In the Great British Takeaway v HMRC [2022] TC8584, a fish and chip shop failed to overturn a sizeable VAT assessment, including tax penalties levied at 50% of lost tax. The business's owners failed to convince HMRC that it had a reliable daily till reconciliation process and witness evidence proved unreliable and inadmissible.
SME Tax News
The Energy Price Guarantee (EPG), introduced in October 2022, applies to domestic electricity and gas consumers. The Chancellor announced further changes in the Autumn Statement 2022 and Spring Budget 2023. The guarantee is in place until March 2024.
We are most saddened by the death of Her Majesty Queen Elizabeth II and we share our deepest condolences with the Royal Family and all her friends throughout the world. She was the most remarkable woman whose achievements, over such a very long reign will surely be impossible for anyone to ever mirror. She devoted nearly her whole life to the service of the UK and brought together a Commonwealth. We are all most grateful to her for all that she achieved, her extremely good humour, stoicism and statesmanship.
Hello,
We have a new CPD and some practical tax guides for you this week, focusing on Partnerships and Stamp Duty Land Tax (SDLT). We also have a bundle of appeals against disallowance of tax relief under variations of the Enterprise Investment Scheme (EIS) as well VAT and ATED penalties.
In Coconut Animated Island Limited v HMRC [2022] TC08575, the First Tier Tribunal (FTT) held that despite meeting the risk to capital and qualifying activities conditions, there were disqualifying arrangements in place that meant that HMRC were right to refuse to issue a Seed Enterprise Investment Scheme certificate.
In HMRC v Priory London Limited and HMRC v Jocoguma Properties Ltd [2022] UKUT 00225, the Upper Tribunal (UT) overturned controversial decisions on ATED late filing penalties as such confirming that HMRC is entitled to notify schedule 55 late filing penalties retrospectively.
In Valyrian Bloodstock Limited v HMRC [2022] TC08578, the First Tier Tribunal (FTT) denied Enterprise Investment Scheme (EIS) relief to a business that bought and kept horses. The risk to capital condition was not met: there was no qualifying trade so no long-term objective to grow and develop a trade.
In Joshua Peter Taylor v HMRC [2022] TC8576, the First Tier Tribunal (FTT) confirmed that a taxpayer who incorporated his business just before the COVID-19 lockdown was not entitled to support payments under the Self-Employment Income Support Scheme.
The Museum and Galleries VAT refund scheme is to be reopened to new applicants for the first time in over three years. This will enable more museums and galleries which open free of charge to obtain VAT refunds on their expenditure.
The Office for Tax Simplification (OTS) has published a call for evidence ‘Review of hybrid and distance working’ which explores the emerging trends in working practices in the UK and across borders, and their interaction with existing tax rules.