Hello,
HMRC have published their latest Agent Update. As usual, this contains a lot of content, including confirmation that the issuing of Corporation Tax late filing penalty notices has now resumed after being paused for a systems update. It also provides guidance on what to do if a business missed the first quarterly Making Tax Digital update deadline.
In other news, another opinion from the General Anti-Abuse Rule (GAAR) Advisory Panel has been published, HMRC are sending more one-to-many letters and a new factsheet has been released explaining HMRC’s powers in relation to Electronic Sales Suppression (ESS) tools. Do note that penalties can apply for merely possessing an ESS tool, even if it has never been used.
We cover the First Tier Tribunal (FTT) decision in Shahid Hussain v HMRC this week, where HMRC took over five years to respond to a request for their VAT assessment workings, before then admitting that they did not have them. Given the lack of evidence produced by HMRC, the FTT concluded that on the balance of probabilities, the taxpayer had not been liable to register for VAT.
On the subject of VAT, do remember that the temporary 5% reduced rate of VAT for children's meals, tickets and family attractions ended on 1 September, with affected supplies reverting to the standard 20% rate. Those in the hospitality, leisure or attractions sectors should ensure that tills, booking systems, menus, price lists and websites, etc, are checked to verify the correct rate of VAT is charged and that cut-off issues are dealt with appropriately.
So far this year, we have published a record number of new guides for subscribers to the Practical Tax Resources at rossmartin.co.uk, as we continue to enhance and expand the content we have available. As something of a theme, this week’s newswire features a small selection of those guides, which can be identified below with the prefix 'NEW'.
More news and updates below. Please note that there will be no SME Tax Update next week, but we will be back on 17 September, as normal.
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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.
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Quick News
Agent Update 146: August 2026
HMRC have published their Agent Update for August 2026. We have summarised the key content, including what to do if a business missed the first quarterly update deadline for Making Tax Digital (MTD), changes to the process for obtaining an Inheritance Tax (IHT) reference number, and details of the final window for agents to register for Multi-Factor Authentication (MFA).
New guidance on HMRC powers for ESS tools possession
HMRC have published a new factsheet explaining the statutory powers for tackling Electronic Sales Suppression (ESS) and the penalties for those found in possession of ESS tools.
GAAR Opinion: Disguised Remuneration arrangements using dual payments
HMRC have released another opinion in their favour from the General Anti-Abuse Rule (GAAR) Advisory Panel (GAP), that concerns Disguised Remuneration arrangements using dual payments through an Umbrella Company. The panel found that the arrangements were abusive and not reasonable courses of action.
One-to-many letters' tracker
HMRC's latest one-to-many 'nudge' letter targets trusts and estates that submitted a notice of intent to disclose but did not make a full disclosure within the required period of 90 days.
Tax Cases (subscription content)
Tribunal asks HMRC to show its workings
In Shahid Hussain v HMRC [2026] TC09992, the First Tier Tribunal found that HMRC were unable to produce detailed workings for VAT assessments. Nor could they adequately explain the methodology used to arrive at their figures.
Editor's Choice
You can meet our team of editors and writers here: Meet the team.
Share matching rules for individuals and companies
NEW: 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?
Appropriations to and from trading stock (self-employed and partnerships)
NEW: What happens when assets become trading stock? What happens when trading stock becomes a fixed asset, or is taken out of the business for another purpose? What elections are available? When should an asset be reclassified?
Finance Acts 2026-27: tax update and Rolling Tax Planner
NEW: 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.
Guides & Updates
Self-employed
Sole trader v. limited company: Tax differences & savings (2026/27)
NEW: Is it better from both a tax and legal point of view to run a business as a sole trader or as a company? Are there tax advantages in running a business as a company? What legal protections apply?
Class 4 National Insurance Contributions (NICs)
NEW: 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?
Directors & Companies
Appropriations to and from trading stock (companies)
NEW: What happens when a company moves a fixed asset into trading stock? What happens when a company begins to use trading stock for another purpose? What elections are available? When should assets be reclassified?
Employers
Statutory Payments: Employer's guide
NEW: What statutory payments are available to employees? When are they due, how should they be calculated, and how much can be recovered from HMRC?
Disguised Remuneration
2026 Loan Charge settlement terms
NEW: 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?
Capital Allowances
40% First Year Allowance (FYA)
NEW: 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
Post-Mortem Reliefs
NEW: 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?
Quick Succession Relief
NEW: What is Quick Succession Relief (QSR)? When does QSR apply? How is QSR calculated? How is QSR claimed?
Penalties & Compliance
HMRC's Multi-Factor Authentication for agents
NEW: 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?
Penalties: Electronic Sales Suppression
What penalties apply for till tampering or Electronic Sales Suppression (ESS)?
More Tax Guides
Stamp Taxes on shares
NEW: What is Stamp Duty? When does it apply? What reliefs and exemptions are available? What changes have been proposed for 2027?
VAT
VAT: What's new 2026-27?
NEW: What's new in VAT for 2026-27? What are the recent cases? What policy changes have HMRC announced?
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 27 August 2026
- Guidance for HMRC-led MTD sign up
- MFA voluntary registration phase now ended
- Advisory Fuel Rates from 1 September 2026
- Employer Bulletin: August 2026
- HMRC survey on proposed new digital service for agents
- Company was 'trading' despite rental income
- When is a dwelling not a dwelling for SDLT purposes?
- Class 4 National Insurance Contributions (NICs) NEW
- HMRC's Multi-Factor Authentication for agents
- PAYE Settlement Agreements
- Leases in relation to land ...More
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