Search results
1576 results ordered by
Snow Factor – Upper Tribunal determines the meaning of "financial extremity"
In Snow Factor Ltd v HMRC [2019] UKUT 77 (TCC), the Upper Tribunal (UT) has determined the meaning of the phrase "financial extremity might be reasonably expected to result from that decision of HMRC" in section 85(B), Value Added Tax Act 1994 (VATA).
Read moreMacleod – insurance premiums paid not earnings from taxpayer's employment
In Macleod and Mitchell Contractors Limited and William Mitchell v HMRC [2019] UKUT 0046 (TCC), the Upper Tribunal (UT) has held that insurance premiums paid by the company on policies taken out in the sole director's name were not earnings from employment.
Read moreTang - Bare trust existed notwithstanding lack of trust document
In Lily Tang v HMRC [2019] UKFTT 81, the First-tier Tribunal (FTT) held that there was a bare trust despite the absence of a trust document and that the bare trustee was not liable to notify HMRC or for tax in relation to funds she held on trust.
Read moreIs it now inevitable corporates will face new “failure to prevent economic crime” offences?
Back in September 2014, the then Attorney General, Jeremy Wright QC MP announced that the Government was considering proposals to create a new corporate offence of failing to prevent economic crime. A change of corporate culture was sighted as being necessary to fully address the scale of fraud reported by the Global Economic Crime Survey.
Read moreAlbatel - TV presenter wins £1.2m tax case
In Albatel Ltd v HMRC [2019] UKFTT 0195 (TC), the First-tier Tribunal (FTT) held that the so-called IR35 legislation did not apply to the provision of services by Lorraine Kelly to ITV.
Read moreGardner Shaw – directions subject to a pending appeal should not have been varied
In Gardner Shaw UK Ltd and others v HMRC [2018] UKUT 419 (TCC), the Upper Tribunal (UT) has held that the First-tier Tribunal (FTT) should not have varied directions which the FTT had previously issued, when they had been the subject of an unsuccessful appeal to the UT and when an appeal to the Court of Appeal was pending.
Read moreTax update - April 2019
In this month’s update we report on (1) HMRC’s guidance on self-reporting failure to prevent the facilitation of tax evasion; (2) HMRC’s consultation on secondary preferential creditor status on insolvency of a business; and (3) a Parliamentary Select Committee’s call for a public register of beneficial ownership in each British Overseas Territory. We also comment on three recent cases relating to (1) the concept of “staleness” in discovery assessment appeals; (2) a failed DOTAS application brought by HMRC; and (3) the extra-territorial reach of HMRC information notices.
Read moreVAT update March 2019
In this month’s update we report on (1) HMRC’s updated guidance on claiming exemption from Making Tax Digital for VAT; (2) the latest edition of HMRC’s impact assessment for the movement of goods if the UK leaves the EU without a deal; and (3) HMRC’s policy change on VAT treatment of personal contract purchases.
Read morePraesto - input tax recoverable on fees incurred in defending proceedings against its director
In Praesto Consulting UK Ltd v HMRC [2019] EWCA Civ 353, the Court of Appeal has held that a company was entitled to recover input tax on legal fees it incurred in defending civil proceedings brought against its director.
Read moreNew corporate criminal offence: Failure to prevent the facilitation of tax evasion
The Criminal Finances Act 2017, which received Royal Assent on 27 April 2017, introduces new strict liability corporate criminal offences of failure to prevent criminal facilitation of tax evasion. The legislation came into force on 30 September 2017.
Read moreTime to abandon 'fairness'?
In recent years the word 'fair' has become a common feature of HMRC's lexicon. It is often connected with claims by HMRC that a taxpayer is not paying his or her "fair share of tax". It is disseminated with predictable regularity across HMRC press releases, guidance notes and spokesperson's quotes.
Read moreWhen does delay by HMRC render a discovery assessment invalid?
In the recent case of Clive Beagles v HMRC [2018] UKUT 380 (TCC), the Upper Tribunal (UT) held that a delay of nearly two and a half years between (i) HMRC discovering that a taxpayer's self-assessment tax return was insufficient and (ii) HMRC issuing an assessment, was too long. As the discovery had become 'stale' by the time of the assessment, the assessment was invalid.
Read moreCurzon – contractor loan scheme notifiable under DOTAS but scheme administrator not a 'promoter'
In HMRC v Curzon Capital Ltd [2019] UKFTT 0063 (TC), the First-tier Tribunal (FTT) has held that a contractor loan scheme was a notifiable arrangement for the purposes of the disclosure of tax avoidance arrangements (DOTAS) regime, but that the scheme administrator was not a promoter. Accordingly, HMRC's application for an order that the arrangements were notifiable was dismissed.
