HMRC have issued their Agent Update for February 2024. We have summarised the key content for you with links to our detailed guidance on the topics covered.
SME Tax News
HMRC have published new advisory fuel rates for company car drivers which apply from 1 March 2024.
February's Hot Cases returns with our pick of useful cases for accountants and advisors including a £6m unfair dismissal payment found taxable, a military defence fails HCBIC attack and 'clever' schemes to avoid tax on properties fail and fail again.
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They say that a week is a long time in politics; the same is sometimes true in tax! HMRC’s plan to change the classification of double cab pick-ups for employment benefit and Capital Allowance purposes back-fired over the weekend, due to pressure from industry lobby groups. This led to a reversal in policy (a U-turn!). The result is that double cab pick-ups remain vans and are not cars.
In 2015, a senior Deutsche Bank employee sacked in the fallout of the 2012 Libor rigging scandal, received £6m in compensation for unfair dismissal. The Upper Tribunal (UT) confirmed that the amount was taxable under PAYE and rejected the taxpayer's claim that the payment was received as a result of discrimination and was outside employment income.
Annual Investment Allowance (AIA) claims within groups and between companies under common control can be complicated. HMRC are writing to corporate groups and related companies that may have exceeded the AIA limit.
HMRC have updated their list of free and paid-for recognised payroll software used to report PAYE online. HMRC emphasise that they do not recommend one product or service over another and they are not responsible for any problems you have with the software you’ve bought.
The government has provided an update on the proposed registration scheme for short-term lets in England, and announced measures which will require planning permission for future short-term lets.
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