In Ruhal Islam v HMRC [2022] TC08513, the First Tier Tribunal (FTT) upheld the appeal against discovery assessments imposing almost £300,000 in tax. It was on the basis that the till receipts that formed the assessment, using the presumption of continuity, were actually fabricated to increase the value of the business for a potential sale.
SME Tax News
HMRC have released a new consultation, 'Raising standards in tax advice: protecting customers claiming tax repayments'. It seeks views on ways in which HMRC can legislate to protect taxpayers from the conduct of some unscrupulous tax repayment agents.
In Quayviews Limited v HMRC [2022] TC08515, the First Tier Tribunal (FTT) quashed late filing penalties imposed on an employer who had submitted its RTI returns between two and five months early: it had reasonable excuse for not submitting the returns 'on time'. HMRC has not advised that very early filing was not allowed and HMRC's software allowed it.
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Late-payment interest increases, problems with P11D car benefits, a bizarre NICs calculator, a new Agent update and the First Tier Tribunal (FTT) appear to provide some DIY-builders with a new planning opportunity, all in all, just another week in tax!
HMRC has issued draft legislation for consultation for the new temporary Energy (Oil and Gas) Profits Levy which was announced last month.
The ICAEW has issued a warning over potential inaccuracies in the Benefit In Kind (BIK) charge as calculated by HMRC's online P11D and P46(car) forms. HMRC calculators are incorrectly allocating high CO2 emissions and issuing charges that are higher than the correct figures.
In Gerald and Sarah Lee v HMRC [2022] TC 8502, the First Tier Tribunal (FTT) allowed an appeal for Private Residence Relief (PRR) for a replacement property. The calculation of the relief was by reference to the ownership of a dwelling house rather than the land on which it was built.
HMRC have issued their Agent Update for June 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Cry Me A River Limited v HMRC [2022] TC08507, the First Tier Tribunal (FTT) held that the production of a single film and engaging sub-contractors did not stop the appellant from meeting the SEIS risk to capital criteria.
HMRC has released a National Insurance Contributions (NICs) tool which claims to provide an estimate of how changes to the NICs Primary Thresholds from 6 July 2022 will affect the amount of NICs that individual taxpayers will pay. It is of extremely limited application to practical situations.