Archived SME tax news

HMRC has decided to call time on agents who’s performance isn’t what it expects to see as part of a new pilot,  “Agent view”.  A visit might be expected when your clients are consistently missing filing deadlines or have bad payment performance.

The Chartered Institute of Taxation (CIOT) says that there is no need for new legislation to tackle off-payroll hiring of ‘controlling persons’. Instead the Government should combat the problem by extending existing rules for appointments in the public sector.

HMRC v Healy
Tax relief on an actor's accommodation costs: HMRC given leave to appeal to the UTT.

Fifty Schemes of Grey: not S & M, more SME...from a tax avoidance perspective.

Where exactly do SME advisers draw the line between what is considered acceptable in tax planning (white) and that which is deemed aggressive or abusive tax avoidance (black)?

The Institute of Chartered Accountants in England and Wales (ICAEW) has issued a helpsheet for its members on dangers of getting involved in aggressive tax avoidance schemes.

This summer the government has announced its proposals to crack down on tax cowboys. So, how can you spot a tax ‘cowboy’ and do higher earners really care whose tax scheme they are using?

The government has announced new proposals to crack down on the promoters of contrived and aggressive tax avoidance schemes in order to save billions in tax.

In Coopers v HMRC [2012] UKFTT 439 (TC) TC 02120 a partnership was set up to provide cars to a company owned by the partners, who were also its directors in an arrangement aiming to avoid car benefit charge. The Tribunal found that the partnership was "little more than an extension of the company set up and operated in order to avoid or reduce income tax and a National Insurance charge for the company." In paying the partnership to provide cars which were used by the directors, the company was indirectly providing cars and fuel "by reason of employment" and so a tax charge resulted for the directors with Class 1A for the employer.

See Tax masterclass: running an LLP & Co structure for guidance on how to avoid a similar charge.

Graeme Nuttall, the government’s adviser on employee share ownership has published a report recommending that the UK should encourage more “John Lewis” type employee owned companies.