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Tax take

Blog

HMRC targets enablers of tax evasion

Published on 27 October 2021. By Michelle Sloane, Partner and Alice Kemp, Senior Associate (Employed Barrister)

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HMRC and the OECD are looking to tackle the rise of the professional enabler of tax evasion, but what is an enabler? And what does that mean for professionals?

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Podcast

Navigating your career: In conversation with Jack Bonehill

25 October 2021

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In this episode, we are delighted to be joined by fellow tax podcast host Jack Bonehill, the man behind the fantastic Tax Professionals Podcast series.

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Blog

Vermilion Holdings – Court of Session confirms that the grant of a share option by an employer was not an employment related securities option

Published on 20 October 2021. By Rebekka Sandwell, Senior Associate

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In Vermilion Holdings Ltd v HMRC [2021] CSIH 45, the Court of Session overturned the decision of the Upper Tribunal (UT) and confirmed that an option granted by a company as part of a refinancing exercise was not an employment related securities option, for the purposes of section 471, Income Tax (Earnings and Pensions) Act 2003 (ITEPA).

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Blog

Quarterly Contentious Tax Review

Published on 13 October 2021. By Robert Waterson, Partner and Constantine Christofi, Senior Associate

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The Tax Law Review Committee (TLRC) has published an in-depth review of the First-tier Tribunal (FTT), how it operates and why. In some respects, it is not working as well as it could for certain users. The review makes a number of positive recommendations, which we discuss below, together with two important developments concerning (1) the requirement for HMRC to initiate a formal enquiry and (2) HMRC's strategy on settling disputes relating to the use of historic tax avoidance arrangements.

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Blog

Professional Game Match Officials - Court of Appeal sends football referees case back to the Tax Tribunal

Published on 06 October 2021. By Ben Roberts, Partner

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In HMRC v Professional Game Match Officials Limited [2021] EWCA Civ 1370, the Court of Appeal (CoA) held that the First-tier Tribunal (FTT) and Upper Tribunal (UT) both erred in law in their approaches to the question of 'mutuality of obligation' and upheld the UT's decision that the FTT had erred in its approach to the issue of control. The case has been sent back to the FTT to reconsider whether there was sufficient mutuality of obligation and control in the individual contracts for them to be contracts of employment.

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Publication

Tooth and claw?: The meaning of words in tax assessments

Published on 05 October 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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The concept of 'staleness' in the context of discovery assessments (assessments issued to taxpayers by HMRC outside of any statutory enquiry), gathered momentum following the Upper Tribunal’s decision in Charlton and others v HMRC [2011] UKFTT 467 (TC). As 'discovery' is only relevant to returns and tax years where HMRC has not opened a statutory enquiry, many commentators considered that the concept provided a degree of procedural fairness in the discovery assessment process, and that HMRC should not be permitted to delay issuing an assessment for a considerable period of time after making a discovery. As recently as February of this year, Judge Malek in the First-tier Tribunal (FTT) in Mehrban v HMRC [2021] UKFTT 53 (TC), noted that it was an “absurdity” to say that the concept of staleness does not exist.

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Publication

V@ Update – September 2021

Published on 30 September 2021. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to the September 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

DNAe Group Holdings – Higher R&D relief claims available

Published on 29 September 2021. By Constantine Christofi, Senior Associate

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In DNAe Group Holdings Ltd v HMRC [2021] TC/201804348, the First-tier Tribunal (FTT) held that 125% research and development (R&D) tax credits for an SME was available, despite the company being the strategic investment vehicle of a larger group.

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Publication

HMRC issues 'nudge' letters to non-doms for suspected unpaid tax

Published on 28 September 2021. By Adam Craggs, Partner and Harry Smith, Senior Associate

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HMRC is targeting wealthy UK tax residents claiming a non-UK domicile who may not have paid the remittance basis charge. HMRC has issued hundreds of 'nudge' letters to taxpayers encouraging them to reconsider their tax position.

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Podcast

Connecting the dots

27 September 2021

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In a world of increasing digitisation, globalisation and remote working, now more than ever taxpayers are starting to ask "how are HMRC going to find out?".

