The Chancellor Rishi Sunak made the following announcements on Income Tax and National Insurance in his Spring Statement on 23 March 2022:
SME Tax News
The Chancellor Rishi Sunak made the following announcements on fraud prevention in his Spring Statement on 23 March 2022, including the creation of a new Public Sector Fraud Authority. The government is budgeting £48.8 million of funding over three years.
Chancellor Rishi Sunak gave his Spring Statement on 23 March 2022: these are our live highlights, introducing a rise in the National Insurance contribution (NICs) threhold and 0% VAT on energy saving products, increased capital allowances and a reduction in Income tax from 2024. A more detailed summary will follow later today. The chancellor refered to the on-going war in Ukraine and how his is considering the UK's responses to that war and to our security in that respect and in the state of our economy.
In HMRC v AML Tax UK Ltd [2022] UKUT 00081, the Upper Tribunal granted HMRC's request for a higher than usual penalty to be applied to the taxpayer for failure to provide information under a Schedule 36 notice. This was despite the fact that the penalty was tax based and HMRC were unable to assess the liability due to a lack of information.
In Mark Campbell v HMRC [2022] TC08398, the First Tier Tribunal (FTT) concluded that the purchase, modification and sale of four properties in five years was not trading and was subject to Capital Gains Tax (CGT). No Principle Private Residence (PRR) relief was available on the disposals as the properties did not have sufficient quality of occupation.
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 0.25%, to 3.25%, from 5 April 2022.
HMRC have issued their Agent Update for March 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered.
Hello,
This is a very busy time for most of us. Have you done all you need to for this tax year? Are you getting ready for the new tax year?
In HMRC v Volkerrail Plant Ltd & Ors [2022] UKUT 00078, the Upper Tribunal (UT) found that whilst the restriction to the group relief provisions, as previously set out in s.403D ICTA 1988, did infringe upon the EU Freedom of Establishment, the restriction was justified as a matter of public interest.
In William Archer v HMRC [2022] UKUT 00061, the Upper Tribunal (UT) dismissed an appeal by Mr Archer against the penalty surcharge notice issued by HMRC for £1.4 million in relation to unpaid tax of approximately £14 million. There was no evidence to show that the belief that the Closure Notices were invalid was the reason for the non-payment of tax.