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Just a short newswire this week, we have some cases, we have some VAT and we also wonder why so many trusts are not reporting their ten year charges.
SME Tax News
In Douglas Atherley v HMRC [2018] TC06610 the First Tier Tribunal (FTT) found that the write off of a loan to a trading company did result in an allowable capital loss; the facts proved the loan was irrecoverable despite the taxpayer’s unrealistic hope that the remaining balance would be repaid.
In J & L Benson Building Services Ltd [2018] TC6545 PAYE RTI penalties were cancelled by the FTT: the specimen copy of an assessment provided to the tribunal by HMRC was rendered invalid.
HMRC have recently released details of the value of assets held in UK taxpaying discretionary trusts at the ten yearly charge date, and have confirmed that information for more recent years is deemed to be incomplete because of delays by trustees in submitting accounts to HMRC.
In Gerrard Gordon, Gary Connell, Nicola Martino and Ian Hills v HMRC [2018] TC06537 the FTT found that HMRC was too late to raise a discovery assessment for an unauthorised payment charge. Despite knowing that the taxpayers had used the discredited Wenns non-qualifying overseas pension scheme it delayed assessment for several years and the discovery became 'stale'.
Hello
This time, I recommend you have a speed read of the items in our 'Being Digital' section. Even if you don't like a conspiracy you will shudder at some of the findings in the Common's Culture, Media and Sports committee. MPs also recommend further education on the 'dark ways' of social media, and so I have created a FAQs on what happens to your data.
The independent Office of Tax Simplification (OTS) have published a paper 'Platforms, the Platform economy and Tax Simplification' this considers the case for a new tax deduction system for workers who provide their services via online platforms. A key suggestion being, that platforms could deduct tax at source.
The government have issued draft legislation for consultation on the creation of a register of beneficial owners of overseas entities owning UK property intended to take effect from 2021.
In C J Wildbirds Food Ltd v HMRC [2018] TC06556 the First Tier tribunal agreed that a loan which could not be repaid and was written off by the lender was a loan relationship and a deduction was allowed for the impairment debit.
The Low Incomes Tax Reform Group (LITRG) is urging people to contact HMRC if they have missed the 31 July 2018 tax credits renewals deadline. The sooner you contact HMRC then the sooner they can get their tax credit payments re-started, If you are lucky, you might catch HMRC in time to renew before your payments are stopped.