Hello,
We have a good mix of cases this week, with yet another ‘wrong forms for SEIS’ case where this time the First Tier Tribunal (FTT) took a pragmatic approach and allowed shares to be issued under the Seed Enterprise Investment Scheme (SEIS) despite forms being incorrectly filed for Enterprise Investment Scheme (EIS) relief.
The temporary measures to support businesses from insolvency as a result of COVID-19 are being phased out from 1 October. New targeted measures are to be introduced to help smaller companies.
HMRC have issued their Agent Update for September 2021. We have summarised the key content for you with links to our detailed guidance on the topics covered.
In Fashion on the Block Ltd v HMRC [2021] TC08248, the First Tier Tribunal (FTT) adjudged that completing the wrong form was not an acceptable reason for HMRC's refusal to allow the issue of SEIS qualifying shares.
In Kwik-Fit Group Limited v HMRC [2021] TC08226, the First Tier Tribunal (FTT) found that loans transferred between group companies following a reorganisation did not maintain their allowable purpose meaning the interest was disallowed.
The Office of Tax Simplification (OTS) has released a report entitled 'The UK tax year-end date: exploring the potential for change'. This report explores the benefits, costs and wider implications of a change to the UK's year-end tax date.
In Marlborough DP Ltd v HMRC [2021] TC08246, the First Tier Tribunal (FTT) held that loans funded by a remuneration trust were not earnings, or disguised remuneration taxable under part 7A of ITEPA 2003. They were taxable as distributions so no Corporation Tax deductions could be claimed by the contributing company.
HMRC have updated their CT600 guidance to cover the declaration requirements for Coronavirus Job Retention Scheme (CJRS) payments for companies and advised that this will require tracking on both the accruals and cash basis.
The current annual limit on the provision of tax-free staff parties and events by an employer last increased from £75 to £150 in 2003. Allowing for the effects of inflation, this limit might be expected to increase to at least £243 today. Bearing in mind that many employers and employees have not been partying at all due to COVID-19, should we ask the Chancellor to increase the £150 annual staff parties (or functions) limit?
Legislation has been laid before parliament which will end the COVID-19 Statutory Sick Pay (SSP) rebate scheme on 30 September 2021. Eligible employers must claim their rebates by 31 December 2021.