Category: VAT

Tax e-News May 2026

This May 2026 edition of Tax E‑News highlights several important developments affecting individuals and businesses, from the launch of Making Tax Digital for Income Tax to key updates on loans to participators, VAT rulings, capital allowances, and changes to the Construction Industry Scheme. It also explores recent case law on Stamp Duty Land Tax and mixed‑use property. Together, these updates reflect a rapidly evolving tax landscape and the need for timely planning and compliance.

Tax e-News April 2026

Welcome to the April 2026 edition of Tax E-News, where the headline story is the official “go-live” of Making Tax Digital (MTD) for income tax. This new regime applies to self-employed individuals and landlords with business or property income exceeding £50,000 per annum, requiring digital record-keeping and quarterly updates, the first of which is due by 7 August 2026. Beyond MTD, taxpayers should prepare for a hike in dividend tax rates, which are increasing to 10.75% for basic rate taxpayers and 35.75% for those in the higher rate band.

HMRC is also tightening its grip on corporate reporting, with new data requirements for company directors in 2025/26 self-assessments and a consultation on more detailed disclosures for transactions between close companies and their shareholders. Other key changes include a rise in Capital Gains Tax rates for Business Asset Disposal Relief to 18%, stricter penalties for late-filed corporation tax returns, and a potential VAT shift for public electric vehicle charging following a recent tribunal ruling. Stay ahead of these updates to ensure your 2026/27 tax planning remains compliant and efficient.

Tax e-News February 2026

This Tax E-News focuses on critical year-end planning opportunities that individuals and businesses should address before the April 5 deadline. Key recommendations include maximizing the £20,000 ISA allowance and considering the 25% government bonus available through Lifetime ISAs. Pension contributions remain a powerful strategy, particularly for those earning between £100,000 and £125,140 who can benefit from an effective 60% tax saving. Businesses are also encouraged to review equipment spending to utilize the £1 million Annual Investment Allowance or the new 40% first-year allowance introduced in January 2026.

Significant legislative shifts are approaching in April 2026, including a two percentage point increase in dividend tax rates and a rise in Capital Gains Tax for certain reliefs to 18%. A notable government “U-turn” will increase the Inheritance Tax relief cap for qualifying agricultural and business assets to £2.5 million, potentially allowing couples to pass on £5 million tax-free. Furthermore, the newsletter outlines the upcoming Making Tax Digital (MTD) mandate for self-assessment taxpayers , the removal of employee tax relief for working from home , and the future requirement for mandatory payrolling of benefits in kind starting in 2027.

Tax e-News January 2026

This Tax E-News highlights major shifts for self-assessment and employment expenses. Making Tax Digital (MTD) for income tax is set to be mandated for a large group of taxpayers starting April 6, 2026 , although late filing penalties for quarterly updates will be waived for the 2026/27 tax year. Certain groups, such as those with trust income or farmers using averaging adjustments, have had their entry deferred until 2027. Additionally, employees should prepare for the abolition of tax deductions for working from home expenses starting April 2026 , as the government tightens rules to allow tax-free reimbursement only when home-working is a contractual necessity.

The newsletter also covers long-term digital transitions and important VAT clarifications. Looking ahead to April 2027, most Benefits in Kind (BiKs) must be processed through payroll in real-time , while mandatory e-invoicing for VAT is projected for 2029. A notable recent tribunal ruling also confirmed that rotisserie chickens are subject to 20% VAT because they are kept hot in specialized packaging. Finally, taxpayers are reminded of new advisory fuel rates effective from December 2025 and the critical January 31 deadline for filing 2024/25 self-assessment returns and making outstanding payments.

Tax e-News November 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

A significant area to watch is the planned restrictions to Inheritance Tax (IHT) relief for Agricultural Property Relief (APR) and Business Property Relief (BPR), expected from 6 April 2026. The proposal includes a new £1 million allowance for the combined value of business and agricultural property assets that qualify for 100% relief. Assets exceeding this threshold would see the relief rate drop to 50%. Furthermore, 100% BPR will no longer be available for shares designated as ‘not listed’ on recognised stock exchanges, impacting investments like AIM shares. The newsletter strongly recommends that individuals establish their potential IHT exposure now and review their Wills, though it notes these are still just proposals, not yet law.

Another key topic is the long-awaited guidance from HMRC for Making Tax Digital (MTD) for Income Tax exemptions for digitally excluded individuals. ‘Digitally excluded’ status applies to those unable to use electronic communications or keep digital records due to reasons like age, disability, or religion. To apply, you or your representative should call HMRC’s self-assessment general enquiries line or write to the provided address. For company car drivers, HMRC has updated the Advisory Fuel Rates (AFRs) for electric vehicles, introducing separate rates for charging at home (8p per mile) and using public chargers (14p per mile), effective from 1 September 2025. Finally, the newsletter touches on recent tribunal cases regarding VAT on biscuits and SDLT/ATED relief.

Tax e-News October 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

Get ready for the Autumn Budget on November 26, 2025, which is expected to bring significant tax changes to address the UK’s public finances. Key areas to watch include a potential alignment of Capital Gains Tax rates with higher Income Tax rates, and further restrictions on Inheritance Tax reliefs, building on changes already slated for 2026 and 2027. Speculation also surrounds a possible cap on pension savings tax relief, widening the scope of National Insurance to include landlords, and a potential reduction or abolition of the £90,000 VAT registration threshold.

Beyond the budget, several other updates are now in effect. HMRC has introduced a new online service for correcting VAT errors following the withdrawal of Form VAT652. New advisory fuel rates for company cars took effect on September 1, 2025, now including separate mileage rates for electric vehicles charged at home versus public facilities. As you prepare for these changes, remember key deadlines are approaching, including the Self-Assessment chargeability notification on October 5 and Corporation Tax payments on October 1 and November 1 for relevant year-ends.

Tax e-News September 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

This month’s tax update brings you essential news on significant changes ahead. We cover major reforms to Statutory Sick Pay (SSP), new HMRC compliance checks on business expenses, and important updates on property tax and the Winter Fuel Payment.

Key points include:

* SSP Reforms from April 2026: SSP will soon be payable from day one, and the minimum earnings threshold will be removed.
* HMRC Targets Business Expenses: A new campaign will focus on ensuring correct private use adjustments in Self Assessment returns.
* SDLT on Dilapidated Properties: HMRC has issued a warning about incorrect SDLT reclaim claims for properties in need of repair.
* Winter Fuel Payment Clawback: Find out if your payment will be recovered and note the 15 September 2025 opt-out deadline.

Read on for more details and other key tax updates.

Tax e-News July 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

We tackle the key questions affecting business owners and individuals. Discover why the best way to extract profit from your company is no longer a simple answer, how you can get a 25% government bonus on childcare costs, and what landlords of joint properties need to know about Making Tax Digital. Read on for essential tax-planning insights.

Tax e-News June 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

HMRC SPRING TAX UPDATE
IT’S P11D SEASON!
2024/25 EMPLOYMENT-RELATED SECURITIES RETURNS DUE BY 6 JULY
VAT GROUPS AND ANTI-AVOIDANCE
ADVISORY FUEL RATES
DIARY OF MAIN TAX EVENTS – JUNE/JULY 2025

Tax e-News February 2025

Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

THERE’S STILL TIME FOR SOME YEAR END TAX PLANNING!
AVOID ANY DOUBLE CAB ‘HICCUPS’!
EMPLOYMENT EXPENSES
VAT ON FOOD AND DRINK
DIARY OF MAIN TAX EVENTS – FEBRUARY/MARCH 2025