SME Tax News

In Neill Dyer v HMRC [2020] TC07567, an accountant’s claim that he had retained personal ownership of the goodwill of his practice, following its incorporation was rejected by the First Tier Tribunal (FTT). No such asset existed and his claim for Entrepreneurs’ Relief when he did dispose of his asset was rejected.

HMRC have published their Employer Bulletin for February 2020. We summarise the key content for you, with links to our detailed guidance on the topics covered.

HMRC have advised that as income tax thresholds and rates will not now be finalised until March, tax codes for 2020/21 will have to be initially calculated using 2019/20 rates and then revised as necessary after the budget.

In early 2019 the Department for Business, Energy and Industrial Strategy (BEIS) launched a National Minimum Wage consultation on salaried workers and salary sacrifice schemes. The response has now been published.

In LINPAC Group Holdings Ltd v HMRC [2020] TC7556, the First Tier Tribunal (FTT) found that EU group relief claims did not replace earlier domestic claims to relief. The UK claims remained valid.

Hello,

I gave a talk on the new Construction Industry Scheme (CIS) reverse charge VAT measures (due to apply in October) this week. My chatty audience asked many questions and we worked through many of the practicalities of implementing the changes that are required to reverse charge your supplies. I am not sure that any of my software currently allows me to use both cash and accruals accounting at the same time and I wonder how many people have actually tried a ‘walk through’ of a typical construction contract under the proposed measures. I recommend that you have a go.