Institute of Chartered Accountants in England and Wales (ICAEW) members have reported considerable delays in HMRC's processing of Research and Development (R&D) claims, affecting both SME R&D relief and R&D expenditure credit (RDEC) claims. Expected processing time of 4 to 6 weeks has turned into 4 to 6 months.
SME Tax News
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This time: have you managed to file all your new Making Tax Digital for VAT returns for the June quarter? As more new tax schemes are featured in HMRC's spotlights, the Treasury sub-committee asks for HMRC to report on use of avoidance schemes. We also have a pick of interesting cases, consultations and much more.
We hope that most people have managed to file their VAT returns for the first quarter under Making Tax Digital for VAT. If you are still struggling (as so many of us are), here are some top tips.
In Executors of Mrs R W Levy v HMRC [2019] TC07233 the First tier tribunal held that HMRC did not have the power to issue a closure notice where the amount of tax due had not yet been determined.
In Gordon Lim v HMRC [2019] TC07158 the FTT held no deduction could be claimed for forfeited property deposits and payments for breach of contract; the taxpayer had not incurred the costs as part of his property dealing trade.
HM Treasury have published a response to ‘Digital services tax: consultation’, regarding the design and implementation of the proposed new tax to be introduced from April 2020.
In Ernest Thomson & Ors v HMRC [2018] TC 6598 the First Tier Tribunal decided three taxpayers who dealt in contracts for difference were not trading; they were not able to offset losses against income from other sources.
The Treasury Sub-Committee's new report 'Disputing Tax' focuses on its two ongoing tax-related inquiries, covering the steps that HMRC has taken to address public concerns around tax avoidance and evasion and HMRC’s approach to conducting tax enquiries and resolving tax disputes and makes new recommendations to HMRC and to the professional bodies.
Missed our SME Tax Web-updates in July? Here is a summary of the month.
Dropbox deleted our data and then restored it with the wrong dates. Users of Dropbox need to be aware that the service has a massive flaw. If things go wrong and you have to restore lost data, it will re-date all your files and folders to the date of restoration.