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Wales set its Budget for 2025-26 this week, the CIOT and ICAEW create a benchmark for HMRC service standards, and as Managed Service Companies (MSCs) hit the headlines again we consider why MSCs are a problem for accountancy firms.
SME Tax News
In Frenkel v LA Micro Group (UK) Ltd & ors and LA Micro Group Inc v LA Micro Group (UK) Ltd & ors [2024] UKSC 42, the Supreme Court found that an oral agreement between the legal and beneficial owners of shares was enforceable, and created a constructive trust. This meant that the transfer of beneficial ownership to the legal owners did not need to be in writing.
In MR Currell Ltd v HMRC [2024] UKUT 00404, the Upper Tribunal (UT) set aside a decision made by the First Tier Tribunal (FTT) due to an error of law. This resulted in the UT concluding that a payment from a company to an employee benefit trust was not earnings.
Tax and accountancy bodies have completed a survey of HMRC’s service levels with some uncomfortable findings: well over a third of calls to HMRC are unproductive. The data harvested sets a new baseline standard for improvement and, future monitoring has now been established.
Mark Drakeford, Cabinet Secretary for Finance and Welsh Language set out the 2025-26 Welsh Budget on 10 December 2024.
In Calder Hairdressing Ltd v Revenue Scotland [2024] FTSTC 8, the First Tier Tribunal (FTT) found that unawareness of the requirement to lodge an LBTT 3-year lease return was not a reasonable excuse for late submission.
HMRC has published Tax Avoidance Spotlight 67, 'Managed Service Companies'. It is HMRC's second spotlight on the identification of Managed Service Companies (MSCs) and MSC Providers, including how to recognise their role in tax avoidance schemes.
In Beigebell Limited (No. 2) v HMRC [2024] UKUT 382 (TCC), the Upper Tribunal (UT) found that purchases of memory cards were connected to fraud, which the taxpayer should have known about, causing its claim for input tax to be denied.
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Scotland has set its budget for 2025-26, we look at the UK's Corporation Tax roadmap and reforms to Carried Interest. We are now in office party season and it's still raining in many places. 'Ho, ho ho: is it beginning to feel a bit like 'Christmas'?
HMRC have published an Employer Bulletin for December 2024. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
