Hello,
There are several important updates for employers this week, as HMRC publish their latest Employer Bulletin. In other tax news, we have updates on the Scottish and Welsh Budgets, and three new tax cases, including two Court of Appeal (CoA) decisions.
HMRC are reminding employers of the 22 October deadline for any tax and National Insurance due under PAYE Settlement Agreements (PSAs). There have also been changes to eligibility periods for parents registering for Tax-Free Childcare and HMRC is giving employers advance notice on the new student loan plan type: Plan 5. There are more important updates for employers in HMRC's October Employer Bulletin.
In other tax news, Wales has set its 2026-27 Budget with updates on Welsh Rates of Income Tax, Land Transaction Tax, Landfill Disposals Tax and Non-Domestic Rates. Scotland has also confirmed the date for its Budget.
We have three new tax cases this week, including two Court of Appeal (CoA) decisions. Mainpay Ltd v HMRC looks at the deductibility of travel and subsistence expenses where umbrella companies are involved. The CoA concluded that the travel and subsistence expenses were not deductible as Mainpay did not have overarching employment contracts with its workers.
The second CoA decision, Hippodrome Casino Ltd v HMRC, explores the method of calculation used for partial exemption VAT adjustments. Hippodrome Casino lost the appeal: the CoA concluded that a floorspace-based apportionment did not give a 'more reasonable' attribution of input tax between taxable and exempt supplies and, as such, it could not displace the standard method.
More news and updates below.
The rossmartin.co.uk tax team
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Quick News
Scottish Budget date confirmed
Shona Robison MSP, Scottish Cabinet Secretary for Finance and Local Government, has confirmed that the 2026-27 Scottish Budget will be published on Tuesday, 13 January 2026. This is two days earlier than previously expected.
Wales sets its 2026-27 Budget
Mark Drakeford, Cabinet Secretary for Finance and Welsh Language, set out the 2026-27 Welsh Budget on 14 October 2025.
Employer Bulletin: October 2025
HMRC have published their Employer Bulletin for October 2025. We have summarised the key content for you, which links to our detailed guidance on the topics covered.
Tax Cases
Ramsay principle applied, payments to employees were earnings
In GW Martin & Co Ltd & Anor v HMRC [2025] TC09650, the First Tier Tribunal (FTT) found that payments made under a tax avoidance scheme were taxable as employment earnings under s.62 ITEPA 2003 and s.3 SSCBA 1992.
No shelter under umbrella for travel and subsistence payments
In Mainpay Ltd v HMRC [2025] EWCA Civ 1290, the Court of Appeal (CoA) found that an umbrella company did not have overarching employment contracts with its workers. This meant that reimbursed travel and subsistence expenses could not be paid tax-free.
Unsuccessful Court of Appeal gamble for casino
In Hippodrome Casino Ltd v HMRC [2025] EWCA Civ 1259, the Court of Appeal (CoA) found that the partial exemption standard method had to be used by a casino for VAT, rather than its 'special method'.
Editor's Choice
Capital allowances: On incorporation
What is the capital allowance position when an existing business is incorporated? What elections can be made?
Health and welfare: VAT
When do reduced rating, zero-rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
Guides & Updates
Self-employed
Cash or accruals accounting toolkit
Unincorporated businesses can elect to use one of two different methods of accounting for tax: simpler accounting (cash basis) or accruals basis accounting.
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?
Stamp Duty: Share-for-share exchanges
How do you calculate Stamp Duty on a share-for-share exchange? What relief is available from Stamp Duty on a share-for-share exchange?
Employers
Employers' NICs relief for veterans
Since April 2021, a relief from Class 1 National Insurance has been available for employers who hire veterans within their first 12 consecutive months of civilian employment.
Employment-Related Securities: Reporting
What are the reporting requirements for Employment-Related Securities (ERS)? When is the deadline? How do I register an ERS scheme? What are the penalties for failing to report ERS?
Private Client & Estate Planning
IHT: Agricultural and Business Property Reliefs, April 2026 changes
Significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) were announced in the 2024 Autumn Budget. What is changing? What planning could be considered?
Self Assessment Tax Return: What goes where?
The Self Assessment Tax Return for individuals is made up of a set of core pages and a number of supplementary pages. This guide explores what goes where on the tax return.
Land & Property
Profits from dealing in or developing UK land
These rules apply UK Income Tax or Corporation tax to all profits from trading in and developing UK land, regardless of your country of residence.
Annual Tax on Enveloped Dwellings (ATED)
What is the Annual Tax on Enveloped Dwellings (ATED)? Who does ATED apply to? What relief is available and how is it claimed? What are the ATED return filing dates?
Overseas & Residence
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?
VAT
CIS: Construction Industry reverse charge
What is the CIS VAT reverse charge? How do you account for VAT? Can you still cash account for VAT? What administrative changes do I need in order to operate the reverse charge?
Capital Goods Scheme
What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
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.
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 9 October 2025
- New MTD guidance for the digitally excluded
- HMRC finds extra £2.4bn down VAT sofa
- What might be announced in Autumn Budget 2025?
- HMRC's 'big data' system bags £4.6bn extra
- One-to-many letters: Tracker
- ATED relief available on option to purchase property
- PAYE Settlement Agreements
- Advisory fuel rates (company car drivers)
- Farming: Tax Overview
- Associated companies checklist
- Interest relief: Making a loan to a close company ...More
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