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Challenging tax avoidance
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.
Read moreTaxpayer successfully appeals information notices as information requested not reasonably required
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.
Read moreIllicit funds confiscated by HMRC increase sevenfold to £39m
Account freezing and forfeiture orders being used against furlough fraudsters
Read moreTax Tribunal dismisses third party application for disclosure of documents
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.
Read moreDoes the Economic Crime Act really have teeth?
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.
Read moreTax Bites - April 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreTribunal confirms TV presenter not subject to IR35 rules
IR35 does not apply where a significant number of factors make it clear that a presenter "was in business on his own account".
Read moreV@ update - March 2022
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.
Read moreTribunal confirms that certain studies and project management costs relating to offshore windfarms qualify in part for capital allowances
The First-tier Tribunal has confirmed that certain studies and project management costs relating to offshore windfarms qualify in part for capital allowances.
Read moreWhat can HMRC do with your information?
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.
Read moreNo tax due on transfer of business to connected company
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.
Read moreMatchmaking services were subject to special place of supply rule for B2C consultancy services
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.
Read moreCum-Ex: a multi-billion tax trading scandal
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.
Read morePayments to employees were "relevant motoring expenditure" and should be disregarded for the purposes of NICs
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).
Read moreTax Bites - March 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreHMRC misses penalty
HMRC penalty for EBT use successfully appealed as no deliberate or careless conduct leading to inaccuracy in tax return
Read moreThe legal landscape of crypto fraud
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.
Read moreV@ update - February 2022
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.
Read moreNo power for HMRC to issue partial closure notice without assessment of tax due
The Court of Appeal has confirmed that HMRC cannot issue a partial closure notice without assessment of tax due.
Read moreCustoms and excise quarterly update - February 2022
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.
Read moreExpenses incurred in defending partners against criminal charges were incurred "wholly and exclusively" for the business and were deductible
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.
Read moreSupporting mid-sized businesses in a challenging landscape
In the first Taxing Matters episode of 2022, we are delighted to be joined by special guest Margaret Mousley, Deputy Director at HMRC.
Read moreTribunal reduces scope of Schedule 36 Information Notices
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.
Read moreHMRC crackdown aims to recover billions from covid support abusers
The government is advancing a determined drive to investigate the massive level of suspected abuse and fraud relating to the Coronavirus support relief schemes, particularly the Coronavirus Job Retention Scheme (CJRS). Michelle Sloane of RPC and Michael Goodwin QC of Red Lion Chambers write
Read moreTax Bites - February 2022
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreEntrepreneurs' relief applied to disposal of business premises
Entrepreneurs' relief (now Business Asset Disposal Relief) applies to disposal of premises as part of long-term sale of business
Read moreV@ Update – January 2022
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.
Read moreQuinn – Taxpayer entitled to claim enhanced research and development relief
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).
Read moreRise in HMRC demands for information from professional services firms on suspected tax evading clients
• 6% increase bucks trend of reduced investigations during pandemic • Production orders compel professional advisers to hand over clients’ data to authorities
Read moreMinstrell Recruitment – HMRC not required to disclose the names of its officers involved in a Gross Payment Status revocation decision
In Minstrell Recruitment Ltd v HMRC [2021] UKFTT 0344 (TC), the First-tier Tribunal (FTT) held that HMRC need not disclose the names of the HMRC officers involved in making a gross payment status (GPS) revocation decision where that decision had been successfully appealed, for the purpose of determining whether HMRC had acted unreasonably in the conduct of that appeal.
Read moreCorporate tax update – January 2022
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC's tax team. As this edition is the first of the New Year we hope that you, your family and friends had a restful and enjoyable end to 2021.
Read moreJTC - Escrow agreement set aside on basis of mistake
Rescission granted of pension arrangements with tax impact due to incorrect advice for temporary UK non-resident moving to UAE.
Read moreKishore – Court of Appeal rejects HMRC's strike out application
In HMRC v Dhalomal Kishore [2021] EWCA Civ 1565, the Court of Appeal rejected HMRC's application to strike out the taxpayer's grounds of appeal against penalties for inaccuracies in VAT returns, as the application was an abuse of process.
