Hello,
Much of this week’s tax news is driven by HMRC’s September 2026 Agent Update. Agents should note that the final activation window for Multi-Factor Authentication (MFA) begins on 28 September. Our guide shows how to prepare and what to expect. The update also details a change to how Winter Fuel Payments will be recovered that could affect some clients' tax codes from January 2027.
HMRC have acknowledged agents' concerns over a recent policy paper that appeared to tighten its stance on using automated tools to extract data from the Agent Services Account (ASA). They will gather feedback through the autumn before deciding their next steps. HMRC have also promised new functionality for the ASA and the Online Services Account (OSA), which may not arrive until summer 2027, but could ease some of the administration of managing clients.
With mandatory payrolling approaching, HMRC have clarified the treatment of globally mobile employees. It has also set out the Class 1A National Insurance Contributions (NICs) position for employers that voluntarily payroll benefits not mandated in phase one. Separately, agents with Construction Industry Scheme (CIS) clients should be aware that HMRC are writing to contractors they believe may have applied the wrong deduction rate to subcontractor payments.
Elsewhere, new regulations laid before Parliament confirm the cash ISA limit reduction for under-65s that will apply from April 2027. They also introduce anti-circumvention measures designed to ensure the revised limit works as intended.
This year’s Administrative Burdens Advisory Board (ABAB) survey provides an insight into how small businesses view the tax system. HMRC have promoted the benefits of Making Tax Digital (MTD) for Income Tax, such as improved accuracy and a more up-to-date view of finances, yet some 60% of respondents reported seeing no benefits. Poor response times and the wider tax compliance burden also remain significant concerns.
More news, updates and cases below, including a case where Companies House filings undermined a Business Asset Disposal Relief (BADR) claim.
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Autumn Budget 2026: Analysis, Client Newsletter & Webinar
This year's Budget on 28 October will be significant: it will be the first delivered by Chancellor John Healey, coming just months into Andy Burnham's tenure as Prime Minister.
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Quick News
Agent Update 147: September 2026
HMRC have published their Agent Update for September 2026. We have summarised the key content, including guidance on the final activation window for Multi-Factor Authentication (MFA) from 28 September, the next Making Tax Digital (MTD) for Income Tax deadline on 7 November and HMRC's comments on their approach to the automation of web services.
HMRC announce details on mandatory payrolling from April 2027
HMRC have confirmed the treatment of globally mobile employees under mandatory payrolling of Benefits In Kind (BIKs) from 6 April 2027 and clarified the Class 1A National Insurance Contributions (NICs) position for employers who payroll benefits voluntarily.
Additional functionality coming to agent and online service accounts
HMRC are developing additional functionality for the Online Services Account (OSA) and Agent Services Account (ASA) that may make some online tasks easier for agents, however it may not be fully available until summer 2027.
HMRC write to contractors over incorrect CIS deduction rates
HMRC are writing to Construction Industry Scheme (CIS) contractors who may have applied the wrong tax deduction rate to subcontractor payments in 2025-26 and have introduced a new online form to report and correct errors.
Anti-circumvention rules confirmed for reduced cash ISA limit
The government has published amended Individual Savings Account (ISA) regulations covering the reduction to the cash ISA limit that will take effect from 6 April 2027. The regulations include measures to prevent the circumvention of the new rules.
ABAB reports record response to survey
The Administrative Burdens Advisory Board (ABAB) has released its 'Tell ABAB report 2025 to 2026'. The report found rising concern about legislative burden, continued difficulties with communication channels and an improved perception of Making Tax Digital (MTD) for Income Tax.
Overnight Visitor Levy confirmed for England
The government has confirmed plans for an Overnight Visitor Levy for England, giving mayors and other local leaders the power to introduce a charge on overnight stays.
Tax Cases (subscription content)
No Sideways Loss Relief for Scheckter's organic farming
In Jody Scheckter v HMRC [2026] TC01280, the First Tier Tribunal (FTT) found that an organic farming trade was not ancillary to a much larger food production business. As a result, Sideways Loss Relief was denied because of the 'hobby' farming legislation.
