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Minstrell 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 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 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.
Read moreTax Bites - November 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreGC Field & Sons Ltd – SDLT discovery assessments held to be invalid
Discovery underlying discovery assessment for SDLT planning valid despite change of underlying reasoning, but taxpayer not negligent so appeal upheld.
Read moreV@ Update – October 2021
Welcome to the October 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreHMRC targets enablers of tax evasion
HMRC and the OECD are looking to tackle the rise of the professional enabler of tax evasion, but what is an enabler? And what does that mean for professionals?
Read moreNavigating your career: In conversation with Jack Bonehill
In this episode, we are delighted to be joined by fellow tax podcast host Jack Bonehill, the man behind the fantastic Tax Professionals Podcast series.
Read moreHMRC Target Cryptocurrency Investors
HMRC has announced it will launch a new ‘nudge letter’ campaign that will target UK taxpayers who may have failed to pay tax due in respect of their cryptoassets.
Read moreVermilion Holdings – Court of Session confirms that the grant of a share option by an employer was not an employment related securities option
In Vermilion Holdings Ltd v HMRC [2021] CSIH 45, the Court of Session overturned the decision of the Upper Tribunal (UT) and confirmed that an option granted by a company as part of a refinancing exercise was not an employment related securities option, for the purposes of section 471, Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
Read moreQuarterly Contentious Tax Review
The Tax Law Review Committee (TLRC) has published an in-depth review of the First-tier Tribunal (FTT), how it operates and why. In some respects, it is not working as well as it could for certain users. The review makes a number of positive recommendations, which we discuss below, together with two important developments concerning (1) the requirement for HMRC to initiate a formal enquiry and (2) HMRC's strategy on settling disputes relating to the use of historic tax avoidance arrangements.
Read moreProfessional Game Match Officials - Court of Appeal sends football referees case back to the Tax Tribunal
In HMRC v Professional Game Match Officials Limited [2021] EWCA Civ 1370, the Court of Appeal (CoA) held that the First-tier Tribunal (FTT) and Upper Tribunal (UT) both erred in law in their approaches to the question of 'mutuality of obligation' and upheld the UT's decision that the FTT had erred in its approach to the issue of control. The case has been sent back to the FTT to reconsider whether there was sufficient mutuality of obligation and control in the individual contracts for them to be contracts of employment.
Read moreTooth and claw?: The meaning of words in tax assessments
The concept of 'staleness' in the context of discovery assessments (assessments issued to taxpayers by HMRC outside of any statutory enquiry), gathered momentum following the Upper Tribunal’s decision in Charlton and others v HMRC [2011] UKFTT 467 (TC). As 'discovery' is only relevant to returns and tax years where HMRC has not opened a statutory enquiry, many commentators considered that the concept provided a degree of procedural fairness in the discovery assessment process, and that HMRC should not be permitted to delay issuing an assessment for a considerable period of time after making a discovery. As recently as February of this year, Judge Malek in the First-tier Tribunal (FTT) in Mehrban v HMRC [2021] UKFTT 53 (TC), noted that it was an “absurdity” to say that the concept of staleness does not exist.
Read moreV@ Update – September 2021
Welcome to the September 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreDNAe Group Holdings – Higher R&D relief claims available
In DNAe Group Holdings Ltd v HMRC [2021] TC/201804348, the First-tier Tribunal (FTT) held that 125% research and development (R&D) tax credits for an SME was available, despite the company being the strategic investment vehicle of a larger group.
Read moreHMRC issues 'nudge' letters to non-doms for suspected unpaid tax
HMRC is targeting wealthy UK tax residents claiming a non-UK domicile who may not have paid the remittance basis charge. HMRC has issued hundreds of 'nudge' letters to taxpayers encouraging them to reconsider their tax position.
Read moreConnecting the dots
In a world of increasing digitisation, globalisation and remote working, now more than ever taxpayers are starting to ask "how are HMRC going to find out?".
Read moreKSM Henryk Zeman - Tribunal can consider 'legitimate expectation' arguments in VAT appeal
Taxpayer can bring legitimate expectation/judicial review arguments in appeal against HMRC decision on VAT in First-tier Tribunal – a new step in tax litigation.
