The recent spate of appeals concerning discovery assessments illustrates the fact that this issue remains one of ongoing controversy between HMRC and taxpayers.
Does the PAYE late payment penalty under FA 2009 Sch 56, which can cost up to 4% of late remittances for minor delays, breach human rights law?
HMRC’s business record checks (BRC) programme, after an inauspicious start, is still under consultation. However, despite HMRC withdrawing the pilot project to re-consider its scope and purpose, three significant areas of difficulty remain.
The Powers Oversight Forum is the main check on the way HMRC uses its wide-ranging powers provided by FA 2008 Sch 36. It is essential that the Forum remains in place for the foreseeable future.
The long consultative journey ...
The announced changes to the Budget proposals, while welcome, are perhaps not as straightforward as you might think.
Making up a trio of Budget U-turns in nearly as many days, the Chancellor has announced that he will not pursue an income tax relief cap on those who give to charities. However, the capping of other income tax reliefs will continue, subject to a consultation over the summer.
It is understood that the recent HMRC approach to taxpayers with Mansworth v Jelley capital losses in open tax years impacts on less than a thousand taxpayers. The point at stake is, however, the reliance which can be placed on HMRC guidance, a matter which impacts on everyone involved with our tax system.
Trust between taxpayers and HMRC continues to be in jeopardy. Some progress is being made but the profession must continue to challenge HMRC if things are to improve.
While last Wednesday’s Supreme Court judgment in the FII group litigation is good news for the FII claimants and for taxpayers in other disputes with HMRC, there is still some way to go in the UK and European courts before the final outcome is known.