Hello,
This week saw the commencement of the second phase of mandatory tax adviser registration, with a three-month registration window now open for agents who have a Self Assessment or Corporation Tax account but do not have an Agent Services Account.
In other news, HMRC have published their latest Trusts and Estates Newsletter, containing several important updates, including recent amendments to the Trust Registration Service requirements. Those updates, and more, can be found in our enhanced Trusts & Estates: What's New 2026/27 guide, featured below.
We examine two decisions from the First Tier Tribunal (FTT) this week, each well worth reading. In the context of carpet fitting, Tapi Carpets Limited centred on the classic VAT question ‘who supplied what to whom?’. In concluding that, for VAT purposes, it was independent fitters and not Tapi who supplied the fitting to customers, the FTT was not complimentary of HMRC, saying “it seems that HMRC’s analysis is based on a view of the arrangements which they consider Tapi should have adopted as opposed to those which it actually adopted”.
This decision comes only a year after the similar FTT judgment in United Carpets (Franchisor) Ltd. While FTT decisions are not binding, with two defeats for HMRC in comparable circumstances, now is a good time for businesses operating similar models to review their own arrangements in light of the FTT’s analyses, paying close attention to both the contractual documentation in place and commercial reality.
In Tanglewood Care Services Ltd, our second FTT case summary this week, an R&D claim for Covid-19 infection-control measures by a care home operator was dismissed. This case largely turned on the uncertainties addressed being operational/managerial, rather than scientific or technological, meaning there was no evidence of an advance in knowledge or capability beyond Tanglewood’s own operations. Our analysis should be essential reading for anyone advising on R&D claims, and it serves as a reminder that solving a business problem is not necessarily R&D.
More news and updates below, including another new guide for subscribers, this time examining Post-Mortem Reliefs for IHT purposes.
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Autumn Budget 2026: Analysis, Client Newsletter & Webinar
This year's Budget on 28 October will be significant: it will be the first delivered by Chancellor John Healey, coming just months into Andy Burnham's tenure as Prime Minister.
With a new leadership team setting fiscal policy for the first time, this Budget will be a key signal of the government's economic direction for the coming years, making it more important than ever for you and your clients to stay ahead of the field.
Leave the analysis to us and save serious time; our team of qualified accountants and tax advisers will read hundreds of pages of announcements, policy papers and consultations to bring you succinct summaries highlighting the changes that matter to you and your clients. This will ensure that your whole team is up to date, aware of the Budget impacts, and able to communicate the changes to your clients effectively.
- Budget analysis: Sign up to the Practical Tax Resources at rossmartin.co.uk now for access to our full Budget 2026 subscriber guides.
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Quick News
Second tax adviser registration window now open
HMRC have now opened the second window for mandatory tax adviser registration. Advisers who have a Self Assessment or Corporation Tax account but do not have an Agent Services Account (ASA) are now eligible for registration.
One-to-many letters: Tracker
HMRC's latest one-to-many 'nudge' letters target agents who have submitted excepted estate grant applications with estate values at or around the various Nil Rate Band thresholds.
Tax Cases (subscription content)
Carpet retailer lays down the law on VAT
In Tapi Carpets Limited v HMRC [2026] TC09975, the First Tier Tribunal (FTT) found that a flooring retailer was not liable to account for VAT on fitting fees paid by its customers directly to independent fitters. The fitters supplied their services to the customers as principal, rather than to the retailer under a sub-contracting arrangement.
FTT did not care for Covid-19 related R&D relief claim
In Tanglewood Care Services Ltd v HMRC [2026] TC09978, the First Tier Tribunal (FTT) found that work done by a care home in managing Covid-19 was not qualifying Research & Development (R&D) and the company's relief claim was not allowed.
Editor's Choice
This week's Editor's Choice was selected by Carrie-Anne Richards. You can meet our team of editors and writers here: Meet the team.
Non-resident tax toolkit
This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.
Share matching rules for individuals and companies
How are shares identified for the purposes of calculating a chargeable gain? What are the matching rules for individuals and companies? How does the s.104 pool work? Are there any exemptions? What happens on a share reorganisation?
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
Guides & Updates
New This Week
Post-Mortem Reliefs
What is Post-Mortem Relief for Inheritance Tax (IHT) purposes? What are the conditions? How is it claimed? Are there any time limits? When should Post-Mortem Relief not be claimed? Are there any restrictions?
Self-employed
Market Gardening: Tax Overview
What is market gardening? What tax rules apply?
Business Gifts
What are business gifts? Are business gifts allowable for tax? What needs to be disallowed?
Incorporation
Capital allowances: On incorporation
What is the capital allowance position when an existing business is incorporated? What elections can be made?
Directors & Companies
Case Study 5: Management Buyout via Newco
How should a management buyout be structured?
Striking off a company
How do you strike off a company? When is it tax efficient to strike off a company? What is the difference between striking off and liquidation?
Employers
National Insurance contributions for directors
How do you calculate National Insurance Contributions (NICs) for directors? What special rules apply?
Capital Allowances
40% First Year Allowance (FYA)
As of 1 January 2026, a new 40% First Year Allowance (FYA) is available for main rate capital expenditure incurred by companies and unincorporated businesses. Unlike other FYAs, this allowance is available on assets used for leasing.
Private Client & Estate Planning
Trusts & Estates: What's New 2026/27
HMRC's Trusts and Estates newsletters contain some useful information. This is our enhanced version for subscribers, including reminders of recent and upcoming changes.
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.
More Tax Guides
Finance Acts 2026-27: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2026-27 tax year and beyond. This planner is updated on an ongoing basis.
VAT
Business splitting and VAT (single business directions)
What measures can HMRC take when they identify that a business has been artificially split into two or more entities to trade below the VAT registration threshold?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Monthly Tax Update - September 2026
- Practice Insight - July 2026 (free)
- Monthly Tax Update - July 2026
- Capital Gains Tax Planning Strategies to Maximise Net Proceeds (free)
- 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 opinion? 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 Update 13 August 2026
- 436,000 taxpayers file under MTD for Income Tax
- Employment-Related Securities Bulletin 68: August 2026
- New online service for uploading compliance check documents
- Independent report published on post-OTS progress on tax simplification
- UT finds director's loan was written off during liquidation
- Property incorporation schemes not notifiable under DOTAS
- Beneficiary makes trust-owned offshore company UK tax resident
- Appropriations to and from trading stock (self-employed and partnerships)
- Appropriations to and from trading stock (companies)
- Quick Succession Relief ...More
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