SME Tax News

Hello,

We have an unusual mix of news and articles this week covering further coronavirus support measures, negligence claims in failing to mention Capital Gains Tax (CGT) planning opportunities on a business disposal, PAYE assessments made on directors instead of their employers and, new subscriber guides for beta testing.

The deferral of VAT payments under the government’s COVID-19 support package ends on 30 June 2020. Businesses who have taken advantage of this must remember to reinstate their VAT direct debits in time for their first post 30 June VAT payment date.

In Shamir Pravin Budhdeo, Amarjit Singh Hundal & Joshy Mathew v HMRC [2020] TC7679, the First Tier Tribunal (FTT) denied appeals by directors against regulation 72 assessments for unpaid PAYE. The amounts were earnings, the directors knew the company could not pay the PAYE and NICs and the failure to deduct was wilful.

In Ahmed Adiatu & Independent Workers Union of Great Britain (IWGB) v HM Treasury [2020] EWHC 1554, an Uber driver and his union made an unsuccessful claim for a judicial review of the government’s COVID-19 support measures for lower-paid workers.

In Hugh McMahon v Grant Thornton UK LLP [2012] CSOH 50, a firm of chartered accountants were not found to be negligent in failing to recommend some Entrepreneurs’ Relief planning in the event of a share sale. Such ad hoc advice was not listed within the scope of their personal tax compliance services and had not been requested by the client.

The Public Accounts Committee (PAC) has recently opened an inquiry into the UK's management of ‘tax expenditures’ and tax reliefs provided for certain activities or goods, an area it has kept under review for the last ten years.