HLAS

If you run a small VAT-registered business, the method you use to calculate VAT can have a significant impact on both your cash flow and the time spent maintaining records. For some companies, the standard method of calculating VAT is the most suitable, but depending on your circumstances, the VAT Flat Rate Scheme may be worth exploring. Comparing the methods Under the standard method, you charge VAT on your sales and reclaim VAT on your purchases, paying the difference to HM Revenue & Customs (HMRC). The Flat Rate Scheme works differently. You continue to charge customers the normal VAT rate, [...]

The Financial Conduct Authority (FCA) has launched a major review to explore how advanced artificial intelligence (AI) could impact consumers, financial markets, and regulators in the coming years. With AI already integrated into many banking and insurance services, the FCA is keen to understand the potential effects it may have over the next few years. The aim of the review The evidence collected will guide the FCA in deciding how to support innovation while ensuring that retail financial services remain safe and reliable. At this stage, the FCA does not intend to introduce AI-specific regulation, but it wants to examine [...]

The government has unveiled a major new lending initiative designed to help UK businesses take on work overseas more easily. Under the scheme, five leading UK banks have committed to providing £11 billion to support businesses looking to invest, recruit and grow into international markets. This represents a substantial joint effort by the participating banks, which together serve half of all British businesses. As a result, the funding is likely to be genuinely accessible for a wide range of companies, rather than remaining a purely theoretical option. How the new lending works The funding itself will be provided directly by [...]

It has been confirmed that eligible pubs and live music venues in England will benefit from a 15% reduction on their business rates bills in 2026/27. Following this, business rates bills will be frozen in real terms for a further two years. The British Beer and Pub Association (BBPA) has welcomed the announcement, stating that pub landlords will be relieved by the measure and that the relief will help to “stave off the immediate financial threat posed by accelerating business costs”. However, the sector continues to face broader concerns, particularly around rising overheads and increasingly tight profit margins. Which pubs [...]

Making Tax Digital (MTD) for income tax will be mandated for a large group of self-assessment taxpayers from 6 April 2026, with even more individuals being mandated in 2027 and 2028. If your combined turnover from a property or sole trade business was over £50,000 in the 2024/25 tax year, you will likely be required to comply with the MTD for income tax rules from 6 April 2026. Reports from recent surveys indicate that many landlords are not confident that they understand the requirements of MTD for income tax. Many are concerned or worried about the changes. If you are [...]

In a recent decision, the Supreme Court rejected an appeal by Hotel la Tour Ltd, which argued that it was entitled to reclaim input VAT on professional fees incurred during the sale of shares in the company that owned its luxury hotel in Birmingham. HMRC maintained that the share disposal was a VAT-exempt transaction and that the legislation prevents the recovery of input tax where there is a direct and immediate link between the input costs (in this case, the professional fees) and an exempt supply. Hotel la Tour Ltd (HTL) contended that no such direct and immediate link existed [...]

With the tax/financial year end approaching, now is a good time to check that you’re making the most of the available reliefs and allowances available to you. Please talk to us if you think any of the issues affect you. Savings If you have some spare cash, an obvious tax planning point would be to maximise your ISA allowances for the 2025/26 tax year (currently £20,000 per person). If you are 18 or over but under 40, you can open a Lifetime ISA to save for your first home or retirement. You can put in up to £4,000 each year, [...]

The government has announced that the proposed cap to the 100% rates of Agricultural Property Relief (APR) and Business Property Relief (BPR), which is due to apply from 6 April 2026, will be increased to £2.5 million from the £1 million previously announced. The revised measure means that from 6 April 2026, individuals will be able to pass on £2.5 million of qualifying agricultural and business assets without attracting IHT. This is the second recent significant amendment to the proposed IHT reforms, which were first announced in the 2024 Autumn Budget. The initial policy did not permit any unused allowance on [...]

From 6 April 2026, employees will no longer be able to claim tax relief against their employment income for the costs of working from home. This change is being introduced due to widespread incorrect claims for the relief. The homeworking relief, set at £6 per week (or the actual amount of homeworking costs if higher), will remain available for 2025/26, but only where the employee is contractually required to work from home. This measure will lead to an increase in Income Tax of £62 for basic rate taxpayers and £124 for higher rate taxpayers. From 2026/27 onwards, where an employer [...]

Following a successful pilot that assisted over 25,000 people in staying in or returning to work, WorkWell, a health-and-employment support service, is set for a national rollout across England. The programme aims to help up to 250,000 additional individuals with health conditions, supporting the government’s wider efforts to reduce long-term sickness absence and tackle economic inactivity. For employers, WorkWell provides early intervention, helping staff before health issues result in prolonged absence or lead to someone leaving work entirely. Long-term sickness continues to pose challenges for businesses. Currently, around 2.8 million people are out of work due to long-term health conditions, [...]