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Tax Take

Perspective - Blog

Tribunal finds taxpayer was non-UK resident despite exceeding the permitted days due to 'exceptional circumstances'

Published on 13 July 2022. By Alexis Armitage, Senior Associate

The First-tier Tribunal held that a taxpayer was non-UK resident, despite exceeding the permitted days, due to exceptional circumstances which included the moral obligation to come to the UK to care for a relative and their young children.

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Perspective - Blog

Follower notice penalties cancelled as failure to take 'corrective action' was reasonable in all the circumstances

Published on 06 July 2022. By Keziah Mastin, Associate

Allowing an appeal by Mr Andreae, the First-tier Tribunal cancelled penalties HMRC had issued for failure to take corrective action following receipt of follower notices. It was held that this failure was reasonable in all the circumstances where Mr Andreae had relied on the advice of a scheme promotor and later sought further advice from an independent advisor.

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Perspective - Publication

All is not (necessarily) lost: Crypto crime recovery

Published on 30 June 2022. By Adam Craggs, Partner

With over 2 million people in the UK now holding and using cryptocurrency, and the Chancellor announcing that a government backed non-fungible token ("NFT") is to be issued by the Royal Mint this summer, the market for crypto-assets is expected to continue to grow in the coming months and years; so much so that legislation is planned to implement a new regulatory regime for the crypto market.

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Perspective - Publication

V@ update - June 2022

Published on 30 June 2022. By Adam Craggs, Partner and Harry Smith, Senior Associate

Welcome to the June 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

Tribunal allows taxpayer's appeal as investments met the risk to capital test required for Enterprise Investment Scheme relief

Published on 29 June 2022. By Liam McKay, Senior Associate

Allowing an appeal by Inferno Films Ltd, the First-tier Tribunal held that the company had satisfied the risk-to-capital test in section 157A, Income Tax Act 2007, because it had objectives to grow and develop its trade in the long term. HMRC was directed to authorise the issue of compliance certificates under section 204, Income Tax Act 2007, for the purposes of Enterprise Investment Scheme relief.

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Perspective - Publication

Non-compliance with CrimPR does not render otherwise timely information a nullity

Published on 28 June 2022. By Adam Craggs, Partner

The Court confirmed that, while offences must be charged within any applicable time limit for charging, the requirement that the charge must contain "such particulars of the conduct constituting the commission of the offence as to make clear what the prosecutor alleges against the defendant", in Criminal Procedure Rule (CrimPR) Rule 7.3(1)(b), did not require a statement from the prosecutor that the offence had been laid within the relevant time limit if the timing of the offence was not an element specified in the offence.

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Perspective - Blog

Tax Tribunal cancels discovery assessments and late filing penalties

Published on 22 June 2022. By Adam Craggs, Partner

In Robert Don Hunter Dougan v HMRC [2022] UKFTT 00140 (TC), the First-tier Tribunal (FTT) cancelled certain discovery assessments issued to a taxpayer by HMRC, on the basis they were issued out of time because the taxpayer's behaviour was careless rather than deliberate, for the purposes of section 36, Taxes Management Act 1970 (TMA). The FTT also cancelled various late filing penalties and late payment surcharges issued by HMRC, on the basis the notices were not validly served on the taxpayer.

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Perspective - Blog

Permission from the Upper Tribunal needed to argue a new point which was not before the First-tier Tribunal

Published on 15 June 2022.

UT permission required to argue a point not argued before the FTT.

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Perspective - Publication

Tax Bites - June 2022

Published on 09 June 2022. By Adam Craggs, Partner

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

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Perspective - Blog

Appeal against discovery assessment allowed as SATR was filed by unauthorised agent

Published on 08 June 2022. By Keziah Mastin, Associate

Allowing an appeal by Mr McCumiskey, the First-tier Tribunal held that HMRC's discovery assessment was invalid on the basis that the purported tax-return had been fraudulently filed and had included an unauthorised and unsubstantiated claim for SEIS relief.

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Perspective - Blog

Directors did not breach fiduciary duty in relation to insolvent company's participation in failed tax avoidance scheme

01 June 2022

In Stephen John Hunt (Liquidator of Marylebone Warwick Balfour Management Ltd) v Richard Balfour-Lynn and others [2022] EWHC 784 (Ch), the High Court decided that the directors of a company which went into liquidation after participating in a failed tax avoidance scheme did not breach their fiduciary duties and payments made pursuant to the scheme were not transactions defrauding creditors.

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Perspective - Publication

V@ update - May 2022

Published on 26 May 2022. By Adam Craggs, Partner

Welcome to the May 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

Centre of vital interests tiebreaker test saves taxpayer over £10 million

Published on 25 May 2022.

High net worth individual on right side of centre of vital interests tiebreaker test.

