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Tax take

Podcast

Taxing Matters: Alternative dispute resolution with Adam Craggs

01 September 2020

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Welcome to the fourth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax principles and discuss the commercial impact they could have on your business.

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Publication

V@ update - August 2020

Published on 27 August 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to the August 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Blog

Hackett – Tribunal considers whether HMRC's decision to proceed by way of civil penalty rather than criminal prosecution was an abuse of process

Published on 26 August 2020. By Alexis Armitage, Associate

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In Lindsay Hackett v HMRC [2020] UKUT 212 (TCC), the Upper Tribunal (UT) has confirmed that the decision whether to bring civil or criminal proceedings is a matter for HMRC to decide with any such decision being amenable to challenge by way of judicial review.

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Publication

Customs and excise quarterly update - August 2020

Published on 25 August 2020. By Adam Craggs, Partner and Michelle Sloane, Partner

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In this update we report on (1) the government's guidance concerning border planning for the end of the transition period; (2) the government's plans to support customs intermediaries; and (3) the government's recently published policy papers on moving goods under the Northern Ireland Protocol, following the transition period. We also comment on three cases relating to (1) whether UK acquisition VAT can apply when a bonded warehouse is not located in the UK; (2) the clarification of factors HMRC can use to determine whether a person is 'fit and proper' to carry out a controlled activity; and (3) whether an acquittal of a criminal charge can preclude HMRC from issuing an excise duty assessment.

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Blog

Archer: No reasonable excuse

Published on 19 August 2020. By Constantine Christofi, Senior Associate

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In William Archer v HMRC [2020] UKFTT 0288 (TC), the First-tier Tribunal (FTT) confirmed that surcharge notices had been validly issued and that the taxpayer did not have a 'reasonable excuse' for non-payment as a result of his related judicial review claim.

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Podcast

Taxing matters: Schedule 36 Information Notices - all squared away

17 August 2020

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Welcome to the third episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Blog

Michael Vaughan - High Court declines to rectify contract to prevent tax charge

Published on 12 August 2020. By Constantine Christofi, Senior Associate

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In (1) MV Promotions Ltd (2) Michael Vaughan v (1) Telegraph Media Group Ltd (2) HMRC [2020] EWHC 1357 (Ch), the High Court elected not to exercise its discretion to rectify a provision in a contract for services, despite a mutual mistake rendering one party liable for additional tax.

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Publication

Tax Bites - August 2020

Published on 06 August 2020. 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

Royal Bank of Canada – Canadian bank liable to pay UK tax on assigned oil royalties

Published on 05 August 2020. By Constantine Christofi, Senior Associate

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In Royal Bank of Canada v HMRC [2020] UKFTT 267 (TC) the First-tier Tribunal (FTT) held that a Canadian bank was subject to UK tax on royalties assigned to it following its oil company creditor entering receivership.

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Podcast

Taxing Matters: HMRC ramps up use of Account Freezing and Forfeiture orders

03 August 2020

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Welcome to the second episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Publication

V@ update - July 2020

Published on 30 July 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to RPC's V@, a monthly update on developments in the VAT world that may impact your business.

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Publication

Corporate Tax update - July 2020

Published on 29 July 2020. By Ben Roberts, Partner 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. This month’s update reports on some of the key developments from June 2020. Included in this update are a summary of a decision on the correct tax treatment of bonuses paid to members of an LLP, and an AG’s opinion on the VAT reverse charge position of services supplied for non-economic activity purposes. There’s also an update on HMRC guidance on “exceptional” circumstances in which anticipated losses can be used to claim back overpaid corporation tax. Finally, this update also reports on Covid-19 driven extensions to DAC6 reporting deadlines and to deadlines for notifying VAT options to tax. As ever we hope you, your family and friends are all staying safe.

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Blog

JJ Management – Court of Appeal confirms HMRC can conduct informal enquiries

Published on 29 July 2020. By Alexis Armitage, Associate

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In JJ Management Consulting LLP v HMRC [2020] EWCA Civ 784, the Court of Appeal confirmed that it is within HMRC's powers to assess tax following informal enquiries without the need for HMRC to give notice under section 9A, Taxes Management Act 1970 (TMA).

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Blog

Sheiling - Belief in procedural invalidity of APN can constitute reasonable excuse

Published on 22 July 2020. By Constantine Christofi, Senior Associate

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In Sheiling Properties Ltd v HMRC [2020] UKUT 175 (TCC), the Upper Tribunal (UT), in dismissing an appeal against penalties for non-payment of accelerated payment notices (APNs), confirmed that a reasonable belief that the APNs were invalid could constitute a reasonable excuse for non-payment.

