Missed our SME Tax Web-updates in January? Here is a summary of the month.
SME Tax News
Hello,
With so much news coverage on the former Chancellor of the Exchequer Nadhim Zahawi's tax settlement, we have created a case study, based loosely on the known facts of his tax penalty, to illustrate how tax-geared penalties are calculated and what might count as a 'reasonable excuse' for making an error on a tax return. We have also included some suggestions as to how, with the benefit of hindsight, penalties could be avoided.
In Nicholas Burley v HMRC [2022] TC08701, the First Tier Tribunal (FTT) found that Self Assessment late filing penalties totalling some £280k had been validly served. The taxpayer's argument that the letters had not been received was dismissed.
In S&L Barnes Limited v HMRC [2023] TC08697, the First Tier Tribunal (FTT) applied the tests from Ready Mixed Concrete and found that Stuart Barnes provided his rugby punditry services to Sky as part of his own business, not as an employee.
In Martin Clarke West v HMRC [2023] TC08705, the First Tier Tribunal (FTT) found that a late appeal against HMRC assessments, closure notices and penalties was not permitted. There was no good reason for the serious and significant delays, which exceeded 1,000 days.
HMRC's latest Employment-Related Securities Bulletins for January and February 2023 contain some useful information. Here are our enhanced versions.
In Nicholas John Hall and Christopher Valentine Lopez as Trustees of the Carolina Raboni Estate v HMRC [2022] TC08691, the First Tier Tribunal (FTT) agreed that there was no Interest In Possession (IIP) in a house where the estate assets, apart from the house, were insufficient to pay the Inheritance Tax (IHT).
Hello
HMRC have just published a new Agent update and, amongst other things, this includes new guidance on the Transfer of Assets Abroad (TOAA) provisions. It is only speculation on our part, but these anti-avoidance rules might have been one reason why a government minister is reported to have made a seven figure tax settlement with HMRC this week. His visable tax planning as shown on Companies House was to place his shares in a UK company into an offshore trust. Either he fell under the TOAA or the settlor interested trust rules, we guess, as both prevent individuals avoiding UK taxes.
HMRC have issued their Agent Update for January 2023. We have summarised the key content for you with links to our detailed guidance on the topics covered.
This week's competition asks you to come up with an amusing title or caption for one of our case write-ups.