HMRC are changing their online advice pages and letters to clients on agent authorisation clarifying what agents can and cannot do when they are working via the Online Agent Authorisation system. They stress the need for clients to check their tax returns before allowing their agents to submit them on their behalf.
SME Tax News
In Hart St Maltings Ltd v HMRC [2023] TC08961, the First Tier Tribunal (FTT) found that a property development company reporting under FRS 105 could not use the cash basis of accounting for Corporation Tax purposes.
Hello,
There is little in the way of tax news this week which is perhaps just as well following the disruption caused by Storm Babet last weekend. We do hope you are all safe and well and have not been badly affected by the floods.
The government has responded to two reports by the Treasury Committee, both of which focused on current tax reliefs. It believes a systematic review of all 1,180 plus tax reliefs is impractical and unwarranted, but did confirm its intention to extend the sunset clauses on the Venture Capital Trust (VCT) reliefs.
HMRC have commenced the outsourced development of a proof of concept for a new split payment system which could see the VAT element of online sales being paid directly to HMRC.
In Eva Mary Butler & Others v HMRC [2023] TC08949, the First Tier Tribunal (FTT) held that Business Property Relief (BPR) was not available for a business that rented out a barn for weddings. The level of services provided did not prevent the business from being wholly or mainly an investment business.
In Richard Monks v HMRC [2022] TC8957, the First Tier Tribunal (FTT) held that a Schedule 36 information notice had been correctly issued by HMRC but the preceding tax return enquiry was out of time.
In HMRC v Vermilion Holdings Ltd [2023] UKSC 37, the Supreme Court (SC) found that share options issued to a director were made available by 'reason of his employment' despite the fact that these share options replaced earlier options given to his consultant company in lieu of fees for advisory services.
HMRC have issued their Agent Update for October 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Kirin Kalia v HMRC [2023] TC08952, the First Tier Tribunal (FTT) found that backdated sickness payments made under an employer’s group income protection plan were subject to National Insurance Contributions (NICs) in the tax year they were paid, not in the tax year they related to.