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Podcast

Taxing Matters: Furlough Fraud

20 July 2020

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Welcome to the inaugural episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.

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Blog

Pickles - Credit available for drawing from directors' loan accounts not taxable as distributions

Published on 15 July 2020.

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In Pickles v HMRC [2020] UKFTT 00195 (TC), the First-tier Tribunal (FTT) held that excessive consideration for goodwill left outstanding on directors' loan accounts was not taxable under section 1020, Corporation Tax Act 2010 (CTA), as distributions.

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Blog

Ampleaward - purchaser using UK VAT number not liable for UK acquisition VAT where goods housed in overseas warehousing regime

Published on 08 July 2020. By Michelle Sloane, Partner

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In Ampleaward Ltd v HMRC [2020] UKUT 0170 (TCC), the Upper Tribunal (UT) has found in favour of the taxpayer and confirmed that HMRC was not entitled to claim UK acquisition VAT on the purchase of alcohol from a supplier situated in a second EU state, which was then delivered to a tax warehouse in a third EU state.

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Publication

Tax Bites - July 2020

Published on 02 July 2020. 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

HMRC powers to tackle furlough fraudsters – take action now!

Published on 02 July 2020. By Michelle Sloane, Partner

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At the time of writing, over 25% of the UK workforce is being supported by the Government's Coronavirus Job Retention Scheme (the furlough scheme) at a cost of around £20 billion. In addition to this, some 2.6 million people are enrolled on the Self-Employment Income Support Scheme (the SEISS) at an additional cost of £7.5 billion.

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Blog

Bella Figura – Unauthorised payment charge set aside

Published on 01 July 2020. By Constantine Christofi, Senior Associate

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In HMRC v Bella Figura [2020] UKUT, the Upper Tribunal (UT) held that a scheme sanction charge stood as a valid assessment and partially allowed the taxpayer's cross-appeal, setting aside HMRC's assessments of an unauthorised payments charge and surcharge as being out of time.

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Publication

Corporate tax update - June 2020

Published on 26 June 2020. By Ben Roberts, Partner 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. This month’s update reports on some of the key developments from May 2020. As well as some further COVID-19 related tax developments, this month’s report also has a bit of a sports theme with summaries of decisions involving an ex-England cricket captain and football referees. As ever we hope you, your family and friends are all staying safe.

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Publication

V@ update - June 2020

Published on 26 June 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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Welcome to RPC's V@, a monthly update on developments in the VAT world that may impact your business. In this month’s update we report on (1) VAT treatment on fixed odds betting terminals and gaming machines; (2) VAT treatment of property search fees charged by solicitors and conveyancers; and (3) domestic reverse charge VAT for construction services ­delay in implementation.

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Blog

Sippchoice – Allowable contributions to a SIPP are restricted to payments of money

Published on 24 June 2020. By Constantine Christofi, Senior Associate

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In HMRC v Sippchoice Ltd [2020] UKUT 0149 (TCC), the Upper Tribunal (UT) has allowed HMRC’s appeal and confirmed that 'contributions paid' to a SIPP are restricted to contributions of money and do not encompass transfers of non-monetary assets.

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Blog

NCL - Court of Appeal upholds tribunal decisions and confirms that a company was entitled to deductions representing IFRS 2 debits

Published on 17 June 2020. By Alexis Armitage, Associate

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In HMRC v NCL Investments Ltd and Smith & Williamson Corporate Services Ltd [2020] EWCA Civ 663, the Court of Appeal has confirmed that accounting debits relating to the grant of share options to employees were a deductible expense for corporation tax purposes notwithstanding that no monies were actually expended.

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Blog

Partners and closure notices: making amends

Published on 10 June 2020. By Adam Craggs, Partner and Constantine Christofi, Senior Associate

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In R (on the application of Amrolia) v HMRC; R (on the application of Ranjit-Singh) v HMRC [2020] EWCA Civ 488, the Court of Appeal held that notices amending individual partners’ tax returns under section 28B(4), Taxes Management Act 1970 (TMA), were not closure notices and therefore did not need to specify the final amounts of tax due.

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Publication

V@ update - May 2020

05 June 2020

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Welcome to the first edition of RPC's V@, an update on developments in the VAT world that may impact your business.

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Publication

Tax Bites - June 2020

04 June 2020

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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

Investec - Court of Appeal confirms partnership contributions not deductible

Published on 03 June 2020.

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In Investec Asset Finance Plc and Another v HMRC [2020] EWCA Civ 579, the Court of Appeal has held that partnership contributions were non-deductible, but has upheld the 'no double taxation' principle and prevented HMRC from introducing arguments not previously relied upon.

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Blog

Game Match - Football referees held not to be employed for tax purposes – the final whistle for HMRC?