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Perspective - Publication

Customs and excise quarterly update - May 2022

Published on 24 May 2022. By Adam Craggs, Partner and Michelle Sloane, Partner

Welcome to the May 2022 edition of RPC's Customs and Excise Quarterly Update. In order to enhance your reading experience, we have adapted the format. We hope you like it

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Perspective - Podcast

The Case of The Missing Crypto

23 May 2022

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What should you do if your crypto is stolen?

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Perspective - Blog

HMRC's civil and criminal powers

Published on 19 May 2022. By Adam Craggs, Partner

HMRC has been provided with extensive and wide-ranging powers, which have increased exponentially in recent years. This article considers HMRC’s main investigatory and assessment powers, by reference to its general enquiries, as well as specific/aspect enquiries, including criminal investigations.

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Perspective - Blog

Accounting rules prevail following HMRC loss in the Supreme Court

Published on 18 May 2022. By Keziah Mastin, Associate

Dismissing an appeal by HMRC, the Supreme Court in HMRC v NCL Investments Ltd and another [2022] UKSC 9, held that deductions for corporation tax purposes are allowable for grants of employee share options.

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Perspective - Publication

Corporate tax update - May 2022

Published on 11 May 2022. By Ben Roberts, Partner

Welcome to the latest edition of our Corporate Tax Update, written by members of RPC's tax team.

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Perspective - Blog

Tax Tribunal confirms documents sought by HMRC were legally privileged

11 May 2022

In Colin Wiseman v HMRC [2022] UKFTT 00075 (TC), the First-tier Tribunal (FTT) confirmed that certain documents which were requested by HMRC under paragraph 1, Schedule 36, Finance Act 2008, were subject to legal professional privilege (LPP) and should not be disclosed.

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Perspective - Podcast

The Asset Tracing Investigator: Following the money

09 May 2022

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Have you ever wondered what happens behind the scenes of an investigation?

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Perspective - Publication

Tax Bites - May 2022

Published on 05 May 2022. By Adam Craggs, Partner

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

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Perspective - Blog

Changes made to top slicing relief held not to apply retrospectively

Published on 04 May 2022.

Changes introduced by Finance Act 2020 to top slicing relief are not retrospective in effect.

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Perspective - Publication

V@ update - April 2022

Published on 28 April 2022. By Adam Craggs, Partner

Welcome to the April 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

Tribunal erred in law by refusing HMRC's application to strike out taxpayer's appeal

Published on 27 April 2022. By Alexis Armitage, Senior Associate

The Upper Tribunal has held that the First-tier Tribunal erred in law by striking out HMRC's application to strike out a taxpayer's appeal of a decision by HMRC to deny Input VAT on the basis of no reasonable prospect of success.

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Perspective - Podcast

Challenging tax avoidance

25 April 2022

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The tax gap refers to the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. To help narrow this gap, HMRC has been granted a number of powers over the years, including those aimed at tackling tax avoidance.

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Perspective - Blog

Taxpayer successfully appeals information notices as information requested not reasonably required

Published on 20 April 2022. By Keziah Mastin, Associate

Allowing an appeal against HMRC's information notices, the First-tier Tribunal in Yerou and another v HMRC [2022] UKFTT 79 (TC), found that the information was not reasonably required.

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Perspective - Blog

Tax Tribunal dismisses third party application for disclosure of documents

13 April 2022

In Cider of Sweden Ltd v HMRC and another [2022] UKFTT 00076 (TC), the First-tier Tribunal (FTT) dismissed an application by Ernst & Young LLP (EY) for disclosure of documents which related to appeal proceedings before the FTT between Cider of Sweden Ltd (CSL) and HMRC.

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Perspective - Podcast

Does the Economic Crime Act really have teeth?

11 April 2022

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In March 2022, the Economic Crime Transparency and Enforcement Act came into force after it was fast-tracked through Parliament in response to urgent calls for the UK's economic crime laws to be tightened.

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Perspective - Publication

Tax Bites - April 2022

Published on 07 April 2022. By Adam Craggs, Partner

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

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Perspective - Blog

Tribunal confirms TV presenter  not subject to IR35 rules

Published on 06 April 2022.

IR35 does not apply where a significant number of factors make it clear that a presenter "was in business on his own account".

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Perspective - Publication

V@ update - March 2022

Published on 31 March 2022. By Adam Craggs, Partner

Welcome to the March 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

Tribunal confirms that certain studies and project management costs relating to offshore windfarms qualify in part for capital allowances

Published on 30 March 2022. By Alexis Armitage, Senior Associate

The First-tier Tribunal has confirmed that certain studies and project management costs relating to offshore windfarms qualify in part for capital allowances.

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Perspective - Podcast

What can HMRC do with your information?

28 March 2022

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In previous episodes we have discussed the myriad of ways HMRC collects information on individuals and businesses. Whether through international agreements, information provided on a voluntary basis, as a consequence of a legal duty to report, or through its information gathering powers, the Revenue holds an abundance of information relating to taxpayers.

