The benefits of an Independent Review by HMRC

The Taxes Acts allow taxpayers to ask for an independent review of an appealable decision by HMRC. The review is carried out by an independent officer within HMRC’s Appeals and Reviews teams. However, recent evidence suggests that many taxpayers remain … Continue reading

Taxpayer success in cases involving allegations of VAT fraud

Since 16 November 2017 HMRC can levy a 30% penalty where a business knew or should have known it was involved with VAT fraud. These can be serious issues for a business to deal with. However two recent cases illustrate … Continue reading

Implications of incorrect decisions on whether zero rating applies to construction

Two recent cases highlight the implications of getting the decision wrong on whether a construction supply is zero rated. In the case of J&B Hopkins, the business was assessed to VAT despite the fact that, had the invoicing been correctly … Continue reading

HMRC failure to honour incorrect guidance about credit card services overturned on judicial review

Why this case is important HMRC usually vigorously defend claims to legitimate expectation based on incorrect HMRC guidance, particularly where the sums involved are significant. Despite that, this case demonstrates that even those taxpayers with access to expert advice can … Continue reading

Exchange losses arising on change in functional currency allowed by UT

The Upper Tier Tax Tribunal (UTT) has dismissed HMRC’s appeal against the First Tier Tribunal’s (FTT) decision to allow exchange losses appearing in the accounts and arising on a change in functional currency of various companies in the Smith & … Continue reading

Successful challenges to specified employment intermediary compliance penalties

Two recent First tier Tribunal (FTT) cases, Leverton Search Ltd and Tarrant Howl Ltd, are examples where the taxpayer has succeeded in appealing penalties for not filing returns required from ‘specified employment intermediaries’. One illustrates a commencement grace period operated … Continue reading

GAAR Advisory Body puts another nail in the coffin of Tax Avoidance

HMRC published on its website the General Anti Abuse Rule (GAAR) Advisory body decisions made on 12 October 2018 in respect of two Tax Avoidance Arrangements designed to circumvent the Part 7A Income Taxes (Earnings and Pensions) Act (ITEPA) 2003 … Continue reading

No VAT exemption for Student Union shop supplies

In the case of Loughborough Students’ Union (LSU) v HMRC the Upper Tribunal (UT) has confirmed the decision of the First tier Tribunal (FTT) that sales of stationery, art materials and other items from LSU campus shops did not qualify … Continue reading

EMI points in HMRC’s October employment related securities bulletin

HMRC’s October employment related securities bulletin contains a couple of interesting points concerning EMI (enterprise management incentives) schemes.  These are summarised below. For a further discussion of the tax and administrative issues of EMI and other employee share schemes, please get … Continue reading

New UK/Austria tax treaty is signed

A new double tax agreement between the UK and Austria was signed on 23 October 2018. Subject to both countries having completed their parliamentary procedures and exchanged diplomatic notes, it will to come into force for the fiscal year beginning … Continue reading

HMRC fail to unseat “DIY-plus” horse livery services’ IHT business property relief

The upper tribunal (UT) has turned down HMRC’s appeal in Vigne against the First-tier Tribunal (FTT) decision that “DIY-Plus” livery services provided to clients who stabled their horses with the late Mrs. Vigne were enough for inheritance tax (IHT) business property relief … Continue reading