Latest by Adam Craggs

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Locke – Court of Appeal quashes follower and accelerated payment notices

Published on 04 December 2019. By Adam Craggs, Partner

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In R (on the application of Locke) v HMRC [2019] EWCA Civ 1909, the Court of Appeal quashed follower and accelerated payment notices issued to a participant in a film finance partnership, because HMRC had been wrong in considering that a judicial ruling was relevant to the arrangements under consideration.

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JJ Management: No need to stand on formalities

Published on 09 October 2019. By Adam Craggs, Partner and Constantine Christofi, Associate

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It would appear from the decision of the High Court in R (oao JJ Management LLP and Ors) v HMRC [2019] EWHC 2006 (Admin), that HMRC can conduct informal enquiries outside of section 9A, Taxes Management 1970 (TMA).

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Tax update October 2019

Published on 03 October 2019. By Adam Craggs, Partner and Constantine Christofi, Associate

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In this month’s update we report on (1) the independent review of the disguised remuneration loan charge; (2) HMRC’s guidance on preparing for the off-payroll working changes which come into effect from April 2020; and (3) HMRC’s updated guidance on the tax registration of non-resident companies. We also comment on three recent cases relating to (1) an application for final and partial closure notices; (2) the validity of an enquiry; and (3) pre-entry loss rules.

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Corporate tax update September 2019

Published on 30 September 2019. By Ben Roberts, Senior Associate and Adam Craggs, Partner and Robert Waterson, Partner

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This month’s update reports on the key developments from August 2019. Although this was a relatively quiet month in the corporate tax world, this update includes summaries of an important Upper Tribunal decision on the correct tax treatment of “trail commissions” and a First-tier Tribunal decision on the recovery of pre-incorporation input VAT.

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VAT update September 2019

Published on 26 September 2019. By Adam Craggs, Partner and Nicole Kostic, Senior Associate

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In this month’s update we report on (1) changes to the reduced rate for energy-saving materials; (2) the VAT rule changes for higher education; and (3) new regulations amending the rules on when VAT adjustments may be made following a change to the price of goods and services. We also comment on three recent cases relating to (1) the refusal of a claim for the repayment of under-recovered input VAT; (2) the repayment of input VAT charged on the acquisition of single farm payment entitlement units; and (3) a notice of security issued with no explanation for the demand.

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Contentious tax: quarterly review

Published on 20 September 2019. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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In this quarterly review, Adam Craggs and Michelle Sloane consider HMRC’s increasing propensity to seek the production of documents from accountants and other professional advisers, HMRC’s new policy of challenging taxpayers’ loan relationships, and the increase in the number of domicile enquiries launched by HMRC.

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ANO - pre-ordained transactions avoided CGT losses being caught by pre-entry loss rules

Published on 05 August 2019. By Adam Craggs, Partner

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In ANO (No1) Limited v HMRC [2019] UKFTT 406 (TC), the First-tier Tribunal (FTT) has held that a pre-ordained series of transactions implemented to avoid the application of Schedule 7A, Taxation of Chargeable Gains Act 1992 (TCGA) to pre-entry losses were effective.

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Corrado – Tribunal cancels follower notice penalties 

Published on 31 July 2019. By Adam Craggs, Partner

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In Giulio Corrado v HMRC [2019] UKFTT 275 (TC), the First-tier Tribunal (FTT) has set aside a follower notice penalty as the taxpayer's failure to take corrective action in response to a follower notice was reasonable in all the circumstances.

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Haworth – Court of Appeal confirms HMRC misdirected itself and quashes payment notices

Published on 03 July 2019. By Adam Craggs, Partner and Constantine Christofi, Associate

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The recent unanimous judgment of the Court of Appeal in R (on the application of Haworth) v HMRC [2019] EWCA Civ 747, is the first successful judicial review challenge against follower and accelerated payment notices. The decision throws into question the way in which the relevant statutory provisions, contained in Finance Act 2014 (FA 2014), relating to follower and accelerated payment notices have been interpreted and operated by HMRC and as a consequence, many other notices may also have been issued by HMRC unlawfully.

