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As we move into the last two weeks of self assessment filing, we have some top tips for late filers, some cases of penalties and many updated guides.
SME Tax News
If you fill in the repayment pages of your Self-Assessment Tax Return you may not receive the refund in the account you have specified following HMRC policy change.
In Hesketh v HMRC [2017] TC06266 the First Tier Tribunal (FTT) found that the taxpayer’s ignorance of the new rules for Non-Resident Capital Gains Tax (NRCGT) was not a reasonable excuse for the late filing of their NRCGT returns and upheld the penalties. This contrasts with the opposite decision in the Rachel McGreevy case.
In Welland v HMRC [2017] TC06265 the First Tier Tribunal (FTT) found that the taxpayer’s ignorance of the new rules for Non-Resident Capital Gains Tax (NRCGT) was not a reasonable excuse for the late filing of his NRCGT returns. The penalties were upheld, but special relief was granted.
In Patrick Cannon v HMRC [2017] TC06254, the First-Tier Tribunal (FTT) quashed two of three penalties for a tax barrister, finding he had taken reasonable care despite misunderstanding the furnished holiday let rules.
HMRC have changed their view as to how they calculate penalties for error or mistake in a tax return. They have updated a number of compliance checks factsheets over recent weeks and this has lead to confusion as to what extent penalties will be reduced for the timing of a disclosure.
In Barker v Baxendale Walker Solicitors (a firm) & Ors [2017] EWCA Civ 2056 the Court of Appeal found that the solicitors advising on an EBT structure were negligent in not warning their clients that the scheme could fail.
Hello
This time we are having a closer look at late filing penalties. We also have new guides on the disguised remuneration loan charge.
HMRC has published a response to its consultation, ‘Scope of VAT Grouping’, looking at whether changes should be made to the rules on forming a VAT group should be changed following European Court decisions.