TaxPersonal TaxSlovak-linked tutor business denied tax relief

Slovak-linked tutor business denied tax relief

An accountant appealing against a £6,814 tax bill for an ACCA tutoring business he operated in Slovakia has lost his case in the special commissioners

The accountant, who was not named in the decision by the special
commissioners, operated as a sole trader, flying ACCA tutors into Slovakia for a
day to tutor Slovakian Big Four trainees.

The tax case revolved around whether he was operating as a joint venture,
after joining forces with a rival training company. The accountant would make
money by providing tutors at a premium, and also by the economies of scale he
received by buying flights in bulk, then expensing them to clients.

He had teamed up with another company, but the relationship soured over time,
and he eventually left the business after accepting a £10,000 severance payment
and his share of the profits generated while the partnership was in place.

The appellant claimed these payments should be eligible for tax relief in the
UK because his partnership with the then rival business was a joint venture.

But the special commissioners ruled otherwise. ‘In my view, the appellant’s
input was that of being consulted rather than having an equal say in how the
operation was run,’ said special commissioner John Avery Jones.

Related Articles

Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

1m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

3m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

5m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

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

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

8m Alia Shoaib, Reporter
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

9m Emma Smith, Managing Editor