SME Tax Update 11 June 2026

Hello,

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.

SME tax news 9

HMRC have confirmed the timetable for activating MFA on agent accounts. Roll-out will be in three phases: two voluntary and one mandatory. By completing an online form by midnight on 30 June, agents can request that MFA be voluntarily activated on 15 July. Those completing the form by 31 July can request a 19 August switch-on date. All remaining agent accounts will have MFA compulsorily activated between 28 September and 15 October 2026. Agents in this category will not be given advance notice of their specific activation date, so they need to be ready by 28 September.

Our MFA guide, available in Editor’s Choice, contains details of the voluntary opt-in process, how mandatory activation will work and recommendations for preparation.

In other news, HMRC’s agent webchat service is accessible via a new link, following an update and relaunch. It has been streamlined, with short questions now used to direct agents to an adviser. Where a query cannot be resolved, a callback within two working days will be offered. Read more in our news item below.

Can goodwill be owned separately from the business to which it relates? That was one of the questions considered by the First Tier Tribunal (FTT) in WWM (Harrogate) LLP v HMRC. This issue crops up periodically in practice, making this decision useful reading for anyone advising on incorporation or business structuring.

More news, cases and updates below, including details of a new government AI chatbot. Please note that there will be no SME Tax Update next week, but we will be back on 25 June, as normal.

The rossmartin.co.uk tax team

Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.

Quick News 

HMRC's new and improved agent webchat service
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.

Official government AI chatbot to answer tax queries
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.

Tax Cases

No personal goodwill to transfer to LLP
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. 

Umbrella company travel expense claim rejected
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. 

Editor's Choice

This week's Editor's Choice was selected by Jenni Davie. You can meet our team of editors and writers here: Meet the team.

HMRC's Multi-Factor Authentication for agents
UPDATED: HMRC are introducing Multi-Factor Authentication (MFA) for agents using HMRC online accounts.  How will this be implemented? How do agents set up MFA? What preparations should agents undertake for MFA?

Employment Related Securities: Reporting
What are the reporting requirements for Employment-Related Securities (ERS)? When is the deadline? How do I register an ERS scheme? What are the penalties for failing to report ERS?

Overpayment Relief
What is Overpayment Relief? When can you claim Overpayment Relief? What are the conditions for a claim for Overpayment Relief? What are the time limits for a claim for Overpayment Relief? 

Guides & Updates 

New This Week

Land & Property: an Adviser's Tax Update 2026-27
NEW: Land and Property taxes: a comprehensive review of the sector offering a topical CPD update. Hot topics for advisers include the introduction of new property Income Tax rates from 6 April 2027, Making Tax Digital (MTD) for landlords and the High Value Council Tax Surcharge that will affect owners of residential properties in England worth more than £2 million. 

Self-employed  

MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?

Entertaining
What entertaining expenditure is tax-deductible? How should you plan for staff entertaining? Is VAT on staff entertaining recoverable?

Directors & Companies

Groups
What qualifies as a group for tax purposes? How do you form a group? Which definition of a group applies to different types of tax? What are the benefits of being in a group? 

Stamp Duty: Share-for-share exchanges
How do you calculate Stamp Duty on a share-for-share exchange? What relief is available from Stamp Duty on a share-for-share exchange?

Employers

Travel (employer's guide)
How do employers apply the tax rules to travel costs? What is available for subsistence costs? What are the rules on home-to-work travel? 

Private Client & Estate Planning

CGT: Value shifting
What is value shifting? When do the rules apply and what are the implications? 

IHT: Pre-Owned Asset Tax (POAT)
What is Pre-Owned Asset Tax (POAT)? When does it apply? Are there any exclusions or exemptions? 

Penalties & Compliance

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?

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? 

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. 

Continuing Professional Development (CPD)

Recent and upcoming webinars include: 

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Missed the Last Tax Update?

Ross Martin Tax: SME Tax Update 4 June 2026

  • Employment-Related Securities Bulletin 66: May 2026
  • Victorian townhouse was not a dwelling
  • Client communication: VAT reduction for children's meals, tickets and family attractions
  • Property profits & losses: Toolkit (2026-27) NEW
  • HMRC's Multi-Factor Authentication for agents NEW
  • Mandatory payrolling of benefits from 2027: Briefing UPDATE
  • Winter Fuel Payment recovery UPDATE
  • Mandatory tax adviser registration with HMRC UPDATE
  • P11D: Reporting benefits and expenses
  • Globally mobile employees: PAYE reporting obligations toolkit ...More

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