Read moreTax update - March 2019
In this month’s update we report on (1) clarification from HMRC on time limits for discovery assessments into tax returns where the loss of tax is due to avoidance; (2) HMRC’s updated guidance for settling disguised remuneration schemes; and (3) confirmation in Spotlight 48 that taxpayers who have taken out disguised remuneration loans do not need to obtain a deed of release or exclusion of the loan from the lender before HMRC will agree a settlement.
Read moreVAT Update - February 2019
In this month’s update we report on (1) changes to the VAT IT system rules and processes if the UK leaves the EU without a deal; (2) EU exit legislation; and (3) revisions to HMRC’s Notice of Making Tax Digital for VAT.
Read moreJimenez - Court of Appeal confirms extra-territorial reach of information notices
In R (oao Jimenez) v HMRC [2019] EWCA Civ 51, the Court of Appeal has held that HMRC can issue an information notice to a taxpayer under paragraph 1, Schedule 36, Finance Act 2008 (FA 2008), even if he is non-resident.
Read moreCustoms and excise quarterly update: February 2019
In this update we report on the effect of a no deal Brexit in relation to (1) customs processes and procedures; (2) binding tariff information; and (3) changes to tax procedures. We also comment on three recent cases relating to (1) obtaining an injunction when HMRC revoke Authorised Warehousekeeper status; (2) the application of retrospective inward processing authorisation periods; and (3) the seizure of vehicles.
Read moreHegarty – HMRC information notices invalid
In Hegarty v HMRC [2018] UKFTT 0774 (TC), the First-tier Tribunal (FTT) has held that HMRC issued invalid information notices under paragraph 1, Schedule 36, Finance Act 2008 (FA 2008), as it did not provide any evidence to support its suspicion that the taxpayers had paid insufficient tax.
Read moreCorporate tax update - Fourth quarter 2018
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this final 2018 edition we highlight some of the key tax developments of interest to UK corporates from the fourth quarter of 2018.
Read moreHMRC launches profit diversion compliance facility
On 10 January 2019, HMRC launched their Profit Diversion Compliance Facility (PDCF). The PDCF is a new voluntary disclosure facility, aimed at multinational enterprises (MNEs), that provides them with an opportunity to disclose and correct tax inaccuracies relating to profits diverted out of the UK.
Read moreHymanson – HMRC's decision to revoke the taxpayer's fixed protection was unreasonable
In G Hymanson v HMRC [2018] UKFTT 667, the First-tier Tribunal (FTT) has held that HMRC’s decision to revoke the taxpayer's fixed protection was unreasonable and directed that it be reinstated. In so finding, the FTT applied the equitable maxim ‘that which should be done should be treated as having been done’.
Read moreTax update - February 2019
In this month’s update we report on (1) an Economic Affairs Committee report on treating taxpayers fairly; (2) HMRC’s extension of the deadline for responses to its consultation on the taxation of trusts; and (3) the Law Society’s practice note on the offence of failure to prevent the criminal facilitation of tax evasion. We also comment on three recent decisions relating to (1) the principles governing disclosure in the context of tax appeals;(2) business property relief under the Inheritance Tax Act 1984; and (3) the closure of an HMRC enquiry which was “drifting aimlessly”.
Read moreWilsons – HMRC unable to obtain law firm's records
In Wilsons Solicitors LLP v HMRC [2018] UKFTT 627 (TC), the First-tier Tribunal (FTT) has held that the obligation to keep records under the Money Laundering Regulations 2007 (MLR) does not make a law firm a relevant data-holder for the purposes of HMRC's data-gathering powers.
Read moreVAT update - January 2019
In this month’s update we report on (1) refunds of VAT in the UK for non-EU businesses; (2) changes to the VAT treatment of retained payments; and (3) revised HMRC guidance on when and how to account for VAT when you transfer a business as a going concern. We also comment on three recent cases involving (1) irrecoverable output tax; (2) the deductibility of a repayment supplement from an interest award; and (3) whether a taxpayer had a legitimate expectation that HMRC guidance could be relied upon.
Read moreOmagh: tax penalty was a "criminal charge" for the purposes of Article 6 of the ECHR
In Omagh Minerals Ltd v HMRC [2018] UKFTT 697 (TC), the First-tier Tribunal (FTT) has held that despite the civil nature of the underlying tax dispute, an aggregates levy penalty imposed on the taxpayer by HMRC was a "criminal charge" to which Article 6 (right to a fair trial), European Convention on Human Rights (ECHR), applied.