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Perspective - Blog

No tax due on transfer of business to connected company

Published on 23 March 2022. By Keziah Mastin, Associate

The First-tier Tribunal in Conran and another v HMRC [2022] UKFTT 39 (TC), concluded that the transfer of a business between connected parties resulted in no capital gains tax liability for the seller, having reduced the stated £8.25m valuation of the business to £1 for tax purposes.

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Perspective - Blog

Matchmaking services were subject to special place of supply rule for B2C consultancy services

16 March 2022

In Gray & Farrar International LLP v HMRC [2021] UKUT 293 (TCC), the Upper Tribunal (UT) decided that matchmaking services supplied to clients outside the EU fell within Article 59(c) of Council Directive 2006/112/EC (the Principal Directive) and were therefore outside the scope of VAT.

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Perspective - Podcast

Cum-Ex: a multi-billion tax trading scandal

14 March 2022

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In a much-anticipated podcast we revisit the multi-billion tax trading scandal known as Cum-Ex, and consider recent developments and discuss why this rapidly expanding cross-border tax fraud remains of interest 5 years after it was first exposed.

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Perspective - Blog

Payments to employees were "relevant motoring expenditure" and should be disregarded for the purposes of NICs

Published on 09 March 2022.

In Willmott Dixon Holdings Ltd v HMRC [2022] UKFTT 6 (TC) the First-tier Tribunal (FTT), held that payments to employees were "relevant motoring expenditure" (RME) and could be disregarded for the purposes of Class 1 National Insurance Contributions (NICs).

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Perspective - Publication

Tax Bites - March 2022

Published on 03 March 2022. By Adam Craggs, Partner

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

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Perspective - Blog

HMRC misses penalty

Published on 02 March 2022. By Harry Smith, Senior Associate

HMRC penalty for EBT use successfully appealed as no deliberate or careless conduct leading to inaccuracy in tax return

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Perspective - Podcast

The legal landscape of crypto fraud

28 February 2022

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In a follow up to the episode "Blockchain: Revolutionary technology… or the perfect opportunity for fraudsters", we are delighted to be joined by Michael Goodwin QC to delve deeper into the legal landscape of crypto fraud.

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Perspective - Publication

V@ update - February 2022

Published on 24 February 2022. By Adam Craggs, Partner

Welcome to the February 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

No power for HMRC to issue partial closure notice without assessment of tax due

Published on 23 February 2022. By Keziah Mastin, Associate

The Court of Appeal has confirmed that HMRC cannot issue a partial closure notice without assessment of tax due.

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Perspective - Publication

Customs and excise quarterly update - February 2022

Published on 22 February 2022. By Adam Craggs, Partner and Michelle Sloane, Partner

In this update we report on (1) a new customs consultation launched by the government; (2) HMRC's updated guidance on pre-clearance checks; and (3) stage three of Brexit customs changes. We also comment on three recent cases relating to (1) HMRC's failure to issue assessment notices within the statutory timeframe for excise duty; (2) the customs classification of the Rough Terrain Vehicle X900; and (3) the customs classification of certain TV stands.

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Perspective - Blog

Expenses incurred in defending partners against criminal charges were incurred "wholly and exclusively" for the business and were deductible

16 February 2022

In TR, SP and SR Rogers v HMRC [2021] UKFTT 0458 (TC), the First-tier Tribunal (FTT) decided that expenses incurred defending two of the partners of a partnership against criminal charges were incurred wholly and exclusively for the business of the partnership and the expenses were therefore deductible.

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Perspective - Podcast

Supporting mid-sized businesses in a challenging landscape

14 February 2022

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In the first Taxing Matters episode of 2022, we are delighted to be joined by special guest Margaret Mousley, Deputy Director at HMRC.

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Perspective - Blog

Tribunal reduces scope of Schedule 36 Information Notices

Published on 09 February 2022. By Michelle Sloane, Partner

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HMRC bears the burden of proof that the information requested to check a taxpayer's tax position, as set out in Schedule 36 information notices, is reasonably required and that records requested are statutory records.

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Perspective - Publication

Tax Bites - February 2022

Published on 03 February 2022. By Adam Craggs, Partner

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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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Perspective - Blog

Entrepreneurs' relief applied to disposal of business premises

Published on 02 February 2022. By Harry Smith, Senior Associate

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Entrepreneurs' relief (now Business Asset Disposal Relief) applies to disposal of premises as part of long-term sale of business

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Perspective - Publication

V@ Update – January 2022

Published on 27 January 2022. By Adam Craggs, Partner

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Welcome to the January 2022 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

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Perspective - Blog

Quinn – Taxpayer entitled to claim enhanced research and development relief

26 January 2022

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In Quinn (London) Ltd v HMRC [2021] UKFTT 0437 (TC), the First-tier Tribunal (FTT) allowed the taxpayer's appeal against HMRC's decision to refuse its claims for enhanced research and development relief (enhanced R&D relief), on the basis that the claimed expenditure was “subsidised” within the meaning of section 1138(1)(c), Corporation Tax Act 2009 (CTA 2009).

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