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Atherton – discovery assessment not stale and taxpayer was careless

Published on 10 May 2019. By Adam Craggs, Partner

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In Richard Atherton v HMRC [2019] UKUT 0041 (TCC) the Upper Tribunal (UT) has held that a discovery had not become stale by the time an assessment was issued under section 20, Taxes Management Act 1970 (TMA) and that the taxpayer had been careless in making an inadequate 'white space' disclosure in his self-assessment return.

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Time to abandon 'fairness'?

Published on 18 March 2019. By Adam Craggs, Partner

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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.

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HMRC launches profit diversion compliance facility

Published on 12 February 2019. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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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.

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Customs and excise quarterly update November 2018

Published on 26 November 2018. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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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.

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Wealth and trusts quarterly digest

Published on 21 November 2018. By Adam Craggs, Partner

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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.

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HMRC 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

Published on 19 October 2018. By Adam Craggs, Partner

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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.

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Corporate tax update

Published on 31 August 2018. By Ben Roberts, Senior Associate and Adam Craggs, Partner and Robert Waterson, Partner

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Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team and published quarterly. In this second 2018 edition we highlight some of the key tax developments of interest to UK corporates from the second quarter of 2018.

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Customs and excise quarterly update August 2018

Published on 29 August 2018. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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In this update we report on changes to gaming duty accounting periods, HMRC’s policy paper on tobacco duty on heated tobacco and an amendment to the Export (Penalty) Regulations 2003. We also comment on three recent cases relating to the customs classification of Beyblades, excise duty assessment time limits and restoration of seized tobacco.

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Wealth and trusts quarterly digest

Published on 21 August 2018. By Adam Craggs, Partner

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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. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.

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Tax update August 2018

Published on 01 August 2018. By Adam Craggs, Partner

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In this month’s update we report on the summary of responses to HMRC’s consultation on extending time limits for offshore non-compliance, HMRC’s policy paper on “profit-fragmentation” and HMRC’s consultation on proposals for new civil information gathering powers for HMRC.

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Tax update July 2018

Published on 03 July 2018. By Adam Craggs, Partner

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In this month’s update we report on new EU transparency rules for tax intermediaries, HMRC’s revised Disguised Remuneration Settlement Terms and the Law Society’s Response to HMRC’s consultation on Tax Avoidance involving profit fragmentation.

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VAT update June 2018

Published on 27 June 2018. By Adam Craggs, Partner

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In this month’s update we report on HMRC’s consultation on draft legislation imposing VAT reverse charge on the construction industry; the European Commission’s proposal concerning the taxation of intra-EU supplies; and HMRC’s recently published guidance on the VAT treatment of goods supplied on approval.

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Tax update

Published on 06 June 2018. By Adam Craggs, Partner

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In this month’s update we report on Guidance from HMRC on identifying who is an “enabler” of tax avoidance; a consultation on “off-payroll” working by contractors; and HMRC’s update to its International Exchange of Information Manual to reflect amendments to the list of reportable jurisdictions for Common Reporting Standards.

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Investec: payments to acquire partnership interests were trading in nature

Published on 06 June 2018. By Adam Craggs, Partner and Constantine Christofi, Associate

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In HMRC v Investec Asset Finance Plc and Another [2018] UKUT 0069 (TCC), the Upper Tribunal (UT) has held that payments made to acquire partnership interests are deductible in calculating the profits of the partners’ solo trades of dealing in those partnership interests.

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Patel: Enquiry and closure notices held to be invalid

Published on 25 May 2018. By Adam Craggs, Partner and Constantine Christofi, Associate

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In Patel & Anor v HMRC [2018] UKFTT 0185 (TC), the First-tier Tribunal ('FTT'), in finding in favour of the taxpayers at a preliminary hearing, has held that HMRC had not opened valid enquiries into the taxpayers' self-assessment returns, as the returns had not been made pursuant to a notice issued by HMRC under section 8(1) Taxes Management Act 1970 ('TMA').