Published on 27 May 2020. By Ben Roberts, Partner

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In Professional Game Match Officials Limited v HMRC [2020] UKUT 147 (TCC), the Upper Tribunal (UT) confirmed that certain football referees and other match day officials were not employees of Professional Game Match Officials Ltd (PGMOL) and accordingly it did not have tax and NICs liabilities in respect of the officials in question.

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Publication

Customs and excise quarterly update May 2020

Published on 26 May 2020. By Adam Craggs, Partner and Michelle Sloane, Partner

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In this update we report on (1) temporary changes to customs authorisations during the coronavirus outbreak; (2) the government's plans to introduce 10 new freeports; and (3) a new liability for carrying out an operation or dilution on wine. We also comment on three recent cases relating to (1) refusal of permission to appeal an excise duty assessment out of time; (2) the customs classification of mobility scooters; and (3) liability to pay excise duty in relation to the movement of dutiable goods under a suspension regime.

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Blog

Henkes – FTT has jurisdiction to determine mixed questions of fact and law on application for closure notice

Published on 20 May 2020. By Adam Craggs, Partner

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In Henkes v HMRC [2020] UKFTT 159 (TC), the First-tier Tribunal (FTT) decided that it has jurisdiction to determine mixed questions of fact and law on an application for a closure notice and appeal against an information notice.

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Publication

Corporate tax update - May 2020

19 May 2020

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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 the key developments from April 2020. April was not a “bumper” month for corporate tax developments but (as you would expect) there have been some Covid-19 related developments of note. This month's report also includes a summary of the Supreme Court's decision in Zipvit (on input VAT recovery). We hope you, your family and friends are all staying safe

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Blog

Looney – Termination payments were trading receipts

Published on 13 May 2020. By Constantine Christofi, Senior Associate

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In Kieran Looney & Anor v HMRC [2020] UKUT 0119 (TCC), the Upper Tribunal (UT) has dismissed an appeal against the First-tier Tribunal's (FTT) decision that a termination payment and other payments made under a contract entered into by a partnership to provide management training, were trading receipts of a partnership.

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Publication

Tax Bites - May 2020

07 May 2020

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Welcome to the first edition of RPC's Tax Bites ­ providing monthly bite­sized updates from the tax world.

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Blog

Coyle – Upper Tribunal refuses permission to appeal out of time

Published on 06 May 2020. By Constantine Christofi, Senior Associate

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In Michael Coyle t/a Coyle Transport v HMRC [2020] UKUT 0113 (TCC), the Upper Tribunal (UT) set aside the decision of the First-tier Tribunal (FTT) for errors of law, but reached the same conclusion as the FTT and refused the taxpayer permission to appeal out of time.

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Publication

VAT update - April 2020

Published on 30 April 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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In this month’s update we report on (1) the Value Added Tax (Finance) Order 2020 (SI 2020/209), which amends the fund management exemption; (2) HMRC’s guidance on the deferral of VAT payments due to COVID-19; and (3) HMRC’s guidance on how importers can pay no import duty and VAT on medical supplies, equipment and protective garments.

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Blog

Davies – Taxpayers unable to benefit from motive exemption in TOAA or qualify for treaty relief

Published on 29 April 2020. By Alexis Armitage, Associate

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In Andrew Davies & Others v HMRC [2020] UKUT 67 (TCC), the Upper Tribunal (UT) held that the taxpayers did not satisfy the ‘motive exemption’ in the transfer of assets abroad (TOAA) legislation and could not benefit from treaty relief.

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Blog

Zipvit – Supreme Court considers deduction of input VAT on supplies mistakenly treated as VAT exempt

Published on 22 April 2020. By Rebekka Sandwell, Associate

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In Zipvit Ltd v HMRC [2020] UKSC 15, the Supreme Court referred questions to the Court of Justice of the European Union (CJEU) regarding the correct interpretation of Article 168 of the Principal VAT Directive, in connection with the question of whether a recipient of postal services may deduct input VAT in relation to those supplies, where both parties and HMRC had mistakenly treated the supplies as exempt from VAT.

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Blog

COVID-19 – Now is not the time for businesses to be complacent

Published on 16 April 2020. By Adam Craggs, Partner and Alice Kemp, Senior Associate (Employed Barrister)

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On 31 March 2020, the Crown Prosecution Service (CPS) and National Police Chiefs' Council (NPCC) issued guidance(1) on how investigators and prosecutors are proposing to tackle the issuing of new criminal proceedings during 'an unprecedented crisis for the Criminal Justice System in the UK.

