HMRC TO TAKE ‘CAUTIOUS APPROACH’ TO BUSINESS TAX DEBTS

HMRC will be taking a ‘cautious approach’ on the collection of tax arrears accrued by individuals, businesses and companies during the pandemic but emphasise that a return to the normal insolvency process is vital.

If you would like to discuss how a payment arrangement with HMRC can help please contact [email protected] to arrange an initial discussion.

IT CONTRACTOR LOSES SECOND APPEAL IN £70K IR35 CASE (NORTHERN LIGHTS SOLUTIONS)

An IT contractor who managed projects over 7 years at the Nationwide Building Society has lost his appeal at the Upper Tier of the Tax Tribunal against a £70,000 tax and NIC bill.

Robert Lee, the tribunal determined, fell within the Intermediaries Rules, also known as IR35. Northern Lights Solutions Limited therefore had to be treat the income received as employment income of Mr Lee.

The interesting part of the decision is that Mr Lee disputed some of the evidence at the Tribunal, but due to the way that meetings with HMRC were handled he had difficulty in getting his view heard.

As always preparation for any such challenge is vital. Particularly given the new Public and Private sector IR35 rules.

If you would like to discuss your IR35 concerns please contact [email protected] to discuss matters in more detail.

HMRC PUBLISH LATEST TAX RECEIPT FIGURES

HMRC’s latest tax receipt figures for April 2021 to May 2021 report income totalling £106.8bn, which is £45.4bn higher than in the same period last year.

The receipts for Income Tax, Capital Gains Tax, National Insurance Contributions (NICs) and apprenticeship levy are at £59.9bn, which is an increase of £13.4bn from the same period in 2020, which comes from the protection provided by the furlough scheme.

SEISS: TAX RETURN CORRECTIONS AND PRE-CLAIM CHECKS REVISITED

HMRC have started to correct 2020-21 tax returns where the Covid-19 Self-Employment Income Support Scheme (SEISS) grants reported do not match their records and have re-started pre-claim checks in advance of the fifth grant.

HMRC are also reviewing and investigating claims made in respect of any Coronavirus schemes.

If you have any concerns over claims made for any such scheme please contact [email protected] for a preliminary chat.