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Customs and excise quarterly update

Published on 23 May 2018. By Adam Craggs, Partner

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In this update we report on the government’s consultation on Gaming Duty Accounting Periods; the Licensing of Tobacco Manufacturing Machinery; and the European Commission’s consultation on amendments to guarantees. We also comment on three recent cases involving customs classification; excise duty drawback; and excise duty liability on persons with no actual or constructive knowledge of unpaid duty.

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Wealth and trusts quarterly digest

Published on 23 May 2018. By Adam Craggs, Partner

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Welcome to our latest Wealth and 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. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.

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VAT update April 2018

Published on 24 April 2018. By Adam Craggs, Partner

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In this month’s update we report on the publication of the draft agreement on the UK’s withdrawal from the EU; the Government’s “split payment” collection model for online sales by non-UK sellers; and HMRC’s revised guidance on the cost sharing exemption.

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Jackson : HMRC penalised in penalties case

Published on 04 April 2018. By Adam Craggs, Partner

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In Jackson v HMRC [2018] UKFTT 0064 (TC), the First-tier Tribunal (FTT) has held that HMRC had misapplied the law in respect of penalties it had issued to the taxpayer for filing late returns.

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Rowe and Vital Nut – Court of Appeal delivers its judgments in APN judicial review challenge

Published on 02 March 2018. By Adam Craggs, Partner

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In Rowe and Vital Nut, the Court of Appeal has dismissed the claimant taxpayers' appeals in judicial review proceedings challenging the legality of Accelerated Payment Notices (APNs) and Partner Payment Notices (PPNs).

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Bilta: litigation privilege attaches to documents created during internal investigation into VAT claim

Published on 16 February 2018. By Adam Craggs, Partner

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In Bilta (UK) Ltd (in liquidation) and ors v Royal Bank of Scotland Plc and another [2017] EWHC 2525 (Ch), the High Court has held that documents prepared by the Royal Bank of Scotland Plc (RBS) in the course of an investigation into allegations made by HMRC were protected by litigation privilege.

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Customs and excise quarterly update, February 2018

Published on 13 February 2018. By Adam Craggs, Partner

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Welcome to the February edition of our customs and excise quarterly update.

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Spurs 2 : 0 HMRC – termination payment not taxable earnings

Published on 20 December 2017. By Michelle Sloane, Senior Associate and Adam Craggs, Partner

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The Upper Tribunal (UT) has confirmed the decision of the First-tier Tribunal (FTT) that payments made by Spurs in respect of two players on early termination of their contracts were not earnings. They were termination payments and, therefore, were outside the scope of national insurance contributions (NICs).

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Jiminez: High Court quashes information notices issued to non-UK resident taxpayer

Published on 05 December 2017. By Adam Craggs, Partner and Constantine Christofi, Associate

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In Jimenez v (1) HMRC & (2) The First Tier Tax Tribunal [2017] EWHC 2585 (Admin), the High Court has quashed an information notice given by HMRC to a non-UK resident taxpayer.

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VAT update August 2017

Published on 30 August 2017. By Adam Craggs, Partner

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In this month’s update we report on updated guidance from HMRC on distance selling, the EU (Withdrawal Bill) and the revised place of supply rules for B2C telecommunications.

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Customs and excise quarterly update, August 2017

Published on 22 August 2017. By Adam Craggs, Partner

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In this update we report on the implementation of the Fulfillment House Due Diligence Scheme, the National Audit Office's report on the new Customs Declaration Service and the future excise duty rate changes to cooking wine and other cooking alcohol.

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Eastern Power – Tribunal orders HMRC to close its enquiries despite outstanding information notices

Published on 10 August 2017. By Adam Craggs, Partner

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In Eastern Power Networks Plc and others v HMRC [2017] UKFTT 494 (TC), the First-tier Tribunal (FTT) ordered HMRC to issue closure notices even though there were a number of outstanding information notices.

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New corporate criminal offence

Published on 21 July 2017. By Adam Craggs, Partner and Michelle Sloane, Senior Associate

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Failure to prevent the facilitation of tax evasion

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Tax update, July 2017

Published on 04 July 2017. By Adam Craggs, Partner

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In this month’s Update we report on draft provisions for a EU wide cross-border tax planning disclosure requirement; changes to HMRC’s guidance on the WDF and announcements in the Queen’s Speech in relation to the next Finance Bill.