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Blog

Higgs – FTT lacks jurisdiction to disapply the PAYE Regulations

Published on 15 April 2020. By Constantine Christofi, Senior Associate

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In Philip Higgs and Others v HMRC [2020] UKFTT 117 (TC), the First-tier Tribunal (FTT) determined that it did not have jurisdiction to determine whether HMRC is entitled to exercise a discretion under section 684(7A), ITEPA, to disapply the PAYE Regulations.

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COVID-19: Your workforce – furloughing - act to mitigate the risk of exposure to tax evasion offences as scheme could be open to abuse

Published on 09 April 2020. By Alice Kemp, Senior Associate (Employed Barrister)

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Jim Harra, Chief Executive at HMRC, has informed a Treasury Committee meeting that he expects the government's multi-billion pound employee furlough scheme to be targeted by criminals seeking to exploit the £60 billion pledged in Chancellor Rishi Sunak's unprecedented Coronavirus protection package.

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Blog

COVID-19 and tax residence

Published on 09 April 2020. By Ben Roberts, Partner

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This blog considers the potential risks posed by the COVID-19 pandemic to maintaining offshore tax structures.

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Blog

Fisher – TOAA rules not applicable to sale of business from a UK company to a Gibraltar company

Published on 08 April 2020. By Adam Craggs, Partner

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In S Fisher and Others v HMRC [2020] UKUT 62 (TCC), the Upper Tribunal (UT) allowed the taxpayers' appeals and held that the transfer of assets abroad rules did not apply to the sale of a business from a UK company to a Gibraltar company, which was under the control of the same directors and shareholders.

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Publication

Tax update - April 2020

Published on 02 April 2020. By Adam Craggs, Partner

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In this month’s update we report on (1) HMRC’s updated guidance on certain arrangements which purport to avoid the ‘managed services companies’ legislation; (2) recently published draft legislation on voluntary restitution in the context of the loan charge; and (3) the Government’s decision to suspend the extension of IR35 to the private sector.

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Blog

Booth – Penalty appeal struck out

Published on 01 April 2020. By Constantine Christofi, Senior Associate

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In CF Booth Ltd v HMRC [2020] UKFTT 35 (TC), the First-tier Tribunal (FTT) struck out the taxpayer's appeal against penalties imposed for deliberate inaccuracies in its VAT returns, on the basis that the appeal amounted to an 'abuse of process'.

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Publication

VAT update - March 2020

Published on 26 March 2020. By Adam Craggs, Partner and Rebekka Sandwell, Associate

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In this month’s update we report on (1) HMRC’s recently published policy paper in relation to the VAT liability of digital publications; (2) EU Council Regulation (EU) 2020/283 and Council Directive (EU) 2020/284 in relation to combatting VAT fraud; and (3) EU Council Directive (EU) 2020/285 in relation to the special scheme for small enterprises. We also comment on three recent cases which consider (1) whether a specific form is required for the notification of an assessment of VAT; (2) when VAT is collectable as a debt due; and (3) what constitutes a reasonable excuse for incorrectly issuing a zero-rating VAT certificate.

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Blog

Credit Suisse: Appeal allowed as HMRC had failed to open a valid enquiry

Published on 25 March 2020. By Constantine Christofi, Senior Associate

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In Credit Suisse Securities (Europe) Ltd and others v HMRC [2020] UKFTT 86 (TC), the First-tier Tribunal (FTT) allowed a company's appeal against a closure notice on the grounds that HMRC had not issued a valid notice of enquiry.

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Blog

McMillan – Gambling proceeds not taxable income

Published on 18 March 2020. By Constantine Christofi, Senior Associate

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In McMillan v HMRC [2020] UKFTT 0082 (TC), the First-tier Tribunal (FTT) held that proceeds of gambling were not taxable income.

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Blog

Aria Technology – No specific form required for notification of assessment of VAT

Published on 11 March 2020. By Alice Kemp, Senior Associate (Employed Barrister)

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In Aria Technology Ltd v HMRC [2020] EWCA Civ 182, the Court of Appeal confirmed that there is no particular form or formality required of an assessment under section 73(1), Value Added Tax Act 1994 (VATA) and an assessment can be contained in more than one document as long as the minimum requirements are set out in a clear and unambiguous way.

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Publication

Tax update - March 2020

05 March 2020

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In this month’s update we report on (1) updated guidance provided in HMRC’s SDLT manual in relation to section 75A, Finance Act 2003; (2) a House of Commons briefing paper discussing insolvency and joint and several liability notices for directors; and (3) a Policy Paper concerning upcoming changes to the regulations for the Non-residents Landlord Scheme. We also comment on three recent cases relating to (1) capital gains losses incurred in respect of properties which were never completed; (2) a landfill “fluff” case; and (3) inheritance tax agricultural property and business property relief.

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