Hello,
There is something of a VAT theme this week, as we explore the latest decision on mobile app ride-hailing and the Tour Operators Margin Scheme (TOMS), the ongoing saga of the VAT treatment of Mega Marshmallows, and the new VAT road fuel scale charges which apply from 1 May 2025.
Only a few weeks after the Upper Tribunal’s (UT) TOMS ruling in Sonder Europe Ltd, we now have another TOMS decision to examine: Bolt Services UK Ltd. This time, the UT considered whether mobile app ride-hailing services were within the scope of TOMS. It concluded that they were.
This is the latest chapter in the ongoing story of VAT in the Private Hire Vehicle (PHV) sector. Last year, a consultation on the VAT treatment of PHVs was launched. In this, the Government’s view that TOMS did not apply was explicitly stated.
One of the proposals made in the consultation was the possible introduction of a new margin scheme specifically for the PHV sector. This consultation closed in August, and its outcome is awaited.
Our newly published Rolling Tax Planner for 2025-26 is a key resource to keep track of ongoing consultations, like the one above. It tracks key tax announcements that impact the new tax year and beyond, and will be kept up-to-date over the coming months as new developments occur.
More news and updates below, including HMRC’s latest one-to-many letter targeting the security sector.
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Quick News
Tracker of HMRC's one-to-many letters
HMRC's latest one-to-many letter encourages private security businesses to check that the correct tax and National Insurance Contributions are being paid in respect of their workers.
Mobile ride-hailing services within TOMS
In HMRC v Bolt Services UK Ltd [2025] UKUT 0100, the Upper Tribunal (UT) found that mobile app ride-hailing services were within the scope of the Tour Operators Margin Scheme (TOMS).
FTT told to take another bite at Mega Marshmallow VAT case
In HMRC v Innovative Bites Ltd [2025] EWCA Civ 293, the Court of Appeal (CoA) allowed HMRC’s appeal and remitted the case to the First Tier Tribunal (FTT) to consider whether Mega Marshmallows are a 'sweetened prepared food which is normally eaten with the fingers'.
Editor's Choice
Self Assessment Return 2024/25: What's new?
NEW: 2025 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2025.
Finance Acts 2025-26: tax update and Rolling Tax Planner
NEW: This rolling planner tracks the key tax announcements that impact the 2025-26 tax year and beyond. This planner is updated on an ongoing basis.
Disposal values & rules
What is a disposal for capital allowance purposes? What is the tax consequence of a disposal? What value needs to be accounted for on a disposal?
Guides & Updates
Self-employed
Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?
Partnerships
Salaried members: When is a partner taxed as an employee?
UPDATE: In some circumstances, Limited Liability Partnership (LLP) members are taxed as employees under PAYE. What are the Salaried Member rules? When do they apply? What are the conditions?
Directors & Companies
Creative Industries: Additional Information Form (AIF)
What are the additional information requirements for Creative Industries claims? When should you complete the Additional Information Form (AIF)? What information is required?
Family Investment Companies
What is a Family Investment Company? Why use a Family Investment Company? What is the tax treatment of a Family Investment Company?
Employers
Tips, gratuities and troncs
How are tips, gratuities and troncs taxed? What are the rules for National Insurance Contributions (NICs)? What impact will the Employment (Allocation of Tips) Act 2023 have?
Employment Allowance
The Employers' National Insurance Contributions (NICs) allowance or Employment Allowance is an allowance given to qualifying employers to offset against their annual Employers' National Insurance liabilities.
Private Client & Estate Planning
IHT Agricultural Property Relief
UPDATE: What is Agricultural Property Relief (APR)? When does it apply? What are the conditions and restrictions of the relief?
Pensions: Tax rules and planning
What tax rules apply to pensions? What tax relief is available? What tax charges can arise? What planning opportunities are there?
Penalties & Compliance
Penalties: Errors in Returns and Documents
What penalties apply if you make an error or mistake? Is there a penalty if you fail to tell HMRC about an under-assessment? How are penalties calculated? How do you check penalties? What can you do if you receive a penalty?
Discovery Assessments
When can HMRC issue an assessment outside of the normal statutory time limits? What conditions must be met? Can HMRC issue two alternative assessments for the same period? What are your rights of appeal and defences?
VAT
Fuel scale charges (VAT)
UPDATE: The VAT fuel scale charge rates which apply for prescribed accounting periods beginning on or after 1 May 2025 have been published.
Agents and principals
What is an agent for VAT purposes? What is a principal? When do the agency rules apply?
Time of supply (Tax Point)
The time of supply of goods or services determines the date on which VAT becomes due. There are a number of different rules which must be considered.
Tax Tools & Calculators
Tax tools & calculators
We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
Recent webinars include:
- Practice Insight - April 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
- Practice Insight - March 2025 (free)
- Family Investment Companies - Succession Planning
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 10 April 2025
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- Trusts & Estates: What’s New 2025/26 NEW
- Compare software for Making Tax Digital for Income Tax UPDATE
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