Hello,
There are several important updates for employers this week, as HMRC publish their latest Employer Bulletin. We also have the August Agent Update, a First Tier Tribunal decision considering the meaning of 'life', and revised company car advisory fuel rates from 1 September.
This quarter, for the first time, there are two advisory electric rates for fully electric cars: 14p per mile for public charging and 8p per mile for home charging. This is intended to reflect the difference in the underlying cost of electricity, but with it will come increased record-keeping requirements. Employers would be well advised to review their current systems to ensure that the necessary information is collected and retained going forward, to deal with different charging locations.
There are various upcoming process changes to be aware of. HMRC’s Employer Bulletin notes that from 31 August 2025, it will no longer be possible to report an employer's PAYE dispute through HMRC’s helplines or webchat; instead, an online form must be used.
In addition, from 1 September 2025, HMRC will make several changes to the system for requesting higher or additional rate Income Tax relief for personal pension contributions through an individual’s current year tax code. Further details can be found in Quick News, below.
Finally, do take a look at this week’s case summaries. In Lexgreen Services Limited, the First Tier Tribunal asks, ‘What is the meaning of life?’... for tax purposes, of course!
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
Employer Bulletin: August 2025
HMRC have published their Employer Bulletin for August 2025. We have summarised the key content for you, which links to our detailed guidance on the topics covered.
Agent Update 134: August 2025
HMRC have published their Agent Update for August 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including advice on preparing your agent services account for Making Tax Digital (MTD) for Income Tax.
Advisory fuel rates from 1 September 2025
HMRC have published new advisory fuel rates for company car drivers that apply from 1 September 2025. The rate for fully electric cars will now depend on whether the car is charged at an employee's home address or using a public charger.
One-to-many letters: Tracker
HMRC’s latest one-to-many letter targets individuals who may have failed to declare all their income and gains in the UK under the rules for temporary non-UK residents.
Update to claiming personal pension relief via PAYE code
HMRC have lowered the threshold for requesting supporting evidence for additional and higher rate taxpayers who claim relief on their personal pension via their PAYE tax code. In addition, claims can no longer be made by telephone.
Tax Cases
What is the meaning of life?
In Lexgreen Services Limited v HMRC [2025] TC09618, the First Tier Tribunal (FTT) found that a company had a ‘life’ for Inheritance Tax (IHT) purposes. This meant that the company was liable to pay IHT arising on a non-resident trust’s ten-year anniversary, as the trust's settlor.
Former footballer taxable on income rights assigned to LLP
In Craig William Burley v HMRC [2025] TC09613, the First Tier Tribunal (FTT) found that a taxpayer remained entitled to, and therefore subject to Income Tax on, partnership profits. This was despite an assignment of his partnership interest to a Limited Liability Partnership in which he had no profit share.
Landlord’s failure to notify was deliberate
In Darren Locke v HMRC [2025] TC09604, the First Tier Tribunal (FTT) found that a taxpayer had deliberately failed to notify HMRC of his chargeability to Income Tax. The obligation to notify applied to all taxable income and did not rest solely on whether a profit had been made in the taxpayer’s rental business.
Editor's Choice
Non-Domicile: Rules from 6 April 2025
What are the changes to the 'non-domicile' regime? What does this mean for non-domiciled individuals who previously used the remittance basis? How are Income Tax, Capital Gains Tax and Inheritance Tax affected by the changes?
Guides & Updates
Self-employed
Clothing and work wear
Is tax relief available on clothing bought for work? When might clothing costs be disallowed? What needs to be considered?
Allowances: Trading and Property
What are the trading and property allowances? Who can claim them? What are the restrictions?
Partnerships
Partnership agreements: What should be considered?
Partnership agreements can be invaluable to clarify everyday matters and settle disputes within a partnership. What sort of things should be discussed for inclusion in a partnership agreement? Why are they important?
Mixed members: Partnerships with company members
What is a mixed-member partnership? How are the profits of a mixed-member partnership taxed? What tax adjustments are required? Are there any relieving provisions?
Directors & Companies
Loss relief (Income Tax) disposal of shares
Share Loss relief allows you to offset a loss made on the disposal of shares against income instead of following normal capital loss treatment.
Employers
Globally mobile employees: Pension contributions relief for overseas employees
NEW: Can non-UK resident employees contribute to a UK pension scheme? Can UK resident employees contribute to an overseas pension scheme? What UK tax relief is available? Can pension funds be transferred from a UK pension scheme to an overseas pension scheme? How are payments from non-UK pension schemes taxed?
Legal fees
Can an employee claim tax relief on legal fees?
Private Client & Estate Planning
Gift Aid
How is tax relief for Gift Aid donations received by individuals? How do donations impact the personal allowance? When can Gift Aid donations be carried back to an earlier tax year?
IHT: Residence Nil-Rate Band (RNRB)
What is the Residence Nil-Rate Band? When was it introduced? How does it work? Who can claim it?
Capital Allowances
Structures & Buildings Allowance (SBA)
Who can claim the Structures and Buildings Allowance? What expenditure is eligible? How to make a claim?
Land & Property
Freeports
UPDATE: What are Freeport special tax sites? Where are they located? What are the tax advantages?
Property profits & losses: Toolkit (2025-26)
Our Property Profits & Losses toolkit takes HMRC's version as its starting point and adds a great deal more information about what you can claim as an individual landlord.
Overseas & Residence
Overseas Workday Relief (OWR)
What is Overseas Workday Relief (OWR)? When does it apply? What are the recent changes to OWR?
Business Investment Relief (BIR)
Business Investment Relief (BIR) is a relief for formerly non-UK domiciled individuals, designed to encourage them to remit funds to invest in UK businesses. The abolition of the non-domicile regime has brought changes to BIR for both existing and future investments. Ultimately, the relief will cease from 5 April 2028.
VAT
Is voluntary VAT registration worthwhile?
When can a business voluntarily register for VAT? When would it be beneficial to voluntarily register?
Margin scheme
The VAT margin scheme allows businesses to calculate their output VAT liability on the profit margin they make on the goods they sell.
Flat rate scheme
What is the VAT Flat Rate Scheme (FRS)? Who can apply? How do you apply? What are the rules? What are the rules for capital expenditure and pre-registration VAT?
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
Recent webinars include:
- Monthly Tax Update - September 2025
- Practice Insight - September 2025 (free)
- Monthly Tax Update - July 2025
- Practice Insight - July 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
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, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 21 August 2025
- New MTD support service for agents
- JP Morgan finds VAT 'disregard' does not apply to intra-group services
- SIPP withdrawals by non-resident found to be not taxable in the UK
- Input VAT on property costs irrecoverable
- IHT: Agricultural and Business Property Reliefs, April 2026 changes NEW
- Self Assessment Tax Return: What goes where? NEW
- Winter Fuel Payment recovery UPDATE
- Mandatory tax adviser registration with HMRC UPDATE
- Private Intermittent Securities and Capital Exchange System (PISCES) UPDATE
- Deposit Return Scheme: Drink containers UPDATE ...More
Subscribe for news, guides, tools & CPD
Subscribe now and unlock the site. Subscriptions begin at £56 (+ VAT) per month. All subscriptions are for a 12-month term.
What do you get?
- A comprehensive practical tax database of guides, checklists, briefings and practice notes, and access to all our time-saving calculators and tax tools.
- 25% discount on Virtual Tax Partner services.
- Read everything in our comprehensive weekly SME tax news summary. We do the reading, then summarise legislation, HMRC guidance, analyse official reports and cherry-pick the best of the press and the rest.
- Commission guides and checklists for your own practice.