Weekly tax brief | 22 September 2020

Deferring CJRS payments with TTP: this time it’s personal (liability)
Susan Ball
Back in March, if an employer called HMRC to obtain a Time to Pay (TTP) arrangement for PAYE/NIC, HMRC were readily allowing 90 days, but not always making it clear that interest would be added. In May they explained that a TTP would not be agreed on PAYE/NIC relating to CJRS grant payments, while interest charges were being sent for earlier arrangements. Now, as the CJRS comes to an end, HMRC is increasingly reviewing historic claims and compliance in connection with furloughed staff.

National Minimum Wage - rate freezes a possibility but enforcement still a priority
Charlie Barnes
The Government is reportedly considering whether to freeze NMW (National Minimum Wage) rate rises in April 2021, apparently abandoning its pledge for the NLW (National Living Wage) to reach two-thirds of median earnings, and the age threshold to be reduced from 25 to 21, by 2024.

New VAT risk to property developers and local authorities
Scott Harwood
In the last weeks before the UK leaves its jurisdiction, the European Court has issued a ruling that may restrict VAT recovery by housebuilders on work carried out for local authorities under a ‘planning gain agreement’. Developers should watch closely for HMRC’s reaction as retrospective action could be on the cards.

HMRC slips up in skating rink VAT appeal
Sarah Halsted
A tribunal has ruled that children’s ice skates can be hired without VAT, even when included in a skating session package. This is another recent loss for HMRC in a case where it has argued that a supply that would normally be eligible for VAT relief is part of a larger supply that is subject to VAT. Will HMRC take the point further?

30 September is the deadline for reporting and paying the loan charge
Noel Mooney
30 September is the deadline for settling disguised remuneration tax planning arrangements with HMRC. This is the date to complete the contract process, and agree payment terms, to benefit from the November 2017 settlement terms and avoid the need to report the loan charge.