SME Tax News

Hello 

Some good news, this week. During the course of the parliamentary debate on the 2019 Finance Bill, HMRC have made modifications to the proposed changes to the qualifying conditions for Entrepreneurs' Relief. 

In Timothy Raggatt QC v HMRC UKUT 0412, the upper tribunal held that a barrister with fluctuating income does not need to provide a reserve to pay his or her income tax but must still make adequate provisions to pay income tax as it falls due.

In Shareen Booth v HMRC [2018] TC6904 the FTT agreed on a 20% tax penalty for the careless failure to report a capital gain on the disposal of her renovated property. 

HMRC say that where a settlement has not been reached on a disguised remuneration loan scheme by 5 April 2019, they will still give consideration to reaching an agreement under the existing terms.

Proposed changes to the definition of a personal company for Entrepreneurs' Relief have been amended as Finance Bill 2019 goes through parliament, to offer an alternative, less stringent test.

Fewer than a third of company incorporations took advantage of the new joined HMRC and Companies House 'Streamlined Company Registration Service' last year.