Payne v R & C Commrs [2020] BTC 19, in the Court of Appeal (“Coca Cola” van case)

Payne v R & C Commrs [2020] BTC 19, in the Court of Appeal (“Coca Cola” van case)

This is the third time this appeal has been before the Judges with the Appellants losing most of their points at the First and Upper Tax Tribunals. It has been, and remains, a difficult case for the layperson to follow what all the fuss is about. The point at issue is whether a panel sided vehicle was a van or a car. The employees worked for Coca Cola. The Judges decided that all three vehicles were cars. Car Benefit in Kind tax charges are usually a lot higher than van Benefit charges, hence the problem. Companies should take advice if there is any doubt about a vehicle. Will this appeal go to the Supreme Court?

Payne v R & C Commrs [2020] BTC 19, in the Court of Appeal (“Coca Cola” van case)

Jones v R & C Commrs [2020] BTC 556, in the Upper Tax Tribunal (“UTT”)

This was an appeal against an FTT decision. Jones’ termination payment from her employment was under investigation and appeal. The UTT decided differently to the First Tier, and said that HMRC had failed to prove the culpability of Jones and hadn’t established carelessness or deliberate conduct. Therefore the Discovery Assessments should not have been issued. The UTT didn’t remit it back to the First Tier and allowed the appeal. The case confirms that HMRC has to prove culpability when issuing Discovery assessments.

Payne v R & C Commrs [2020] BTC 19, in the Court of Appeal (“Coca Cola” van case)

A Suspected Furlough Fraud Of £495,000 From A West Midlands Man

A West Midlands man has been arrested as part of an HMRC investigation into a suspected £495,000 Coronavirus Job Retention Scheme (CJRS) fraud.

HMRC officers executed a search warrant on 8th July and arrested the 57-year-old I the Solihull area. This is the first arrest in connection to alleged fraud relating to CJRS.

Computers and digital devices were seized, and funds held in a bank account relating to his business have been frozen.

More than £27.4 billion has been claimed through the Job Retention Scheme supporting 1.1m employers and 9.4m furloughed jobs.

The four lines of defence the CJRS scheme has are:

  • Employees have to have been on a payroll on or before 19 March – preventing the use of fake employees
  • Claims are only accepted from employers known – and authenticated – by HMRC
  • All claims are assessed by a specialist team within a 72-hour window
  • Proportionate and reasonable interventions with customers after money has been paid.

Eight more men from across the West Midlands have also been arrested as part of this linked investigation. Further computers and other digital devices were seized, plus business and personal records.

Tax credits deadline, don’t lose out

Tax credits deadline, don’t lose out

Tax credits customers have until the 31st July 2020 to tell HM Revenue and Customs (HMRC) about changes to their circumstances or income.

If you have received a letter to reconfirm their income details must contact HMRC if your circumstances have changed.

Failure to respond by the deadline may mean tax credits customers receive incorrect tax credits payments and may end up having to repay if overpaid.

If you have received a HMRC letter or pack and you disagree with any of the information then please contact HMRC straight away.

HMRC scams

You should be aware that criminals could take advantage of tax credits renewals by using text, email or phone the public, offering fake support. These scams copy HMRC messages in an effort to look genuine.

If someone texts, emails or calls claiming to be from HMRC, saying that a customer can renew a tax credits award or access financial help, and asks for credit card or bank details, it is likely to be a scam. People should check GOV.UK for information on how to recognise genuine HMRC contact.

Hospitality Industry Welcomes HMRC Eat Out to Help Out Scheme

Hospitality Industry Welcomes HMRC Eat Out to Help Out Scheme

Restaurants and other establishments that serve food for consumption on a premises can now sign up to a new government scheme aimed to prevent loss of employment in the hospitality industry and encourage people to safely return to dining out.

The Eat Out to Help Out registration page went live on the 13th July on GOV.UK, allowing businesses to join the scheme.

Restaurants, bars, cafes and other establishments who use the scheme can offer a 50% reduction, up to a maximum of £10 per person, to all diners who eat and/or drink-in throughout August.

Customers do not need a voucher as Participating establishments will just remove the discount from their bill without customers needing any type of coupon.  The businesses can then reclaim the discounted amount through an online service, supported by HM Revenue and Customs (HMRC).

The Eat Out to Help Out scheme is open to eligible establishments across the UK and can be used all day, every Monday to Wednesday, between 3 and 31 August 2020.

Who can register?

You can register for the Eat Out to Help Out Scheme if your establishment:

  • sells food that is intended for consumption on the premises when purchased
  • provides its own dining area or shares a dining area with another establishment for eat-in meals
  • has registered as a food business with the relevant local authority on or before 7 July

How to register:

If you would like your businesses be part of the scheme then please register at GOV.UK.

The scheme can be used by diners who order food and/or drinks for consumption on the premises. Alcohol is excluded from the offer.

Further information for businesses, including how to register and make a claim, is available at GOV.UK.