SME Tax News

In Paul Newey (T/A Ocean Finance) v HMRC [2020] TC07844, the First Tier Tribunal (FTT) held that the offshore transfer of a business to avoid incurring irrecoverable VAT was not abusive.

In HMRC v Cheshire Centre for Independent Living [2020] UKUT0275, the Upper Tribunal (UT) ordered HMRC to pay the taxpayers costs despite HMRC’s case being successful. It had acted unreasonably in introducing new grounds of appeal.

In Miroslaw Pawlikowski v HMRC [2020] TC7584, the First Tier Tribunal (FTT) dismissed the taxpayer’s appeal against HMRC’s denial of tax credits for 2016/17 in respect of certain CIS deductions. The taxpayer failed to keep adequate records to support his claim.


We have our usual eclectic mixture of news and features this week. Mostly, our updates are inspired by the queries coming in to our sister Virtual Tax Partner service.

In AHK Recruitment Ltd v HMRC [2020] TC7718, the First Tier Tribunal (FTT) denied claims of SME Research & Development (R&D) relief. The conditions for relief were not met as there was no evidence of an advance in science or technology.

HM Treasury have opened a new consultation ‘The scope of qualifying expenditures for R&D Tax Credits’ seeking views on what costs companies can include in R&D tax credit claims and whether they should be updated to reflect modern trends in R&D.