HLAS

The Chancellor, Rachel Reeves, gave a surprise ‘pre-Budget’ speech last week that appeared to pave the way for tax rises in the Budget on 26 November 2025. What did she say? The Chancellor’s scene setting speech outlined her priorities to cut NHS waiting lists, reduce the national debt, and improve the cost of living. Quoting world challenges such as the continuing threat of tariffs, persistent inflation, the increasing cost of government borrowing, and pressures on public finances, the Chancellor acknowledged that productivity in the economy is weaker than previously thought. This all means increasing pressure on revenue for the government. [...]

The government’s Renters’ Rights Bill has now officially become law, following Royal Assent last week. This new Act introduces a range of significant changes that will affect private landlords across England. While details on how and when the new rules will come into force are still to be announced, the following overview outlines some of the key measures that will be introduced. End of Section 21 Evictions One of the most important developments is the removal of Section 21 ‘no fault’ evictions. This does not mean landlords will be unable to evict tenants, but it does restrict the circumstances in [...]

The Information Commissioner’s Office (ICO) has launched a consultation on how charities can make use of new rules that will allow greater use of electronic marketing in contacting their supporters. From January 2026, the Data (Use and Access) Act will introduce a new ‘charitable purpose soft opt-in’. This will allow charities to send marketing emails and texts to people who have expressed interest in or offered to support a charity - even if they haven’t specifically ticked a consent box - provided certain conditions are met. How the new rule will work The change is intended to make it easier [...]

HM Revenue and Customs (HMRC) has been reminding taxpayers that there are now fewer than 100 days left to file their tax return and pay any tax due for the 2024-25 tax year. The online filing deadline applicable to the majority of taxpayers is 31 January 2026. According to HMRC figures, over 3.5 million people have already filed their return, but with more than 11.5 million people submitting a return last year many are yet to file. HMRC is encouraging an early start to avoid the last-minute rush. Why file early? Filing early gives you a clearer picture of how [...]

As part of its move to reduce ‘red tape’ and aid business growth, the government has announced plans to remove the requirement for companies to include a directors’ report as part of their annual accounts. Micro-entities are already exempted from the requirement to include a directors’ report in their accounts; however, it is intended that the requirement will be removed for all companies. It is estimated that this will affect approximately 440,000 companies. Medium-sized private companies will also be exempted from the requirement to prepare a strategic report as part of their annual report and accounts. Wholly-owned subsidiaries will also [...]

The International Stress Management Association (ISMAUK), a registered charity, is drawing attention to International Stress Awareness Week, which will take place from 3 to 7 November 2025, with Stress Awareness Day on Wednesday 5 November. Although effective stress management is essential for all organisations, it holds particular importance for small business owners and company directors, who frequently juggle the dual responsibilities of running a business and supporting their teams. Managing Stress: Essential for Your Health and Your Business Running your own business can be immensely rewarding but also highly demanding. When stress isn’t well managed, it can negatively affect concentration, [...]

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 [...]