Hello,
Headlines this week include HMRC’s latest Agent Update, Revenue Scotland’s digital by default proposals, research on attitudes towards e-invoicing amongst SMEs, HMRC’s new sanctionable conduct powers and the latest changes to the Construction Industry Scheme (CIS).
April is a significant month for non-natural persons, including companies, that hold an interest in UK residential property valued at over £500,000, as they must consider their reporting obligations under the Annual Tax on Enveloped Dwellings (ATED) regime. While many companies may benefit from an ATED relief such that no tax is payable, a relief declaration return still needs to be filed by 30 April to claim the relief, something that is often overlooked. We feature our ATED guide below to help with this process.
As we move into the 2026-27 tax year, many changes in the world of tax come into effect. As some of these may easily be missed, you can track key tax announcements in our Rolling Tax Planner.
HMRC’s Agent Update covers one such change from 6 April: the reintroduction of the requirement to submit monthly CIS returns, even where no subcontractors have been paid. With penalties for missed filing deadlines, those in the construction sector should ensure that robust systems are in place so that no returns are forgotten going forward.
Rarely has a week gone by in the last couple of months during which we have not talked about HMRC’s mandatory agent registration, which starts in May 2026. This subject gets another mention this week, as rossmartin.co.uk subscribers can now access our recent webinar on mandatory registration, found in our guide below.
HMRC’s ‘sanctionable conduct’ powers came into effect on 1 April. These amend the previous ‘dishonest conduct’ rules that applied to tax advisers by both lowering the threshold above which HMRC may target advisers and increasing the consequences of non-compliance, with potentially unlimited penalties. We take a closer look at the new rules, their impact on advisers, and the actions to take to remain compliant.
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
Agent Update 141: March 2026
HMRC have published their Agent Update for March 2026. We have summarised the key content, including a reminder of the new PAYE responsibilities in labour supply chains, the removal of voluntary National Insurance Contributions (NICs) for periods abroad, and the final push on getting your clients ready for Making Tax Digital for Income Tax.
Revenue Scotland considers electronic-only communications
Revenue Scotland has released a consultation, 'Communications from Revenue Scotland to taxpayers', in which it has outlined proposals to use electronic communication as the default method for corresponding with taxpayers. A postal service will still be available for those opting out or who are digitally excluded.
New 'sanctionable conduct' powers for HMRC
From 1 April 2026, HMRC have new powers to deal with dishonest tax advisers. The new 'sanctionable conduct powers' replace the previous dishonest conduct powers, with many professional bodies criticising the new rules for being too broad.
With MTD days away, HMRC send more mandation letters
With just days to go before the introduction of Making Tax Digital (MTD) for Income Tax (IT), HMRC have written to more taxpayers who will be mandated into the regime from 6 April 2026.
Corporate Criminal Offences six-monthly update
The number of live cases being reviewed under the Corporate Criminal Offences (CCO) legislation has increased slightly in the last six months, while no further charging decisions have been secured.
Half-hearted SME acceptance of e-invoicing
HMRC have released a research paper, ‘Electronic invoicing: Quantitative research into small and medium-sized enterprises’ usage and attitudes’. The analysis found that only 59% of SMEs were broadly familiar with e-invoicing as a concept.
Tax Cases
Political donations not made from 'normal expenditure'
In Jeremy John Hosking v HMRC [2026] TC09824, the First Tier Tribunal (FTT) found that political donations made by the appellant were not made from normal expenditure and were liable to Inheritance Tax (IHT).
Editor's Choice
Directors: Tax planning toolkit for 2026-27
NEW: What tax planning opportunities and strategies are available to directors? What's the optimum way to extract profits in 2026-27? What tax reliefs and tax deductions are handy to consider? This planner looks at a range of director tax issues.
Penalties: Tax advisers (sanctionable/dishonest conduct)
UPDATE: What penalties can HMRC charge for tax agents found guilty of sanctionable conduct? How is sanctionable conduct different from dishonest conduct? What are the penalties?
Calendar of tax deadlines and new tax measures
UPDATE: When do common recurring tax deadlines fall? What other tax significant events are upcoming? What do I need to remember this month?
Guides & Updates
Self-employed
Record-keeping & tax: What, how and until when?
How long do you need to keep your books and records for tax? Record-keeping for Income Tax (IT), PAYE, Capital Gains Tax (CGT), VAT and Corporation Tax (CT). What if you lose your records?
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?
Partnerships
Partnerships: Losses
What loss reliefs are available to partners and what restrictions are there? How to calculate a partner's capital contribution? What are the anti-avoidance rules?
Directors & Companies
National Insurance contributions for directors
How do you calculate National Insurance Contributions (NICs) for directors? What special rules apply?
Loss relief (Income Tax) disposal of shares
Share Loss relief allows you to offset a loss made on the disposal of shares against income instead of following normal capital loss treatment.
Employers
National Living Wage rates/National Minimum Wage rates
The National Living Wage rates/National Minimum Wage rates all change annually on the 1st April. Employers need to ensure that they make the necessary adjustments.
CIS: Contractors and Subcontractors
What is the Construction Industry Scheme? Who does it apply to? How does it work?
Capital Allowances
Annual Investment Allowance (AIA): Related companies
What restrictions to AIA apply to companies? What does common control mean? When are companies related?
Private Client & Estate Planning
Tax Return questionnaire
What information is needed to complete a Self Assessment Tax Return? This questionnaire will help you gather the documents and information required.
CGT: Connected persons
Who is a connected person for Capital Gains Tax (CGT) purposes? Why does this matter?
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?
Overseas & Residence
Overseas Workday Relief (OWR)
What is Overseas Workday Relief (OWR)? When does it apply? What are the recent changes to OWR?
Penalties & Compliance
Mandatory tax adviser registration with HMRC
UPDATE: Mandatory HMRC Agent Registration Part 1 - Getting Started Before May 2026 webinar access added for rossmartin.co.uk subscribers.
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publish a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC do not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
VAT
Capital Goods Scheme
What is the VAT Capital Goods Scheme (CGS)? When do I use it? How does it work?
Cars & Vans: VAT
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Monthly Tax Update - April 2026
- Practice Insight - March 2026 (free)
- Mandatory HMRC Agent Registration Part 1 – Getting Started Before May 2026
- Monthly Tax Update - March 2026 (Spring Forecast)
- Inheritance Tax Planning for 2026/27 and Beyond
- 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 Update 26 March 2026
- Finance Act 2026 receives Royal Assent
- Consultation on reporting company payments to participators
- HMRC introducing Multi-factor Authentication for agents
- Modernising and standardising company tax returns consultation
- Opportunities to extend Uncertain Tax Treatment consultation
- One-to-many letters: Tracker
- R&C Brief 9 (2025): VAT liability of the supply of temporary medical staff
- Share sale subject to Income Tax and NICs, not CGT
- 'Bed & Breakfast' supply for cattle services, ruled one supply
- Upper Tribunal denies EIS relief as companies were not trading
- Sole trader v. limited company: Tax differences & savings (2026/27)
- MTD: Toolkit for accountants UPDATE ...More
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