Archived SME tax news

As a result of the major change by HMRC to the PAYE system from April 2013, known as Real Time Information (RTI), the main tax and accounting bodies have issued updated guidance on letters of engagement for tax practitioners. 

In Dr Samad Samadian v HMRC [2014] UKUT 0013 (TCC) a self-employed doctor was unsuccessful in his appeal to the Upper Tier Tribunal: his claim for tax relief on travel between different workplaces was disallowed.

New rules use government buying power against tax avoidance. The government is proposing new rules that will ban companies and individuals which take part in failed tax avoidance schemes from being awarded Government contracts.

The Chartered Institute of Taxation (CIOT) is calling for an extension of the penalty free period for employers filing payroll under Real Time Information (RTI) reporting.

The government's proposed cap on income tax reliefs will distort decisions on how businesses should be structured and lead to more decisions being taken for tax rather than commercial reasons, tax simplification measures are "badly designed" and disincorporation relief has a "bizarre effect" say the Association of Taxation Technicians.

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Wear and tear allowance

We note on the internet that there is is a diverse range of misunderstanding of what expenses can be claimed in relation to property letting, so we will try and smooth things out:

Following a successful pilot of 400 cases HMRC decided in 2013 that Alternative Dispute Resolution (ADR) was to become a permanent feature of SME tax administration.

Parliament's Public Accounts Committee (PAC) continued its inquiry into tax avoidance by focusing on the activities of the Big Four accountancy firms on Thursday.

HMRC say that its bank - Santander is having problems with its Bill Pay service. This means that that customers cannot use a credit card or debit card to pay their tax.  The parties are working to resolve of the problem.