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Blog

KSM Henryk Zeman - Tribunal can consider 'legitimate expectation' arguments in VAT appeal

Published on 22 September 2021. By Harry Smith, Senior Associate

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Taxpayer can bring legitimate expectation/judicial review arguments in appeal against HMRC decision on VAT in First-tier Tribunal – a new step in tax litigation.

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Blog

Tinkler – Supreme Court decides taxpayer is estopped from denying validity of HMRC enquiry

Published on 15 September 2021. By Rebekka Sandwell, Senior Associate

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In Tinkler v HMRC [2021] UKSC 39, the Supreme Court held that, due to the conduct of the taxpayer's advisers, the taxpayer was estopped by convention from denying that HMRC had opened a valid enquiry under section 9A, Taxes Management Act 1970 (TMA), when it had sent the notice of enquiry to the wrong address.

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Podcast

Lockdown thoughts: the evolution of HMRC and its increasing powers

13 September 2021

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Given the complexity and, at times, lack of clarity in our tax system, concerns have been raised about the extent of HMRC's powers, particularly regarding the range of penalties that can be imposed for innocent mistakes, and the severity of penalties that can be imposed in relation to offshore matters.

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Blog

JRO Griffiths – storage facility is plant for capital allowances purposes

Published on 08 September 2021. By Rebekka Sandwell, Senior Associate

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In JRO Griffiths Ltd v HMRC [2021] UKFTT 257 (TC), the First-tier Tribunal (FTT) held that a facility used to store potatoes was a plant, and that it met other conditions allowing it to qualify for capital allowances.

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Blog

Eclipse film partnerships settlement opportunity announced by HMRC

Published on 08 September 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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HMRC announced on 6 September 2021 a settlement opportunity for current and former members of the Eclipse Film Partners (numbers 1 to 40) limited liability partnerships (the Eclipse LLPs), under which HMRC will agree not to seek to impose a 'dry tax' charge in exchange for members settling historic tax liabilities (with interest) and abandoning litigation against HMRC in relation to the Eclipse LLPs. If accepted by each taxpayer, approximately £1.6 billion of 'dry tax' will not be pursued by HMRC.

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Publication

Accountants obliged to report suspected misuse of the Bounce Back Loan Scheme

Published on 07 September 2021. By Adam Craggs, Partner and Michelle Sloane, Partner

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The Bounce Back Loan Scheme (BBLS) was introduced to enable smaller businesses adversely affected by the coronavirus pandemic to access government-backed finance.

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Publication

Tax Bites - September 2021

Published on 02 September 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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

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Blog

Haworth - Supreme Court upholds decision to quash follower notice

Published on 01 September 2021. By Harry Smith, Senior Associate

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Follower Notice judicial review upheld by Supreme Court even in tax avoidance context; restrictive requirements imposed for issue of follower notices.

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Podcast

The tax tribunals: the next 10 years

31 August 2021

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Twelve years on from the seismic changes to the UK tax appeals system that introduced the First-tier Tribunal and the Upper Tribunal, the Tax Law Review Committee (TLRC) has published its Report "The tax tribunals: the next 10 years".

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Publication

V@ Update – August 2021

Published on 26 August 2021. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to the August 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Contentious tax quarterly review 

Published on 25 August 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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We consider the Supreme Court's decision in Tooth, concerning discovery assessments; and examine the contentious issue of when a taxpayer can rely upon a PAYE credit. We also review the increased focus by HMRC on cryptoassets and the challenges that might create for taxpayers.

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Publication

Customs and excise quarterly - August 2021

Published on 24 August 2021. By Adam Craggs, Partner and Michelle Sloane, Partner

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In this update we report on (1) European Commission Guidance on UK import formalities; (2) HMRC's new and updated guidance for imports and exports following the end of the Brexit transition period; and (3) HMRC's updated guidance on returned goods relief on items exported from Northern Ireland. We also comment on three recent cases relating to (1) the illegal import of cigarettes; (2) customs valuation; and (3) the application of the dishonesty test when determining penalties.

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Blog

Wilkes – HMRC's discovery assessments were invalidly issued 

Published on 18 August 2021. By Rebekka Sandwell, Senior Associate

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In HMRC v Jason Wilkes [2021] UKUT 150 (TCC), the Upper Tribunal (UT) dismissed HMRC's appeal against a decision of the First-tier Tribunal (FTT) which held that discovery assessments issued by HMRC to assess the high income child benefit charge (HICBC), were invalid.

