Hello,
The adjustment of business expenses for private use, Corporation Tax marginal relief, Stamp Duty Land Tax (SDLT) repayment claims and the mandatory registration with HMRC of tax advisers are among this week’s hot topics.
On L-Day last month, draft legislation was published which would require tax advisers who interact with HMRC on behalf of clients to register with HMRC from April 2026.
We have now taken a closer look at the proposals currently in draft form. In Editor’s Choice below, you can find our new guide on the subject, which explores who will be affected and the conditions they must meet to register.
HMRC are ramping up compliance activity in several areas. This week, we bring news of two more one-to-many letters as well as a warning about tax agents offering to secure SDLT repayments on residential properties in need of repairs. HMRC have also announced that they intend to open more enquiries into private use adjustments on business expense claims.
We feature two VAT cases this week, one of which, the United Carpets decision, examined whether a company was making a single supply of fitted carpets for VAT purposes. Single v multiple supplies is a subject commonly seen in VAT, and the First Tier Tribunal’s decision in this case gives a helpful reminder of some of the issues to be considered.
More news, cases and updates below.
The Ross Martin Tax Team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
HMRC campaign to correct reporting of 'private use' adjustments
The Chartered Institute of Taxation (CIOT) has announced that HMRC intend to run a digital campaign aimed at highlighting problems with private use adjustments in respect of business expenses reported via Self Assessment returns.
HMRC issue warning on SDLT claims
HMRC have issued a warning to taxpayers to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on certain property purchases.
One-to-many letters: Tracker
HMRC have commenced two more one-to-many letter campaigns. The first targets companies that may have declared the incorrect number of associated companies in their Corporation Tax return, resulting in excessive marginal relief being claimed. The second is aimed at individuals who may have incorrectly calculated their 2024-25 Capital Gains Tax (CGT) liability, due to the in-year change in CGT rates.
Tax Cases
VAT assessments brushed under the carpet
In United Carpets (Franchisor) Limited v HMRC [2025] TC09596, the First Tier Tribunal (FTT) found that flooring fitting services made by independent self-employed fitters were not part of a single supply of goods and services made by the appellant who supplied the flooring materials.
Bonds paid by cadet pilots were a consideration for VATable supply
In Airline Placement Limited v HMRC [2025] TC09595, the First Tier Tribunal (FTT) found that 'security bonds' paid by trainee pilots (cadets) were consideration for the supply of a taxable service to the cadets.
Editor's Choice
Mandatory tax adviser registration with HMRC
NEW: From 1 April 2026, it is proposed that all tax advisers who interact with HMRC on behalf of clients will be required to register with HMRC. Who will be required to register? What conditions must be met? What are the consequences of non-compliance?
Guides & Updates
Self-employed
Wholly and exclusively…toolkit
When is an expense allowed for tax purposes? What does 'wholly and exclusively' mean? How do you determine if a cost is wholly and exclusively incurred for the purpose of a trade? What cases are there?
Motor expenses (self-employed)
What expenses can you claim for motor and travel if you are self-employed? Why are there different versions of the rules? Which method is most beneficial for me?
Directors & Companies
Associated companies & tests for control
What is an associated company? What are the tax effects of associated companies? How do the control tests work? Examples of associated companies. What are the rules for indirect control?
Calculating Corporation Tax & Checklist
How do you calculate Corporation Tax? What is the small profits rate? How do you calculate Marginal Tax relief? How do you adjust for Associated Companies? What is meant by Control? What are Augmented profits?
Employers
Subsistence (employer's guide)
What subsistence costs can be claimed? What are the rules for employer intermediaries? How do claims affect VAT, National Insurance Contributions (NICs) and Income Tax?
Private Client & Estate Planning
CGT: How to calculate a capital gain or loss
How do you calculate a capital gain or loss? What costs are deductible? Can you set losses against capital gains?
Trust Registration Service
What is the Trust Registration Service? What trusts does it apply to? What are the requirements and deadlines?
Land & Property
SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? What garden and grounds are subject to higher rates of SDLT?
Replacement of Domestic Items Relief
What is Replacement of Domestic Items Relief? When can it apply and what conditions must be met?
More Tax Guides
Gift Aid: How it works
What is Gift Aid? How does it work? What are the rules?
VAT
Assessments: Best judgement & time limits
What is a 'best judgment' assessment for VAT? When can HMRC raise one? What are your rights of appeal? How do you displace a best judgment assessment? What are the time limits for a VAT assessment?
Agents and principals
What is an agent for VAT purposes? What is a principal? When do the agency rules apply?
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
This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
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- Monthly Tax Update - July 2025
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- Making Tax Digital for Income Tax - Roadmap to April 2026
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 31 July 2025
- Update on Winter Fuel Payment recovery
- Paper Corporation Tax reminders to stop
- Statistics show drop in CGT tax take despite relief cut
- Sugar tax credits retained, despite no entitlement
- Misuse of AI in SEISS Upper Tribunal appeal
- Caregiver's PRR claim accepted on multiple disposals
- Tax adviser’s carelessness costs their client
- MTD: Toolkit for accountants
- SEIS: Seed Enterprise Investment Scheme (subscribers)
- Soft Drinks Industry Levy
- Training and course fees (self-employed)
- State benefits: Tax-free and taxable ...More
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