HLAS

A recent First Tier Tribunal case gave us a useful reminder of the rules governing the VAT treatment of private tuition. In Rushby Dance & Fitness Centre v HMRC (TC09534), the lead appellant and three other dance tutors unsuccessfully argued that their dance classes qualified as VAT-exempt private tuition. The exemption for private tuition is contained in the Value Added Tax Act 1994 (Schedule 9, Group 6, Item 2): “The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.” In order to qualify for the exemption, [...]

If you are a sole trader or landlord with combined turnover from trade and property exceeding £50,000 in 2024/25, you’re likely to be mandated into Making Tax Digital (MTD) from 6 April 2026. Individuals with lower income will be mandated at later dates. We have covered the general MTD requirements in previous newsletters, but it’s time to focus on how MTD will apply to those with income from property that is jointly owned by more than one person. The MTD legislation prescribes the various categories that should be used to record each individual item of income and expenditure. Any MTD-compatible [...]

Employees who join their employer’s pensions salary sacrifice scheme stop paying pension contributions and instead sacrifice part of their gross salary in return for higher employer pension contributions. This means that both employers’ and employees’ National Insurance Contributions (NICs) are saved whilst maintaining the same amount of pensions savings. This is because employers’ pension contributions are exempt benefits and they are not caught by the salary sacrifice rules. The employers’ NICs saving is the main benefit of such schemes. The employer can choose to use all or none of the saving to invest in the employees’ pensions. Before implementing a [...]

If you have children under 12 who attend a nursery, after school club, playscheme or childminder, or you are considering sending them to a summer camp, you should think about setting up a tax-free childcare account. The government adds 25% to the amounts that you save in the account - up to £2,000 for each child - so £8,000 is topped up to £10,000 (a higher amount applies for disabled children). The account is then used to pay Ofsted registered childcare providers. Note that it doesn’t need to be the child’s parents paying into the account; uncles, aunts, grandparents and [...]

“What’s the most tax-efficient way to take funds out of my company?” is perhaps the most common question put to accountants by their owner-managed company clients. The answer used to be simple: “Take a salary up to the level of the personal allowance and take the rest as a dividend”. Unfortunately, we are no longer able to give such a straightforward, one-size-fits-all answer. Put simply, the most honest answer we can give without performing individualised calculations is “It depends”! If the director(s) need to take a market rate salary for commercial reasons (including obtaining finance in their own name or [...]

The government has announced a £13 billion expansion of UK Export Finance’s (UKEF) Direct Lending Facility, aimed at supporting British exporters across key industries. Through its Direct Lending Facility, UKEF, the government’s export credit agency, helps overseas buyers finance purchases from UK suppliers. This funding uplift, part of the newly published Industrial Strategy, gives UKEF greater flexibility to support all eight Industrial Strategy sectors. Alongside the lending increase, UKEF will launch a new loan guarantee scheme to support access to critical minerals. The agency also plans to legislate to raise its statutory commitment limit, allowing it to support more businesses [...]

The UK’s Competition and Markets Authority (CMA) has taken a key step toward stronger regulation of Google’s search business, which accounts for more than 90% of all general search queries in the country. The CMA has proposed officially designating Google’s search services as having “strategic market status” (SMS) under the UK’s new Digital Markets regime. If the proposal goes ahead, the CMA will gain powers to introduce targeted measures to improve competition and fairness in how Google operates its search engine in the UK. A final decision is expected by 13 October 2025, following a public consultation. What the CMA [...]

The Data (Use and Access) Act 2025 (DUAA) has now received Royal Assent, introducing significant updates to the UK’s data protection framework. The new law aims to make it easier for businesses to use personal data responsibly while encouraging innovation and economic growth. While many of the changes are pro-growth, they also require action. Some provisions will come into force in two to six months, others within 12 months - so business will need to start preparing. Key Changes Businesses Should Know About The DUAA introduces several new rules and clarifications, including: Clearer rules on data use for research Relaxed [...]

The UK Government has launched a major 10-year Industrial Strategy aimed at cutting business costs, creating over 1.1 million good skilled jobs, and making the UK a world leader in clean, competitive industries. A headline measure is a plan to cut electricity bills by up to 25% for more than 7,000 energy-intensive businesses starting in 2027. Companies in sectors like automotive, aerospace, steel, and chemicals will benefit from new exemptions on energy levies and deeper discounts on electricity network charges. These changes, delivered through the British Industrial Competitiveness Scheme and an expanded British Industry Supercharger, aim to reduce the UK’s [...]

If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return - and it’s better to get ahead of it now, rather than wait until the January deadline. The threshold is simple: if you earn more than £1,000 in a tax year from any additional income, you may need to file. This applies whether you’re selling online, renting out property, freelancing, creating content, dog walking, tutoring, or even trading cryptoassets. Why Act Now? Filing early means you: Avoid the stress of the January rush Know what you [...]