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.
SME Tax News
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.
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.
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.
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.
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.
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.
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VAT features heavily this week, with HMRC publishing three Revenue & Customs briefs in quick succession. Elsewhere, the date for the next Scottish Budget has been announced, and HMRC have provided some long-awaited clarification on completing tax returns for directors.
Jenny Gilruth MSP, Scottish Deputy First Minister and Cabinet Secretary for Finance and Local Government, has announced that the 2027-28 Scottish Budget will be presented to Parliament on Thursday 3 December 2026.
HMRC have clarified the position on Self Assessment reporting requirements for directors of close companies and updated their guidance for directors of charities.
