Hello,
It is a bumper week for tax news. On Monday, HMRC published a ‘tax update’ for Spring 2025, making several important announcements, focusing on simplification, administration and reform. A number of consultations were also launched.
One of the key announcements was that the introduction of mandatory payrolling of Benefits In Kind will be delayed a year, to 6 April 2027. This has been welcomed due to the additional time it will give those affected to prepare for the change.
The VAT Capital Goods Scheme will also be simplified by removing computers from its scope and increasing the threshold value for capital expenditure on land, buildings and civil engineering work from £250,000 to £600,000.
The Government has also confirmed that the functions of the Valuation Office Agency (VOA) will be brought within HMRC by April 2026. It is said that this will combine experience and strengthen direct accountability to Ministers. In addition, by driving efficiencies in the administration of the tax system, the Government anticipates that this will result in additional savings in VOA administrative costs of between 5% and 10% by 2028-29.
We also explore HMRC’s April 2025 Agent Update this week, which is essential reading. Some of the important updates this month include the latest on reporting company appointments for the Corporate Interest Restriction (CIR), as well as determinations being raised by HMRC for employers who have failed to meet their PAYE Settlement Agreement obligations for 2023-24.
More news, cases and updates below, including the closure of HMRC's Agent and Customer Online Forums from 30 June 2025.
The Ross Martin Tax Team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
HMRC's Spring 2025 tax update
On 28 April 2025, the Government made several tax policy announcements. These included a delay to the introduction of mandatory payrolling of benefits-in-kind until April 2027, simplifications to the VAT Capital Goods Scheme and revisions to the Check Employment Status for Tax (CEST) tool.
Agent Update: April 2025
HMRC have published their Agent Update for April 2025. We have summarised the key content with links to our detailed guidance on the topics covered. This month's update includes PAYE Settlement Agreement (PSA) determinations for 2023-24 and the latest on reporting company appointments for the Corporate Interest Restriction (CIR).
HMRC to close agent and customer online forums
HMRC will close both its Agent and Customer Online Forums from 30 June 2025, according to an email sent to agents. The closures were justified by the increased popularity and use of HMRC’s newer digital online channels.
Valuation Office subsumed by HMRC
The Valuation Office Agency (VOA), the arm’s-length body responsible for valuing properties for council tax and business rates, is being scrapped. It will be brought into its parent department, HMRC, by April 2026 as part of the Government's drive "to slash red tape, increase oversight and ministerial accountability and rewire Whitehall to be more productive and agile".
Revenue and Customs Brief 2 (2025): Use of VAT grouping within the care industry
HMRC have published 'Revenue and Customs Brief 2 (2025): The use of VAT grouping within the care industry', aimed at state-regulated care providers that form a VAT group with a non-state-regulated provider of welfare services.
Consultation: VAT treatment of business donations to charity
HM Treasury has published a consultation on a proposed new VAT relief for business donations of goods to charity. The proposal is to align the VAT treatment of goods that are donated for further donation or use by a charity with the VAT treatment for goods that are donated for resale.
Consultation responses to tackling non-compliance
The Government has published a summary of responses to the consultation ‘The Tax Administration Framework Review: New ways to tackle non-compliance’. It explored ways to simplify and modernise HMRC’s approach to correcting taxpayer inaccuracies.
Consultation on improving HMRC's approach to dispute resolution
HMRC have launched a consultation on 'Improving HMRC's approach to dispute resolution'. The consultation is aimed at raising awareness of the current process for resolving disputes and improving overall taxpayer satisfaction when disputes are raised
Tax Cases
Separate annexe granted MDR
In Nicole Behenna-Renton v HMRC [2025] TC09477, the First Tier Tribunal (FTT) found that Multiple Dwellings Relief was available on an annexe and main dwelling where each was individually capable of meeting the requirements for being a single dwelling.
Editor's Choice
Finance Acts 2025-26: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2025-26 tax year and beyond. This planner is updated on an ongoing basis.
Sch 36 Information Notices
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued? What penalties apply for a failure to respond to an Information Notice?
Guides & Updates
Self-employed
Averaging claims
When can profits be averaged? What trades do averaging apply to? How are averaging adjustments calculated and made?
Badges of Trade: Are you trading or not?
Are you trading, running a business or just buying and selling investments? Is your 'side-hustle' taxable? The 'Badges of Trade' are a set of indicators built up over time by the courts to decide when an activity is a trading or investment activity.
Directors & Companies
Corporate Interest Restriction (CIR)
The Corporate Interest Restriction (CIR) is designed to restrict profit shifting by large corporates by restricting the amount of deductible interest in an accounting period. Who is affected? What is the restriction? What are the penalties?
Bona Vacantia & striking off
What is Bona Vacantia? What does this mean? How does it impact companies?
Employers
Termination, redundancy and leaving payments
How are redundancy and termination payments taxed? What amounts can be paid tax-free? What amounts are taxable as earnings?
Private Client & Estate Planning
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
CGT: Date of acquisition or disposal
When is the date of acquisition or disposal of an asset for Capital Gains Tax (CGT) purposes? When do special rules apply? Why does it matter?
Land & Property
Replacement of Domestic Items Relief
What is the Replacement of Domestic Items Relief? When can it apply and what conditions must be met?
Joint property: Legal v beneficial ownership
What is the difference between legal and beneficial ownership? What are the tax consequences? Are the rules different for married couples and civil partners?
VAT
Capital Goods Scheme
What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
Health and welfare: VAT
When does reduced rating, zero-rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
Tax Tools & Calculators
Tax tools & calculators
We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
Recent webinars include:
- Monthly Tax Update - April 2025
- Disincorporation - I'm an OMB Company, Get Me Out of Here!
- Practice Insight - April 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
- Monthly Tax Update - Spring Statement Special
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 24 April 2025
- Employer Bulletin: April 2025
- Tax red tape ties up £25bn for SMEs
- Director's loan neither released nor written off
- MDR claim dismissed for separate annexe
- Annual Tax on Enveloped Dwellings (ATED)
- MTD: Toolkit for accountants UPDATE
- Compare software for Making Tax Digital for Income Tax UPDATE
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