The government has made a new Artificial Intelligence (AI) tool available on the GOV.UK app called GOV.UK Chat. It draws on official government guidance, including tax, to answer questions. Read on to see why caution is needed.
SME Tax News
In MyPay Limited v HMRC [2026] TC09902, the First Tier Tribunal (FTT) found that workers engaged by an umbrella company were employed separately for each assignment rather than under a single overarching employment contract, meaning travel expenses between home and assignment locations were ordinary commuting expenses and therefore not deductible.
HMRC's agent webchat service has been updated and relaunched. This agent-only channel aims to be quicker than phoning for some Self Assessment and PAYE queries.
In WWM (Harrogate) LLP v HMRC [2026] TC09907, the First Tier Tribunal (FTT) found that an Independent Financial Adviser (IFA) who had incorporated his sole trade business in 2008 had no personal goodwill to contribute to a Limited Liability Partnership (LLP) subsequently formed between him and his company in 2014.
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There are several important updates this week, despite the world of tax having been slightly quieter. As we previously reported, Multi-Factor Authentication (MFA) will soon be required for all HMRC agent accounts, including the Agent Services Account and Online Services Account. Individuals and organisations who access HMRC services are already subject to MFA.
In Bagshaw Limited v Revenue Scotland [2026] FTSTC 4, the First Tier Tribunal (FTT) for Scotland found that two Category A listed properties in Glasgow, a Victorian townhouse and a mews building, were non-residential property for Land and Buildings Transaction Tax (LBTT) purposes.
HMRC have released Employment-Related Securities (ERS) Bulletin 66, which focuses on the taxation of ERS and reporting requirements for individuals who come to the UK to work temporarily.
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To support the hospitality sector and help families with the cost of living, the Chancellor has launched the ‘Great British Summer Savings’ scheme, which sees a temporary cut in the rate of VAT from 20% to 5% for children’s meals in restaurants, children’s cinema, theatre, show and concert tickets, and admission to other attractions suitable for families with children such as soft play, adventure centres, and theme parks.
HMRC have published their Agent Update for May 2026. We have summarised the key content, including mandatory tax adviser registration, VAT return submission deadlines, claiming Personal Tax refunds, and support for taxpayers during the Iran crisis.
The Approved Mileage Allowance Payment (AMAP) rate has increased for the first time in 15 years. The rate applied to the first 10,000 business miles travelled by employees per year will increase from 45p to 55p and will be backdated to April 2026. The increased rate will also apply to the simplified expenses regime for the self-employed in 2026-27.
