In The Magnet Partnership v HMRC [2022] TC8570, the First Tier Tribunal (FTT) held that payments made from a trading partnership to ‘family partnerships’ to utilise the tax-free personal allowances of family members were not allowable deductions. The expenses were not incurred and even if they had been, they were not incurred wholly and exclusively for the trade.
SME Tax News
The Scottish government's tax statistics show that while non-North Sea tax revenues increased by 13.6%, its actual percentage deficit was double the level of the rest of the UK
Moneymail has submitted a file to HMRC's consultation on protecting taxpayers from unscrupulous revenue repayment claims companies. The paper said it named nearly 20 companies for dubious behaviour based on examples from readers.
In Burlington Loan Management DAC v HMRC [2022] TC08572, the First Tier Tribunal (FTT) found that whilst the ability to reclaim UK Income Tax withheld at source on interest payments dictated the price of a debt claim, taking advantage of the Treaty exemption was not the main purpose of the acquisition.
HMRC have published responses from their 2021 consultation ‘Reporting rules for Digital Platforms’ which considered the implementation of the new Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules for Digital Platforms.
Missed our SME Tax Web-updates in August? Here is a summary of the month.
Hello,
We are forecasting record numbers of tax penalties for late filing of residential Capital Gains Tax (CGT) returns as statistics reveal that taxpayers (and their agents) have not fully understood the new filing requirements. We have created a new guide to CGT penalties which explains the basics for you. Penalties can soon mount up and it's important to remain vigilant for reportable events. If in doubt, ask your accountant!
Statistics published by HMRC indicate that many taxpayers making disposals of UK residential property are still not comiing to terms with the UK's Capital Gains Tax (CGT) reporting regime and those who have missed filing and payment deadlines will now be subject to late filing penalties until they file their outstanding returns.
In E.ON UK Plc v HMRC [2022] UKUT 196, the Upper Tribunal (UT) found that payments made by an employer, as part of a package of changes for employees, were compensation for loss of pension rights and not taxable employment earnings.
HMRC have published new advisory fuel rates for company car drivers which apply from 1 September 2022.