Hello,
It will come as no surprise that the 2024-25 Self Assessment deadline is now just around the corner. What may be a little more of a shock is that HMRC’s telephone helplines were going to be closed on 31 January, albeit with ‘enhanced’ webchat support available.
Following mounting pressure, HMRC changed their position and telephone support will now be available on deadline day for a limited period. Do note that the Agent Dedicated Line will not be operating.
As we have done over the past few weeks, we feature several guides this week to assist subscribers in the run-up to the deadline, including our top tips for last-minute tax returns.
After the seven 'Professional Conduct in Relation to Taxation' (PCRT) bodies published guidance last week on applying existing ethical principles when using Artificial Intelligence (AI) tools for tax, AI features again this week, in the form of the First Tier Tribunal’s (FTT’s) decision in Gary Elden v HMRC. Here, a firm of accountants had used AI when drafting a taxpayer’s skeleton argument, which, unfortunately, contained inaccurate case summaries.
The FTT was not concerned that AI had been used, but noted that the human who relies on its use bears the responsibility for accuracy. The tribunal pulled no punches in concluding that, in the context, the regulated firm's failure to verify AI’s output for accuracy with sufficient care amounted to professional incompetence.
In other news, HMRC have announced that in certain defined circumstances, they will remove employment expenses and higher rate Gift Aid relief from some taxpayers’ 2026-27 PAYE tax codes. Our news item below outlines who will be affected.
More news, cases and updates below, including the 2026-27 Final Budget for Wales.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
HMRC's helplines on 31 January: open or closed?
Following HMRC's recent announcement that their telephone helplines would be closed on Self Assessment deadline day, 31 January 2026, with only enhanced webchat support available, they have since announced a U-turn and telephone support will be provided for a limited period.
HMRC announce tax code changes for 2026-27
HMRC have advised that from April 2026, they will remove employment expenses and higher rate Gift Aid relief from PAYE tax codes where they believe a taxpayer's circumstances have changed.
Wales sets its 2026-27 Budget
The Final Budget 2026-27 for Wales was published on 20 January 2026 and approved by the Senedd on 27 January 2026, ultimately passing its proposals. It had been announced by Mark Drakeford, Cabinet Secretary for Finance and Welsh Language, on 14 October 2025.
Tax Cases
Accountants' misuse of AI in FTT case
In Gary Elden v HMRC [2026] TC09742, the First Tier Tribunal (FTT) found that significant procedural failings, exacerbated by the unverified use of Artificial Intelligence (AI) by Mr Elden's accountants, posed serious risks to the fairness of proceedings. Nevertheless, it refused HMRC's strike-out application.
Supreme Court rules VAT not recoverable on costs of share sale
In HMRC v Hotel La Tour Ltd [2025] UKSC 46, the Supreme Court upheld the Court of Appeal’s ruling that input VAT on professional fees incurred in connection with an exempt share sale were not deductible.
Termination payment deemed not in relation to disability
In Lawrence Rawlinson v HMRC [2026] TC09746, the First Tier Tribunal (FTT) was obliged to strike out an appeal in relation to termination payments, due to the absence of a formal Schedule 1AB claim. The FTT found that the 'motive' for the payment was to discharge a contractual notice entitlement, not due to the appellant's disability, so the appeal would have been dismissed if the FTT had jurisdiction.
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.
Top tips for last-minute tax returns
This guide is a summary of top tips for dealing with last-minute tax returns, what not to forget and how to protect against enquiries.
Time to Pay agreement
Businesses and self-employed taxpayers with outstanding tax liabilities may be eligible for support with their tax affairs through HMRC’s Time To Pay service.
Guides & Updates
Self-employed
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 over time by the courts to decide when an activity is a trading or investment activity.
Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Directors & Companies
Interest relief: Making a loan to a close company
Individuals can claim tax relief for interest paid on a loan where the funds are used by a close company or used to buy an interest in a close company. Which loans qualify? What is a business purpose?
Goodwill and the intangibles regime
How does the Corporation Tax intangible regime work? What is the treatment of goodwill for Corporation Tax? Do companies account for goodwill differently?
Employers
Salary sacrifice & optional remuneration schemes (OPRA)
What is a salary sacrifice or optional remuneration arrangement? How is it taxed?
Staff Suggestion Schemes
What is an employee suggestion scheme? How should they be structured? Who is eligible? How much can be claimed?
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?
Land & Property
Non-Resident Landlord Scheme
What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
Overseas & Residence
SRT: Statutory Residence Test
What is the Statutory Residence Test (SRT)? Why is it important and how does it determine a person's residency?
SRT: Split Year Treatment
What is Split Year Treatment? When does it apply?
Penalties & Compliance
Appeals: Late
UPDATE: The Court of Appeal (CoA) has issued its decision in HMRC v Medpro Healthcare Limited & Ors [2026] EWCA Civ 14. What does this mean for late appeals? When can you make a late tax appeal? What conditions must be met?
VAT
Deregistration
When do I have to deregister for VAT? When can I voluntarily deregister? What penalties might HMRC issue if I am late notifying them of mandatory deregistration?
Spring Forecast Analysis, Client Newsletter & Webinar
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Continuing Professional Development (CPD)
Recent and upcoming webinars include:
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- Inheritance Tax Planning for 2026/27 and Beyond
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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 22 January 2025
- New guidance published on use of AI in tax
- Agent Update 139: January 2026
- Revenue and Customs Brief 1 (2026): Removal of linked goods concession
- Tax code errors generate £3.5bn
- UT agrees with HMRC not to grant suspension of penalties
- Client list qualified as intangible fixed asset
- Last minute: Late tax return notification
- Top tips for last-minute tax returns
- Companies: Autumn Budget 2025 UPDATE
- Employment Taxes: Autumn Budget 2025 UPDATE
- Inheritance Tax: Autumn Budget 2025 UPDATE ...More
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