In Nicholas Walewski v HMRC [2021] UKUT0133, the Upper Tribunal (UT) confirmed the operation of the Mixed Memberships rules. It attributed the Limited Liability Partnership (LLP) profits of a corporate member to an individual member for tax purposes after it agreed with the First Tier Tribunal (FTT) that he had the power to enjoy them through a trust created for his children.
SME Tax News
Hello,
In this issue we try to avoid ‘death by (very long) Agent Update'. HMRC is now issuing these updates monthly, and we try to ‘skip to the good bits’ and bring you the highlights of each issue.
HMRC have issued their Agent Update for June 2021. As it was so long, we have summarised key content for you with links to our detailed guidance on the topics covered.
HMRC are reporting that a significant number of Self Assessment tax returns for 2020/21 have contained inconsistencies relating to the Self-Employment Income Support Scheme (SEISS) grants. Consequently, HMRC have been unable to automatically process the returns and delays are being incurred.
In WT Banks & Co (Farming) Ltd v HMRC [2021] TC08124, the First Tier Tribunal (FTT) found amounts paid by one company to another with a common shareholder were neither non-trading loan relationship debits when written off, nor loans to the controlling participator of the lender.
In Northern Light Solutions Ltd v HMRC [2021] UKUT134, the Upper Tribunal (UT) agreed that IR35 applied to a Personal Service Company (PSC). The control and mutuality tests were met and an obligation for personal performance made the right of substitution almost theoretical.
VAT registered businesses were able to defer VAT payments, due to the arrival of Covid-19 for the periods from 20 March 2020 to 30 June 2020. Businesses that have not repaid this VAT are required to take action by 21 June 2021 to avoid a penalty.
HMRC have released additional data on the number of live cases being investigated and reviewed under the Corporate Criminal Offences (CCO) for the failure to prevent the facilitation of tax evasion legislation. It has 28 ongoing potential investigations, a slight drop from the 31 cases in October 2020.
Finance Bill 2021 received Royal Assent on 10 June 2021 and became Finance Act 2021.
HMRC have announced a trial relaunch of the Agent Dedicated Line (ADL) from 14 June 2021, providing priority access for agents.