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There is news that yet another public sector body, this time it's HS2, has managed to get the IR35 and Off-Payroll Working rules wrong. HS2's estimated £9.5 million liability, set aside in its accounts, now means that public sector organisations have nearly amassed £275 million in payrolling errors.
In Thursford Enterprises Limited v HMRC [2022] TC08560, the First Tier Tribunal (FTT) found that a 'Christmas Spectacular' performance did have sufficient dramatic production value in order to qualify for Theatre Tax Relief.
In Bobby Khan Enterprises Limited & Ors v HMRC [2022] TC08556, the First Tier Tribunal (FTT) found that store keepers consistently and deliberately suppressed purchases and corresponding turnover. This triggered Corporation Tax (CT), VAT and s.455 Directors' loan account charges for the missing income over a number of years.
In HMRC v Euromoney Institutional Investor PLC [2022] UKUT00205, the Upper Tribunal (UT) confirmed that an ordinary share for redeemable preference share exchange, in amending a prior agreement from a direct shares for cash exchange in a takeover, was undertaken for bona fide commercial reasons, without the main purpose of tax avoidance. Relief under the Reorganisation provisions was available.
In Iain Robertson v Revenue Scotland [2022] FTSCT 6, a taxpayer fell foul of the Land and Buildings Transaction Tax (LBTT) rules after COVID lockdown prevented him from occupying a new property as his main residence. The legislation provided no leniency under the circumstances and he was unable to claim relief from the Additional Dwelling Supplement (ADS).
Hello,
Well done to anyone managing to work in this heat! We have lots of updates for you this week, mainly for employers, trusts and Self Assessment return preparers.
HMRC have published their Employer Bulletin for August 2022. We have summarised the key content for you, with links to our detailed guidance on the topics covered.
In HMRC v Keith Murphy [2022] EWCA Civ 1112, the Court of Appeal decided that a success fee and indemnity premium to be paid out of an employment-related compensation settlement were not deductible for PAYE. Neither cost was incurred necessarily in the performance of the employee's duties as a serving police officer.
HMRC have released further annual statistical updates covering Capital Gains Tax and Tax Relief. We summarise some of the key points, interesting figures and the costs of providing a range of tax reliefs.
Following the Bank of England’s recent announcement increasing the base rate, HMRC have announced that their late payment interest rate will also increase by 0.50%, to 4.25%, from 23 August 2022.