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Podcast

The complicated question of corporate criminal liability

17 August 2021

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Many commentators have questioned whether the law relating to corporate criminal liability is still fit for purpose or whether it is due a significant overhaul.

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Blog

Kelly – Tax tribunal confirms re-discovery not permissible for the purposes of section 29 TMA

Published on 10 August 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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In Sean Kelly v HMRC [2021] UKFTT 162, the First-tier Tribunal (FTT) confirmed the principle that a discovery can only be made once and HMRC cannot raise a new discovery assessment under section 29,Taxes Management Act 1970 (TMA), in respect of the same discovery.

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Publication

Tax Bites - August 2021

Published on 05 August 2021. By Adam Craggs, Partner and Harry Smith, Senior Associate

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

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Blog

Walewski - Mixed partnership rules mean profit can be reallocated for whole period of account

Published on 04 August 2021. By Harry Smith, Senior Associate

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Corporate member tax planning ineffective as profits allocated to partner in partnership for period during which it was a partner under mixed partnership rules.

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Podcast

Lockdown, tax residency and the law of unintended consequences

02 August 2021

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In the latest episode of Taxing Matters, Nikita Cooper, a partner at Price Bailey discusses the effect COVID lockdowns have had on tax residency – and what the unintended consequences could be for you, your business and your employees.

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Publication

Corporate Tax Update - July 2021

29 July 2021

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Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from May and June 2021. Included in this update are news of the historic G7 agreement as to plans for global tax reform, summaries of two cases on the required formalities for bringing contractual claims for breach of warranty and pursuant to a tax covenant, and news of another win for HMRC in an ‘IR35’ case. As ever we hope you, your family and friends are all staying safe and are enjoying the summer.

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Publication

V@ update - July 2021

Published on 29 July 2021. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to the July 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Avonside Roofing – Tax Tribunal sets aside Schedule 36 information notice

Published on 28 July 2021. By Rebekka Sandwell, Senior Associate

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In Avonside Roofing Ltd v HMRC [2021] UKFTT 158 (TC), the First-tier Tribunal (FTT) set aside an information notice issued under paragraph 1, Schedule 36, Finance Act 2008 (the Notice), on the basis that the information and documents requested by HMRC were not reasonably required for the purpose of checking the recipient's tax position.

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Blog

Siddiqui - No proper ground for setting aside summons in private prosecution

Published on 21 July 2021. By Adam Craggs, Partner

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Private prosecution not to be quashed due to failure to disclose settlement agreement.

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Podcast

Dawn of a new era: predicted increase in dawn raids

19 July 2021

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With financial pressure mounting on the Government, and with an additional 1000 new fraud investigators announced in the last budget, many expect the frequency of HMRC dawn raids to increase considerably.

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Blog

Golamreza – HMRC assessments and the burden of proof

Published on 14 July 2021. By Constantine Christofi, Senior Associate

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In Golamreza Qolaminejite (aka A Cooper) v HMRC [2021] UKUT 118 (TCC), the Upper Tribunal (UT) allowed the taxpayer's appeal in part on the basis that the First-tier Tribunal (FTT) had erred in law in failing to take all of the taxpayer's case into account in arriving at its decision.

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Blog

Perring – Burden of proof for establishing that documents are 'reasonably required' in taxpayer information notice appeal is on HMRC

Published on 07 July 2021. By Alexis Armitage, Associate

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In Perring v HMRC [2021] UKFTT 110, the First-tier Tribunal (FTT) held that the burden of proof for establishing that documents are "reasonably required" under a taxpayer notice issued under Schedule 36, Finance Act 2008 (FA 2008) lies with HMRC.

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Podcast

Playing a winning hand: dealing with an HMRC enquiry

05 July 2021

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In this episode of Taxing Matters we are joined by John Cassidy, a Tax Resolutions Partner at accountancy firm Crowe UK. A tax veteran of over 25 years, when it comes to tax investigations, what John hasn't experienced, written about or lectured on isn't worth knowing!