Read moreBanks: A real Brexit tax
In A Banks v HMRC [2018] UKFTT 617, the First-tier Tribunal (FTT) heard an appeal by Mr Arron Banks against HMRC's decision to deny him relief on certain donations he and his companies had made to the UK Independence Party (UKIP). The FTT decided that his rights had been infringed under the European Convention on Human Rights (the Convention) but there was nothing it could do to remedy that infringement.
Read moreGraham: taxpayer successfully appeals against APN penalty
In Kevin Graham v HMRC [2018] UKFTT 661 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against a penalty imposed by HMRC for non-payment of an accelerated payment notice (APN).
Read moreAddo - Disclosure against HMRC in tax appeals
In Addo v HMRC [2018] UKFTT 530 (TC), the First-tier Tribunal (FTT) considered the principles governing disclosure in the context of appeals before the FTT. This blog is based on an article which was first published in Tax Journal on 22 November 2018. RPC acted for the taxpayer in this case.
Read moreVacation Rentals – taxpayer had legitimate expectation that HMRC guidance could be relied on
In R (on the application of Vacation Rentals (UK) Ltd) (formerly The Hoseasons Group Ltd) v HMRC [2018] UKUT 383 (TCC), the Upper Tribunal (UT), has held that HMRC was bound by its published guidance in Business Brief 18/06 (BB18/06) concerning the treatment of payments for card handling services.
Read moreTax update December 2018
In this month’s update we report on (1) the published response to the consultation on creating a “fund structure” within the Enterprise Investment Scheme for investment in innovative knowledge-intensive companies; (2) the published response to the consultation on extending the IR35 rules to the private sector; and (3) the published response to HMRC’s tax abuse and insolvency discussion document. We also comment on three recent decisions relating to (1) penalties attaching to employment intermediaries returns (2); penalties for failing to file tax returns; and (3) CGT holdover relief where the transferor was a foreign controller of the transferee.
Read moreLivery business qualifies for BPR for IHT purposes
In HMRC v Personal Representatives of the Estate of Maureen M Vigne [2018] UKUT 357 (TCC), the Upper Tribunal (UT), in dismissing HMRC's appeal, has confirmed that a livery business attracted business property relief (BPR) under section 105, Inheritance Tax Act 1984 (IHTA), as the business did not consist of wholly or mainly in making or holding investments.
Read moreThe Serpentine Trust Ltd – HMRC entitled to raise VAT assessments despite binding contractual agreement
In The Serpentine Trust Ltd v HMRC [2018] UKFTT 535, the First-tier Tribunal (FTT) has held that although HMRC had agreed with the taxpayer one basis for calculating VAT, under its alternative dispute resolution (ADR) procedure, it was not precluded from raising VAT assessments on a different basis because the agreement reached was ultra vires and therefore void.
Read moreVAT update November 2018
In this month’s update we report on new regulations adopted by ECOFIN which are intended to combat VAT fraud, infringement proceedings brought against Italy and the UK following publication of the so-called “Paradise Papers” and publication of the response to HMRC’s consultation on the “split payment” method of VAT collection. We also comment on three recent decisions relating to the scope of the FTT’s jurisdiction in relation to public law issues, input tax recovery by a student union shop and application of the reverse charge rules to investment management services received from outside the EU.
Read morePatel – HMRC ordered to close enquiry which was "drifting aimlessly"
In Patel v HMRC [2018] UKFTT 0561 (TC), the First-tier Tribunal (FTT) directed HMRC, pursuant to section 28A, Taxes Management Act 1970 (TMA), to close its enquiry.
Read moreCustoms and excise quarterly update November 2018
In this update we report on HMRC’s guidance on how to prepare for the Customs Declaration Service, the launch of the Customs Declaration Service and HMRC’s guidance on trading with the EU in the event of a no-deal Brexit. We also comment on three recent cases relating to the calculation of gaming duty, tariff classification of seasoned chicken meat and mobility scooters.
Read moreWealth and trusts quarterly digest November 2018
Welcome to our latest Wealth & Trusts digest. Our quarterly digest is specifically tailored for you and aims to provide up to date commentary, analysis and guidance on key sector developments. It is written by our wealth and trusts teams to assist you and your clients in responding to market trends and legal developments.
Read moreThornton – Identifiable HMRC officer must determine penalties
In Robert, Adam and Dorothy Thornton (trading as A* Education) v HMRC [2018] UKFTT 568 (TC), the First-tier Tribunal (FTT) has held that penalties for failure to file employment intermediaries returns (EIRs) were invalidly issued, as they had not been made by an identifiable officer of HMRC under section 100, Taxes Management Act 1970 (TMA).
