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.
SME Tax News
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.
In Foreign National v HMRC [2023] TC8835, a non-resident and non-domiciled individual was unsuccessful in his attempt to prevent HMRC from gaining access to his UK bank statements. He was unable to explain certain property ownership and transactions and may have been trading in UK property.
In Ameet Shah (As Executor of the Estate of Anantrai Maneklal Shah deceased) v HMRC [2023] TC08442, the First Tier Tribunal (FTT) found that the deceased had acquired a domicile of choice in England before his death. His estate could offer no evidence to prove that he planned to move to back to India.
In Civic Environmental Systems Ltd v HMRC [2023] EWCA Civ 722, the Court of Appeal (CoA) confirmed that loss relief claim made in the year following submission of a tax return did not form part of that return, and therefor the claim could not be amended in line with any assessments amending that tax return by the tribunal.
Following the Bank of England’s announcement on 22 June 2023 that the base rate will rise to 5%, HMRC interest rates are also increasing by 0.5%, to 7.5% for late payment interest and 4% for repayment interest, from 11 July 2023.
Hello
We are focusing on tax and interest costs this week, we have another HMRC Agent update and HMRC is taking down several key services for essential IT migration this weekend. Mysteriously, many other services are also down over the period, which by co-incidence coincides with the Glastonbury festival weekend.
In a new report on Tax Simplification, the Treasury Committee concludes that the UK's tax system is overcomplicated and is an obstacle to economic dynamism and that the Chancellor must now take personal responsibility for simplification that he has pledged.
In David Hamill v HMRC [2023] TC08827, the First Tier Tribunal (FTT) found that an individual who had ceased to trade in the 2018-19 tax year was not eligible for support under the Self-Employment Income Support Scheme (SEISS). HMRC's assessments were valid.
In 3D Crowd CIC v HMRC [2023] TC08837, the First Tier Tribunal (FTT) partially upheld the appeal of a business established during the pandemic to provide free PPE to the NHS. The claim for input VAT was denied by HMRC on the basis that the free supplies were not taxable supplies.