Hello,
Now that the 2024-25 Self Assessment deadline has passed, many advisers are starting to look ahead to the next few months when several significant changes in the world of tax will be introduced, not least Making Tax Digital for Income Tax, about which HMRC are currently contacting some affected taxpayers.
Another notable upcoming change is the mandatory registration requirement for tax advisers who interact with HMRC on behalf of their clients, which will apply from May 2026. Although further guidance on registration is currently awaited from HMRC, we have updated our guide, which is featured in Editor’s Choice, based on the position as it stands under the Finance Bill. Several changes have been made since we first saw draft legislation last July.
As the end of the 2025-26 tax year approaches, now is a good time to review clients’ affairs for any outstanding planning opportunities that can be taken advantage of and need to be actioned before 6 April. To help with this, we have published our 'Tax Planning for the 2025/26 year-end: Private Clients' guide this week. Do be sure to check it out for any strategies that may be beneficial for your clients.
Tax compliance for the 2024-25 tax year is not over for everyone. While HMRC are reporting that 11.48 million taxpayers ‘beat’ the Self Assessment deadline, an estimated one million did not. For those in that position, and who may be facing a late filing penalty, we feature our Grounds for Appeal Toolkit in Editor’s Choice. This forms part of our extensive suite of guides on penalty appeals.
More news and updates below, including some particularly interesting cases exploring deductions for travel expenses, and the conditions for a valid Overpayment Relief claim.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
HMRC sending more MTD mandation letters
With the introduction of Making Tax Digital (MTD) for Income Tax (IT) around two months away, HMRC are now writing to more taxpayers who will be mandated into the regime from 6 April 2026.
Employment-Related Securities Bulletin 63 January 2026
HMRC have released Employment-Related Securities (ERS) Bulletin 63, which contains important information on changes to the net settlement reporting requirements for Employment-Related Securities (ERS).
Tax Cases
£3m SDLT Overpayment Relief claim was valid
In BTR Core Fund JPUT v HMRC [2026] UKUT 00027, the Upper Tribunal (UT) found that a Stamp Duty Land Tax (SDLT) Overpayment Relief claim was valid. The SDLT overpayment was not by reason of a mistake in a claim or election, but by reason of the wrong choice of SDLT rate.
Hair loss treatment was zero-rated
In Mark Glenn Ltd v HMRC [2026] UKUT 00034, the Upper Tribunal (UT) found that the supply of a female hair loss treatment system was zero-rated for VAT purposes. In the circumstances, hair loss was a disability, and the treatment consisted of adapting goods to suit the condition of the disabled person.
Nurse’s travel expenses were not allowable
In Victor Michael v HMRC [2026] TC09751, the First Tier Tribunal (FTT) found that a nurse was not entitled to a deduction for travel expenses. While his attendance at Southport Hospital was for less than 24 months, it was his permanent workplace, and as such, his travel was ordinary commuting.
Editor's Choice
Tax Planning for the 2025/26 year-end: Private Clients
This is our 2025-26 year-end and new tax year checklist and toolkit for private clients.
Mandatory tax adviser registration with HMRC
UPDATE: From May 2026, 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 with 'mandatory tax adviser registration'?
Appeals: Grounds for Appeal Toolkit
What grounds are there to appeal a tax penalty? How should you word a tax appeal? Can you appeal HMRC errors? What is a reasonable excuse?
Guides & Updates
Self-employed
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?
Fines and penalties
How are fines, penalties and payments for damages treated for tax purposes? What determines whether a fine or penalty is allowable or disallowable?
Board and lodging adjustments
What private use adjustment should be made for board and lodging where a taxpayer lives at the business premises?
Directors & Companies
Loans to participators (Close Company Loans toolkit)
What is the Corporation Tax treatment when a close company makes a loan to a participator (director-shareholder)? How do the 'bed and breakfasting' rules work? What are the concerns with indirect loans, upstream loans and MBOs?
Loan relationships: Connected Companies
How do the loan relationship rules apply to connected companies? What are the special rules? When do they apply? What are the exceptions to the special rules? What are deemed releases?
Employers
Employment-Related Securities: Reporting
UPDATE: 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?
Auto-enrolment: Workplace pensions
What is auto-enrolment? Who is affected? What do employers need to do? What are the relevant timescales?
Capital Allowances
Plant & machinery (self-employed): Allowances
A person who is engaged in qualifying activities may claim plant and machinery allowances when they incur qualifying expenditure.
Private Client & Estate Planning
Cryptoassets: How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments.
CGT Rollover Relief: Exchanges of joint interests in land
This guide outlines the form of Capital Gains Tax (CGT) Rollover Relief available for exchanges of joint interests in land.
Land & Property
SDLT: Leases
How does Stamp Duty Land Tax (SDLT) apply to leases? When do I notify HMRC?
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-resident Tax Toolkit
This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.
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?
Penalties & Compliance
Penalties: Tax Agents (Dishonest Conduct)
What penalties can HMRC charge for Tax Agents found guilty of Dishonest Conduct? How can you appeal penalties?
Calendar of tax deadlines and new tax measures
When do common recurring tax deadlines fall? What other tax-significant events are upcoming? What do I need to remember this month?
VAT
Registering for VAT
When should a business register for and charge VAT? What are the VAT registration thresholds? What penalties might HMRC issue for late notification of registration? When do you need to file a VAT return?
Spring Forecast Analysis, Client Newsletter & Webinar
The Spring Forecast will be presented by the Chancellor of the Exchequer on 3 March 2026.
Our team of qualified accountants and tax advisers will work through the night to provide you with the tools you need to communicate with your clients and advise them immediately.
- Spring Forecast PDF: a branded Spring Forecast Analysis for your firm to send to clients. Delivered in PDF format by 7am on 4 March.
- Order now at £290+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
- Spring Forecast Tax Update webinar: update on recent and proposed changes in taxation, including any relevant announcements from the Spring Forecast. Live at 10 am on 6 March and on demand thereafter.
- Order now at £99+VAT per person.
- Combination deal (save £99+): Spring Forecast PDF + firm-wide access to the Spring Forecast Tax Update webinar (book as many of your team as you wish).
- Order now at £290+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Practice Insight - February 2026 (free)
- Monthly Tax Update - February 2026
- Inheritance Tax Planning for 2026/27 and Beyond
- Monthly Tax Update - December 2025
- Budget Update
- Practice Insight - December 2025 (free)
- Ethics and PCRT for Tax Advisors
- Making Tax Digital for Income Tax - Roadmap to April 2026
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Virtual Tax Partner© Support
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 29 January 2025
- HMRC's helplines on 31 January: open or closed?
- HMRC announce tax code changes for 2026-27
- Wales sets its 2026-27 Budget
- Accountants' misuse of AI in FTT case
- Supreme Court rules VAT not recoverable on costs of share sale
- Termination payment deemed not in relation to disability
- Finance Acts 2025-26: tax update and Rolling Tax Planner
- Appeals: Late UPDATE
- Badges of Trade: Are you trading or not?
- Salary sacrifice & optional remuneration schemes (OPRA) ...More
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