HMRC have advised that from April 2026, they will remove employment expenses and higher rate Gift Aid relief from PAYE tax codes where they believe a taxpayer's circumstances have changed.
SME Tax News
In Gary Elden v HMRC [2026] TC09742, the First Tier Tribunal (FTT) found that significant procedural failings, exacerbated by the unverified use of Artificial Intelligence (AI) by Mr Elden's accountants, posed serious risks to the fairness of proceedings. Nevertheless, it refused HMRC's strike-out application.
Following HMRC's recent announcement that their telephone helplines would be closed on Self Assessment deadline day, 31 January 2026, with only enhanced webchat support available, they have since announced a U-turn and telephone support will be provided for a limited period.
Hello,
This week’s big news includes the publication of guidance on the ethical use of Artificial Intelligence (AI) for tax work. We also have HMRC’s January Agent Update and a First Tier Tribunal decision exploring tax relief for amortisation under the Intangible Fixed Asset rules.
Topical guidance on using Artificial Intelligence (AI) in tax work has been issued by the seven professional bodies responsible for producing the document 'Professional Conduct in Relation to Taxation' (PCRT). The new guidance is designed to be read in conjunction with existing PCRT guidance and discusses scenarios and possible safeguards allowing AI tools to be used ethically.
UK taxpayers overpaid £3.5bn in Income Tax last year due to errors in PAYE codes and tax complexity. Research from a Freedom of Information (FOI) request revealed that 5.6 million people overpaid HMRC, despite paying Income Tax through the PAYE system.
HMRC have published their Agent Update for January 2026. We have summarised the key content, including a reminder of the changes to voluntary National Insurance Contributions (NICs) for periods abroad, guidance on how to prepare your clients for Making Tax Digital (MTD) for Income Tax and tips for making a valid Overpayment Relief claim.
In Ripe Limited v HMRC [2025] TC09735, the First Tier Tribunal (FTT) found that acquiring a client list and related data was correctly treated as an Intangible Fixed Asset (IFA) eligible for amortisation deductions. This was despite the absence of written documentation and the fact that the asset was held in a different entity from the one utilising it.
In Philip Cox and Debra Cox v HMRC [2026] UT000114, the Upper Tribunal (UT) found that HMRC's decision-making in refusing to suspend penalties applied for an inaccurate Business Asset Disposal Relief claim was not flawed.
Missed our SME Tax Updates in December? Here is a summary of the month.