Read moreQuarterly Contentious Tax Review – Winter 2021
HMRC has extensive powers to require information and documentation from taxpayers. These powers were bolstered in the last Finance Act to include financial institution notices. Failure to comply with information notices can attract penalties. The most severe penalties are those imposed by the Upper Tribunal (UT). We examine, below, HMRC's increasing use of these powers, together with HMRC's penchant for 'nudge' letters and recent developments in the application of the transfer of assets abroad (TOAA) provisions.
Read moreReputation management: the vital difference between reacting and responding
Warren Buffet once quipped, "It takes 20 years to build a reputation and only 5 minutes to ruin it". The potential impact of reputational damage can be significant during litigation, or a commercial dispute. Understanding when to react and how to respond, can make all the difference.
Read moreHMRC didn’t issue a single Accelerated Payment Notice last year
HMRC’s controversial Accelerated Payment Notice campaign may be waning, says RPC the international law firm.
Read moreThe Medical Defence Union – insurance premium rebates not taxable receipts
Insurance premium rebate does not count as a taxable receipt, but instead is merely a (non-taxable) refund to the mutual fund for the benefit of its members.
Read moreGB Fleet Hire - Upper Tribunal allows appeal against First-tier Tribunal strike out decision
In a rare move, the Upper Tribunal overturned the decision of the First-tier Tribunal to strike out an appeal on the grounds that the tribunal's decision was irrational.
Read moreBlockchain: Revolutionary technology… or the perfect opportunity for fraudsters
In recent times it seems that the word crypto, and the underlying blockchain technology associated with it, is on everyone’s lips. From Elon Musk's effect on the price of Bitcoin to non-fungible tokens in the art world, the debate rages over whether blockchain will revolutionise the world or lead to the dismantling of the existing order.
Read moreTax Bites - December 2021
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.
Read moreVitol Aviation – Tribunal directs HMRC to issue closure notices where diverted profits tax review periods are ongoing
In Vitol Aviation UK Ltd and others v HMRC [2021] UKFTT 0353 (TC), the First-tier Tribunal (FTT) granted the Applicants' application for closure notices in respect of corporation tax enquiries, notwithstanding that the review periods for diverted profits tax (DPT) notices were ongoing in respect of the same accounting periods.
Read moreCustoms and excise quarterly update - November 2021
In this update we report on (1) the revised timetable for border controls on imports from the EU; (2) regulations regarding the new Freeports; and (3) updates to safety and security requirements on imports and exports from the EU. We also comment on three recent cases relating to (1) time limits and procedural requirements in a customs context; (2) whether UK acquisition VAT can apply when a bonded warehouse is not located in the UK; and (3) the tariff classification of mastectomy bras.
Read moreHMRC paid £400,000 for information relating to tax fraud in past year
Reports of Covid support scheme abuse increase.
Read moreV@ Update – November 2021
Welcome to the November 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreCrippin – ancillary dwelling qualified for principal private residence relief
Ancillary property qualifies for principle private residence relief despite being informally rented to friends.
Read moreClearer lines of communication
With increasing pressure on HMRC to collect more tax with less resource, it is more important than ever to communicate effectively with HMRC.
Read moreShinelock Ltd – payment not deductible as a loan relationship debit
In Shinelock Ltd v HMRC [2021] UKFTT 320 (TC), the First-tier Tribunal (FTT) decided that a payment made by a company to its former shareholder was not deductible as a loan relationship debit and accordingly there was no non-trading loan relationship deficit (NTLRD) to offset the chargeable gain realised on the disposal of a property.
Read moreFashion on the Block – taxpayer successful with substance over form argument
Erroneous EIS form submitted, SEIS1 required in its place; HMRC alerted to the mistake and told to allow rectification.
Read moreCorporate Crime Reform: A comparative guide
In a much anticipated follow up to our previous episode on the Law Commission's consultation on the law of corporate crime in the UK, we are delighted to be joined by Dr Robin Lööf to dive a little deeper into the key issues at the heart of this important topic.
Read moreHMRC issues 'nudge' letters to recipients of foreign investment income
HMRC is targeting taxpayers who received foreign investment income in 2019/20, and who, HMRC believes, claimed foreign tax credit relief incorrectly, or at the wrong rates. HMRC has issued 'nudge' letters to taxpayers encouraging them to reconsider their tax position.
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