HMRC have announced that mandatory payrolling, originally due to commence in April 2027, will now be introduced in two phases. Phase 1 will continue to be rolled out from 6 April 2027, with Phase 2 commencing a year later on 6 April 2028.
SME Tax News
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The confirmed timetable for the introduction of Multi-Factor Authentication (MFA) on agent accounts leads this week's updates. We also have news of HMRC’s relaunched agent webchat service, a new government AI chatbot that can answer tax questions and a case involving goodwill alleged to be owned personally after the incorporation of a business.
The government has made a new Artificial Intelligence (AI) tool available on the GOV.UK app called GOV.UK Chat. It draws on official government guidance, including tax, to answer questions. Read on to see why caution is needed.
In MyPay Limited v HMRC [2026] TC09902, the First Tier Tribunal (FTT) found that workers engaged by an umbrella company were employed separately for each assignment rather than under a single overarching employment contract, meaning travel expenses between home and assignment locations were ordinary commuting expenses and therefore not deductible.
HMRC's agent webchat service has been updated and relaunched. This agent-only channel aims to be quicker than phoning for some Self Assessment and PAYE queries.
In WWM (Harrogate) LLP v HMRC [2026] TC09907, the First Tier Tribunal (FTT) found that an Independent Financial Adviser (IFA) who had incorporated his sole trade business in 2008 had no personal goodwill to contribute to a Limited Liability Partnership (LLP) subsequently formed between him and his company in 2014.
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There are several important updates this week, despite the world of tax having been slightly quieter. As we previously reported, Multi-Factor Authentication (MFA) will soon be required for all HMRC agent accounts, including the Agent Services Account and Online Services Account. Individuals and organisations who access HMRC services are already subject to MFA.
In Bagshaw Limited v Revenue Scotland [2026] FTSTC 4, the First Tier Tribunal (FTT) for Scotland found that two Category A listed properties in Glasgow, a Victorian townhouse and a mews building, were non-residential property for Land and Buildings Transaction Tax (LBTT) purposes.
HMRC have released Employment-Related Securities (ERS) Bulletin 66, which focuses on the taxation of ERS and reporting requirements for individuals who come to the UK to work temporarily.
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To support the hospitality sector and help families with the cost of living, the Chancellor has launched the ‘Great British Summer Savings’ scheme, which sees a temporary cut in the rate of VAT from 20% to 5% for children’s meals in restaurants, children’s cinema, theatre, show and concert tickets, and admission to other attractions suitable for families with children such as soft play, adventure centres, and theme parks.
