Hello,
If you have been confused by the 'off-payroll working' rules then do not fret, it appears, from their newly published accounts, that neither the Home Office nor the Department of Work & Pensions got the hang of them either.
SME Tax News
The Department for Work and Pensions (DWP) and Home Office 2020-21 accounts reveal that their failure to test employment status of workers and to apply the public sector Off-Payroll Working rules cost them £117m. HM Revenue & Customs (HMRC) also charged the Home Office a 4million penalty for error. This was later suspended.
In North Point (Pall Mall) Limited & China Town Development Company Limited v HMRC [2021] TC8205, the First Tier Tribunal (FTT) dismissed appeals against determinations for tax not deducted under the Construction Industry Scheme (CIS). The contractors had failed to take reasonable care by making gross payments to their sub-contractor without checking their status.
The government has opened bidding in the first round of funding under the Community Ownership Fund. £150 million is being provided over four years to support community groups take ownership of assets and amenities at risk of being lost.
In JRO Griffiths Ltd v HMRC [2021] TC08203, the First Tier Tribunal (FTT) found that a potato storage facility was both a silo for temporary storage and a cold store. It was plant and was eligible for capital allowances.
In July 2021 HMRC opened a consultation ‘Reporting rules for Digital Platforms’ which considers the implementation of the new Organisation for Economic Co-operation and Development (OECD) Model Reporting Rules for Digital Platforms.
HMRC have issued new guidance for executors and personal representatives on how to register and manage an estate for Income Tax and Capital Gains Tax purposes.
In Tinkler v HMRC [2021] UKSC 39, the Supreme Court examined the conditions for estoppel by convention, finding that an agents action in complying with an enquiry notice rendered a tax enquiry and a subsequent issued closure notices valid, even though the original enquiry notice was invalid.
HMRC have released notes from their Wealthy External Forum conference call which covered the conclusions to their research into the use of Family Investment Companies. The research was undertaken with a view to better supporting taxpayers understand and comply with their tax obligations.
In Alan Loughrey v HMRC [2021] TC08198, the First Tier Tribunal (FTT) allowed a taxpayer to appear against discovery assessments. He was not careless and the HMRC's 'hypothetical officer' should have considered Real-Time Information (RTI) to ascertain there was a shortfall of tax within the normal enquiry deadline.