Hello,
We have another bumper tax update this week, including poor scores for HMRC in the Charter Stakeholder Group’s annual report, with HMRC’s responsiveness receiving the lowest score of all charter standards for the third consecutive year. We also look at HMRC’s July Agent Update and several consultations, including one exploring the tax treatment of predevelopment costs.
This week saw Andy Burnham take office as the new Prime Minister, moving quickly to appoint John Healey as Chancellor of the Exchequer in place of Rachel Reeves. This has inevitably fuelled speculation as to what announcements this year's Budget may include. Burnham also wasted no time in announcing a cut in the VAT rate on domestic electricity bills, from 5% to 0%, for six months from 1 October 2026.
Our coverage of Legislation Day 2026 continues this week, as we examine several more consultations, including proposals to bring the time limits for assessing and recovering National Insurance into line with existing Income Tax rules. Given the volume of releases on Legislation Day, we have published a summary of the announcements for subscribers which outlines everything busy practitioners need to know.
With so many consultations, and draft legislation for the 2026-27 Finance Bill having recently been published, this is also a good time to mention our Rolling Tax Planner. This guide tracks tax policy from consultation to implementation, with links to our detailed guides on each topic - a key resource when advising clients.
Finally, do remember that rossmartin.co.uk subscribers benefit from a 25% discount on our tax-consulting sister service Virtual Tax Partner (VtaxP). VtaxP’s support can be tailored to you and your firm, whether that’s assisting with preparing general tax advice for your clients, giving practical answers to your ad-hoc tax queries, peer-reviewing your work, or giving second opinions – our VtaxP advisers are there to help.
More news, updates and cases below.
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
Legislation Day 2026 (subscribers)
'Legislation Day' (L-Day) was on 13 July 2026. The government published draft clauses for Finance Bill 2026-27, along with accompanying explanatory notes, tax information and impact notes, responses to consultations and other supporting documents. This is our detailed subscribers' guide to the announcements and publications.
HMRC scores poorly again in annual Charter assessment
The latest annual report from the Charter Stakeholder Group remains highly critical of HMRC's service performance, with scores either stagnant or deteriorating across most standards. Alongside poor scores for responsiveness and ease of use, the report highlights overwhelmingly negative feedback on Making Tax Digital (MTD).
Agent Update 145: July 2026
HMRC have published their Agent Update for July 2026. We have summarised the key content, including the phased introduction of mandatory payrolling of Benefits In Kind (BIKs), changes to the taxation of carried interest and voluntary National Insurance Contributions (NICs), the launch of the Advance Tax Certainty Service, Making Tax Digital (MTD) developments, and a range of compliance deadlines and agent service updates.
R&C Brief 6 (2026): HMRC confirms VAT treatment for the supply of temporary medical staff
HMRC have published 'Revenue & Customs Brief 6 (2026): VAT liability of the supply of temporary medical staff'. The Brief sets out HMRC's finalised position on the supplies of GMC-registered locum doctors, including whether supplies via an employment business may fall within the VAT exemption under Item 5, Group 7, Schedule 9, VAT Act 1994.
New settlement terms for disguised remuneration loan charge
HMRC have released new guidance for individuals who wish to settle their disguised remuneration loan charge liability under new settlement terms. The guidance offers advice on the new settlement scheme and HMRC will write to those who are eligible to settle under the new terms.
Aligning recovery time limits of NICs with Income Tax
HMRC have launched a consultation on ‘Aligning the time limits for recovery of National Insurance Contributions (NICs) with Income Tax’. Proposals include bringing the time limits for assessing and recovering NICs into line with existing Income Tax rules, so that HMRC can apply a consistent framework across both taxes.
Simplifying the taxation of offshore interest consultation response
The government has published a response to its consultation 'Simplifying the taxation of offshore interest.' It confirms that while stakeholders broadly support efforts to simplify the rules, there are mixed views on moving to a calendar-year basis for taxing offshore interest. Further work will be undertaken before any legislative changes are made.
Simplifying treaty relief from withholding tax on overseas interest
HMRC have launched a consultation on 'Simplifying treaty relief from withholding tax on interest paid overseas'. Proposals include creating a new administrative process to make it easier and quicker for UK borrowers to obtain double tax treaty relief from withholding tax on overseas interest payments.
Consultation on tax treatment of predevelopment costs
The government is consulting on the tax treatment of predevelopment costs. The consultation seeks views and evidence from stakeholders on the types of costs incurred, their tax treatment under the current rules, and the impact this has on investment decisions.
Tax Cases (subscription content)
No VAT zero-rating for hospital accommodation wing
In NHS Ayrshire & Arran Health Board v HMRC [2026] UKUT 00258, the Upper Tribunal (UT) held that the construction of an accommodation wing at a secure inpatient mental health facility was not eligible for VAT zero-rating.
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.
IHT Business Property Relief: Estate planning
How can you use Business Property Relief (BPR) to its maximum advantage through the interaction with other Inheritance Tax (IHT) reliefs?
Penalties: Accountants, Advisers and Agents
What tax-related penalties can apply to accountants, advisers and agents?
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'?
Guides & Updates
New This Week
2026 Loan Charge settlement terms
What was the outcome of the independent 'Loan Charge Review'? What are HMRC's new settlement terms for disguised remuneration loans? Who does the new settlement opportunity apply to?
Self-employed
Badges of Trade: Are you trading or not?
Are you trading, running a business or just buying and selling investments? Is your 'side-hustle' taxable? The 'Badges of Trade' are a set of indicators built over time by the courts to decide when an activity is a trading or investment activity.
Directors & Companies
An Index to Share Transactions incl. Reorganisations, Demergers & Share Exchanges
When do you need a company reorganisation or reconstruction? What tax reliefs apply to a company reorganisation, a share-for-share exchange, a reconstruction or other transaction involving shares?
Transactions in Securities
What are the Transactions in Securities rules? When do they apply?
Employers
Managed Service Companies (MSCs)
What is a Managed Service Company (MSC)? What rules apply to MSCs? Can you avoid being an MSC provider? What is the accountancy exemption from the MSC rules? How are partnerships caught by the rules?
Globally mobile employees: Short-Term Business Visitors
What is a Short-Term Business Visitor? What is an Appendix 4 agreement? What is an Appendix 8 agreement?
Private Client & Estate Planning
Payments On Account (POAs): Self Assessment
When are Payments On Account (POAs) made under Self Assessment? How are POAs calculated? What are the consequences of not making a payment on time? Can POAs be reduced?
Cryptoassets: How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments.
Land & Property
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?
VAT
Margin scheme
The VAT margin scheme allows businesses to calculate their output VAT liability on the profit margin they make on the goods they sell.
Mixed supplies: Single or Multiple supply?
Is a mixed supply a single or multiple supply for VAT purposes? What tests and case law apply?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Practice Insight - July 2026 (free)
- Monthly Tax Update - July 2026
- Capital Gains Tax Planning Strategies to Maximise Net Proceeds (free)
- Practice Insight - June 2026 (free)
- Monthly Tax Update - June 2026
- Mandatory HMRC Agent Registration Part 2 - Where We Are Now
- 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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- Capital Goods Scheme simplified from July 2026
- HMRC apologises for State Pension tax calculation error
- Second consultation on Land Remediation Relief reforms
- One-to-many letters: Tracker
- No MDR as mobile home is a chattel
- Whistleblower's compensation taxable
- UT narrows VAT exemption on dental prostheses
- Electric Vehicles: Update 2026
- Statutory Payments: Employer's guide
- Foreign income and residency pages: FAQs
- Globally mobile employees: Pension contributions relief for overseas employees ...More
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