In HMRC v A Taxpayer [2023] UKUT00182, the Upper Tribunal found that looking after an alcoholic sister and her family was not an exceptional circumstance for the Statutory Residence Test (SRT). The taxpayer exceeded her day limit by six days so was UK resident, resulting in tax on £8m of dividends.
SME Tax News
HMRC has released the latest statistics about Capital Gains Tax (CGT) for the 2021-22 tax year which show record levels of gains and a significant increase in CGT being paid on the sale of residential property.
The Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) have published the results of their recent member survey about Making Tax Digital (MTD). It shows that members have continuing concerns about the costs and benefits of MTD for Income Tax despite the increased thresholds and delayed start announced by HMRC in December 2022.
Following the Bank of England’s announcement on 3 August 2023 that the base rate will rise to 5.25%, HMRC's interest rates are also increasing by 0.25%, to 7.75% for late payment interest and 4.25% for repayment interest, from 22 August 2023.
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There is not much headline news to report this week as it's the holidays. We do feature a really disturbing case in which HMRC tried to bankrupt an employee on the mistaken basis that she was a payroll operator.
The House of Common's Treasury Committee has published 'Tax Reliefs' which calls for a systematic review into the cost of over a thousand tax reliefs which complicate the tax system and are open to abuse.
In Debra Elizabeth Adjei v Official Receiver and HMRC EWCA 1572 [2023] (Admin), the High Court annulled a bankruptcy order against an employee due to unpaid PAYE and NICs. She proved that she was merely the employee operating the payroll and not the employer as HMRC had falsely alleged.
Missed our SME Tax Web-updates in July? Here is a summary of the month.
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A new government consultation considers the merits of increased tax incentives, particularly extending the Benefit in Kind (BiK) exemption for medical benefits. We have a new Agent Update and our tax cases cover sales suppression by a prolific puppy breeder and a successful input VAT claim on a fund raising share sale. It's getting to the end of another busy week.
HM Treasury and HMRC have opened a joint consultation ‘Tax incentives for occupational health’. This explores how the tax system can support employers to increase the provision of occupational health services for their employees.