Tax Bites - November 2020

Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.

As always, if there are any areas on which you would like more information (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.

News

HMRC updates its off-payroll working manual

HMRC has updated its Employment Status Manual dealing with the extended off-payroll working rules for the private sector.  In particular, guidance is provided as to when a business will be a small entity, by reference to its balance sheet, turnover, and number of employees. Read more

EU updates its list of non-co-operative jurisdictions

The EU has updated its list of non-co-operative jurisdictions for tax purposes. Read more

HMRC finalises its guidance on offshore receipts from intangibles

HMRC has published guidance on the taxation of offshore receipts in respect of intangible property referable to the sale of goods, or provision of services, in the UK. Read more

Case reports

Wired Orthodontics: FTT refuses application for disclosure

 In Wired Orthodontics Ltd and others v HMRC [2020] UKFTT 290 (TC), the First-tier Tribunal (FTT) refused an application for disclosure of documents and information passing between the solicitors for HMRC and their appointed expert witness. Read more

Box: FTT rules that high-income child benefit charge constitutes income for the purpose of discovery assessment

In Martin Richard Box v HMRC [2020] UKFTT 353 (TC), the FTT dismissed the taxpayer's appeal against an assessment to pay high-income child benefit (HICB) charge, on the basis that the charge constituted income for the purpose of discovery assessments. Read more

Irish Bank Resolution Corporation: Court of Appeal confirms disallowance of interest deductions compared by UK permanent establishments

In Irish Bank Resolution Corporation Ltd (in special liquidation) and another v HMRC [2020] EWCA Civ 1128, the Court of Appeal upheld the decisions of the FTT and the UT and confirmed that HMRC was entitled to disallow interest deductions claimed by the UK permanent establishments (PEs) of two Irish companies. Read more