HLAS

In the previous edition of this newsletter we showed HMRC’s Advisory Fuel Rates (AFRs) applicable from 1 September 2025. You may have noticed that there was a new rate for fully electric vehicles that are charged using public charging facilities. This means that we now have two electric car rates, which from 1 September are as follows: Where vehicle charged at home:                               8p per mile Where vehicle charged using public chargers:          14p per mile Updated quarterly, AFRs assist employers in reimbursing employees for fuel costs incurred during business travel in company cars. They’re also used to calculate the VAT element [...]

In a recent Upper Tribunal (UT) ruling, Investment and Securities Trust Limited v HMRC, the UT determined that a company was entitled to relief from the Annual Tax on Enveloped Dwellings (ATED). The company held an option over a property solely for the purpose of developing and reselling it as part of its property development trade. The First Tier Tribunal (FTT) had previously decided that neither ATED relief nor higher rate Stamp Duty Land Tax (SDLT) relief applied in relation to the property option. The company had acquired the option for three purposes: To address the director/shareholder’s urgent need for [...]

HMRC has published long-awaited guidance on how digitally excluded individuals should apply for an exemption from Making Tax Digital (MTD) for Income Tax. Gaining HMRC’s agreement that a person is digitally excluded is essential. WHAT DOES ‘DIGITALLY EXCLUDED’ MEAN? The MTD legislation defines digitally excluded individuals as those who are unable to use electronic communications or keep electronic records due to their religion, age, disability, location, or any other reason. Unfortunately, HMRC’s guidance does not tell us how they intend to interpret the legislation, although they say theywill not accept applications for an exemption if the only reason for applying [...]

In a recent First Tier Tribunal (FTT) decision, Ferrero Ltd v HMRC, the FTT ruled that Nutella Biscuits are zero-rated for VAT purposes. Under UK VAT legislation, biscuits are generally zero-rated unless they are wholly or partly covered in chocolate or a substance similar to chocolate. HMRC contended that Nutella Biscuits should be standard-rated on the basis that they were coated in a chocolate-like material. Nutella Biscuits are made up of several layers, featuring a Nutella filling and a ring composed of a chocolate-style substance, enclosed within two baked biscuit layers that form the product’s exterior. While the FTT accepted [...]

In Autumn Budget 2024, the Chancellor announced that restrictions to the amount of Agricultural Property Relief (APR) and Business Property Relief (BPR) will apply from 6 April 2026. APR and BPR currently give up to 100% relief from Inheritance Tax (IHT) on qualifying agricultural and business property. Draft legislation for the restrictions was published in July 2025. WHAT IS EXPECTED TO HAPPEN? A new £1m allowance will apply to the combined value of business and agricultural property assets that qualify for 100% relief under APR or BPR. The new allowance is in addition to the existing IHT nil-rate bands and exemptions. [...]

The Security Minister, Dan Jarvis, has urged business leaders to act now to strengthen their cyber resilience, warning that cybercrime is one of the biggest threats facing the UK economy. Speaking at the launch of the National Cyber Security Centre’s (NCSC) 2025 Annual Review, he reminded businesses that cyber security is no longer just a technical issue - it’s a board-level one. A growing threat The numbers tell the story. The NCSC handled more than 200 serious cyber incidents in the past year - more than double the previous year. These are the types of incidents that can disrupt essential [...]

The Advisory, Conciliation and Arbitration Service (Acas) recently hosted a roundtable with partners in Wales to examine the causes of workplace conflict and identify ways organisations can respond more effectively. Several recurring themes emerged during the discussions. Participants highlighted generational differences in attitudes towards work, rights, and identity, emphasising the importance of strong people management skills for managers. The discussions also noted that formal procedures often become the default response, with managers sometimes reluctant to address issues informally. Economic pressures, particularly their impact on pay negotiations, were cited as a common trigger for workplace disputes. Supporting Managers to Handle Conflict [...]

Fishing businesses and coastal communities across the UK are set to benefit from a significant new funding package designed to promote growth, sustainability, and local employment. The government has announced the Fishing and Coastal Growth Fund, which includes £56 million allocated to Scotland, Wales, and Northern Ireland. The funding will be administered by the devolved governments, allowing investment to reflect local priorities and the specific needs of fishing communities. Under this allocation, the Scottish Government will receive £28 million, the Welsh Government £18 million, and the Northern Ireland Executive £10 million, based on the Barnett Formula. The funding will be [...]

Almost 500 UK employers have been fined a total of £10.2 million for failing to pay the National Minimum Wage correctly, according to the latest government figures. Following investigations by HMRC, around 42,000 workers have now received back pay totalling £6 million. The list of employers spans businesses of all sizes and sectors, including retail, hospitality, childcare, and manufacturing. Several are well-known household names, demonstrating that even established organisations can inadvertently breach the rules. The Importance of Compliance Employers who underpay staff must repay the shortfall and may face financial penalties of up to 200% of the arrears (capped at [...]

The government has announced a significant change to how UK regulators operate, with the aim of making them more accountable and focused on supporting business growth. From last week, regulators now have a stronger growth duty, meaning they are expected to balance their oversight responsibilities with helping businesses invest, innovate, and expand. The reform is intended to ensure regulation remains proportionate and does not hinder economic activity. A new public dashboard of regulator performance will also be introduced. This GOV.UK site, updated quarterly, will consolidate performance data and provide a channel for businesses to give feedback directly to government. Business [...]