Missed our SME Tax Updates in September? Here is a summary of the month.
SME Tax News
Hello,
With the introduction of the first phase of Making Tax Digital for Income Tax (MTD for IT) less than six months away, HMRC have published guidance on how to apply for an exemption when taxpayers are considered 'digitally excluded'.
The Office for National Statistics (ONS) has published a correction to the Public Sector Finance figures because HMRC made mistakes in calculating VAT income. HMRC's error gives the Chancellor an extra £2.4 billion in VAT cash receipts and lowers UK borrowing by around £1bn in FYE March 2025.
In Investment and Securities Trust Limited v HMRC [2025] UKUT 00331, the Upper Tribunal (UT) found that a company was entitled to Annual Tax on Enveloped Dwellings (ATED) relief as it held an option over a property exclusively for the purpose of developing and reselling that property, in the course of its property development trade.
HMRC's 'big data' system, Connect, has brought in £4.6bn of additional tax in the 2024-25 tax year that would otherwise have been uncollected. The increase of 35% above the estimated average annual amount collected comes from the tax gap, says international law firm Pinsent Masons, following a Freedom of Information (FOI) request.
With the Chancellor's 2025 Autumn Budget set for 26 November, and an increasingly challenging economic outlook, we consider what tax changes might be announced when Rachel Reeves stands at the Dispatch Box next month.
HMRC have published new guidance on applying for an exemption from Making Tax Digital (MTD) for Income Tax for those who are digitally excluded.
Hello,
This week’s hot topics include the introduction of a new service to collect the High Income Child Benefit Charge (HICBC) via PAYE, the timing of the next Scottish and Welsh Budgets, and a tool to check whether projects qualify for Research and Development (R&D) tax relief.
HMRC have released a new tool to check if a project includes activities that qualify as Research and Development (R&D) for tax purposes. The launch of the new tool comes in the same week that HMRC published R&D statistics for the 2023-24 tax year.
In Tajinder Pawar v HMRC [2025] UKUT 309 (TCC), the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had made an error of law when applying the Martland test. When considering a late appeal and following the approach in Medpro, the need to comply with time limits should not have been considered in the third stage of Martland.
