Missed our SME Tax Web-updates in August? Here is a summary of the month.
SME Tax News
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.
In Graham Davis v HMRC [2022] TC08566, a sole trader's claim to have incorporated their business failed. No trade had actually been transferred. This meant that a claim for losses of the sole trade business to be relieved against income derived from the company failed.
In Carl James v The Welsh Revenue Authority [2022] TC8563, the First Tier Tribunal (FTT) held the purchase of a property, which was then combined with an existing main residence, amounted to the purchase of an additional property. Consequently, it was chargeable to a higher rate transaction for the purposes of Welsh Land Transaction Tax (LTT).
Last year, one in every 12 professional footballers in the UK had enquiries opened into their tax affairs by HMRC, according to research by accountants UHC Hacker Young.
In Guy Boardman v HMRC [2022] TC8558, a taxpayer's plan to profit from selling his shares at an inflated price to his Self Invested Pension Plan (SIPP) backfired and resulted in an unauthorised payment charge. Payments from an opaque LLP were chargeable as distributions.
HMRC have issued their Agent Update for August 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.