HMRC have published their Employer Bulletin for February 2021. We summarise the key content for you, with links to our detailed guidance on the topics covered.
SME Tax News
In Simon Padfield, Satnam Bhogal, Allan Dunn & Conor McCloskey v HMRC [2020] TC07983, the First Tier Tribunal (FTT) held that a tax avoidance scheme involving derivative trading to generate an allowable loss and a tax-free gain in separate transactions had to be viewed as a whole, with the gain cancelling out the loss.
In Sharon Clipperton & Steven Lloyd v HMRC [2021] TC07998, the First Tier Tribunal (FTT) found that profit extraction scheme that aimed to trigger the Settlements legislation's revert to settlor rule was really just a distribution to the settlor's shareholders. The 'Ramsay principle' applied.
In Sharon Clipperton & Steven Lloyd v HMRC [2021] TC07998, the First Tier Tribunal (FTT) found that a profit extraction scheme that aimed to trigger the Settlements legislation was really just a distribution to the settlor's shareholders.
Certain contributory benefits can be negatively impacted if payments made under a Time to Pay arrangement with HMRC are not allocated correctly.
In RMF Construction Services Ltd v HMRC [2021] TC07995, the First Tier Tribunal (FTT) allowed the company’s appeal against the withdrawal of Construction Industry Scheme (CIS) gross payment status eight years after associated compliance failures.
In Edward and Clare Partridge v HMRC [2021] TC7991, the First Tier Tribunal (FTT) denied SDLT Multiple Dwellings Relief on the purchase of a house with an annexe. It was a single dwelling.
Hello
I have been updating our Construction Industry Scheme (CIS) Reverse Charge VAT guide over the last day or two. The new regime is due to commence in April, and to help explain some of the trickier aspects of the proposed regime we have added some examples. Construction firms should now be making changes to their VAT accounting systems and training staff as necessary. There is a lot to take on board.
In HMRC v Anna Cook [2021] UKUT 0015, the Upper Tribunal (UT) reversed a decision of the First Tier Tribunal (FTT) decision, Ceroc dance tuition is not exempt from VAT. It is not a supply of private tuition in a subject ordinarily taught at school or university.
In Foojit Ltd v HMRC [2021] UKUT 0014, the Upper Tribunal (UT) confirmed that HMRC were right to refuse to issue compliance certificates allowing EIS relief on shares with preferential dividend rights. Although advanced assurance had been given, the company later changed its articles.