HMRC published Agent Update 119 on 17 April 2024. Here is our summary of the highlights in direct and indirect tax announcements affecting SME owners and advisers.
SME Tax News
The First Tier Tribunal (FTT) found that a shareholder with a 4.99998% shareholding qualified for Entrepreneurs’ Relief (ER). A spreadsheet rounding error meant that 5% was not held, but the FTT decided that the High Court would have rectified this mistake, meaning that ER was available.
In HMRC v RALC Consulting Limited [2024] UKUT 00099 (TCC), the Upper Tribunal (UT) overturned a 2019 decision by the First Tier Tribunal (FTT) about the intermediaries legislation commonly referred to as IR35 which originally found in favour of the taxpayer. The case has been remitted back to the FTT which must now reconsider the arguments.
An attempt to claim negligible value relief was rejected by the First Tier Tribunal (FTT). It was found that the shares were already of negligible value at the time of acquisition.
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Today is ‘Tax Administration and Maintenance Day’, it is not a mini-budget, more of a publishing opportunity for HMRC! It includes details of a proposed new VAT relief for charitable donations which will be consulted on fully later this year.
The government has released a consultation addressing the potential VAT implications of recent case law developments on the Private Hire Vehicle (PHV) sector and its passengers.
Thursday 18 April 2024 was 'Tax Administration and Maintenance Day'. The government published several tax policy proposals and updates, including changes to VAT on charitable donations and tackling non-compliance in the umbrella companies market.
A Norfolk-based accountant has been severely reprimanded, excluded from membership of the ICAEW, and ordered to pay costs of £55,645 for favouring one party over another in a dispute following a divorce.