HLAS

Modernising HMRC As part of the government’s ‘Plan For Change’, steps are being taken towards modernising HMRC, to improve value for money, enhance efficiencies and support economic growth. Greater innovation, including grasping technological opportunities, is at the heart of this, transforming HMRC into a ‘digital-first’ organisation. A ‘HMRC transformation roadmap’ will be published in the summer. Improving customer service - including with AI HMRC officials have been undertaking work to learn best practices in customer service from various successful UK brands. This includes trialling the use of generative artificial intelligence (AI) to point taxpayers to the advice they need on [...]

England and Northern Ireland If you are planning to purchase residential property, remember that the SDLT thresholds will change from 1 April 2025. In particular, a 0% rate currently applies to the first £250,000 of the purchase price. It will only apply to the first £125,000 of the purchase price from 1 April 2025. The new threshold created between £125,001 and £250,000 will be subject to a rate of 2%. For first-time buyers, the 0% rate currently applies to the first £425,000 (of properties costing up to £625,000), and this will drop to £300,000 on 1 April 2025 (for properties [...]

Research and Development (R&D) tax reliefs With ongoing focus on the availability of R&D tax reliefs and companies' eligibility to claim them, the government is now consulting on widening the use of ‘advance clearances’ from HMRC. This initiative intends to give companies greater certainty when planning R&D investment, while also improving the taxpayer experience and reducing error and fraud. Voluntary advance assurances are already part of the R&D tax relief regime, but they are not commonly utilised. The consultation considers a framework where future assurances become mandatory in certain areas, namely those where HMRC are concerned about the risk of [...]

Electronic invoicing The government has recently launched a consultation on the possible advantages of e-invoicing, which include productivity enhancements, cashflow acceleration and error reductions. It also considers how HMRC can support investment and encourage uptake within the business community. Trading with the USA and other international partners While uncertainties around global trade and tariffs continue, the government is expressing ambitions to support digitalised trade and supply chains, bringing cross-border trade into the 21st century. In particular, a new digital pilot with the USA to test ways to speed up trade

Capital Gains Tax (CGT) As we head into 2025/26, it should be remembered that, for most sales of capital assets, CGT will apply at 18% for basic rate taxpayers and 24% otherwise. The Business Asset Disposal Relief (BADR) rate of CGT for eligible business disposals will increase from 10% to 14%, with a further uplift to 18% planned for 6 April 2026. Particularly in relation to business disposals, timing is important, so please do talk to us about optimising your tax position prior to any capital disposal. IHT reliefs for business owners and farmers The government is continuing with its [...]

Please remember that the significant changes to the NICs paid by employers will start to apply from 6 April 2025. An increase in the rate of employers’ NICs from 13.8% to 15% is combined with: A decrease in the threshold at which an employer starts to pay NICs on each employee’s salary from £9,100 to £5,000*. * A higher threshold of £50,270 applies for employees who are under 21 and apprentices under 25. Other variations can also apply. An increase in the amount of the ‘employment allowance’, which eligible employers can offset against their employers’ NICs liability, from £5,000 to [...]

The High-Income Child Benefit Charge (HICBC) You may have to pay the HICBC if your income exceeds £60,000 and child benefit is being paid in relation to a child that lives with you, regardless of whether you are a parent of that child. If you are living with another person in a marriage, civil partnership, or long-term relationship, you will only be liable to the HICBC if you are the higher earner of the two of you. For 2025/26, the HICBC is calculated at 1% of the child benefit received for every £200 of income above £60,000. This means that [...]

The Chancellor of the Exchequer, Rachel Reeves, delivered her Spring Statement last week in which she outlined the government’s economic plans, including spending decisions, tax policies and efforts to boost growth while managing public finances. What did the statement tell us about public finances and the economy? The Statement came on the back of the latest forecasts prepared by the Office for Budget Responsibility (OBR). The forecasts showed a more challenging outlook than was the case last autumn. The OBR cited falls in business and consumer confidence, rising European energy costs, increased government borrowing costs and global uncertainties from issues [...]

With the Easter holidays just around the corner, children and their families in Cornwall are being encouraged to enjoy the great outdoors through Wild Wellbeing workshops. Organised by Natural England in collaboration with the NHS Cornwall Mental Health Support Team, Cornwall Wildlife Trust, and the National Trust, these workshops aim to promote mental wellbeing by helping participants develop a stronger connection with nature. This initiative aligns with a growing body of research highlighting the positive impact of nature on both mental and physical health. While these workshops are designed for children and families, the benefits of spending time in nature [...]

The Spring Statement has confirmed that the Making Tax Digital for Income Tax (MTD for IT) regime will be extended to smaller businesses. Read on to find out how and when your business may be affected. What is MTD for IT? Making Tax Digital for Income Tax (MTD for IT) is a government initiative requiring self-employed individuals and landlords who earn above a certain threshold to maintain digital records and submit quarterly tax updates to HM Revenue and Customs (HMRC) using compatible software. Who must comply with MTD for IT? The new rules will be mandatory from 6 April 2026 [...]