SME Tax News

In Steadfast Manufacturing & Storage Limited v HMRC TC7770, HMRC were unsuccessful in attempting to disallow the costs of resurfacing a yard as capital. The First Tier Tribunal (FTT) found there was no improvement and allowed the costs as a revenue deduction for repairs.

In Fastklean Limited v HMRC [2020] TC2004, an employer who filed Employment Intermediaries Returns to please HMRC was successful in claiming reasonable excuse for late filing. Tax counsel had advised that no returns were due.

In Dr Marie Hallen & Dr Anette Persson v HMRC [2020] TC7775, the First Tier Tribunal (FTT) upheld penalties for inaccuracies in tax returns relating to a tax avoidance scheme. The taxpayers knew their returns were wrong, their behaviour was deliberate.


There is quite a lot of news to report this week. The 2020 Finance Act is now law. The government has published a batch of new policy papers covering measures proposed for Finance Act 2021, as well as updating its guidance on Making Tax Digital (MTD).

The government has published the first batch of its new policies and consultations alongside a draft Finance Bill for 2021. We have reviewed the following measures.

In Thimmaiah Gummatira v HMRC [2020] TC7767, the First Tier Tribunal (FTT) dismissed an appeal against penalties for failure to notify HMRC of a liability to the High-Income Child Benefit Charge. Neither a reasonable excuse nor special circumstances existed to warrant a reduction in the penalties.