Read moreGriffiths – appeal against HMRC penalties allowed as notice to file was invalid
In Griffiths v HMRC [2018] UKFTT 0527 (TC), the First-tier Tribunal (FTT) has allowed the taxpayer's appeal against penalties imposed by HMRC as HMRC's notice to file a tax return was invalidly issued and in any event, the taxpayer had a reasonable excuse for failing to submit his return.
Read moreTax update November 2018
In this month’s update we report on proposals under consideration by the Treasury to extend capital gains tax relief to private landlords, HMRC’s factsheet on new higher penalties that it can impose where taxpayers have failed to declare and pay tax in relation to offshore matters and the annual report of Tax Inspectors Without Borders (TIWB). We also comment on three recent decisions relating to the partial writing-off of loans, Schedule 36 information notices and late filing penalties.
Read moreReeves - CGT holdover relief available where transferor is foreign controller of transferee
In Reeves v HMRC [2018] UKUT 293 (TCC), the Upper Tribunal (UT) has held that a non-resident taxpayer was entitled to holdover relief from capital gains tax (CGT) on a disposal he had made when he gifted his interest in a limited liability partnership (LLP) to a UK-resident company, of which he was the sole shareholder.
Read moreVAT Update October 2018
In this month’s update we report on changes to the VAT treatment of supplies of digital services, the European Parliament’s adoption of changes which are intended to simplify VAT for small businesses and the European Commission’s proposals for VAT rates and intra-EU supplies. We also comment on three recent decisions relating to the VAT option to tax a property third party access to documents filed at the First-tier Tribunal and the validity of Alternative Dispute Resolution agreements that are wrong in law.
Read moreProfessional Game Match Officials – football referees not employed for tax purposes
In Professional Game Match Officials Ltd v HMRC [2018] UKFTT 528, the First-tier Tribunal (FTT) has held that football referees and other match day officials were not employees of Professional Game Match Officials Ltd (PGMOL).
Read moreHMRC cannot require an auditor to provide information regarding a taxpayer's audited accounts even if the auditor also acts as the taxpayer's tax accountant
In HMRC ex parte a Taxpayer [2018] UKFTT 541 (TC), the First-tier Tribunal (FTT) has held that paragraph 24, Schedule 36, Finance Act 2008 (FA 2008), protects a taxpayer's auditor, who also prepares and files the taxpayer's tax returns, from having to disclose information and documents to HMRC regarding the taxpayer's audited accounts.
Read moreCorporate tax update
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this third 2018 edition we highlight some of the key tax developments of interest to UK corporates from the third quarter of 2018.
Read moreDone Brothers – supplies through fixed odds betting terminals exempt from VAT
In Done Brothers (Cash Betting) Ltd v HMRC [2018] UKFTT 406 (TC), the First-tier Tribunal (FTT) has held that supplies made through fixed odds betting terminals (FOBT) are exempt from VAT.
Read moreAtherley - qualifying loan write off created an allowable loss
In Douglas Atherley v HMRC [2018] UKFTT 0408 (TC), the First-tier Tribunal (FTT) has found that the taxpayer's partial writing-off of a loan made to a company of which he was the sole shareholder, created an allowable loss under section 253(3), Taxation of Chargeable Gains Act 1992 (TCGA).
Read moreTax update October 2018
In this month’s update we report on HMRC’s Spotlight 45 on umbrella company avoidance schemes, an update to HMRC’s Venture Capital Schemes Manual; and call for evidence on HMRC powers.
Read moreNewton – Tribunal confirms that "statutory records" should be narrowly construed
In Newton v HMRC [2018] UKFTT 513 (TC), the First-tier Tribunal (FTT) has held that, due to the lack of taxpayer appeal rights, the definition of "statutory records" for the purpose of an information notice issued pursuant to Schedule 36, Finance Act 2008 (FA 2008), must be construed narrowly.
Read moreVAT update September 2018
In this month’s update we report on the ECON committee’s amendments to the European Commission’s proposal for simplification of VAT for SMEs, the government’s technical note on the impact on VAT in the event of a no-deal Brexit; and Revenue and Customs Brief 6 (2018) on VAT exemption for all domestic service charges.
Read moreExpion: No valid determination of penalties by HMRC
In Expion Silverstone Ltd v HMRC [2018] UKFTT 0460 (TC), the First-tier Tribunal (FTT) has held that no valid determination was made by an officer of the board under section 100, Taxes Management Act 1970 (TMA), in respect of penalties issued following the failure to file Employment Intermediaries returns.
Read moreStay connected and subscribe to our latest insights and views
Subscribe Here