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It's nearly over, that's the Self Assessment 'season', if only we could say the same about Brexxxk. We're reporting some fascinating stuff this week. Read on.
SME Tax News
In Petrol Service Limited v HMRC [2018] TC06907 the FTT found that 'self employed' consultancy fees paid to the company’s directors were taxable employment income in respect of their directorships.
The Office of Tax Simplification (OTS) have published “Tecnhology Review: a vision for tax simplicity”, to consider how to use technology to achieve a simpler and better “user experience” without taking away taxpayer understanding and responsibility for their tax affairs.
In Michael John Febrey v HMRC [2018] TC6897 a director was lucky to avoid a reg 72 determination making him personally liable for unpaid PAYE. The FTT found that accounting entries for a salary paid before a company went into liquidation were not actual paid earnings.
HMRC have announced the opening of a new Profit Diversion Compliance facility to allow large international groups using arrangements targeted by Diverted Profits Tax (DPT) to bring their UK tax affairs up to date.
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This time: new facts and figures on the loan charge. Fluctuating income is no excuse for being late in paying your Self Assessment bill and check out our new TAAR tool.
In Timothy Raggatt QC v HMRC UKUT 0412, the upper tribunal held that a barrister with fluctuating income does not need to provide a reserve to pay his or her income tax but must still make adequate provisions to pay income tax as it falls due.
In Munro Sawmills Limited v HMRC [2018] TC 6645, the tribunal held that a company had reasonable excuse in its belief that it had filed its P11D(b) return on time.
In UBI Ltd v HMRC [2018] TC06771, the FTT agreed that a company with a poor compliance record was reasonably required to provide HMRC with security for PAYE liabilities. It failed to keep to a time to pay agreement.
If you have received a dividend during a company liquidation it is now vital to check the TAAR conditions before you submit your tax return to HMRC.