In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments. Please feel free to share this update with any of your colleagues and invite them to sign up to our regular briefings here.
Penalties for tax errors can cut both ways
Most taxpayers know all too well that HMRC may charge them a financial penalty if they make a mistake in their tax affairs, but what happens if HMRC makes a mistake?
New VAT charge on termination of a car leasing contracts
In a low-key update to its guidance, HMRC has recently announced that VAT is chargeable on early termination fees for car leases. What’s more, most businesses with company car schemes will only be entitled to recover half of it as ‘input tax’ on their VAT return.
Taxpayers pursued for scam refund claims
In a pair of recent cases, taxpayers have found themselves facing demands from HMRC to repay tax refunds they didn’t realise they had applied for. Both cases involve the same adviser who submitted tax returns for clients that included illegitimate claims for tax relief. Having been duped into paying the tax refunds, HMRC later pursued the taxpayers for the lost tax despite the cash being paid elsewhere.