Hello,
It's a week of housekeeping for agents. The voluntary registration period for HMRC's Multi-Factor Authentication (MFA) has now closed, revised advisory fuel rates apply from 1 September and HMRC want agents' views on a proposed digital service for reporting PAYE coding changes. We also cover the latest guidance for taxpayers who HMRC automatically sign up to Making Tax Digital (MTD) for Income Tax.
Agents who didn't register voluntarily for MFA will have it switched on automatically between 28 September and 15 October. HMRC are unable to give advance notice of the exact date for individual accounts. Planning for the change is important, and Our guide sets out what to expect and how to prepare your practice.
HMRC have published guidance on what happens when, from September, they automatically sign a taxpayer up to MTD for Income Tax, including the 'checking step' agents will need to complete and some traps around the historic business data that HMRC hold. This week, we have pulled together the practical detail, including how agents can check whether a client has already been signed up.
For those advising owner-managed companies, the First Tier Tribunal (FTT) decision in Alan Pontin & Ors is worth a read. Here, the taxpayers sold shares in a holding company whose only subsidiary earned nothing but rental income and still qualified for Entrepreneurs' Relief (now Business Asset Disposal Relief). The FTT looked beyond income, taking a holistic approach when examining the group's activities. As so much of those activities were focused on property development, the FTT ultimately concluded that non-trading activities were not substantial.
More news, cases and updates below, including HMRC’s latest Employer Bulletin and a Stamp Duty Land Tax case exploring when a derelict property stops being a 'dwelling'.
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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.
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Quick News
Guidance for HMRC-led MTD sign up
HMRC previously announced that they will automatically sign up taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from 2026-27, but who have not yet registered themselves. Guidance has now been published setting out the steps affected individuals should take.
MFA voluntary registration phase now ended
The two voluntary registration phases for HMRC Multi-Factor Authentication (MFA) have now passed. For agents that did not voluntarily register, HMRC will automatically enable MFA.
Advisory Fuel Rates from 1 September 2026
HMRC have published new advisory fuel rates for company car drivers that apply from 1 September 2026.
Employer Bulletin: August 2026
HMRC have published their Employer Bulletin for August 2026. Key content includes information and deadline reminders for PAYE, Benefits In Kind, mandatory payrolling and Employment-Related Securities (ERS), as well as confirmation of the recent update to mileage payment rates and information for those employing short-term business visitors.
HMRC survey on proposed new digital service for agents
HMRC are seeking agents' views in a new survey exploring a proposed digital service that would allow agents to report information that may affect their clients' PAYE tax codes.
Tax Cases (subscription content)
Company was 'trading' despite rental income
In Alan Pontin & Ors v HMRC [2026] TC09985, the First Tier Tribunal (FTT) found that a residential development company which only received rental income was a trading company for Entrepreneurs’ Relief (ER) purposes. The FTT concluded that the company's non-trading activities were not substantial.
When is a dwelling not a dwelling for SDLT purposes?
In Oakwood Great Oak Ltd v HMRC [2026] TC09979, the First Tier Tribunal (FTT) found a dilapidated property, although historically used as a dwelling, had 'crossed the line' and was no longer suitable for residential use for Stamp Duty Land Tax (SDLT) purposes. The FTT allowed the taxpayer's appeal, agreeing that non-residential rates of SDLT applied.
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HMRC's Multi-Factor Authentication for agents
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?
PAYE Settlement Agreements
What are PAYE Settlement Agreements? How do they work? What can be included?
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?
Guides & Updates
New This Week
Class 4 National Insurance Contributions (NICs)
What is Class 4 National Insurance (NI)? Who has to pay it and how is it calculated? What reliefs and exemptions are available? What are the rules for losses?
Self-employed
Herd basis: Farming
The 'herd basis' recognises, for tax purposes, the economic nature of animals held for production as capital assets, rather than as trading stock. This can benefit some farmers and result in tax savings.
Partnerships
When does a partnership exist?
When does a partnership exist? Why does it matter? What are the implications for different taxes?
Incorporation
Valuation: Goodwill
What valuation methods are suitable for valuing a business? What are the issues with goodwill and other intangibles? What does HMRC suggest? What do the courts think?
CGT: Rollover (Incorporation s.162) Relief
Incorporation Relief is available to individuals. Gains from the disposal of business assets on incorporation can be deferred. What assets are included? How does the relief work?
Directors & Companies
Leases: Plant and machinery
A summary of the accounting and tax treatment of leased Plant and Machinery (P&M).
Losses: Trading and other losses
When can a company offset its losses? What restrictions are there? How are loss claims made?
Employers
Employment Allowance
What is the Employment Allowance? How much is it? How is it claimed? Are there any restrictions?
Capital Allowances
Disposal values & rules
What is a disposal for capital allowance purposes? What is the tax consequence of a disposal? What value needs to be accounted for on a disposal?
Private Client & Estate Planning
Tax Return questionnaire
What information is needed to complete a Self Assessment Tax Return? This questionnaire will help you gather the documents and information required.
Business Asset Disposal Relief (Entrepreneurs' Relief): Disposal of shares or securities in a company
When can you claim Business Asset Disposal Relief (BADR) on a share sale? What is the rate of Business Asset Disposal Relief (Entrepreneurs' Relief)? How do you claim BADR? What case law is there on BADR?
Penalties & Compliance
Grounds for Appeal: Insufficiency of Funds
When will insufficiency of funds be a reasonable excuse for late filing of a tax return or late payment of tax?
VAT
Groups (VAT)
What are the conditions for forming a VAT group? What rules apply once a VAT group is in place?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Practice Insight - September 2026 (free)
- 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
- Ethics and PCRT for Tax Advisors
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax Update 20 August 2026
- Second tax adviser registration window now open
- One-to-many letters: Tracker
- Carpet retailer lays down the law on VAT
- FTT did not care for COVID-19-related R&D relief claim
- Non-resident tax toolkit
- Share matching rules for individuals and companies
- National Insurance: What's the maximum payable?
- Post-Mortem Reliefs
- Market Gardening: Tax Overview
- Business Gifts ...More
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