An attempt to claim Entrepreneurs' Relief (ER) on liquidation distributions was denied by the First Tier Tribunal (FTT). It was found that the company in liquidation had never commenced trading. Simply attempting to enhance the value of land acquired before its disposal is not sufficient to amount to trade.
SME Tax News
The Chancellor of the Exchequer Jeremy Hunt made his Spring Budget 2024 announcement on 6 March 2024 these are the live highlights of the speech.
For our full summary of the budget publications see: Spring Budget 2024: At a glance
HMRC have published the quarterly statistics for Tax-free Childcare for the period ending 31 December 2023. There is reduced usage for the scheme but a greater overall spend.
Missed our SME Tax Web-updates in February? Here is a summary of the month.
Hello,
February has been an extremely busy month and this is reflected in the content of this week's Web-update. We are taking a look at HMRC's latest Agent Update and Employer Bulletin, having a speed-read-refresher on the key measures in the new Finance Act, there are a couple of new consultations from HMRC on administration and powers and, of course, we have reviewed some interesting cases, including two from the Upper Tribunal (UT).
New research shows that 40% of HMRC's list of deliberate tax defaulters are involved in engineering and construction. Gross Payment Status (GPS) is conditional on tax compliance, new Construction Industry Scheme (CIS) registration tests apply from 6 April 2024.
In Gareth Evans vs HMRC [2023] TC08946, the First Tier Tribunal (FTT) found that information requested by HMRC in regards to Mr Evans's use of a tax avoidance scheme was 'reasonably required' to assess his overall tax position.
HMRC published another Employer Bulletin this February, we have summarised the key points including benefits and payrolls, and added some extra details and links where we think it will be useful to do so.
Another umbrella company’s pay model has not survived the hard scrutiny of the tax tribunal. A lack of evidence of sufficient 'mutuality of obligation' during downtimes meant no overarching contract of employment and therefore all worker travel costs were ordinary commuting.
The Court of Appeal ended a couple's attempt to claim stamp duty land tax under a deceptively simple sub-sale relief scheme. The scheme just did not work. A company incorporated to purchase a property and then transfer it to its individual owners by way of a capital reduction did not avoid any tax as the subscription price of their shares formed consideration for the property.