant made a commercial acquisition using a group loan, the wider group strategy of securing a tax advantage meant the loan had an unallowable purpose.
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As we roll towards the end of June, don't overlook the next major employer reporting obligations: form P11D (returns of benefits and expenses) and the employer's declaration P11D(b). Employment Related Securities (ERS) returns are due by 6 July.
The HMRC notification deadline for the grant of EMI share options has changed, but some plans still require earlier reporting.
In Kenneth Williams v HMRC [2024] TC09171, the failure of a property developer to notify chargeability to tax and the resultant loss of tax was attributed to his negligent conduct. This meant that HMRC were able to raise assessments into past profits some 15 years after the disposal of the properties.
