SME Tax News

In Marlborough DP Ltd v HMRC [2021] TC08246, the First Tier Tribunal (FTT) held that loans funded by a remuneration trust were not earnings, or disguised remuneration taxable under part 7A of ITEPA 2003. They were taxable as distributions so no Corporation Tax deductions could be claimed by the contributing company.

In Fashion on the Block Ltd v HMRC [2021] TC08248, the First Tier Tribunal (FTT) adjudged that completing the wrong form was not an acceptable reason for HMRC's refusal to allow the issue of SEIS qualifying shares.

HMRC have updated their CT600 guidance to cover the declaration requirements for Coronavirus Job Retention Scheme (CJRS) payments for companies and advised that this will require tracking on both the accruals and cash basis.

As part of its National Data Strategy, the government has launched a consultation, 'Data: a new direction' on reforms to create a pro-growth and trusted data regime.

Legislation has been laid before parliament which will end the COVID-19 Statutory Sick Pay (SSP) rebate scheme on 30 September 2021. Eligible employers must claim their rebates by 31 December 2021.

The current annual limit on the provision of tax-free staff parties and events by an employer last increased from £75 to £150 in 2003. Allowing for the effects of inflation, this limit might be expected to increase to at least £243 today. Bearing in mind that many employers and employees have not been partying at all due to COVID-19, should we ask the Chancellor to increase the £150 annual staff parties (or functions) limit?

 

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