The main professional bodies have published ‘Topical guidance covering the application of professional standards to the provision of MTD for Income Tax services’. This aims to provide clarity on how Professional Conduct in Relation to Taxation (PCRT) will apply to Making Tax Digital for Income Tax.
Missed our SME Tax Updates in May? Here is a summary of the month.
Hello,
This week, we have news of incorrect SA302 tax calculations. We also take a look at a recent First Tier Tribunal (FTT) tax hearing, in which Artificial Intelligence (AI) played a part, but did not help the taxpayer’s appeal.
HMRC have published new advisory fuel rates for company car drivers that apply from 1 June 2025.
HMRC have released statistics showing an increase in the number and amount of investments made under the Seed Enterprise Investment Scheme (SEIS). The statistics also show decreases in Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme investments.
In Anne Concepta Moran v HMRC [2025] TC09521, the First Tier Tribunal (FTT) found that a taxpayer was liable to Income Tax under the Transfer of Assets Abroad (ToAA) legislation due to her rent-free occupation of a house settled in an offshore trust by her late husband.
In Realbuzz Group Ltd v HMRC [2025] TC09502, the First Tier Tribunal (FTT) allowed an appeal against a discovery assessment raised in respect of a Research & Development (R&D) claim. At the end of the normal enquiry window, the hypothetical HMRC officer should reasonably have been aware of the excessive R&D claim, which resulted in an insufficiency in tax.
The Chartered Institute of Taxation (CIOT) has highlighted issues with HMRC's 2024-25 Self Assessment calculations. Several individuals have reported that Class 2 National Insurance Contributions (NICs) are being incorrectly included on SA302 tax calculations. UPDATE June 2025: HMRC provided an update on the issue to the CIOT.
In Bodrul Zzaman v HMRC [2025] TC09520, the First Tier Tribunal (FTT) found that a taxpayer’s use of Artificial Intelligence (AI) to write his statement of case did not provide grounds to allow his High-Income Child Benefit Charge appeal. The case law cited failed to provide authorities for the arguments made.
Hello,
This week’s highlights include the May 2025 Agent Update, HMRC issuing Stop Notices to an individual for the first time, and a report from the National Audit Office (NAO) on collecting the right tax from wealthy individuals.
