Hello,
There are several important items for agents this week with the release of the September Agent Update. We also have an interesting First Tier Tribunal decision concerning the VAT treatment of the supply of locum medical practitioners, a summary of the CIOT Autumn Tax Conference from CIOT President, Nichola Ross Martin, and updates on the Welsh ‘Tourism Tax’ and Scottish Winter Heating Payments.
HMRC’s Agent Update reminds agents and Self Assessment taxpayers of the upcoming 5 October deadline to register for Self Assessment for the 2024-25 tax year. It also raises concerns over an increase in phishing emails and provides valuable resources to help you and your clients prepare for Making Tax Digital for Income Tax.
For employment taxes, there have been significant changes to the PAYE responsibilities involving umbrella companies, and HMRC provides guidance on the correct reporting of National Insurance Contributions (NICs) for internationally mobile employees.
The Welsh Visitor Levy has now been given Royal Assent, allowing councils the power to introduce a small fee on overnight stays of up to £1.30 per night from 2027. It will be interesting to see how this impacts Welsh tourism.
The opt-out deadline of 10 October for the Winter Heating Payment for Scottish pensioners is fast approaching. Early communication to your clients is crucial to ensure they do not miss the deadline.
We also have a summary of the recent CIOT Autumn Tax Conference which took place last weekend from our very own, CIOT President, Nichola Ross Martin.
Finally, do take a look at this week’s case summaries. The Isle of Wight NHS Trust v HMRC determines the VAT treatment on the supply of locums. This has become a lead case for several other NHS trust appeals.
More news, cases and updates below.
The Ross Martin Tax Team
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Quick News
CIOT Autumn Tax Conference report
The Chartered Institute of Taxation's (CIOT) Autumn residential tax conference in Cambridge last weekend was sold out. CIOT President, Nichola Ross Martin, picks her highlights of the event and reflects on the tax planning conundrums captivating the attention of tax advisers in 2025.
Tax debtors face HMRC raid on bank accounts
HMRC have issued a briefing, 'Direct Recovery of Debts'. It confirms that HMRC have resumed their programme allowing the direct recovery of money from debtors’ bank accounts. The reactivation of the scheme was signalled in the government's Spring Statement.
Welsh 'Tourism Tax' now law
The Welsh Visitor Levy, also known as the 'Tourism Tax', has now been given Royal Assent. From 2027, councils will have the option to introduce a small fee on overnight stays.
Scottish Winter Heating Payment recovery
The Scottish Government has announced that individuals with income exceeding £35,000 and in receipt of the pension age Winter Heating Payment have until 10 October 2025 to opt out of receiving it. Failing to opt out will allow HMRC to claw back the payment via an individual's PAYE tax code or under Self Assessment.
Agent Update 135: September 2025
HMRC have published their Agent Update for September 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including an increase in phishing scams, changes to PAYE responsibilities involving umbrella companies, and the correct reporting of National Insurance Contributions (NICs) for internationally mobile employees.
Tax Cases
Judicial review puts input VAT reclaims to bed
In Hotelbeds UK Ltd vs HMRC [2025] EWHC 2312 (Admin), the High Court allowed the company's claim for judicial review, finding that HMRC should have allowed repayment of input VAT in line with its published guidance where there is no valid VAT invoice.
NHS Trust wins landmark case
In The Isle of Wight NHS Trust v HMRC [2025] TC09640, the First Tier Tribunal ruled in favour of the Trust, finding that the supply of locums is an exempt service for VAT purposes.
FTT clarifies no P45, no employer liability in PAYE obligations
In FieldworkHub Ltd v HMRC [2025] TC09634, the First Tier Tribunal (FTT) found that the employer was not legally obliged to include 'previous pay' in their payroll calculations in the absence of a P45.
Editor's Choice
Failure to notify chargeability to tax
What is the failure to notify chargeability to tax? What happens if you fail to notify HMRC about your taxes? What penalties apply for failing to notify HMRC that you have a tax liability?
Globally mobile employees: National Insurance
What are my employer's National Insurance obligations when hiring an employee from overseas? What are my employer's Social Security obligations when sending an employee to work overseas? Do I have any PAYE reporting requirements concerning National Insurance?
Guides & Updates
Self-employed
Extracting profits (self-employed)
What tax planning tips will help you to run a tax-efficient business? We review your different options. The majority of businesses in the UK are run by sole traders. This guide looks at profit extraction from the perspective of the unincorporated business.
Directors & Companies
Interest paid to directors and individuals
UPDATE: This guide summarises the tax treatment for the company of interest paid to directors or other individuals.
Employers
Agency Workers: Employment intermediaries rules (subscribers)
What are the tax rules for Employment Intermediaries and Agencies? Are agency workers subject to PAYE?
Working from home (employees)
What expenses can employees claim for homeworking? Are the rules the same for the self-employed? How do you make a claim?
Private Client & Estate Planning
IHT: Long-term non-resident spouses (previously non-domiciled spouses)
What are the Inheritance Tax (IHT) rules for transfers to spouses who are long-term non-UK resident (previously non-UK domiciled)?
Trusts & Tax planning
What is a trust? How can trusts be used in tax planning? What are the advantages and what are the pitfalls?
Capital Allowances
Dwelling house for capital allowances
What is a dwelling house for capital allowance purposes? Can capital allowances be claimed in respect of a dwelling house? What expenditure qualifies?
Full expensing & First Year Allowances
What is full expensing? When does it apply and what is the rate of allowance? How are disposals of full expensing assets dealt with? What assets qualify for the 50% First Year Allowance (FYA)? How do I deal with disposals of 50% FYA assets? How do I make a claim?
Land & Property
Joint property: Legal v beneficial ownership
What is the difference between legal and beneficial ownership? What are the tax consequences? Are the rules different for married couples and civil partners?
Overseas & Residence
Companies: Permanent establishment & residence
What are the rules for determining a company's country of residence? What is central management and control? When does a company create a permanent establishment in another country?
SRT: Split Year Treatment
What is Split Year Treatment? When does it apply?
Penalties & Compliance
Failure to take reasonable care
UPDATE: What is meant by taking reasonable care in relation to your tax affairs? What is a failure to take reasonable care? Tax schemes and lack of reasonable care. What can HMRC do if you do not take reasonable care of your tax affairs?
Promoters of Tax Avoidance Schemes (POTAS)
UPDATE: Who is a Promoter? What are the Promoters of Tax Avoidance Scheme rules? What does this mean for promoters, intermediaries and clients?
VAT
Health and welfare: VAT
When do reduced rating, zero-rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
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
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:
- Monthly Tax Update - September 2025
- Practice Insight - September 2025 (free)
- Monthly Tax Update - July 2025
- Practice Insight - July 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 18 September 2025
- Autumn Budget representations now invited
- 'Window of opportunity' to repay overclaimed COVID funds
- HMRC make first Corporate Criminal Offences prosecution
- Updated Additional Dwelling Supplement repayment process
- One-to-many letters: Tracker
- Business Rates reform to be confirmed in Autumn Budget 2025
- Retired cricketer loses sponsorship income appeal
- Intra-group disregard did not apply after supplier left VAT group
- Globally mobile employees: National Insurance UPDATE
- SDLT: Leases UPDATE
- Named tax avoidance schemes, promoters, enablers UPDATE
- Failure to notify chargeability to tax UPDATE
- Correcting VAT errors UPDATE ...More
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