SME Tax News

In Nicholas Walewski v HMRC [2021] UKUT0133, the Upper Tribunal (UT) confirmed the operation of the Mixed Memberships rules. It attributed the Limited Liability Partnership (LLP) profits of a corporate member to an individual member for tax purposes after it agreed with the First Tier Tribunal (FTT) that he had the power to enjoy them through a trust created for his children.


In this issue we try to avoid ‘death by (very long) Agent Update'. HMRC is now issuing these updates monthly, and we try to ‘skip to the good bits’ and bring you the highlights of each issue.

HMRC have issued their Agent Update for June 2021. As it was so long, we have summarised key content for you with links to our detailed guidance on the topics covered. 

HMRC are reporting that a significant number of Self Assessment tax returns for 2020/21 have contained inconsistencies relating to the Self-Employment Income Support Scheme (SEISS) grants. Consequently, HMRC have been unable to automatically process the returns and delays are being incurred.

In WT Banks & Co (Farming) Ltd v HMRC [2021] TC08124, the First Tier Tribunal (FTT) found amounts paid by one company to another with a common shareholder were neither non-trading loan relationship debits when written off, nor loans to the controlling participator of the lender.

In Northern Light Solutions Ltd v HMRC [2021] UKUT134, the Upper Tribunal (UT) agreed that IR35 applied to a Personal Service Company (PSC). The control and mutuality tests were met and an obligation for personal performance made the right of substitution almost theoretical.


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