In OOCL UK Branch v HMRC [2023] TC09007, the First Tier Tribunal (FTT) found that payments made to employees, funded by a company’s former majority shareholder out of sale proceeds as a gesture of thanks, were made by reason of employment. PAYE and NICs applied.
SME Tax News
HMRC have published their Employer Bulletin for December 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
In Felicity Harber v HMRC [2023] TC09101, ‘artificial intelligence’ (AI) failed to assist a taxpayer in her appeal against penalties after it emerged that it had invented the case citations she had relied on in her defence. The First Tier Tribunal (FTT) found that this was not the first time that AI created fake cases.
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Don't rely on 'AI' like ChatGPT to generate your legal argument! The decision in Felicity Harber's tax appeal, hot off the press today, illustrates how a large language model AI generated invented case law. The First Tier Tribunal (FTT) judge was not fooled, unlike the unfortunate taxpayer who lost her appeal.
HMRC have announced that between 11 December 2023 and 31 January 2024 its Self Assessment helpline and Agent Dedicated Line will focus on ‘priority calls’.
The First Tier Tribunal (FTT) has found in favour of TV presenter Kaye Adams. Her income from a BBC contract and paid to her company, Atholl Productions Limited, was not within the legislation known as IR35. She was validly engaged under a contract of self-employment.
HMRC has issued new guidance 'Help to comply with the reformed Off-Payroll Working rules (IR35) and avoid common mistakes'. The title of the guidance may be confusing for some.
In HMRC v E.ON UK Plc [2023] EWCA Civ 1383, the Court of Appeal (CoA) found that a payment made to an employee as part of a package of changes, which included adverse changes to pension rights, was earnings from employment. It was subject to Income Tax and National Insurance.
HMRC have published responses to their earlier consultation ‘Construction Industry Scheme reform’. The consultation focused on three areas within the Construction Industry Scheme (CIS): compliance, administrative easements and simplification. As a result of the consultation, several changes have been announced.
Missed our SME Tax Web-updates in November? Here is a summary of the month.