HLAS

So Which Marshmallows Are Taxable? A recent VAT tribunal case involving marshmallows has once again highlighted just how complex UK VAT legislation can be. The case, Innovative Bites Ltd v HMRC, centred around whether “Mega Marshmallows” should be treated as confectionery and therefore subject to VAT at 20%. Why Does It Matter? Under UK VAT rules, most food products are zero-rated for VAT. However, confectionery is excluded from this relief. The legislation defines confectionery as: “Any item of sweetened prepared food which is normally eaten with the fingers.” The challenge for the tribunal was deciding whether these oversized marshmallows fell [...]

If a close company provides a loan to a participator — most commonly a shareholder or director-shareholder — there can be additional corporation tax implications if the loan is not repaid within the required timeframe. This tax is often referred to as the Section 455 (s.455) tax charge. What Has Changed? For loans made on or after 6 April 2026, the Section 455 tax rate increased from 33.75% to 35.75%. The charge applies where money is borrowed from the company and remains outstanding at the end of the company’s accounting period. When Can Relief Be Claimed? If the loan is: [...]

Making Tax Digital (MTD) for Income Tax officially came into effect from 6 April 2026 for many self-employed individuals and landlords earning over £50,000 in the 2024/25 tax year. The new system changes how income and expenses are reported to HMRC, moving away from the traditional once-a-year tax return approach. Instead, affected taxpayers are now required to maintain digital records and submit quarterly updates using HMRC-compatible software. For those already within the scheme, the first quarterly submission deadline for the 2026/27 tax year is 7 August 2026. Who Will Be Affected Next? The next phase of MTD for Income Tax [...]

The Health and Safety Executive (HSE) has opened a consultation on reporting workplace injuries and illnesses, currently governed by the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR). Proposed updates include: Clarifying definitions where current terminology is unclear. Revising lists of reportable incidents and occupational diseases. Expanding who can diagnose reportable conditions to include certain registered health professionals, not only doctors registered with the General Medical Council. The HSE is also seeking feedback on simplifying the online reporting system. The consultation is open until 30 June 2026. Further details: https://consultations.hse.gov.uk/hse/proposals-riddor-2013/

Changes to how co-working spaces are assessed for business rates are causing concern among business groups. Some estimate the changes could represent a £600 million stealth tax increase. Previously, shared workspaces were assessed individually, often qualifying for Small Business Rate Relief (SBRR). However, following a legal ruling, the Valuation Office Agency (VOA) is now treating them as single entities, increasing their rateable value beyond SBRR thresholds. The Federation of Small Businesses (FSB) estimates that nearly 4,000 shared offices could be affected, with some small businesses facing annual cost increases of £5,400. Shared office spaces have traditionally provided an accessible step [...]

The government has launched a consultation on a new process employers will need to follow when managing flexible working requests. Since COVID, there has been a significant shift towards flexible, remote and hybrid working. While this brings benefits, it is not always practical in every role. The Employment Rights Act will introduce changes making it more likely that flexible working requests are approved, although employers will still be able to refuse them in certain circumstances. Since April 2024, employers have been required to consult with employees about such requests, but no formal process has been specified. The government now intends [...]

Even when a business is performing well financially, it is not uncommon to feel uncertain about personal finances. For many business owners, wealth builds up gradually and unevenly. You may have multiple pensions set up for tax purposes, personal investments from profitable years, and surplus cash retained in the business “just in case”. You may also be relying on the future sale of the business. Income can fluctuate year to year, tax rules change, and financial decisions are often driven by business needs. This can make it difficult to see the full personal financial picture. Start by bringing everything together [...]

The National Cyber Security Centre (NCSC) has issued a call to action for business leaders to strengthen resilience against severe cyber threats. Its Annual Review 2025 highlights a growing gap between the increasing pace of cyber threats and the UK’s ability to respond effectively. Although the guidance is primarily aimed at larger organisations, cyber risks affect businesses of all sizes. The NCSC warns that when a cyber incident occurs, it is often too late to decide how to respond. Preparing in advance can help businesses continue operating during disruption and recover more quickly. Consider questions such as: If your website [...]

The latest data from the Office for National Statistics (ONS) shows that unemployment in the three months to February declined to 4.9%, down from 5.2%. However, Liz McKeown, director of economic statistics at the ONS, commented: “Alongside falling unemployment, the number of people not actively seeking work increased, with data suggesting fewer students seeking work alongside their studies.” The inactivity rate, which measures the proportion of people not looking for work, rose to 21% from 20.7%. If more people are choosing not to seek employment, it may indicate limited opportunities or concerns about job quality. It is unclear whether this [...]

Apple announced last week that Tim Cook will step down as chief executive on 1 September 2026, passing the role to current head of hardware engineering, John Ternus. Cook will continue to play an active role as executive chairman. If you are a business owner or founder, you have likely considered who will take over when you decide to step back or retire. Apple described its leadership transition as “a thoughtful, long-term succession planning process”. So, what insights can business owners take from Apple’s approach? Succession planning takes time – start early One clear takeaway is that succession planning should [...]