Hello,
This week, the government published its ‘Budget Information Security Review’, following the leak in the run-up to last autumn’s Budget. In its report, the National Cyber Security Centre found that in the hour before Rachel Reeves delivered her Budget speech, the content of the OBR’s Economic and Fiscal Outlook was downloaded in full nearly 25,000 times.
It now also transpires that the March 2025 Economic and Fiscal Outlook was also accessed in advance of its official publication. The government’s report sets out the steps being taken to tighten information security ahead of Budget 2026.
Following on from the guidance recently published by the Professional Conduct in Relation to Taxation (PCRT) bodies on the ethical use of AI tools in tax, subscribers to rossmartin.co.uk can now access two helpful checklists on the subject. These cover both the big picture, in terms of matters that need firm-wide consideration, as well as the finer detail around planning and reviewing work that involves the use of AI tools.
We have published another new 2025-26 year-end tax planning guide for subscribers this week, this time focusing on business owners. In addition, do take a look at our updated briefing on the mandatory payrolling of benefits in kind, which reflects the latest guidance ahead of the regime being introduced in April 2027. Both of these can be found in Editor’s Choice.
More news and updates below, including two cases that are well worth a read.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
HMRC warn of scam targeting agents
HMRC have issued a warning about an email scam, which asks agents to update their Anti-Money Laundering (AML) supervision registration details.
Loan Charge update on HMRC operational activity
HMRC have released a new policy paper on operational activity following the independent review of the loan charge. HMRC are now reviewing taxpayers' disguised remuneration arrangements and issuing letters to those affected.
Budget leak bigger than thought, says NCSC
Last year's November Budget was accessed over 24,000 times before Rachel Reeves addressed Parliament, according to the National Cyber Security Centre (NCSC). It was discovered that the March 2025 Budget had also suffered unauthorised access. As a result, stricter security procedures are to be introduced at both the Office for Budget Responsibility (OBR) and HM Treasury (HMT).
Tax Cases
Ignorance of the law was a reasonable excuse
In Julian & Anor v HMRC [2026] TC09768, the First Tier Tribunal (FTT) found that taxpayers who failed to register for VAT had a reasonable excuse. In the circumstances, it was objectively reasonable for them to be unaware of changes to the Agricultural Flat Rate Scheme, which resulted in their VAT registration obligation.
Rental income taxable despite non-receipt
In Ifoem Odina v HMRC [2026] TC09767, the First Tier Tribunal (FTT) found that an individual who had been subject to financial abuse from her former spouse, and who had not seen or approved her tax returns, was nevertheless subject to the High-Income Child Benefit Charge. Rental income remained taxable on her, forming part of her Adjusted Net Income, despite the fact that she had not received it.
Editor's Choice
Professional Conduct in Relation to Taxation
The Professional Conduct in Relation to Taxation (PCRT) sets out the ethical and professional standards expected of members of the seven authoring professional bodies when advising on UK tax matters.
Tax Planning for the 2025-26 year-end: Business Owners
A checklist of key deadlines and topical issues to consider for SMEs and their owners when planning around the end of the 2025-26 tax year. What returns and claims are due before the end of the tax year?
Mandatory payrolling of benefits from 2027: Briefing
UPDATE: The Government has announced that the mandatory payrolling of Benefits In Kind and taxable employment expenses will not come into force until 6 April 2027. This replaces the earlier date of 6 April 2026, allowing employers more time to prepare for the changes.
Guides & Updates
Self-employed
Subsistence (self-employed)
What is subsistence? Is subsistence allowable for tax? What are the considerations?
Training and course fees (self-employed)
Can a self-employed trader claim tax relief on their costs of training and ongoing professional development? Are training fees capital by nature?
Directors & Companies
Leases: Plant and machinery
A summary of the accounting and tax treatment of leased Plant and Machinery (P&M).
Directors' loan accounts: Toolkit (subscribers)
What is the tax treatment for an overdrawn director's loan account? What are the consequences of an outstanding loan to a participator?
Employers
Entertaining
What entertaining expenditure is tax-deductible? How should you plan for staff entertaining? Is VAT on staff entertaining recoverable?
Vans and Commercial vehicles
What is the Benefit In Kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emission vans?
Private Client & Estate Planning
Leases in relation to land
What are the Capital Gains Tax (CGT) and Income Tax consequences of leases? What is the difference between a grant and an assignment? What is a premium and a reverse premium? What are the tax consequences of a lease extension and surrender?
Business Asset Disposal Relief (Entrepreneurs' Relief): Disposal of a business
Entrepreneurs' Relief (ER) was renamed Business Asset Disposal Relief (BADR) by Finance Act 2020. When does BADR apply? What is the rate of BADR? How do you claim BADR? What BADR case law is there?
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?
Land & Property
Investment Zones
What is an Investment Zone? Where are Investment Zones located? What are the tax advantages of running a business from an Investment Zone?
Penalties & Compliance
Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?
More Tax Guides
Plastic Packaging Tax
What is the Plastic Packaging Tax? Who does it apply to? Are small businesses subject to Plastic Packaging Tax?
VAT
Food, catering and takeaway
What is the VAT rate charged on food? How does this differ depending on hot or cold food and food consumed on or off the supplier's premises?
Deposit Return Scheme: Drink containers
The Deposit Return Scheme (DRS) is an environmentally ambitious scheme for single-use drink containers. It will now not be introduced until October 2027. How will it operate for VAT purposes?
Spring Forecast Analysis, Client Newsletter & Webinar
The Spring Forecast will be presented by the Chancellor of the Exchequer on 3 March 2026.
Our team of qualified accountants and tax advisers will work through the night to provide you with the tools you need to communicate with your clients and advise them immediately.
- Spring Forecast PDF: a branded Spring Forecast Analysis for your firm to send to clients. Delivered in PDF format by 7am on 4 March.
- Order now at £290+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
- Spring Forecast Tax Update webinar: update on recent and proposed changes in taxation, including any relevant announcements from the Spring Forecast. Live at 10 am on 6 March and on demand thereafter.
- Order now at £99+VAT per person.
- Combination deal (save £99+): Spring Forecast PDF + firm-wide access to the Spring Forecast Tax Update webinar (book as many of your team as you wish).
- Order now at £290+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Practice Insight - February 2026 (free)
- Monthly Tax Update - February 2026
- Inheritance Tax Planning for 2026/27 and Beyond
- Monthly Tax Update - December 2025
- Budget Update
- Practice Insight - December 2025 (free)
- Ethics and PCRT for Tax Advisors
- Making Tax Digital for Income Tax - Roadmap to April 2026
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 5 February 2026
- HMRC sending more MTD mandation letters
- Employment-Related Securities Bulletin 63 January 2026
- £3m SDLT Overpayment Relief claim was valid
- Hair loss treatment was zero-rated
- Nurse’s travel expenses were not allowable
- Tax Planning for the 2025/26 year-end: Private Clients
- Mandatory tax adviser registration with HMRC UPDATE
- Employment-Related Securities: Reporting UPDATE:
- MTD: Toolkit for accountants
- Plant & machinery (self-employed): Allowances
- Cryptoassets: How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK? ...More
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