Hello,
This week's update brings several important developments for employers, advisers and payroll professionals as we look ahead to the final months of the 2025-26 tax year.
HMRC have released their February 2026 Employer Bulletin, which includes reminders of upcoming reporting deadlines and year-end obligations. Employers should pay particular attention to the introduction of Student Loan Plan 5 repayments, which come into effect from 6 April 2026, and begin preparing payroll processes accordingly. There is a new social security agreement between the UK and India, expected to take effect by summer 2026.
The Upper Tribunal decision in MWL International Ltd and Maywal Ltd v HMRC offers clarification of HMRC's powers and the limits of taxpayer protections. While the tribunal agreed that estoppel by convention was established, it reaffirmed that HMRC cannot be prevented from enforcing statutory obligations, regardless of historic agreements.
HMRC have published guidance on mandatory tax adviser registration this week. This has revealed that the requirement to register will be introduced in stages, with online registration open from 18 May 2026. Our subscriber guide in Editor's Choice has been updated for the latest developments.
Finally, we have published two new tax planning guides for subscribers, focusing on owner-managed business remuneration and cash extraction strategies for the upcoming 2026-27 tax year. The first of these examines the optimum director/shareholder salary levels, while the second answers the all-important question: do I take a salary or a dividend?
More updates below.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
Employer Bulletin: February 2026
HMRC have published their Employer Bulletin for February 2026. Key content includes a new release of HMRC's free Basic PAYE Tool, Benefit In Kind reporting, the new student loan plan, National Insurance Contributions (NICs) for veterans, overseas NICs changes and upcoming reporting deadlines.
Tax Cases
So-called 'Pool Cars' subject to NICs
In MWL International Ltd and Maywal Ltd v HMRC [2026] UKUT 00062, the Upper Tribunal (UT) upheld the First Tier Tribunal's (FTT's) decision that National Insurance Contributions (NICs) were payable on the misreporting of 'pool cars' for Benefit In Kind purposes.
Editor's Choice
Mandatory tax adviser registration with HMRC
NEW: From May 2026, all tax advisers who interact with HMRC on behalf of clients will be required to register with them. Who will be required to register? What conditions must be met? What are the consequences of non-compliance with 'mandatory tax adviser registration'?
Salary 2026-27 (interaction with NICs)
NEW: Is it still tax-efficient to pay a very low salary? Is it beneficial to pay a slightly higher salary to claim the Employment Allowance? What if the Employment Allowance is not available?
Do I pay a salary or dividend? 2026-27
NEW: This guide explores the tax-planning points and pitfalls of creating a tax-efficient pay package. Should 'excess profits' or one-off amounts of income be paid out of a company as a salary or dividend?
Guides & Updates
Self-employed
Extracting profits (self-employed)
What tax planning tips will help you run a tax-efficient business? We review your different options. The majority of businesses in the UK are run by sole traders. This guide looks at profit extraction from the perspective of the unincorporated business.
Allowances: Trading and Property
What are the trading and property allowances? Who can claim them? What are the restrictions?
Directors & Companies
Employment status & tax: Directors & non-executive directors
What is the tax status of a director? How are non-executive directors taxed?
Tax-efficient extraction of profits: toolkit (2025/26)
This is a general guide and refresher which aims to help a company and its owner decide how company profits are to be extracted based on current tax, rates, reliefs and allowances.
Employers
Employment tax: Reporting, dates & deadlines 2025-26
This guide summarises the key deadlines and additional considerations for employers for the end of the 2025-26 tax year.
Exemption for paid and reimbursed expenses
What exemptions apply for paid and reimbursed employee expenses?
Capital Allowances
AIA & WDA: Rules where there is a change of rate
How do you apply hybrid rates when there are changes in the rate of allowances? How does this work for Writing-Down Allowances (WDA) or the Annual Investment Allowance (AIA)?
Private Client & Estate Planning
ISA guide
What is an ISA? What are the limits? How are ISAs taxed?
Dividend tax
This practical tax guide explains how dividends are taxed. It includes HMRC's own examples, more detailed examples, including an Owner Managed Business (OMB) section together with tax planning tips.
Land & Property
Property & letting: CGT and IHT issues
What Capital Gains Tax (CGT) and Inheritance Tax (IHT) issues arise with property businesses? What about Furnished Holiday Letting (FHL)?
Overseas & Residence
Non-resident directors: earnings, expenses and reporting requirements
Do non-resident directors have to complete a UK Self Assessment return? When and how is their remuneration taxable in the UK? What expenses can they claim? Should they be paid via PAYE?
Penalties & Compliance
Client guide: Reasonable care and tax penalties
What triggers a tax penalty? What standard of care is expected from a taxpayer? What is reasonable care? When is an error careless?
Penalties: Errors in Returns and Documents (subscriber version)
What penalties apply if you make an error or mistake? Is there a penalty if you fail to tell HMRC about an under-assessment? How are penalties calculated? How do you check penalties? What can you do if you receive a penalty?
VAT
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?
More Tax Guides
Tax Data Card 2026-27
A summary of key tax rates and allowances for 2026-27 and 2025-26.
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
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 12 February 2026
- HMRC warn of scam targeting agents
- Loan Charge update on HMRC operational activity
- Budget leak bigger than thought, says NCSC
- Ignorance of the law was a reasonable excuse
- Rental income taxable despite non-receipt
- Mandatory payrolling of benefits from 2027: Briefing UPDATE
- Professional Conduct in Relation to Taxation
- Tax Planning for the 2025-26 year-end: Business Owners
- Business Asset Disposal Relief (Entrepreneurs' Relief): Disposal of a business
- Investment Zones
- Plastic Packaging Tax
- Food, catering and takeaway ...More
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