SME Tax News

In HMRC v Peter, Stephen and Anne Fisher [2021] EWCA Civ 1438, the Court of Appeal (CoA) found that the Transfer of Assets Abroad provisions applied to the transfer of a UK business to a Gibraltar company for two of the three shareholders. The profits of the company were subject to Income Tax. 

In Grazer Learning Limited v HMRC [2021] TC08282, the First Tier Tribunal (FTT) rejected an appeal against HMRC's denial of an R&D expenditure claim. The appellant's evidence was ruled inadmissible by the court on the basis that it was filed late and not shared with HMRC.

In Bhaur & Ors v Equity First Trustees (Nevis) Ltd & Ors [2021] EWHC 2581 (CH), the High Court denied a request to set aside an Employee Benefit Trust scheme on the grounds of mistake despite attempts by the offshore trustees to give 90% of the trust value to the NSPCC as the default beneficiary. 

HMRC have recently published guidance on how they deal with people who do not pay the tax that is owed. This includes how and when debt enforcement powers are used.

HMRC have issued guidance targeted at helping employment agencies and those using temporary labour reduce the risk of using a non-tax compliant umbrella company.

HMRC have issued their Agent Update for October 2021. We have summarised the key content for you with links to our detailed guidance on the topics covered. 

HMRC have published their Employer Bulletin for October 2021. We have summarised the key content for you, with links to our detailed guidance on the topics covered.

In David Cation v HMRC [2021] TC8253, the First Tier Tribunal (FTT) disallowed £30k of wages paid by a sole trader to his father and upheld £12,400 in tax penalties for error and failure to notify tax. There was no evidence to show that his father has performed the services claimed and the FTT found that the wages had been put through the books only after HMRC had given a notice of the opening of an enquiry into the taxpayer's affairs.