Tax update - April 2020

In this month’s update we report on (1) HMRC’s updated guidance on certain arrangements which purport to avoid the ‘managed services companies’ legislation; (2) recently published draft legislation on voluntary restitution in the context of the loan charge; and (3) the Government’s decision to suspend the extension of IR35 to the private sector.

We also comment on three recent cases relating to (1) whether gambling proceeds were taxable income; (2) failure by HMRC to open a valid enquiry; and (3) whether EU group relief claims displaced earlier domestic claims.

News

Managed Service Company legislation: unpaid PAYE and Class 1 NIC avoidance schemes (Spotlight 32)

On 25 February 2020, HMRC published updated guidance. Read more

Loan Charge: draft legislation on voluntary restitution published

On 27 February 2020, eagerly anticipated draft legislation was published in relation to the establishment of a scheme for refunding voluntary restitution payments made under disguised remuneration loan charge settlement arrangements. Read more

IR35 tax “reforms” suspended for a year

On 17 March 2020, in response to the outbreak of coronavirus, the Treasury announced that it would suspend implementation of IR35 reforms for a year. Read more

Cases

McMillan – Gambling proceeds not taxable income

In McMillan v HMRC [2020] UKFTT 0082 (TC), the First-tier Tribunal (FTT) held that proceeds of gambling were not taxable income. Read more

Credit Suisse – HMRC failed to open a valid enquiry

In Credit Suisse Securities (Europe) Ltd and others v HMRC [2020] UKFTT 86 (TC), the FTT allowed the taxpayers’ appeals as HMRC had not issued a valid notice of enquiry. Read more

Linpac – EU group relief claims did not replace earlier domestic claims to relief

In Linpac Group Holdings Ltd v HMRC [2020] UKFTT 60 (TC), the FTT allowed the taxpayer’s appeal against HMRC’s decision that its claim for group relief had been withdrawn by a subsequent claim. Read more