Thursday 18 April 2024 was 'Tax Administration and Maintenance Day'. The government published several tax policy proposals and updates, including changes to VAT on charitable donations and tackling non-compliance in the umbrella companies market.
SME Tax News
A Norfolk-based accountant has been severely reprimanded, excluded from membership of the ICAEW, and ordered to pay costs of £55,645 for favouring one party over another in a dispute following a divorce.
Loss-making R&D Intensive Small or Medium-sized Enterprises (SMEs) based in Northern Ireland will not be subject to any restrictions on relief for overseas Research & Development (R&D) up to a limit of £250,000 in any three-year period.
Accountancy Service Providers (ASPs) and Estate Agent Businesses (EABs) are topping the lists of the types of professions that have received punitive levels of penalties for failure to register their business under the Money Laundering Regulations MLR.
In HMRC v Innovative Bites Limited [2024] UKUT 95 (TCC), the Upper Tribunal (UT) confirmed that Mega Marshmallows are food but not confectionery and should be zero-rated for VAT.
The First Tier Tribunal (FTT) found that an individual who bought a property on behalf of his brother, after the bankruptcy of the latter, was holding it on resulting trust. He was not the beneficial owner of the property and was not subject to tax on its disposal.
The Court of Appeal rejected the argument that there was no requirement to withhold tax on interest payments made to a UK resident company. Viewed realistically the UK resident company was not 'beneficially entitled' to the assigned interest payments.
In Jessica Harjono & Anor v HMRC [2024] TC09107, another taxpayer failed to persuade the First Tier Tribunal that a paddock let on a market rate rent from the day of completion was non-residential land.