HM Treasury have opened a new consultation 'Making Tax Digital for Corporation Tax' inviting views on how the principles of Making Tax Digital (MTD) could be implemented for Corporation Tax.
SME Tax News
The Annual Investment Allowance expenditure amount has been extended to £1 million until 31 December 2021.
In Dr J Gibson (deceased) vs HMRC [2020] TC07916, the First Tier Tribunal (FTT) allowed the taxpayer’s late claim for pension enhanced protection finding the taxpayer had a reasonable excuse and had notified HMRC of the claim without unreasonable delay.
In March 2020, HMRC published 'Preventing abuse of the R&D tax relief for SMEs: Second consultation'. It looked at the design of the PAYE cap being introduced to prevent abuse of the R&D payable tax credit. The new cap will apply from April 2021.
In a 'Summary of Responses to its Tackling Construction Industry Scheme (CIS) Abuse consultation', HMRC confirms several changes to the CIS rules' new limits for deemed contractors and clarification as to when subcontractors may claim a deduction for the cost of materials.
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This time we are covering quite a diverse range of topics. What does the Office of Tax Simplification (OTS) recommend for the future of Capital Gains Tax (CGT)? We explore enduring tax imponderables on the nature of a trade. We have ever more essential updates on COVID-19 funding, new guides on farming and Corporation Tax (CT), as well as more updates, cases and, of course,VAT.
The Office of Tax Simplification (OTS) has published 'Simplifying by Design', the first report of its current Capital Gains Tax (CGT) review. It recommends some major changes to CGT including increasing tax rates and removing business asset reliefs.
In Hopscotch Limited v HMRC [2020] UKUT 0294, the Upper Tribunal (UT) upheld a First Tier Tribunal (FTT) decision that the taxpayer was subject to the Annual Tax on Enveloped Dwellings (ATED). The redevelopment of the property did not constitute a trade and so relief from the charge was not available.
In Heacham Holidays Limited v HMRC [2020] TC07883, the First Tier Tribunal (FTT) upheld fixed penalties imposed by HMRC for the late-filing of the taxpayer's Annual Tax on Enveloped Dwellings (ATED) return but discharged the daily penalties imposed as they were issued retrospectively without notice.
The government has published ‘Corporate Liability for Economic Crime Call for Evidence: Government Response’, three years after the original consultation ended.