Hepburn v Revenue and Customs: FTTTx 20 Aug 2013

FTTTx INCOME TAX; provision of consultancy services; unformed company; fee for services subsequently paid to newly formed company after services performed; substance and commercial effect of arrangements; accounting treatment of fee; generally accepted accounting practice; corporation tax on fee paid by newly formed company; whether Appellant contractually or by reason of principles of unjust enrichment entitled to the same consultancy fee as individual and also liable to pay income tax thereon – No. Whether Appellant acting as promoter of unincorporated company under obligation to account for fee – No. Whether consultancy fee should be treated as miscellaneous income of Appellant – No. Statutory Penalty – Appellant relying on accounts accepted as accurate by HMRC; whether Appellant’s conduct negligent conduct – No. Income Tax (Trading and Other Income) Act 2005 ss 5, 8, 25, 34, 687, 689; Companies Act 1985 s36C; Appeal ALLOWED

[2013] UKFTT 445 (TC)

Income Tax

Updated: 20 November 2021; Ref: scu.515209