HMRC's Making Tax Digital (MTD) project has overrun in costs by over £1 billion, and its still only half-baked.The National Audit Office (NAO) has issued a report, ‘Value for Money - Progress with Making Tax Digital’ which confirms that its not value for money. The taxpayer will conclude that the project has been poorly designed and mismanaged.
SME Tax News
HMRC have announced that they are closing the Self Assessment telephone helpline for three months in order to re-direct staff to clear up the postal backlog. The closure comes after a decision to close its VAT registration helpline last month. Taxpayers who have tax queries are now being directed to search for answers to their queries online.
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Following research and consultation, HMRC is consulting on new proposals for tackling PAYE non-compliance by ‘Umbrella companies’. Quite why we need more new rules when we could surely just sweep up any stragglers by broadening the Agency rules in Chapter 7 Part 2 ITEPA 2003 is beyond me. We will keep following the consultations for you and see what comes out.
In Mr Taher Suterwalla and Mrs Zahra Suterwalla v HMRC [2023] TC8826, a paddock acquired on the purchase of a residential property was let out commercially on the same day as the purchase was completed, so for Stamp Duty Land Tax (SDLT), was the paddock required for the reasonable enjoyment of the dwelling having regard to its size and nature or not?
In Swiss Centre Limited v HMRC [2023] TC08825, the First Tier Tribunal (FTT) denied a deduction in the P&L of £34 million paid as it was not a loan relationship debit, nor was it enhancement expenditure for a capital asset.
HM Treasury have opened a consultation on ‘Tackling non-compliance in the umbrella company market’, also publishing responses to their 2021 Call for evidence on the Umbrella company market in general.
In Hughes Property Partners Limited v HMRC [2023] TC08829, the First Tier Tribunal (FTT) found that a tax agent’s lack of knowledge of Annual Tax on Enveloped Dwellings (ATED) law did not amount to a reasonable excuse for a return filed late.
In Hargreaves Property Holdings Limited v HMRC [2023] UKUT120, the Upper Tribunal confirmed that the restructuring of the group’s loans failed to alter the underlying nature of the loans, meaning £2.7m of withholding tax was payable.
HM Treasury has launched a new call for evidence on Non-Discretionary Tax-Advantaged Share Schemes which looks at Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes.
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There is news that the EU is going to introduce a new €7 visitor fee, yet another thing to slow us down at its borders! It has got me wondering just how long it will be before a British government can't resist a similar measure. In terms of administration, surely all anyone needs is a secure QR code at the border?