HLAS

In a recent Upper Tribunal case (HMRC v Marc Gunnarsson), a taxpayer appeared without professional representation and relied on Artificial Intelligence (AI) software to prepare his skeleton argument ahead of the hearing. The Tribunal concluded that the taxpayer’s Self-Employment Income Support Scheme (SEISS) claims – made while he was a director of a limited company – were incorrect, and he was ordered to repay the funds he had received. Within his skeleton argument, the taxpayer cited three First Tier Tribunal decisions in support of his position. However, these cases did not exist – they had been ‘hallucinated’ by the generative [...]

We are aware that HMRC is increasingly challenging retailers in the flooring, kitchen, and bathroom sectors where customers are referred to third-party contractors for installation services. HMRC often argues that the retailer is making a single composite supply of both goods and fitting services. Where the contractors engaged are not VAT-registered, this can result in HMRC seeking additional VAT on the basis that the supply is made by the VAT-registered retailer. In a recent First Tier Tribunal case, United Carpets (Franchisor) Limited v HMRC, the Tribunal determined that the retailer was not responsible for supplying fitting services. This conclusion was [...]

Individuals born before 22 September 1959 and living in England, Wales or Northern Ireland are likely to be entitled to a Winter Fuel Payment (WFP) of between £100 and £300 for this upcoming winter (2025-26). Payments will be made in November or December 2025. However, HMRC will claw back (or “recover”) the WFP if the individual’s income exceeds £35,000 in the year to 5 April 2026. In most cases, the recovery of the 2025-26 WFP will be made automatically via PAYE in the 2026-27 tax year, with HMRC adjusting the recipient's tax code to collect around £17 per month between [...]

HMRC have issued a warning to taxpayers to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on certain property purchases. The warning reminds property buyers to be aware of tax agents claiming that, for a fee, SDLT can be reclaimed on residential property purchases when they are in need of repair. Such properties in need of repair when purchased are generally chargeable to the residential rates of  SDLT, regardless of their condition. HMRC say that claims of this kind often leave the homeowner liable for the full amount of SDLT plus penalties and interest. They [...]

The Department for Business and Trade (DBT) has confirmed that significant reforms to Statutory Sick Pay (SSP) will come into effect from April 2026. These changes are aimed at strengthening employee rights but may also increase costs for employers. The main updates are: SSP will become payable from the very first day of sickness absence (currently it is only payable from the fourth day). The existing £125 per week earnings threshold for SSP eligibility will be removed. For employees earning under £125 per week, their SSP entitlement will be the lower of: 80% of their usual weekly earnings; and The [...]

HMRC is launching a digital campaign designed to promote accurate private use adjustments of business expenses declared through Self Assessment tax returns. For an expense to be tax-deductible, it must be incurred ‘wholly and exclusively’ for business purposes, with suitable adjustments applied where there is any private use. This means expense claims should only cover the business element, and where costs are partly for personal and business use, they should be apportioned fairly according to the circumstances of the relevant tax year. In a 2024 trial involving 600,000 self-assessed taxpayers who were prompted to make precise private use adjustments, HMRC [...]

The Bank of England reduced its base rate from 4.25% to 4.00% on 7 August 2025. Because HM Revenue and Customs (HMRC) interest rates are directly linked to the base rate, the interest charged on late tax payments and the interest paid on repayments will also fall. When the changes take effect 18 August 2025 for quarterly instalment payments. 27 August 2025 for non-quarterly instalment payments. How the rates are set Late payment interest is set at the Bank of England base rate + 4.0%. So, this will decrease to 8.0%. Repayment interest is based on the Bank of England [...]

As teenagers received their exam results this week and last, HM Revenue and Customs (HMRC) were reminding parents to extend their Child Benefit claims by 31 August to ensure payments continue in September. Renewing your claim is quick, easy, and can be done online or via the HMRC app. Who is eligible? Families with teenagers continuing in full-time education or approved training can apply for the ongoing Child Benefit support. Child Benefit provides £26.05 per week (£1,354.60 a year) for your eldest or only child, and £17.25 per week (£897 a year) for each additional child. How to renew your [...]

The Competition and Markets Authority (CMA) has launched a consultation on its draft guidance to support businesses in meeting the price transparency requirements set out in the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). The guidance sets out expectations for how businesses should present pricing information, including: The details that must be included in an invitation to purchase. Avoiding potentially misleading practices such as “drip” or “partitioned” pricing. Steps traders should take to ensure they are following the new rules. How the provisions apply to different types of charges and pricing structures. In addition, the draft guidance provides [...]

The government has confirmed that the plug-in van and truck grant will continue through to at least 2027. The grant provides valuable financial support to businesses looking to buy electric vans and trucks. Currently, discounts are available of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. The grant amounts for the 2026 to 2027 financial year will be confirmed at a future date. Industry figures suggest that businesses could save more than £2,800 annually on fuel alone by switching to electric. While balancing this against the higher purchase cost [...]