SME Tax News

HM Treasury have opened a new consultation 'Making Tax Digital for Corporation Tax' inviting views on how the principles of Making Tax Digital (MTD) could be implemented for Corporation Tax.

The Annual Investment Allowance expenditure amount has been extended to £1 million until 31 December 2021. 

HMRC are contacting an increasing number of employers who may need to repay some, or all, of the grant they received under the Coronavirus Job Retention Scheme (CJRS).

In March 2020, HMRC published 'Preventing abuse of the R&D tax relief for SMEs: Second consultation'. It looked at the design of the PAYE cap being introduced to prevent abuse of the R&D payable tax credit. The new cap will apply from April 2021.

In a 'Summary of Responses to its Tackling Construction Industry Scheme (CIS) Abuse consultation', HMRC confirms several changes to the CIS rules' new limits for deemed contractors and clarification as to when subcontractors may claim a deduction for the cost of materials.

In Dr J Gibson (deceased) vs HMRC [2020] TC07916, the First Tier Tribunal (FTT) allowed the taxpayer’s late claim for pension enhanced protection finding the taxpayer had a reasonable excuse and had notified HMRC of the claim without unreasonable delay.