SME Tax News

Prince Charles has delivered the Queen's Speech in Parliament, setting out the government's legislative agenda for the coming year. The 38 proposed bills were primarily economic in nature. No new measures were announced on ending violence against women and girls.

In HMRC v Bashir Ahmed Jafari [2022] UT00119, the Upper Tribunal (UT) found the First Tier Tribunal (FTT) had wrongly interpreted the taxpayer's wish to withdraw his evidence. The UT remade the decision to reflect that the taxpayer had withdrawn his appeal in its’ entirety and upheld HMRC's assessments.

In A Taxpayer v HMRC [2022] TC08464, the First Tier Tribunal (FTT) held that caring for an alcoholic sister and her minor children were exceptional circumstances for the statutory residence test. The taxpayer remained non-UK resident despite spending too many days in the UK.

HMRC have published statistics showing a 23% increase in tax and National Insurance receipts for the period to 31 March 2022 compared to the period to 31 March 2021. 

In Caroline Sweby v HMRC [2022] TC08453, the First Tier Tribunal (FTT) refused HMRC’s attempt to extend time limits to serve their statement of case. HMRC had failed to follow the correct procedures and were time-barred from pursuing their appeal.

In J Huntly v HMRC [2022] TC08466, the First Tier Tribunal (FTT) accepted that the delay to the filing of a late appeal was justified due to fraud, COVID-19 and working on offshore rigs. With the late appeal allowed, the case will be joined with nine other victims of Capital Allowances Consulting Limited (CAC).

In Robert Don Hunter Dougan v HMRC [2022] TC8471, the First Tier Tribunal (FTT) ruled the taxpayer had not deliberately intended to bring about a loss of tax despite failing to file tax returns on time. This meant some discovery assessments had not been validly issued. The remaining discovery assessment was upheld.