SME Tax News

The Chancellor of the Exchequer, Nadhim Zahawi, has been under pressure to explain whether £26m in unsecured loans received by himself and his wife from a family trust are, in fact, capital receipts that he should have declared for UK Capital Gains Tax. 

It has taken the government four years to publish 'Employment status consultation: government response', it was barely worth the wait. To date, a large number of the recommendations of the 2017 Taylor Review of Working Practice have been ignored.

In Mr Bruce Firth & Mrs Rita Firth as Trustees of the L Bately 1984 Settlement v HMRC [2022] TC8542, the First Tier Tribunal (FTT) dismissed a claim for IHT Business Property Relief. The services provided by the 'apart-hotels' in question were not sufficient to prevent it from being an investment business.

In Carlick Contract Furniture Limited v HMRC [2022] TC08543, the First Tier Tribunal (FTT) ruled that Coronavirus Job Retention Scheme (CJRS) claims for two employees were not qualifying costs, whilst acknowledging that denying the claims seemed to be contrary to the spirit of the scheme.

In Martyn Arthur and Denise Arthur v HMRC [2022] TC08539, the First Tier Tribunal (FTT) found that unexplained payments made to company shareholders should be subject to tax as self-employment income and not PAYE.

HMRC have issued their Agent Update for July 2022. We have summarised the key content for you with links to our detailed guidance on the topics covered. 


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