Companies House filings fatal to BADR claim
In Katarina Poznic v HMRC [2026] TC01298, the First Tier Tribunal (FTT) found that a company was not the appellant’s ‘personal company’ because the statutory records demonstrated that the shares carried no voting rights. There was no clear evidence to the contrary and Business Asset Disposal Relief (BADR) was denied.
Editor's Choice
This week's Editor's Choice was selected by Rachel Davies. You can meet our team of editors and writers here: Meet the team.
Family Investment Companies
What is a Family Investment Company? Why use a Family Investment Company? What is the tax treatment of a Family Investment Company?
Other Gifts to Charity
Gifts to Charity: can you obtain tax relief on a gift to your local charity or community amateur sports club? What about gifts to your church, mosque or synagogue? Do you need to be a taxpayer? Are there any tax reliefs?
SDLT: Linked transactions
What are linked transactions? When do the linked transaction rules apply for SDLT? How do I calculate SDLT on a linked transaction?
Guides & Updates
New This Week
Fall in Value Relief
What is Fall in Value Relief? When can it be claimed? How is it calculated? Are there any exclusions? How is it claimed?
Self-employed
Accountants: Tax Overview
How are accountants taxed? What expenses can accountants and tax advisers claim for tax purposes? Are there special rules for taxing income? What are the VAT rules for accountants? How is goodwill treated?
Directors & Companies
Leaving payments and directors
How are leaving payments to directors taxed? What are the planning opportunities and pitfalls? Does the £30,000 tax-free exemption apply to directors?
Employers
Penalties: CIS (Construction Industry Scheme)
When are Construction Industry Scheme (CIS) penalties charged and how much are they?
Subsistence (employer's guide)
What subsistence costs can be claimed? What are the rules for employer intermediaries? How do claims affect VAT, National Insurance Contributions (NICs) and Income Tax?
Capital Allowances
Cars, vans & other four-wheel vehicles: Capital Allowances
What capital allowances are available for cars, vans and other four-wheel vehicles? How does HMRC classify what is a car or what is a van?
Private Client & Estate Planning
Trusts & Tax planning
What is a trust? How can trusts be used in tax planning? What are the advantages and what are the pitfalls?
Business Asset Disposal Relief (Entrepreneurs' Relief): Disposal of shares or securities in a company
When can you claim Business Asset Disposal Relief (BADR) on a share sale? What is the rate of Business Asset Disposal Relief (Entrepreneurs' Relief)? How do you claim BADR? What case law is there on BADR?
Penalties & Compliance
HMRC's Multi-Factor Authentication for agents
HMRC are introducing Multi-Factor Authentication (MFA) for agents using HMRC online accounts. How will this be implemented? How do agents set up MFA? What preparations should agents undertake for MFA?
Penalties: Deliberate Behaviour
What penalties apply when a taxpayer has acted deliberately, resulting in a potential loss of tax revenue? What is classed as deliberate behaviour? What is the relevant case law for deliberate behaviour?
VAT
Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?
Flat rate scheme: Farmers
What is the agricultural Flat Rate Scheme? Who can use it? What are the conditions? What is the benefit? What about non-farming income?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Budget Update - October 2026
- Monthly Tax Update - October 2026
- Practice Insight - September 2026 (free)
- Monthly Tax Update - September 2026
- Practice Insight - July 2026 (free)
- Capital Gains Tax Planning Strategies to Maximise Net Proceeds (free)
- Mandatory HMRC Agent Registration Part 2 - Where We Are Now
- Ethics and PCRT for Tax Advisors
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax Update 17 September 2026
- Tax return requirements for directors clarified
- Scottish Budget 2027-28 date announced
- R&C Brief 10 (2026): Temporary zero rate of VAT for domestic electricity in Great Britain
- R&C Brief 9 (2026): VAT treatment of education provided by alternative providers
- R&C Brief 8 (2026): UK VAT refunds for non-UK businesses in a VAT group
- Intention at acquisition key to input VAT recovery on luxury hire vehicle
- UT dismisses 'Transactions in Securities' appeal
- Failed 'cleansing' scheme results in loan charge
- IHT Asset Valuation Rules NEW
- Growth and Skills Levy NEW ...More
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