Case reports

Tax / HMRC wins £29m tax avoidance case

HMRC has won an Upper Tribunal appeal against a tax avoidance scheme which sought to claim £122m was spent on research into brain disorders, when only £7m of it reached a genuine research company

Tax / Charity warns of £400m NMW backpay shock

Mencap is warning that the social care sector faces a major financial crisis, after HMRC asked for back payments of up to £400m to cover missing national minimum wage (NMW) for ‘sleep in’ staff, following an employment tribunal ruling

Tax / How Rangers lost employment benefit trust (EBT) case at Supreme Court

When the Supreme Court rejected the Rangers employee benefit trust argument, HMRC appeared to have been vindicated. Ray McCann CTA, partner at Joseph Hage Aaronson examines the implications of the ruling, the implications for companies who used EBTs and did not settle with HMRC when an amnesty was offered, and the use of abusive tax avoidance schemes 

Tax / Case: HMRC succeed in Rangers EBT case

In RFC 2012 Plc (in liquidation) v Advocate General for Scotland [2017] BTC 22, the Supreme Court dismissed the taxpayer’s appeal; money paid under a tax avoidance scheme into an EBT constituted earnings to which PAYE deductions should have been applied, since such money was a component of each footballer’s remuneration

Tax / HMRC claims victory in Rangers EBT ‘big tax case’

HMRC has won a seven-year legal battle over the use of employee benefit trusts (EBTs) as a means of paying players and staff at Rangers football club, with the Supreme Court handing down a ruling that the payments should be classed as ‘earnings’ rather than loans, and are therefore taxable under PAYE

Tax / Tax updates: July 2017

This month's review of tax cases and tax news including Ingenious to appeal tribunal decision, summer Finance Bill before July recess, IR35 guidance for off-payroll medics, electric car mileage, South African diver caught by UK tax

Tax / Taxpayer has late filing penalty cancelled due to special circumstances

A taxpayer’s appeal against several late filing penalties from HMRC has been partly allowed, with the First Tier Tribunal cancelling a 12-month penalty due to special circumstances but ruled that there was no reasonable excuse for fling the tax return late

Tax / UK property developers warned on Bulgarian VAT case

A recent opinion given by the advocate general of the European Court of Justice (CJEU), relating to VAT recovery on building costs, could have implications for property developers and housebuilders in the UK who enter into planning gain agreements, Saffery Champness is warning

Tax / Couple win appeal against HMRC over compulsory VAT registration

A First Tier Tribunal (FTT) has allowed a husband and wife’s appeal against HMRC’s decision that the couple ran one business in partnership, rather than two separate businesses, and were therefore eligible for compulsory VAT registration 

Tax / IRS facing multimillion dollar fee repayments to accountants

The US tax authorities may have to repay up to $300m to accounts preparers, after a court ruled that the fees charged for issuing Preparer Tax Identification Numbers (PTIN) required with submissions are illegal

Tax / Elliott: ancillary supplies get a break in Brockenhurst

Graham Elliott, VAT specialist and director at City & Cambridge Consultancy, reviews the case for removing VAT for student provided meals and entertainment performances at Brokenhurst College 

Tax / Tax updates: June 2017

This month's review of tax cases and tax news including Mauritian trust management UK based, Icebreaker members’ appeal dismissed, appeal against penalties denied and, Making Tax Digital dropped from Finance Bill 2017

Tax / VAT updates: June 2017

The latest VAT rulings with implications for businesses include whether charges made by a body to parties other than students can be exempt from VAT as essential to education in the Brockenhurst case, cost sharing exemption

Tax / Ingenious to appeal latest tribunal decision

A judge clarifying a tax dispute between HMRC and partnerships set up by Ingenious Media has said the decision reached by the First Tier Tribunal was done so with 'misgivings and reluctance'

Tax / HMRC disputes own calculations

HMRC has won a £3.1m case at a First Tier Tribunal (FTT) where part of the argument centred on whether or not the tax authority could challenge calculations derived from third party software developed to meet its own technical specifications, which may have implications for Making Tax Digital implementations