Hello,
HMRC’s mandatory registration of tax advisers has now begun. Agents who interact with HMRC about someone else’s tax affairs have three months from their ‘start date’ to register. The first start date of 18 May applies to advisers interacting with HMRC without an Agent Services Account, Self Assessment or Corporation Tax account, as well as new advisers.
We cover HMRC’s latest guidance this week and remind subscribers that, as well as our comprehensive guide on registration, we have a downloadable registration checklist to ensure you are compliant with the new requirements.
In other news, HMRC have launched their new advance assurance pilot for Research & Development (R&D) tax relief claims. This will run alongside the existing advance assurance service while HMRC tests demand and determines which aspects of the claim businesses most value assurance on. Our updated subscriber guide details what you need to know about each advance assurance option.
In a coincidence of timing, this week’s cases include Beer Express Ltd v HMRC, in which a company’s R&D claim failed. The First Tier Tribunal (FTT) found no competent professional had provided clear evidence about the state of existing technology and why it was unsuitable. There was also no documentary record identifying the uncertainties in each project or how the activities were designed to resolve them. Might advance assurance have prevented this from going to the FTT?
The decision in Mark Gadsden v HMRC is worth noting. Here, the FTT allowed a taxpayer’s late-paid Class 2 National Insurance Contributions (NICs) to be treated as paid for State Pension purposes. We wonder how many other taxpayers may be in a similar position, having not appreciated the distinction between Class 2 and Class 4 NICs, thereby failing to register for Class 2 NICs.
Finally, we would again like to highlight our ‘Self Assessment Return 2025-26: What's new?’ guide. This includes a tab dedicated to the additional reporting obligations for close company directors in 2025-26, around which several uncertainties remain. We will keep this guide updated when further information becomes clear.
More news, cases and updates below.
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Quick News
HMRC's mandatory registration of tax advisers now live
The application process for mandatory tax adviser registration opened on 18 May 2026. In light of this, HMRC have issued a press release encouraging advisors to check whether they need to register.
Targeted advance assurance service for R&D claims launched
As proposed at Budget 2025, HMRC have introduced a targeted advance assurance service for Research and Development (R&D) tax relief claims. The service, which is a pilot, aims to provide Small and Medium-sized Enterprises (SMEs) with clarity on complex or high-risk areas before a claim is made.
Tax fraud warning on Bills of Exchange
HMRC have published an issue briefing 'Tax fraud warning: Attempts to use 'Bills of Exchange’ to pay HMRC', highlighting schemes that are marketed particularly to the recruitment and temporary labour sectors. HMRC do not accept Bills of Exchange as a valid form of payment.
Tax Cases
Demolished house site was grounds and garden of remaining property
In Vereley Homes Limited v HMRC [2026] TC09881, the First Tier Tribunal (FTT) found that a fenced-off and overgrown plot of land, which previously formed part of a demolished neighbouring property, constituted part of the garden or grounds of an adjacent dwelling for Stamp Duty Land Tax (SDLT) purposes.
Late payment of Class 2 NICs permitted
In Mark Gadsden v HMRC [2026] TC09884, the First Tier Tribunal (FTT) found that a taxpayer had exercised due care and diligence. It allowed his appeal against HMRC's refusal to treat his late-paid Class 2 National Insurance contributions as paid for State Pension purposes.
Proof lacking as alcohol wholesaler loses R&D claim
In Beer Express Ltd v HMRC [2026] TC09873, the First Tier Tribunal (FTT) found that project expenditure did not qualify for Research & Development (R&D) relief in the absence of evidence from a competent professional. The FTT placed no reliance on vague and loosely termed reports prepared by an R&D advisory firm that could not be reached when the claims were challenged.
Editor's Choice
This week's Editor's Choice was selected by Dan Hurst. You can meet our team of editors and writers here: Meet the team.
Mandatory tax adviser registration with HMRC
From May 2026, all tax advisers who interact with HMRC on behalf of clients will be required to register with them. Who will be required to register? What conditions must be met? What are the consequences of non-compliance with 'mandatory tax adviser registration'?
R&D: Advance Assurance
What are Research and Development (R&D) targeted and full claim advance assurance? How can I apply? What are the conditions? What are the benefits?
P11D: Reporting benefits and expenses
How do you report benefits and expenses? What is the P11D deadline?
Guides & Updates
New This Week
Trusts & Estates: What's New 2026/27
NEW: HMRC's Trusts and Estates newsletters contain some useful information. This is our enhanced version for subscribers, including reminders of recent and upcoming changes.
Self-employed
Pre-trading expenses (self-employed)
What are pre-trading expenses? What tax relief is available for pre-trading expenses? What are the restrictions to relief? What expenses will not qualify?
Averaging claims
When can profits be averaged? What trades do averaging apply to? How are averaging adjustments calculated and made?
Directors & Companies
Settlement anti-avoidance rules
What are the settlement anti-avoidance rules? How do these rules catch some common family tax planning? What are the rules for spouses and other family members?
Employers
Company cars
What creates a company car benefit? How do you work out the car benefit? How do you work out the car fuel benefit? Are there savings for low-emission vehicles? How do you reduce the car benefit? Can you payroll a company car benefit? Is it a car or a van?
Private Client & Estate Planning
Self Assessment Return 2025/26: What's new?
2026 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2026. Additional reporting requirements for directors of close companies are one of the significant issues this year: what needs to be reported, and how? What is the latest guidance?
Estates: Income Tax and Capital Gains Tax
How do executors deal with income and capital gains arising from the deceased’s estate? What allowances and reliefs are available?
State benefits: Tax-free and taxable
What state benefits are taxable? What state benefits are tax-free?
Land & Property
Interest on re-mortgaged buy-to-let property
Can I claim mortgage interest relief if I remortgage? This guide considers whether mortgage interest relief is available when remortgaging an unincorporated rental business.
SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? What garden and grounds are subject to higher rates of SDLT?
More Tax Guides
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publish a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC do not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
Plastic Packaging Tax
What is the Plastic Packaging Tax? Who does it apply to? Are small businesses subject to Plastic Packaging Tax?
VAT
Flat rate scheme: Farmers
What is the agricultural Flat Rate Scheme? Who can use it? What are the conditions? What is the benefit? What about non-farming income?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Mandatory HMRC Agent Registration Part 2 – Preparing to Register
- Practice Insight - May 2026 (free)
- Monthly Tax Update - May 2026
- Practice Insight - April 2026 (free)
- Monthly Tax Update - April 2026
- Mandatory HMRC Agent Registration Part 1 – Getting Started Before May 2026
- Ethics and PCRT for Tax Advisors
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.
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- Finance Acts 2026-27: tax update and Rolling Tax Planner
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