HMRC have issued a reminder that employers may accidentally be underpaying temporary staff engaged in seasonal jobs. Employees should check their wage slips to ensure that the actual hours paid are those worked.
SME Tax News
Scottish Deputy First Minister Shona Robison announced the draft Scottish Budget for 2024-25 on 19 December 2023. A new Income Tax Advanced Rate of 45% will be introduced, meaning that, for example, a person with dividend income alongside employment, self-employment or rental income, has up to ten Income Tax rates to consider.
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As 2023 draws to a close, so too does the 2022-23 Self Assessment deadline. Our theme this week is ‘last minute tax returns’ and we feature a number of guides to help answer those last minute FAQs including our top tips of things to consider. HMRC has a new Employer Bulletin and has published its responses to its VAT energy-saving materials relief. We have news of further VAT 'nudge letters', and more letters to taxpayers identified by HMRC through the disclosures made in the 'Pandora Papers'.
In OOCL UK Branch v HMRC [2023] TC09007, the First Tier Tribunal (FTT) found that payments made to employees, funded by a company’s former majority shareholder out of sale proceeds as a gesture of thanks, were made by reason of employment. PAYE and NICs applied.
HMRC have published their Employer Bulletin for December 2023. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
In Felicity Harber v HMRC [2023] TC09101, ‘artificial intelligence’ (AI) failed to assist a taxpayer in her appeal against penalties after it emerged that it had invented the case citations she had relied on in her defence. The First Tier Tribunal (FTT) found that this was not the first time that AI created fake cases.
HMRC have announced that between 11 December 2023 and 31 January 2024 its Self Assessment helpline and Agent Dedicated Line will focus on ‘priority calls’.
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Don't rely on 'AI' like ChatGPT to generate your legal argument! The decision in Felicity Harber's tax appeal, hot off the press today, illustrates how a large language model AI generated invented case law. The First Tier Tribunal (FTT) judge was not fooled, unlike the unfortunate taxpayer who lost her appeal.
- Helping to comply with Off-Payroll Working rules
- Compensation for loss of pension rights was earnings
- Consultation responses on Construction Industry Scheme reform
- Only basic camping pods qualified for capital allowances
- SME Tax Monthly Summary November 2023
- Nichola's SME Tax W-update 30 November 2023