Missed our SME Tax Web-updates in May? Here is a summary of the month.
SME Tax News
Hello,
When does a pool car qualify as a pool car? When it meets the relevant qualifying conditions of course! Our tax case this week features an unfortunate situation where an HMRC inspector tried to help an employer set a carpool policy. Unfortunately, the employer misinterpreted the rules, the qualifying conditions for tax-free pooling were not met, and HMRC raised an assessment.
The issuing of Employment-Related Securities Bulletin 55 (May 2024) is a useful reminder that the online filing season has begun for all employment-related securities (ERS) matters.
In MWL International Ltd and Maywal Ltd v HMRC [2024] TC09169 a HMRC inspector agreed a company pool car policy with an employing company, subsequently HMRC changed its view and raised a NICs assessment. On appeal the First Tier Tribunal (FTT) found that HMRC cannot be estopped from enforcing the law. The representation made by the inspector was invalid as the inspector had no legal authority to enter into an agreement relating to the future tax treatment of the cars.
HMRC have made another update to their 'Standards for Agents'. The new version acknowledges that if a tax agent is a member of one of the professional bodies that have signed up to Professional Conduct in Relation to Taxation (PCRT) and adheres to its values, HMRC's Standard for Agents should not place further requirements on them. Other recent updates mean that the Standard is now considerably longer than the original version.
HMRC have updated their guidance to assist non-UK resident companies who have missed the 2023 changes to Corporation Tax and have been applying the wrong rate of tax to their profits.
HMRC are writing to taxpayers who included a provisional Rollover Relief claim in their 2020-2021 Self Assessment return where HMRC has no evidence of the provisional claim being updated with a valid claim. These claims expire on 31 January 2025.
HMRC have released statistics showing a general decrease in the number and amount of investments made under the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), Social Investment Tax Relief (SITR) scheme and Venture Capital Trust (VCT) scheme.
HMRC have published new advisory fuel rates for company car drivers, they apply from 1 June 2024.
Hello,
The Transactions in Securities (TiS) rules cast an extremely wide snare. In a nutshell, they seek to block Capital Gains Tax (CGT) relief where a shareholder seeks to gain an Income Tax advantage on a disposal of shares (or securities). The First Tier Tribunal (FTT) has released its judgment in a fascinating TiS case.
