Hello,
The headline grabber in tax this week was TV broadcaster Gary Lineker's victory in an IR35 appeal, which almost overshadowed the publication of Sir Keir Starmer's tax return data.
SME Tax News
On 6 April 2023 HMRC is finally removing the download links for paper Self Assessment Tax returns. Paper returns will still be available for the visually impaired and taxpayers who are over 70 and have not yet filed online.
HMRC have issued their Agent Update for March 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Nicholas Henderson v HMRC [2023] TC8755, the First Tier Tribunal (FTT) found the buying and selling of shares did not amount to a trade. Losses from that activity could not be offset against other income.
In Simon and Debra England v HMRC [2023] TC8770, two directors made an agreement to repay their outstanding directors' loans following the insolvency of their company over two years. They claimed that the write off was over two years for Income Tax purposes. The First Tier Tribunal (FTT) agreed with HMRC: the effective date of write off was the date of the settlement agreement.
HMRC have released their March edition of the Employment Related Securities (ERS) Bulletin. This is our enhanced version with links to our detailed guides.
In Gary Lineker & Danielle Bux t/a Gary Lineker Media v HMRC [2023] TC8774, HMRC incorrectly challenged broadcaster Gary Lineker's contract with the BBC and BT. It lost a tax appeal against assessments for £4.9m. The First Tier Tribunal (FTT) found that while partnerships can be subject to IR35, the intermediaries' legislation, those rules did not apply as Mr Lineker had contracted with the Broadcasters personally.
Following the Bank of England’s somewhat unexpected announcement on 23 March 2023 that the base rate will rise to 4.25%, HMRC interest rates are also increasing by 0.25%, to 6.75% for late payment interest and 3.25% for repayment interest, from 13 April 2023.
In HFFX LLP and Ors v HMRC [2023] UKUT73, the Upper Tribunal (UT) found that allocations by a corporate member of a mixed member partnership to individual members should be subject to Income Tax under the miscellaneous income provisions.
As part of Spring Budget 2023, a consultation has been issued entitled, 'Simplifying and modernising HMRC’s Income Tax services through the tax administration framework'.