Tax Bites - November 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
As always, if there are any areas on which you would like more information (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.
News
HMRC updates its off-payroll working manual
HMRC has updated its Employment Status Manual dealing with the extended off-payroll working rules for the private sector. In particular, guidance is provided as to when a business will be a small entity, by reference to its balance sheet, turnover, and number of employees. Read more
EU updates its list of non-co-operative jurisdictions
The EU has updated its list of non-co-operative jurisdictions for tax purposes. Read more
HMRC finalises its guidance on offshore receipts from intangibles
HMRC has published guidance on the taxation of offshore receipts in respect of intangible property referable to the sale of goods, or provision of services, in the UK. Read more
Case reports
Wired Orthodontics: FTT refuses application for disclosure
In Wired Orthodontics Ltd and others v HMRC [2020] UKFTT 290 (TC), the First-tier Tribunal (FTT) refused an application for disclosure of documents and information passing between the solicitors for HMRC and their appointed expert witness. Read more
Box: FTT rules that high-income child benefit charge constitutes income for the purpose of discovery assessment
In Martin Richard Box v HMRC [2020] UKFTT 353 (TC), the FTT dismissed the taxpayer's appeal against an assessment to pay high-income child benefit (HICB) charge, on the basis that the charge constituted income for the purpose of discovery assessments. Read more
Irish Bank Resolution Corporation: Court of Appeal confirms disallowance of interest deductions compared by UK permanent establishments
In Irish Bank Resolution Corporation Ltd (in special liquidation) and another v HMRC [2020] EWCA Civ 1128, the Court of Appeal upheld the decisions of the FTT and the UT and confirmed that HMRC was entitled to disallow interest deductions claimed by the UK permanent establishments (PEs) of two Irish companies. Read more