The government has published its responses to four consultations regarding its initiative on labour market reform, 'Make Work Pay'. It plans on strengthening union and workers’ rights in areas like zero-hour contracts, unfair dismissal and sick pay.
SME Tax News
The government has published its response to the consultation 'Tackling non-compliance in the umbrella company market'. From April 2026, recruitment agencies will be responsible for PAYE, instead of umbrella companies. The Employment Rights Bill will also be amended to bring umbrella companies within the definition of employment business to ensure workers receive similar rights to those of direct employees.
In Fitzgerald & Anor v HMRC [2025] TC09415, the First Tier Tribunal (FTT) ruled that Multiple Dwellings Relief (MDR) was not available for an annexe. The planning permission specified that it could only be used for ancillary purposes to the house and it was not a separate unit of residential accommodation.
Missed our SME Tax Web-updates in February? Here is a summary of the month.
HMRC have launched a consultation ‘Reforms to Inheritance Tax agricultural property relief and business property relief: application in relation to trusts’. This explores the technical application of the proposed Inheritance Tax (IHT) changes, announced at the 2024 Autumn Statement, in the context of trusts.
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This week we explore HMRC’s February Agent Update, new advisory fuel rates, HMRC’s latest compliance activity and much more besides.
In The Executors of Mrs Leslie Vivienne Elborne Deceased & Ors v HMRC [2025] UKUT 00059 (TCC), the Upper Tribunal (UT) found that an Inheritance Tax (IHT) home loan scheme was valid. The value of a settled property within a deceased's estate could be reduced for IHT purposes by an associated loan note as it was not a 'debt incurred by' the deceased under anti-avoidance legislation.
In their latest one-to-many letter campaign, HMRC are targeting individuals believed to be operating in the hidden economy by selling via online marketplaces and not declaring their income.
HMRC have published their Agent Update for February 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including 2025-26 ATED returns, the Official Rate of Interest from 6 April 2025, changes to Employer's National Insurance and the Employment Allowance.
HMRC have published new advisory fuel rates for company car drivers that apply from 1 March 2025.
