In Interfish Limited V HMRC [2013] UKUT 0336 the Upper Tier Tax Tribunal rejected an appeal by Interfish Limited that payments it made to Plymouth Albion rugby club as sponsorship were wholly and exlusively incurred for the benefit of the company.
Archived SME tax news
This note covers periods up to 2013-14 and employers who are not submitting under RTI in 2014-15.
Under Real Time Information reporting (RTI) employers do not have to submit returns P35 and P14 online.
Deadline for PAYE annual returns P35 and P14 online is 19 May 2014.
If an employer has registered for PAYE but not paid any employees then it needs to notify HMRC that no annual return is due. Otherwise HMRC may issue a penalty and there will be time wasted in appealling it.
Penalties for late PAYE returns
This is slightly confusing: despite a massive overhaul of penalties in recent Finance Acts (see Tax penalties: late filing) PAYE annual returns are still under the old penalty regime.
PAYE Annual returns
- For PAYE Annual Returns due the late filing penalty is £100 per month or part for up to 5 employees, £300 for 6 to 49 employees, £600 for 50-249 employees and then £300 for each 100 employees.
- HMRC will write to employer before 19 June to advise them that no return has been received, it must be filed before 19 June in order to avoid higher penalties.
- You may appeal against a late filing penalty
For those under Real Time Information Reporting see Tax penalties: RTI (Real Time Information)
The government is proposing a new Tax-free Childcare scheme worth up to £1,200 per child. However, it will be of no benefit to the small army of work-at-home parents who juggle work and childcare themselves.
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.