Read moreTinkler – Supreme Court decides taxpayer is estopped from denying validity of HMRC enquiry
In Tinkler v HMRC [2021] UKSC 39, the Supreme Court held that, due to the conduct of the taxpayer's advisers, the taxpayer was estopped by convention from denying that HMRC had opened a valid enquiry under section 9A, Taxes Management Act 1970 (TMA), when it had sent the notice of enquiry to the wrong address.
Read moreLockdown thoughts: the evolution of HMRC and its increasing powers
Given the complexity and, at times, lack of clarity in our tax system, concerns have been raised about the extent of HMRC's powers, particularly regarding the range of penalties that can be imposed for innocent mistakes, and the severity of penalties that can be imposed in relation to offshore matters.
Read moreJRO Griffiths – storage facility is plant for capital allowances purposes
In JRO Griffiths Ltd v HMRC [2021] UKFTT 257 (TC), the First-tier Tribunal (FTT) held that a facility used to store potatoes was a plant, and that it met other conditions allowing it to qualify for capital allowances.
Read moreEclipse film partnerships settlement opportunity announced by HMRC
HMRC announced on 6 September 2021 a settlement opportunity for current and former members of the Eclipse Film Partners (numbers 1 to 40) limited liability partnerships (the Eclipse LLPs), under which HMRC will agree not to seek to impose a 'dry tax' charge in exchange for members settling historic tax liabilities (with interest) and abandoning litigation against HMRC in relation to the Eclipse LLPs. If accepted by each taxpayer, approximately £1.6 billion of 'dry tax' will not be pursued by HMRC.
Read moreAccountants obliged to report suspected misuse of the Bounce Back Loan Scheme
The Bounce Back Loan Scheme (BBLS) was introduced to enable smaller businesses adversely affected by the coronavirus pandemic to access government-backed finance.
Read moreTax Bites - September 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreHaworth - Supreme Court upholds decision to quash follower notice
Follower Notice judicial review upheld by Supreme Court even in tax avoidance context; restrictive requirements imposed for issue of follower notices.
Read moreThe tax tribunals: the next 10 years
Twelve years on from the seismic changes to the UK tax appeals system that introduced the First-tier Tribunal and the Upper Tribunal, the Tax Law Review Committee (TLRC) has published its Report "The tax tribunals: the next 10 years".
Read moreV@ Update – August 2021
Welcome to the August 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreContentious tax quarterly review
We consider the Supreme Court's decision in Tooth, concerning discovery assessments; and examine the contentious issue of when a taxpayer can rely upon a PAYE credit. We also review the increased focus by HMRC on cryptoassets and the challenges that might create for taxpayers.
Read moreCustoms and excise quarterly - August 2021
In this update we report on (1) European Commission Guidance on UK import formalities; (2) HMRC's new and updated guidance for imports and exports following the end of the Brexit transition period; and (3) HMRC's updated guidance on returned goods relief on items exported from Northern Ireland. We also comment on three recent cases relating to (1) the illegal import of cigarettes; (2) customs valuation; and (3) the application of the dishonesty test when determining penalties.
Read moreWilkes – HMRC's discovery assessments were invalidly issued
In HMRC v Jason Wilkes [2021] UKUT 150 (TCC), the Upper Tribunal (UT) dismissed HMRC's appeal against a decision of the First-tier Tribunal (FTT) which held that discovery assessments issued by HMRC to assess the high income child benefit charge (HICBC), were invalid.
Read moreThe complicated question of corporate criminal liability
Many commentators have questioned whether the law relating to corporate criminal liability is still fit for purpose or whether it is due a significant overhaul.
Read moreKelly – Tax tribunal confirms re-discovery not permissible for the purposes of section 29 TMA
In Sean Kelly v HMRC [2021] UKFTT 162, the First-tier Tribunal (FTT) confirmed the principle that a discovery can only be made once and HMRC cannot raise a new discovery assessment under section 29,Taxes Management Act 1970 (TMA), in respect of the same discovery.
Read moreTax Bites - August 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreWalewski - Mixed partnership rules mean profit can be reallocated for whole period of account
Corporate member tax planning ineffective as profits allocated to partner in partnership for period during which it was a partner under mixed partnership rules.
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