SME Tax News

In Dr Marie Hallen & Dr Anette Persson v HMRC [2020] TC7775, the First Tier Tribunal (FTT) upheld penalties for inaccuracies in tax returns relating to a tax avoidance scheme. The taxpayers knew their returns were wrong, their behaviour was deliberate.


There is quite a lot of news to report this week. The 2020 Finance Act is now law. The government has published a batch of new policy papers covering measures proposed for Finance Act 2021, as well as updating its guidance on Making Tax Digital (MTD).

The government has published the first batch of its new policies and consultations alongside a draft Finance Bill for 2021. We have reviewed the following measures.

In Thimmaiah Gummatira v HMRC [2020] TC7767, the First Tier Tribunal (FTT) dismissed an appeal against penalties for failure to notify HMRC of a liability to the High-Income Child Benefit Charge. Neither a reasonable excuse nor special circumstances existed to warrant a reduction in the penalties.

HMRC have published a policy paper, 'Changes to the treatment of termination payments and post-employment notice pay for Income Tax'. This proposes to amend the rules for the calculation of Post-Employment Notice Pay on termination of employment from 6 April 2021.

Finance Bill 2020 received Royal Assent on 22 July 2020 and became Finance Act 2020, a day after the government issued the next draft Finance Bill for 2020-21.