Tax Bites - September 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 you would like more information on (or if you have any questions or feedback), please let us know or get in touch with your usual RPC contact.
News
Making Tax Digital (for income tax)
HMRC has published updated guidance on the rules for Making Tax Digital for income tax. The guidance includes a new section which explains that from 6 April 2023, the rules apply if taxable turnover from a self-employed business, or income from property, is above £10,000 (although you can follow the rules voluntarily now).
The guidance can be viewed here.
HMRC updates its guidance on the loan charge
HMRC has amended its guidance on its approach to implementing the 2019 loan charge, to reflect changes resulting from the enactment of Finance Act 2020.
The guidance can be viewed here and the briefing viewed here.
CIOT response to consultation on lower courts' power to depart from retained EU case law
The UK Government is consulting on proposals to allow lower courts to diverge from EU caselaw which predates the end of the transition period. The Government's proposals would mean that parties could seek to overturn pre-Brexit EU caselaw in courts below the Supreme Court. It is considering the following two options:
-
the Court of Appeal and courts at a broadly similar level (or higher) would be able to diverge – but not lower courts;
-
the High Court and courts at a broadly similar level (or higher) would be able to diverge – which could include the Upper Tribunal.
The response can be viewed here.
Case reports
No excuses
In William Archer v HMRC [2020] UKFTT 0288 (TC), the 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.
Our commentary on the decision can be viewed here.
High Court bowls out former cricketer and declines to rectify contract to prevent tax charge
In (1) MV Promotions Ltd (2) Michael Vaughan v (1) Telegraph Media Group Ltd (2) HMRC [2020] EWHC 1357 (Ch), the High Court declined to exercise its discretion to rectify a provision in a contract for services.
Our commentary on the decision can be viewed here.
Canadian bank liable to pay UK tax on assigned oil royalties
In Royal Bank of Canada v HMRC [2020] UKFTT 267 (TC) the FTT held that a Canadian bank was subject to UK tax on royalties assigned to it following its oil company creditor entering receivership.
Our commentary on the decision can be viewed here.