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Tax-geared news of the sort that we think you might want to know about is quite thin on the ground this week. It's 'the calm before the storm', as 'L-day' (Legislation Day) is on the 18th July. This is the day when the government will unfurl (in the digital sense) the new draft finance bill for 2023. In the meantime, we have been updating our website and devising new tax workshops for you.
HMRC's latest round of tax statistics shows the impact that the Cororonavirus pandemic and government policy on certain elements of taxation. Excess deaths due to COVID-19 have led to a record high in Inheritance Tax receipts whilst many Non-Domiciled individuals stayed outside of the UK and remitted less taxable income back.
In GE Financial Investments Limited v HMRC [2023] UKUT 146, the Upper Tribunal (UT) held that a UK-incorporated company was also US resident under the UK/US Double Tax Agreement (DTA) although it had no Permanent Establishment (PE) in the US. That was enough to allow a claim for Double Tax Relief (DTR) in the UK.
In Sentinel Fire and Security Systems Limited v HMRC [2023] TC08849, the First Tier Tribunal (FTT) confirmed that HMRC were able to clawback a Coronavirus Job Retention Scheme (CJRS) payment for a new employee who joined the business in February 2020 but did not appear its payroll for RTI purposes until after the March cut-off date.
In Mr Meades v HMRC [2023] TC088440, the First Tier Tribunal (FTT) found that, despite HMRC’s misunderstanding of the legislation, a taxpayer was subject to the High-Income Child Benefit Charge (HICBC) as he was still ‘entitled’ to Child Benefit paid to his divorced wife.
Missed our SME Tax Web-updates in June? Here is a summary of the month.
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Keeping up with your tax compliance obligations can seem akin to trying to learn to drive a high-speed bulldozer. While it's relatively easy to get started, steering in the right direction can be tricky and you are likely to crash if you take your eye off the road!
The new annual Income Tax statistics from HMRC show a 99.2% increase in additional rate Income Tax payers in the tax year 2023-2024 over 2020-2021. The freezing of tax bands, along with higher wages, showed an increased tax take across all types of taxpayers.
It's that time again! 6th July 2023 marks the filing deadline for 2022-23 P11Ds. You must complete and file a P11D return in respect of each of your employees who have been in receipt of taxable benefits and expenses. Complete form P11Db: the employer's National Insurance declaration. There are special rules for 'Payrolled benefits' and HMRC is concerned about some underreporting of Car Benefits.
The Adjudicator’s Office Annual Report 2023 highlights that HMRC’s complaints handling performance has not fully recovered post-pandemic and a divergence in service levels between departments. In a separate letter to the Treasury Committee, HMRC said the suspension of Self Assessment helplines was a pilot project.