HLAS

HMRC have published Tax Avoidance Spotlight 70 ‘VAT grouping structure arrangements used by care providers’, highlighting tax avoidance arrangements used by state-regulated care providers to reclaim VAT. The VAT legislation exempts supplies of welfare services where they are made by either a charity or a state-regulated care provider. The impact for the charity or state-regulated care provider is that they are unable to recover any VAT which relates to these supplies. The arrangement identified in Spotlight 70 is intended to work as follows: An unregulated entity forms a VAT group with the state-regulated care provider, or charity. Existing contracts for welfare services between [...]

The deadline for reporting shares and securities and share options issued to employees for 2024/25 is 6 July 2025. This is the same as the deadline for reporting expenses and benefits provided to employees on form P11D for 2024/25. Employers must submit their employment-related securities annual returns online and attach the appropriate spreadsheet template if they have something to report. HMRC provide templates on their website that may be downloaded in order that the information may be entered and uploaded. Note that there are different templates for each of the four tax-advantaged employee share schemes – Company Share Option Plan [...]

P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2024/25 need to be submitted by 6 July 2025. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee's duties. Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place to ensure that the expenses qualify. Note also that trivial benefits provided [...]

On 28 April 2025, the Government made several tax policy announcements, launched consultations and confirmed previously announced developments. Key points included: Mandatory payrolling of benefits in kind (BIKs) will be delayed until 6 April 2027. This is to give more time for software providers, employers and tax agents to prepare for the change.  The mandate was previously intended to take effect from 6 April 2026. From 6 April 2027, mandatory payrolling will apply to most BIKs, except for employment-related loans and accommodation benefits. These may be payrolled voluntarily from April 2027. HMRC revised its Check Employment Status for Tax (CEST) digital tool [...]

If you're considering starting a business, there’s a lot to think about - especially when it comes to finances, tax and compliance. From choosing the right structure (sole trader, partnership or limited company) to registering with HM Revenue and Customs (HMRC), keeping proper records and understanding your tax responsibilities, it’s important to get things right from the start. You may want to consider: When and how to register for VAT Setting up payroll if you’ll be taking on staff Planning for Corporation Tax or Self Assessment Claiming allowable expenses Understanding what support and reliefs are available for new businesses To [...]

UK inflation rose to 3.5% in April, according to official figures, up from 2.6% in March and higher than many economists had expected. This is the highest annual rate in more than a year and comes at a time when both households and businesses are facing a mix of rising costs. The increase was largely driven by higher water, gas and electricity bills, many of which rose on 1 April. Water and sewerage prices alone increased by over 26%, the sharpest rise in nearly four decades. Airfare and holiday prices also jumped compared to last year, though that rise is [...]

The UK government has agreed a new trade deal with the European Union, aimed at making it easier to do business across the Channel. This follows recent agreements with the US and India and is being presented as part of a wider effort to support jobs and help businesses grow. The EU is still the UK’s biggest trading partner, but many businesses have faced added costs and delays since Brexit. This new deal intends to reduce some of that pressure. What’s changing? A few of the key points include: Simpler food and drink trade: Some checks on food, plants and [...]

A recent ACAS survey has revealed what’s really getting under employees’ skin at work and the results may strike a chord with many business owners. Top of the list? Nearly half of workers (49%) said the thing that angers them most is seeing colleagues who aren’t doing their job properly. Not far behind, 44% resent it when others take credit for their work, and 39% said an over-demanding boss causes the most frustration. Rude behaviour, whether from customers or other staff, also made the list at 37%. These types of workplace tensions are more than just minor irritations. Left unchecked, [...]

H M Revenue and Customs have reported that a record number of people- nearly 300,000 - have already filed their 2024–25 tax return, just weeks into the new tax year. While the deadline isn’t until 31 January 2026, it’s worth thinking about it sooner rather than later. Filing early can have a few helpful benefits: More time to budget: Knowing what you owe means you can plan ahead or spread the cost through regular payments. Faster refunds: If you’ve overpaid, you’ll get your money back sooner. Less pressure later on: Getting things sorted now avoids the January rush. If you [...]

Last week was Mental Health Awareness Week, and to mark the occasion, the Health and Safety Executive (HSE) launched a free online learning module to help employers better understand and manage work-related stress in their teams. The new resource is part of HSE’s Working Minds campaign, which aims to help businesses take practical steps to improve workplace mental health and meet their legal obligations. Why does this matter to your business? According to HSE, around half of all work-related ill health is down to stress, depression or anxiety. That’s a significant figure, and one that many business owners are likely [...]