Hello,
With less than a fortnight before the Chancellor presents his first Budget, the Institute for Fiscal Studies’ Green Budget 2026 report highlights some of the difficulties he faces. Rising inflation, higher borrowing costs and debt at historic highs leave him little room to manoeuvre.
Amid talk of a potential £35 billion Budget shortfall and speculation about further tax rises, this week we examine the professional bodies' Budget representations. Whatever is announced on 28 October, it's critical that agents have clear and effective communication with clients, backed by strong analysis. Below you will find details of our Budget resources designed to guide you and your clients through the maze of announcements when they arrive.
In other news, back in August we covered HMRC’s update to its Business Income Manual guidance on the deductibility of interest on funds borrowed to withdraw capital from a business. The Chartered Institute of Taxation has now written to HMRC requesting clarification on the uncertainties arising from the change. See our ‘Interest on remortgaged buy-to-let property’ guide below for the latest on what may be an evolving picture.
This week we feature our associated companies guide under ‘Directors & Companies', below. This subject remains a pain point for many accountants in practice, as we continue to receive a significant number of questions about it. Our subscriber guide addresses many of the common issues practitioners face.
Finally, if you have not attended a 20:20 Innovation conference before, this could be the time to start. Containing more content for tax practitioners than ever before, the theme this November is "Thriving in an Uncertain World". Not only does the agenda include content on AI and tax planning we will also be revealing our latest tax innovation; with conference attendees being given exclusive advance information and product perks (including free trial access). As a user of the rossmartin.co.uk Practical Tax Resources, you will get to find out what the next stage of our product evolution looks like.
The full-day Summit includes something for everyone, with sessions also covering marketing, profitability, talent, succession planning and cyber security.
Each place is worth £350+VAT, but paid subscribers to Practical Tax Resources can obtain places for just £49+VAT each, if booked before 24 October 2026. Attendees benefit from 5 hours verifiable CPD and lunch is included. Simply
More news, cases and updates below.
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
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.
With a new leadership team setting fiscal policy for the first time, this Budget will be a key signal of the government's economic direction for the coming years, making it more important than ever for you and your clients to stay ahead of the field.
Leave the analysis to us and save serious time; our team of qualified accountants and tax advisers will read hundreds of pages of announcements, policy papers and consultations to bring you succinct summaries highlighting the changes that matter to you and your clients. This will ensure that your whole team is up to date, aware of the Budget impacts, and able to communicate the changes to your clients effectively.
- Budget analysis: Sign up to the Practical Tax Resources at rossmartin.co.uk now for access to our full Budget 2026 subscriber guides.
- Be kept up to date over the post-Budget days and weeks as Budget announcements take shape, the legislation is published, and planning opportunities arise.
- Budget Update webinar: an accountants’ guide to the key announcements, with practical insights, planning strategies and more. Live at 12:30 on 29 October and on demand thereafter.
- Book your place now at £99+VAT per person.
- Comprehensive client newsletter: a branded Budget newsletter for your firm to send to clients. Delivered in PDF format by 7 am on 29 October.
- This includes firm-wide access to our Budget Update webinar above - book as many of your team as you wish.
- Order now at £290+VAT with discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
Quick News
Professional bodies make 2026 Budget representations
In August 2026, HM Treasury invited stakeholder representations ahead of the 2026 Autumn Budget. We take a look at the representations made by some of the professional bodies.
One-to-many letters: Tracker
HMRC's latest one-to-many 'nudge' letters target investors in offshore funds, and employees that HMRC believe may hold employment-related shares or other securities, asking them to check the information reported to HMRC.
Tax Cases (subscription content)
Canned wine R&D project crushed
In RDM Wines Limited v HMRC [2026] TC10019, the First Tier Tribunal (FTT) found that a project aimed at creating recyclable packaging for fine wine did not meet the conditions for a valid Research & Development (R&D) claim. RDM had not proved the R&D project it claimed for had taken place, and the limited activity it could prove did not qualify.
Editor's Choice
This week's Editor's Choice was selected by Dan Hurst. You can meet our team of editors and writers here: Meet the team.
Savings income: How interest is taxed
What is savings income? How is savings income taxed? What allowances are available? What is the Accrued Income Scheme?
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: Businesses & Trades
How to transfer an existing sole trader's business by incorporation into a company.
Guides & Updates
New This Week
IHT: Summary of reliefs
A summary of the key Inheritance Tax (IHT) reliefs.
Self-employed
Herd basis: Farming
The 'herd basis' recognises, for tax purposes, the economic nature of animals held for production as capital assets, rather than as trading stock. This can be of benefit to some farmers and result in tax savings.
Directors & Companies
Associated companies
What is an associated company? What are the tax effects of associated companies? How do the control tests work? Examples of associated companies. What are the rules for indirect control?
Employers
Employee Shares: tax reporting for Restricted Stock Units
How are Restricted Stock Units (RSUs) reported for UK tax? How are RSUs taxed? How do I complete my tax return?
Private Client & Estate Planning
IHT: Transfers by close companies
What Inheritance Tax (IHT) provisions apply to transfers made by close companies? How is IHT calculated on these transfers? What impact do alterations to share capital or rights have? Are there any exclusions?
Winter Fuel Payment recovery
UPDATE: What is the Winter Fuel Payment (WFP)? What is the Pension Age Winter Heating Payment? Who receives it? When should it be repaid to HMRC? When should a taxpayer opt in or opt out?
Self Assessment Return 2025/26: What's new?
UPDATE: 2026 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2026. Additional reporting requirements for directors of close companies are one of the significant issues this year: what needs to be reported, and how? What is the latest guidance?
Land & Property
Interest on remortgaged buy-to-let property
UPDATE: Can I claim mortgage interest relief if I remortgage? This guide considers whether mortgage interest relief is available when remortgaging an unincorporated rental business.
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?
Penalties & Compliance
Promoters of Tax Avoidance Schemes (POTAS)
UPDATE: Who is a Promoter? What are the Promoters of Tax Avoidance Scheme rules? What does this mean for promoters, intermediaries and clients?
More Tax Guides
Plastic Packaging Tax
UPDATE: What is the Plastic Packaging Tax? Who does it apply to? Are small businesses subject to Plastic Packaging Tax?
Finance Acts 2026-27: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2026-27 tax year and beyond. This planner is updated on an ongoing basis.
VAT
Time of supply (Tax Point)
The time of supply of goods or services determines the date on which VAT becomes due. There are a number of different rules which must be considered.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Budget Update - October 2026
- Corporation Tax Update and Refresher
- Practice Insight - October 2026 (free)
- 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)
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second opinion? 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 8 October 2026
- One-to-many letters: Tracker
- HMRC loses appeal on BA cabin crew accommodation
- FTT upholds takeaway VAT registration after TOGC
- Liquid collagen anti-ageing products not 'food' for VAT purposes
- Mandatory payrolling of benefits from 2027: Briefing
- Globally mobile employees: PAYE reporting obligations toolkit
- Non-resident tax toolkit
- IHT: Transfers by close companies
- Allowances: Trading and Property
- Partnerships: Losses ...More
Subscribe for news, guides & more
Subscribe now and unlock the site. Subscriptions begin at £57 (+ VAT) per month. All subscriptions are for a 12-month term.
What do you get?
- A comprehensive practical tax resource of guides, checklists, briefings and practice notes, and access to all our time-saving resources.
- A discount on Virtual Tax Partner services.
- Read everything in our comprehensive weekly SME tax news summary. We do the reading, then summarise legislation, HMRC guidance, analyse official reports and cherry-pick the best of the press and the rest.
- Commission guides and checklists for your own practice.