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Case Law Corner
Louise Stones v HMRC – Misdirection
Miss Stones was a self-employed radio presenter. She incurred a number of expenses in the tax years 2006/2007, 2007/08 and 2008/09, which she claimed were tax deductible via her Self-Assessment Tax Returns for these years. It is not entirely relevant to detail these expenses; save to say that many were in respect of outfits that [...]
CJEU Ruling on Holiday Pay for Employees on Long-term Sick – KHS AG v Winfried Schulte
The Government consulted on amendments to the UK Working Time Regulations earlier in the year. These are the Regulations which implement the European Working Time Directive (WTD). Specifically, the Government’s consultation had much to do with recent rulings in the UK and Europe about holiday pay and how it is influenced when an employee is [...]
HMRC ‘Modernising the Tax System’, HM Treasury ‘Next Steps’, P11D Penalty Notices, RTI Information, Case Law Corner
There were two interesting consultation papers issued last week. Mind you, the term ‘interesting’ is very subjective and I am aware that this may be viewed as a sad reflection on my life! Nevertheless, both are important, one from HMRC and the other from HM Treasury, running in parallel. The Treasury one is particularly interesting [...]
P11D Penalty Notices
In their latest update, HMRC have advised that, from last week, P11D(b) Penalty Notices have started to be issued – this is the form on which an employer makes their annual Class 1A Return. The penalty is for tax year 2010/11, where P11D(b) Returns were due by 06 July 2011. The penalty is £100.00 per 50 [...]
Entitlement to Holiday Pay Whilst on Sick Leave – Fraser v Southwest London St George’s Mental Health Trust
There have been no shortage of UK and European cases in the last few years relating to the awkward issue of an employee’s entitlement to holiday pay whilst on sick leave. However, the case of Fraser v Southwest London St George’s Mental Health Trust appeared a relatively simple one. Mrs Fraser had an accident in [...]
HMRC Weekly Update, Revised List 3, Disguised Remuneration and NICs, Pensions Act 2011, RTI – The First Consultation and Case Law Corner
As Susan Boyle’s latest release came through my letterbox, I had not even heard of LVCR, let alone appreciated that a ‘loophole’ allowed my CD supplier to avoid having to pay VAT by sending it from the Channel Islands. However, as I discovered, the Channel Islands have been treated as outside the European Union for [...]
Penalties for late P35 forms – Foresight Financial Services Ltd v HMRC
The First Tier Tribunal (Tax) hears appeals relating to tax against decisions that have been made by the Commissioners for Her Majesty’s Revenue and Customs. This decision from the First Tier Tribunal concerns the penalty that was raised by HMRC for the late filing of a P35. The deadline by which the P35 Return is required [...]
UK Residency – Robert Gaines-Cooper V The Commissioners for HM Revenue and Customs
Whilst this ruling from the Supreme Court is primarily concerned with the international issue of residency in the UK for tax purposes, the case also has implications for the wider payroll function. This was a long-running case, however, briefly, in the 1970s; Mr Gaines-Cooper moved to the Seychelles and claimed that he had acquired a [...]
When do Arrears Payments become taxable? – Fountain v HMRC
This case is concerned with a payment made in arrears and when such a payment becomes liable for tax. Whilst this tells us nothing new, it demonstrates a basic principle – most employers will pay their employees in arrears. Mr Fountain received a payment on 07 April 2007 for work carried out in March 2007. [...]
