SME Tax News

In Cotter v HMRC [2013] UKSC 69 the Supreme Court has found that HMRC was correct to withhold repayment of tax pending an enquiry following a claim made for a carry back of loss relief.

In Mr J Taylor (Deceased) v HMRC [2013] TC02866 an executor used form R27 "Reclaiming tax when someone dies" in order to submit details of the deceased income. HMRC issued a repayment and the executor tried to lodge an appeal. The FTT ruled that HMRC’s calculation was not an assessment: there were no right of appeal.

Comment

The decision is correct in that there is no right of appeal in this instance, HMRC's calculation is not an assessment as such. With hindsight the executor should have completed a tax return. However one would think that it would be fair if that was mentioned on form R27, (and any similar form that is not appealable) should come with a "health warning". 

Introducing our Directors: tax planning toolkit for 2013/14

This year's toolkit is like all our maintained guides a rolling planner. This means we add to it when we find practical points that will interest you. Bookmark the guide and if you have registered for Nichola's SME Tax Web-update we will notify you when we make updates.

This week we have heard of two different cases where a company's previous advisers have failed to notice that UK companies have foreign associated companies. We flag this up.

Following consultation the Government has decided that entertainers who are engaged under a contract for services (a self-employed contract) should be treated as self-employed for tax, NICs and student loan purposes from 6 April 2014. 

This time we have a new guide to directors' service contracts. Directors should have service contracts according to the Companies Act 2006. Somewhat confusingly (for everyone, I imagine and not just us tax folk) section 188 of that act considers that there is an "employment" created by a director's service contract. Some rather careful thought is required as to what goes into a director's service contract; do you really want to create an actual employment for tax, or not?