Hello,
In Tuesday’s Spring Forecast, the Chancellor kept her promise of making no major tax or spending policy announcements, in line with the government’s commitment to hold only one significant fiscal event a year, at the Budget.
In its economic and fiscal outlook, the Office for Budget Responsibility (OBR) stressed that the geopolitical situation and global trade policy remain highly volatile, with the conflict in the Middle East potentially having very significant impacts on the global and UK economies.
The OBR noted that taxes as a share of GDP (also known as ‘tax take’) is forecast to increase from 34.5% in 2024-25 to a post-war high of 38.5% by 2030-31. The frozen personal tax thresholds are one of the main driving forces behind this. The OBR warned that a higher level of tax take increases the risk that incentives within the tax system distort or constrain economic activity by more than expected.
Overall, the OBR considers that the fiscal context for the next Budget will remain challenging. These are words that may be prominent in many people’s minds as we approach the Budget later this year.
In other news, HMRC have released their latest Employment-Related Securities Bulletin in the run-up to the end-of-year reporting season. In addition, we have published three new guides this week, which are in Editor's Choice. The first of these examines the detailed rules surrounding the new 40% First Year Allowance, which applies from 1 January 2026, while the other two will be of interest to employers, or those running a payroll, as we approach the 2026-27 tax year.
Do check out our Making Tax Digital (MTD) toolkit for accountants; this week we have added a downloadable document containing approximately 140 questions and answers, following a recent webinar provided by our 20:20 Innovation CPD training colleagues.
On the subject of webinars, on Tuesday 10 March, we are running Mandatory HMRC Agent Registration Part 1 – Getting Started Before May 2026, to help equip accountants with the knowledge and practical steps needed to comply with HMRC’s new mandatory agent registration regime. This webinar will include a free preparation checklist. Those who sign up and pay for the live broadcast will have the opportunity to ask questions on the day and will benefit from our market-leading CPD tracking platform. Alternatively, subscribers to rossmartin.co.uk will be able to access the webinar on demand, as part of their subscription, a few days after the live broadcast.
More news, cases and updates below.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
Spring Forecast 2026
The Chancellor, Rachel Reeves, presented the Spring Forecast on 3 March 2026. In a statement to the House of Commons, she responded to the Office for Budget Responsibility's (OBR's) interim update on the economy and public finances.
Employment-Related Securities Bulletin 64: February 2026
HMRC have released Employment-Related Securities (ERS) Bulletin 64, which contains details of changes to the Enterprise Management Incentives (EMI) scheme thresholds, end-of-year reporting requirements and the mandatory tax adviser registration.
Tax Cases
Ghost-written books zero-rated for VAT
In Story Terrace Limited v HMRC [2025] TC09725, the First Tier Tribunal (FTT) found that a company providing personalised ghost-written books was making a zero-rated supply for VAT purposes. The book was the predominant element of the supply despite significant research, writing, and design services, which would have been standard-rated in isolation.
HMRC's anti-avoidance assessments out of time
In Ian Oscroft & Ors v HMRC [2026] TC09787, the First Tier Tribunal (FTT) agreed with HMRC's decision to tax capital receipts as income under the anti-avoidance 'Transaction in Securities' regime, but upheld the taxpayers' appeal due to HMRC's assessments being invalid.
Editor's Choice
40% First Year Allowance (FYA)
NEW: As of 1 January 2026, a new 40% First Year Allowance (FYA) is available for main rate capital expenditure incurred by companies and unincorporated businesses. Unlike other FYAs, this allowance is available on assets used for leasing.
What is the 2026-27 PAYE tax code?
NEW: What is the 2026-27 PAYE tax code? What do the different types of tax code prefixes and suffixes mean?
PAYE: Starter checklist new employee 2026-27
NEW: Freeview PAYE starter checklist. Use this form if you are taking on a new employee.
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?
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.
Incorporation
Capital allowances: On incorporation
What is the capital allowance position when an existing business is incorporated? What elections can be made?
Directors & Companies
Salary 2026-27 (interaction with NICs)
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?
Groups
What qualifies as a group for tax purposes? How do you form a group? Which definition of a group applies to different types of tax? What are the benefits of being in a group?
Employers
Agency workers: Umbrellas & anti-avoidance PAYE rules
What is an umbrella company? Who is responsible for operating PAYE in labour supply chains? What is the new legislation for umbrella companies? How will this affect existing labour supply chains?
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?
Capital Allowances
Full expensing & First Year Allowances
What is full expensing? When does it apply and what is the rate of allowance? How are disposals of full expensing assets dealt with? What assets qualify for the 50% First Year Allowance (FYA)? How do I deal with disposals of 50% FYA assets? How do I make a claim?
Private Client & Estate Planning
CGT: Rollover Relief
What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset?
Trust Registration Service
What is the Trust Registration Service? What trusts does it apply to? What are the requirements and deadlines?
IHT: Agricultural and Business Property Reliefs, April 2026 changes
UPDATE: Significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) were announced in the 2024 Autumn Budget, with further changes announced at the 2025 Autumn Budget, and again in December 2025. What is changing? What planning could be considered?
Land & Property
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?
SDLT: Leases
How does Stamp Duty Land Tax (SDLT) apply to leases? When do I notify HMRC?
Overseas & Residence
Foreign Currency Gains
This guide provides a brief overview of the taxation of foreign currency. Are individuals and companies taxed differently? Are there any exemptions? What is not included within the rules?
VAT
Transfer Of a Going Concern (TOGC)
Buying a business and VAT, do you take over the old owners' VAT registration? What is a Transfer Of a Going Concern (TOGC)? What conditions must be met? What are the consequences of a TOGC?
Goods or services for VAT
What are goods and what are services for VAT? The answer may have an impact on the time of supply, the place of supply and in some cases the rate of the supply. The answer is not always as straightforward as it may seem.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Monthly Tax Update - March 2026 (Spring Forecast)
- Practice Insight - February 2026 (free)
- Monthly Tax Update - February 2026
- Inheritance Tax Planning for 2026/27 and Beyond
- 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.
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