Hello,
This week’s big news includes the publication of guidance on the ethical use of Artificial Intelligence (AI) for tax work. We also have HMRC’s January Agent Update and a First Tier Tribunal decision exploring tax relief for amortisation under the Intangible Fixed Asset rules.
Topical guidance on using Artificial Intelligence (AI) in tax work has been issued by the seven professional bodies responsible for producing the document 'Professional Conduct in Relation to Taxation' (PCRT). The new guidance is designed to be read in conjunction with existing PCRT guidance and discusses scenarios and possible safeguards allowing AI tools to be used ethically.
UK taxpayers overpaid £3.5bn in Income Tax last year due to errors in PAYE codes and tax complexity. Research from a Freedom of Information (FOI) request revealed that 5.6 million people overpaid HMRC, despite paying Income Tax through the PAYE system.
HMRC have published their Agent Update for January 2026. We have summarised the key content, including a reminder of the changes to voluntary National Insurance Contributions (NICs) for periods abroad, guidance on how to prepare your clients for Making Tax Digital (MTD) for Income Tax and tips for making a valid Overpayment Relief claim.
In Ripe Limited v HMRC [2025] TC09735, the First Tier Tribunal (FTT) found that acquiring a client list and related data was correctly treated as an Intangible Fixed Asset (IFA) eligible for amortisation deductions. This was despite the absence of written documentation and the fact that the asset was held in a different entity from the one utilising it.
In Philip Cox and Debra Cox v HMRC [2026] UT000114, the Upper Tribunal (UT) found that HMRC's decision-making in refusing to suspend penalties applied for an inaccurate Business Asset Disposal Relief claim was not flawed.
Missed our SME Tax Updates in December? Here is a summary of the month.
Hello,
This week, the Scottish Budget has been released. Other highlights include a First Tier Tribunal (FTT) decision on whether an e-learning training platform qualified for Research & Development (R&D) relief, and updates to HMRC’s List 3 (approved professional organisations and learned societies).
In M&C Educational Training Services Ltd v HMRC [2025] TC09709, the First Tier Tribunal (FTT) found that expenditure on an e-learning training platform related to an advance in education, a social science, and did not qualify as Research and Development (R&D) expenditure for the purposes of claiming relief.
In Afzal Alimahomed v HMRC [2025] UKUT 00428, the Upper Tribunal (UT) found that bank transfers from an offshore account to UK recipients amounted to taxable remittances, but the First Tier Tribunal (FTT) had erred in its treatment of offshore credit card transactions.
