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.
SME Tax News
Hello,
We have a varied and interesting selection of news and cases for you this week, plus we feature Question & Answers from our recent tax conference hot topics, and summaries of the best bits of the latest Employer and Agent Bulletins from HMRC.
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.
In Roger Crippin v HMRC [2021] TC8285, the First Tier Tribunal (FTT) allowed Private Residence Relief (PRR) on the gain made on the disposal of a property adjacent to the owner's main dwelling house. The relief can apply to two properties within the same curtilage.
HMRC will stop making payments of Child Benefit, Guardian’s Allowance and Tax Credits into Post Office card accounts from 1 December 2021.
The OECD has announced a far-reaching global agreement to its 'Two Pillar' proposal for international tax reform. The plans, which include a minimum in-country Corporation Tax rate of 15%, have now received the backing of all OECD members including G20 countries and the EU.
In Arron Banks v HMRC [2021] EWCA Civ 1439, the Court of Appeal held that donations to UKIP were not eligible for Inheritance Tax relief. They confirmed there was discrimination under EU law, but as HMRC had proved, this was justifiable and relief must be denied.
The Institute of Chartered Accountants in England and Wales (ICAEW) says that the data leaked by the Pandora Papers investigation show how important it is for accountants to ensure that they know their clients for Anti-Money Laundering (AML) purposes.