HLAS

In WM Morrison Supermarkets v HMRC, the first tier tribunal (FTT) found that rotisserie chickens were a supply in the course of catering and therefore subject to VAT at 20%. VAT legislation zero-rates supplies of food, but supplies of catering are excluded from the zero-rating.  ‘Catering’ includes supplies of hot takeaway food but not cold. ‘Hot takeaway food’ is also defined and includes any food that is kept hot after it has been heated, be it on hot plates, under heat lamps or in packaging that retains heat. This is why it is possible to buy a VAT-free hot pie [...]

Over the coming years we will be hearing a lot more about e-invoicing because the government has confirmed that it will be mandated for VAT invoices from 2029.  It believes that growth, administrative benefits and increased revenue can be optimally achieved by the introduction of e-invoicing. Electronic invoicing or 'e-invoicing' is the digital exchange of invoice data between a buyer and a supplier's financial systems. An e-invoice is not just a digital photograph or an email attachment – it will require both the supplier and customer to have compatible software so that data in prescribed fields can be transmitted from [...]

From April 2027, it will become mandatory for employers to include most benefits in kind (BiKs) provided to employees within their payroll. All BiKs will need to be payrolled, with the exception of employer-provided living accommodation and interest-free and low-interest (beneficial) loans. These two benefits may still be payrolled, but only on a voluntary basis. Preparing early will help to ensure a smooth transition to the new requirements, with minimal disruption, cost and impact on employees. Employers are also reminded not to underestimate the amount of time required to ensure payroll systems and processes are sufficiently robust to manage the [...]

From 6 April 2026, employees will no longer be entitled to claim a tax deduction from their earnings for expenses incurred while working from home. Historically, some home-working employees have claimed either a flat-rate deduction of £6 per week or, where higher, the actual costs associated with working from home. The government has confirmed that this relief will be withdrawn on the basis that too many individuals are claiming the deduction despite not being eligible to do so. Employers will continue to be able to reimburse home-working expenses to employees without PAYE tax or national insurance contributions being due, but [...]

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. The following MTD for income tax measures were announced at Budget 2025: Let’s start with some good news! The government has announced that late filing penalties will not be issued in respect of quarterly updates in 2026/27. This easement will not apply to the 2026/27 annual tax return, which must be filed by 31 January 2028. All quarterly updates must be submitted before the annual tax return can [...]

In its latest update, the Information Commissioner’s Office (ICO) has reported that over 95% of the UK’s top 1,000 websites now comply with the rules governing the use of cookies. What are Cookies? Cookies are small files stored on a user’s device when visiting a website. Some are essential for the proper functioning of the site, while others — particularly advertising cookies — track browsing activity to deliver personalised adverts, a marketing approach that many people find intrusive. These tracking cookies can only be used if the user has given explicit consent. One of the ICO’s key responsibilities is to [...]

For many people, using a password manager has become a common way to manage the numerous login details and passwords required for frequently visited websites. Are you currently using a password manager, or do you have concerns about their security? The National Cyber Security Centre (NCSC) offers guidance on how password managers and passkeys can simplify your digital life while maintaining strong online security. The guidance explains what a password manager is, why they are considered trustworthy, and highlights key points to be aware of when using one. Additionally, an increasing number of websites now provide passkeys as an alternative [...]

With the festive period now in full swing and many household budgets under strain, it may be reassuring to know that there are options available if paying your tax bill in one lump sum feels challenging. While the deadline for submitting your tax return and settling any tax due is not until 31 January 2026, taking action early can make the process much more manageable — particularly if you anticipate needing extra time to pay. HM Revenue & Customs (HMRC) offers a Time to Pay service that allows Self-Assessment taxpayers to arrange a monthly instalment plan once their tax return [...]

The Government has unveiled a £725 million package of reforms designed to expand apprenticeship and training opportunities for young people. While the primary focus of the announcement is on addressing youth unemployment, there are potential advantages for small and medium-sized businesses as well. Below is a summary of the key changes and how they could affect your workforce planning in the years ahead. Fully Funded Apprenticeships for Under-25s at SMEs One of the most notable changes is the removal of the 5% co-investment requirement for apprentices under the age of 25 at small and medium-sized employers. As a result, training [...]

A significant legal milestone was reached last week when the Property (Digital Assets etc) Act received Royal Assent. The legislation confirms that certain digital assets — including cryptocurrency tokens and non-fungible tokens (NFTs) — can now be formally recognised as personal property in England, Wales and Northern Ireland. In Scotland, the Digital Assets (Scotland) Bill, which aims to recognise digital assets as property, is currently moving through the parliamentary process. This development places the UK among the first jurisdictions globally to grant digital assets the same legal status as more traditional forms of property. For businesses and individuals that use [...]