Courts and Tribunals: June 2018

Julian Harris General Taxation Leave a Comment

Successor company could only claim trading losses sustained by predecessor’s business after the succession When a company purchased the share capital of another company in which losses had been incurred, ICTA 1988, s 343(3) provided that the purchasing company was only entitled to set those losses against trading income derived from the former business, not against the trading income of …

There is no need for an Employment Status

Robert Maas General Taxation Leave a Comment

I recently attended an ICAEW Tax Faculty debate on ‘Employment Status – what’s the answer’. As I listened to the debate, I began to wonder whether in fact there ought to be an answer. The concept of employment arises in three distinct areas, employment law, social security and tax. But it does not work satisfactorily in any of them. The …

Changes to simplify the dividend tax process for HMRC could cost small businesses in the long run

Steve Collings HMRC Leave a Comment

Small business owners making the most of the tax-free dividend allowance in the UK have already seen an impact on their savings and the cash available to them, due to a significant reduction that saw the allowance shift from £5,000 to £2,000 in April 2018. And now, family owned companies, small business owners and individuals could be faced with a …

HMRC Enquiries: meeting up?

Mark McLaughlin HMRC Leave a Comment

A tax return enquiry by HMRC is a possibility for virtually any person who files a return. A common feature of tax return enquiries (especially for business owners) is that HMRC often request a meeting with the taxpayer, particularly at an early point in the enquiry. The prospect of a meeting with HMRC is generally not relished by taxpayers (or …

VAT news and cases roundup: June 2018

Andrew Needham VAT and Customs Duties Leave a Comment

Loan administration services fell within the definition of debt collection services Target Group Limited v Commissioners for Revenue and Customs [2018] UKFTT 226 (TC) was an appeal against a decision by HMRC that loan administration services supplied by the appellant to a UK bank, Shawbrook Bank Limited, were standard-rated supplies for VAT purposes, rather than exempt ones as claimed by the …