The October 2025 Tax E-News looks ahead to the Autumn Budget, due on 26 November. While Labour has pledged no rises in National Insurance, Income Tax, VAT, or Corporation Tax rates, possible changes under discussion include: extending National Insurance to landlords, capping pension tax relief, aligning CGT rates with Income Tax, HMRC has also issued warnings about umbrella companies, highlighting risks of tax avoidance schemes. A tribunal case (MacDonald v HMRC) denied sideways loss relief where a business had no realistic prospect of profit. VAT error correction procedures have changed with Form VAT652 withdrawn, requiring use of HMRC’s new online service. Updated advisory fuel rates now differentiate between home and public charging for EVs.
The September 2025 Tax E-News highlights several key tax and employment updates. HMRC is launching a digital campaign to encourage accurate adjustments for private use of business expenses, following evidence of widespread misreporting. From April 2026, Statutory Sick Pay (SSP) reforms will apply, with payments starting from day one of absence and the earnings threshold scrapped, raising potential costs for employers. HMRC has warned against dubious tax agents promising Stamp Duty Land Tax (SDLT) refunds for dilapidated properties, citing a Court of Appeal ruling that such homes remain “residential” for SDLT purposes regardless of condition. For Winter 2025–26, individuals born before 22 September 1959 may receive a Winter Fuel Payment (WFP), but clawback rules mean those with incomes above £35,000 will see repayments via PAYE or Self-Assessment.
Welcome to this edition of our newsletter that outlines key updates from “Legislation Day” on 21 July, including draft laws to close the tax gap, inheritance tax changes from April 2026, and new benefit-in-kind rules for certain company cars. HMRC’s Transformation Roadmap aims for 90% digital interactions by 2030, with measures like pre-populated tax returns, digitised inheritance tax services, and a single customer account. Making Tax Digital for Income Tax starts April 2026 for those with qualifying income over £50k, with some exemptions and scope adjustments. Proposed inheritance tax reforms will cap 100% Agricultural and Business Property Relief at £1m, with 50% relief thereafter. HMRC is also correcting errors in 2024/25 Class 2 NIC charges due to recent reforms.
Welcome to this edition of our newsletter, where we explore a range of timely topics to help you navigate your finances with confidence. We take a closer look at Making Tax Digital (MTD) and how it affects income from jointly owned property, offering practical tips to stay compliant. We also examine tax-efficient strategies for extracting funds from an owner-managed business, ensuring you can access profits without unnecessary tax burdens. Finally, with summer upon us, we highlight ways to manage and potentially save on childcare costs during the holiday period.
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