HLAS

In an unexpected announcement, the government confirmed a significant change to the planned reforms of agricultural property relief (APR) and business property relief (BPR), which are due to take effect from 6 April 2026. Under the revised proposals, the full 100% inheritance tax relief will now apply to the first £2.5 million of qualifying assets, an increase from the previously announced £1 million threshold. As a result, a couple will be able to pass on up to £5 million of agricultural or business assets between them free from inheritance tax, in addition to the standard inheritance tax allowances that already [...]

HM Revenue & Customs (HMRC) has confirmed that more than 6.36 million people have already submitted their Self Assessment tax return for the 2024/25 tax year. However, HMRC estimates that around 5.65 million taxpayers still need to file, with the statutory deadline of 31 January 2026 fast approaching. Although it is still possible to submit your return right up to the deadline, leaving it until the last minute can restrict your options if key information is missing or if the tax bill turns out to be higher than anticipated. Filing and paying are two separate steps It is important to [...]

The beginning of a new year provides an ideal opportunity to pause and review how your business is performing. You are likely to have clear ambitions for your company, but you may also want it to support your wider personal goals. Many business owners make time periodically to reassess priorities so their business continues to align with their broader life objectives. This type of strategic planning requires stepping away from day-to-day operations to focus on the bigger picture. It involves clarifying where you want your business to be and mapping out the steps needed to reach that position. How to [...]

The table below sets out the HMRC advisory fuel rates from 1 December 2025. These are the suggested reimbursement rates for employees' private mileage using their company car. Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee. Previous rates are shown in brackets. You can also continue to use the previous rates for up to 1 month from the date the new rates apply. Note that for hybrid cars, you must use the petrol or [...]

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 [...]