TaxPersonal TaxArctic decision means ‘Friday 13th for small business’

Arctic decision means 'Friday 13th for small business'

Decision is a 'great pity,' says adviser, as HMRC decision is greeted with disappointment

artcic systems couple

The decision to petition to appeal in the Arctic Systems case proves that
today really is Friday the 13th for small businesses, a senior tax adviser has
said.

Responding to the announcement earlier today, Chas Roy-Chowdhury of ACCA told
Accountancy Age: ‘They’ve created a sea of uncertainty. It’s Friday the
13th for small businesses’.

Mike Warburton of Grant Thornton said the decision was a ‘great pity’ and a
‘missed opportunity’.

The Revenue had had the opportunity to ‘give in gracefully’, added Warburton,
predicting that the Lords would be unlikely to allow the petition.

It was unclear precisely how much uncertainty had been resolved by HMRC’s
guidance on the cases, which said businesses should file on the basis of the
Court of Appeal judgment.

Francesca Lagerberg of Smith & Williamson said that businesses could only
file on the basis of the law as it stood, and that any Lords decision to
overturn the judgment would only take effect later.

‘I would much prefer them to have said we have taken this far enough,’ added
Lagerberg.

Roy-Chowdhury said: ‘Clearly HMRC feels there is a principle at stake. It
would look odd to go this far and then let go’.

It could be months before a decision on whether or not to hear the case will
be taken. The Court of Appeal had refused a leave to appeal, prompting HMRC’s
decision to make a last-ditch petition.

Related Articles

HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

5d Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

1w Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

3m Emma Smith, Managing Editor
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

3m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

3m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

3m Alia Shoaib, Reporter