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Publication

Tax Bites - July 2021

Published on 01 July 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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

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Blog

Aozora - Unilateral credit for US withholding tax allowed even where no treaty relief available

Published on 30 June 2021. By Harry Smith, Senior Associate

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US UK double tax treaty and associated UK legislation interpreted to give unilateral credit for withholding tax suffered on interest income.

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Publication

V@ update - June 2021

Published on 24 June 2021. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to the June 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Rediscovering ADR

Published on 23 June 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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Alternative Dispute Resolution (ADR), in the form of mediation, remains an important part of the tax dispute resolution process. In light of the backlog of cases caused by Covid-19, and the practice statement issued by the Tribunal last year, we expect that taxpayers and HMRC will begin to re-examine and embrace ADR which can be an effective method of resolving disputes with HMRC.

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Podcast

Ashbolt and Arundell: challenging search warrants

21 June 2021

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In the latest episode of Taxing Matters, we take a closer look at the recent case of Ashbolt and Arundell v HMRC, which involved a challenge to the lawfulness of search warrants.

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Blog

Tooth – Supreme Court rejects the concept of 'staleness' and confirms the meaning of 'deliberate'

Published on 16 June 2021. By Rebekka Sandwell, Senior Associate

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In HMRC v Tooth [2021] UKSC 17, the Supreme Court, in dismissing HMRC's appeal, confirmed that a discovery assessment issued under section 20, Taxes Management Act 1970 (TMA) will not be invalid because a large period of time had elapsed between the discovery being made and the assessment being issued by HMRC and that for a taxpayer to bring about a loss of tax as a result of a deliberate inaccuracy in a document there must be an intention to mislead HMRC.

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Blog

Hargreaves - Burden of proof on HMRC in taxpayer information notice appeals

Published on 09 June 2021. By Constantine Christofi, Senior Associate

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In Hargreaves and others v HMRC [2021] UKFTT 80 (TC), the First-tier Tribunal (FTT) confirmed that the burden of proof in an appeal against an information notice issued under paragraph 1, Schedule 36, Finance Act 2008 (FA 2008), is on HMRC.

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Podcast

Shifting sands: insuring tax risks

07 June 2021

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In a special cross-over episode with our sister podcast Insurance Covered, this episode of Taxing Matters looks at the growth in popularity of tax liability insurance.

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Publication

Tax Bites - June 2021

Published on 03 June 2021. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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

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Blog

Daarasp – Loss claims denied as closure notices were valid

Published on 02 June 2021. By Alexis Armitage, Associate

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In Daarasp LLP & Betex LLP v HMRC [2021] UKUT 0087, the Upper Tribunal (UT) upheld the First-tier Tribunal's (FTT) decision and dismissed the taxpayers' claims for losses as the conclusions in HMRC's closure notices were not inconsistent with the losses being reduced to zero in the taxpayers' returns.

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Publication

V@ update - May 2021

Published on 27 May 2021. By Adam Craggs, Partner and Rebekka Sandwell, Senior Associate

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Welcome to the May 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Blog

Comtek – Counteraction steps taken after Follower Notice deadline can reduce penalty

Published on 26 May 2021. By Harry Smith, Senior Associate

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Follower notice penalty for SDLT scheme follower notice reinstated but reduced by Upper Tribunal, and guidance given as to meaning of 'counteraction' in APN / accelerated payment notice context.

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Podcast

Tax fraud: The rise of the professional enabler

24 May 2021

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In this episode, we are joined by Simon York, Director of HMRC's Fraud Investigation Service (FIS). Created only five years ago, FIS has already secured 3,700 criminal convictions for serious fraud and protected over £25 billion in assets.

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Blog

Euromoney – Tribunal considers 'main purpose' test

Published on 19 May 2021. By Rebekka Sandwell, Senior Associate

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In Euromoney Institutional Investor PLC v HMRC [2021] UKFTT 0061 (TC), the First-tier Tribunal (FTT) upheld the appellant's appeal, finding that the avoidance of liability to tax was a purpose, but not the main purpose, or one of the main purposes, of the relevant arrangements, for the purposes of section 137(1), Taxation of Chargeable Gains Act 1992 (TCGA).

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