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VAT update, June 2017

Published on 29 June 2017. By Adam Craggs, Partner

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In this month's update we report on proposals for the reduced VAT rate for e-publications, HMRC's first publication of VAT Notes 2017, in which it explains changes to VAT for businesses, and the latest stage in the long-running compound interest litigation involving Littlewoods.

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Tax update, June 2017

Published on 31 May 2017. By Adam Craggs, Partner

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In this update we report on the scope of the Criminal Finances Bill as it receives Royal Assent; HMRC guidance updates for businesses, individuals and agents on how to make disclosures of unpaid tax; and HMRC’s further consultation on Making Tax Digital.

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VAT update, May 2017

Published on 24 May 2017. By Adam Craggs, Partner

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In this month’s update we report on HMRC’s revised guidance on holding companies’ input VAT recovery, prelaunch trials for the online tribunal appeals service and draft legislation effecting the removal of the “use and enjoyment” rule for the supplies of B2C telecommunication services.

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Customs and excise quarterly update, May 2017

Published on 23 May 2017. By Adam Craggs, Partner

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In this update we report on the launch of the register of approved UK alcohol wholesalers, HMRC’s Customs Information Paper 5 (2017) (CIP 5), which clarifies the correct codes to use when sending free circulation goods to the special territories of the EU, and the new address for HMRC’s National Clearance Hub.

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Wealth and trusts quarterly digest

Published on 17 May 2017. By Adam Craggs, Partner

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Our quarterly digest provides up to date commentary and analysis on key sector developments from our tax, wealth and trusts teams.

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Corporate tax update, first quarter 2017

Published on 05 May 2017. By Adam Craggs, Partner

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Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s Tax team and published quarterly. In this first 2017 edition we highlight some of the key tax developments of interest to UK corporates from the first quarter of 2017.

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Tax update, May 2017

Published on 03 May 2017. By Adam Craggs, Partner

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In this update we report on HMRC’s recently amended guidance on the General Anti-Abuse Rule, HMRC’s draft guidance on the new disguised remuneration provisions in the Income Tax (Earnings and Pensions) Act 2003, and on the recent modifications to the Finance Bill 2017.

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VAT update April 2017

Published on 26 April 2017. By Adam Craggs, Partner

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In this month’s update we report on HMRC’s call for evidence on alternative methods for collecting VAT for online sales, HMRC’s policy on historical VAT bad debt relief claims following the BT and GMAC decisions and the enactment of the insolvency VAT clawback concession. We also comment on three recent cases involving mistake-based claims for unjust enrichment, the VAT treatment of temporary workers and the apportionment of residual input tax for finance houses.

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Closure Notices defective but JR dismissed as taxpayer should have appealed to the Tribunal

Published on 10 April 2017. By Adam Craggs, Partner

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In R (on the application of Archer) v HMRC [2017] EWHC 296 (Admin), the High Court agreed with the claimant that a Closure Notice issued by HMRC must state the tax due, but dismissed his application for judicial review on the ground that he should have appealed to the First-tier Tribunal (FTT).

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Tax update, April 2017

Published on 05 April 2017. By Adam Craggs, Partner

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In this update we report on recent HMRC guidance on partnership follower notices and penalties, the new employment status checker for the intermediaries legislation (IR35) and details of tax avoidance scheme for income and national insurance contributions which HMRC has highlighted in its Spotlight 37.

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VAT update, March 2017

Published on 30 March 2017. By Adam Craggs, Partner

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In this month’s update we report on the Chancellor’s announcement in the Spring Budget that he intends to “crack down” on VAT “missing trader” fraud within the construction industry, the Offce of Tax Simplification’s Interim Report on its review of VAT, and the EU’s consultation on proposals to tackle VAT fraud.

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New legislation will allow taxpayers to seek partial closure notices

Published on 29 March 2017. By Adam Craggs, Partner

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Proposed legislation contained in Finance Bill 2017, will enable partial closure notices to be issued in respect of a discreet issue while other issues remain under enquiry by HMRC.

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