SME Tax News

Hello, 

With the Chancellor’s Spring Statement just a few days away, there is a little less tax news than normal this week. As a result, we continue to focus on planning around the end of the tax year, and we explore some particularly interesting court and tribunal decisions.

HMRC are calling for clients of Tax Credits Ltd who made paper form applications for tax assignments from 1 January to 26 October 2022 to contact them. This follows a successful ongoing Account Forfeiture Order on the bank accounts of Tax Credits Ltd and prior to the distribution of its assets to the state.

In PD & MJ Limited v HMRC [2025] UKUT 00094, the Upper Tribunal (UT) found that Sky Sports presenter, Phil Thompson, was an employee for Income Tax and National Insurance purposes. 

HMRC have released a calculator for those affected by the 2024-25 change in Capital Gains Tax (CGT) rates. Taxpayers using HMRC's online tax return filing service may need to use this tool to calculate a CGT 'adjustment figure', as the tax return calculation will not automatically calculate CGT at the new main rates where they apply.

In Executors for the Estate of the late Gertrud Tanner v HMRC [2025] TC09456, the First Tier Tribunal (FTT) found that a Furnished Holiday Letting business did not qualify for Business Property Relief (BPR). The business was mainly one of holding investments.

In Orsted West of Duddon Sands (UK) Limited & Ors v HMRC [2025] EWCA Civ 279, the Court of Appeal (CoA) applied a wider interpretation to the term ‘on the provision of plant', than previous tribunals. This meant that the cost of preliminary studies relating to offshore wind farms qualified for capital allowances.

Hello, 

News this week includes a proposed reporting easement for ‘side-hustlers’ and a new service for tax agents to escalate and resolve self-assessment and PAYE queries with HMRC. We also continue to look forward to the new tax year, with a range of new and updated guides and resources.

In Valesca Valentina Yvette Louwman v HMRC [2025] TC09445, the First Tier Tribunal (FTT) reluctantly ruled that the Transfer of Assets Abroad (ToAA) rules applied to Offshore Income Gains (OIGs) and Accrued Income Profits (AIPs) deemed to arise to a UK deemed domiciled taxpayer from non-resident trusts settled before the taxpayer became UK domiciled. The OIGs and AIPs were chargeable to Income Tax as they arose.

The minister responsible for HMRC, James Murray, has announced that those with side-hustles can earn up to £3,000 before they have to file a tax return, although tax will still be due on earnings over £1,000. A new service will also be launched on 31 March, for agents to escalate and resolve self-assessment and PAYE queries.