In JT Quinns Limited & Queen-Rose Green v HMRC [2021] TC08338, disallowed personal expenses put through a company's books resulted in tax assessments for the company and its director, including a s.455 tax charge. The director's lack of understanding of the basic principles of finance and tax and reliance on her accountant meant that tax penalties were downgraded for careless rather than deliberate behaviour.
SME Tax News
Welsh Government Finance Minister Rebecca Evans announced the draft Welsh Budget for 2022-23 on 21 December 2021.
As part of the 2022-23 budget, the Welsh Government have launched a consultation ‘Local variation to land transaction tax rates for second homes, short-term holiday lets and potentially other additional residential properties’ seeking views on possible Land Transaction Tax (LTT) changes.
In Christopher Thomson v HMRC [2021] TC08337A, the First Tier Tribunal (FTT) allowed an Entrepreneurs’ Relief claim on the disposal of a partnership asset as the property disposal was part of the wider disposal of the partnership business even though that process had lasted over 20 years.
Following the Bank of England’s decision to increase the base rate, HMRC have announced that their late payment interest rate will increase by 0.15% to 2.75% from 7 January 2022.
There are signs that something is going wrong in payment allocation and return recording in HMRC's Making Tax Digital for VAT records. There is evidence of 'glitches' on the account. It appears that the agent ASA may not reflect what is shown in the Business Tax Account and vice versa and that HMRC are not showing tax overpayments.
Hello,
We have a new Agent Update from HMRC for you this time, our edited version also provides more detail on HMRC's Income Record Viewer (IRV) service. Agents can now sign up taxpayers for a private beta pilot.The IRV is a game changer for everyone. HMRC will be able to provide details of clients' pay, tax, employment history and tax code via the firm's agent services account.
HMRC have issued their Agent Update for December 2021. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Metropolitan International Schools Ltd v HMRC [2021] TC08322, the First Tier Tribunal (FTT) reduced the scope of a widely drafted Schedule 36 Information Notice. Items such as 'all computer records' were not reasonably required as there was no ground to believe that record-keeping was inaccurate. Items such as board minutes and marketing material had no bearing on tax return entries. Using its powers, the FTT re-made the Notice.
In A D Bly Groundworks and Civil Engineering Limited and CHR Travel Ltd v HMRC [2021] TC08329, the First Tier Tribunal (FTT) concluded that substantial pension payments made on behalf of key employees as part of a tax scheme were not incurred wholly and exclusively for the purposes of the trade. No corporate tax deduction was available as a result.