SME Tax News

HMRC have published their Report and Accounts and other documents for 2021-22. The accounts report revenues of £731.1 billion, a 20.1% increase since 2020-21, although 23.8% of this (£173.8 billion) remained unpaid at the year-end. Its audit was qualified due to high levels of error and fraud.

In Altan Goksu v HMRC [2022] TC08536, the First Tier Tribunal (FTT) allowed a deduction for capital losses brought forward despite no evidence that they had been notified to HMRC over twenty years earlier. The tribunal reduced the amount as it could not be supported by the taxpayer.

In SC Properties Limited and Richard Cooke v HMRC [2022] TC08537, the First Tier Tribunal (FTT) decided a property was sold by individuals not a partnership. As no partnership existed any CGT and SDLT relief that was claimed on its disposal was denied.

The Office of Tax Simplification (OTS) has published a new policy paper ‘OTS Review of tax simplification’ setting out what drives tax complexity and how officials making tax policy can work to prevent or mitigate that complexity.

HMRC have published their list of tax avoidance litigation decisions for the 2021-22 year. This identifies the results in litigation decisions where HMRC considered that tax avoidance was involved. The summary indicates a high win rate for HMRC. 

A growing number of commentators are noting that investing in a crypto-asset, such as, for example bitcoin or stablecoin is in reality no different to investing in a 'get rich quick' Ponzi scheme. There are also darker things afoot, decentralised finance (DeFi) based on blockchain technology has created a massive shadow banking system. There are worrying signs that this industry is starting to unfold as interest rates increase. 

 

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