Every week, we take a look at what is trending in the accountancy and tax press and share items that we think will interest you. However, these are only outlines and where they relate to tax planning should not be acted upon without looking into them more completely as everyone’s circumstances are particular to them. You need to take specific advice appropriate to your own circumstances.

While every effort is made to deliver accurate, informative and balanced articles, this content is general in nature and should not be used as the sole basis for making decisions.

 

 

Dishonest Tax Advisers

HMRC could soon hit dishonest tax advisers with tougher penalties of up to £50,000 and public shaming

New proposals currently being put out to consultation are designed to bring in hefty sums by attacking those intent on circumventing tax legislation.

The consultation document seeks views on:

• whether HMRC’s current powers are effective in dealing with non-compliance facilitated by tax advisers
• enhancing HMRC’s powers to investigate tax advisers where HMRC suspects their actions have led to an inaccuracy in a taxpayer’s document
• to enable HMRC to request information from tax advisers where HMRC suspects misconduct
• Introducing stronger penalties against tax advisers who contribute to the tax gap
• publishing details of HMRC sanctions on tax advisers
• disclosures to professional bodies regarding concerns about their members’ activities that fall below the normal disciplinary investigation thresholds of professional bodies

There is already an HMRC standard for agents, and in last year’s final Budget, provisions were proposed that would require tax advisers who interact with HMRC to enter a registration process from April 2026.

 

 

Taxi VAT

Two tribunals have now decided that the Tour Operators Margin Scheme (TOMS) can apply to taxi rides. The particular case being heard was of a private hire company.

After the First Tier Tribunal decision, HMRC appealed to the Upper Tribunal but lost. They can still appeal this decision, and the ball is in their court.

But for now, it seems that Taxi services can fall within TOMS, i.e. VAT accounted for on the margin between sale price and cost, i.e. driver’s share.

 

Spring Statement: No tax changes

Chancellor of the Exchequer, Rachel Reeves, stuck to her word and didn’t announce any major tax changes at the Spring Statement.

While there were no tax changes announced in the speech, shortly after the Chancellor sat down, HMRC released eight consultations and policy papers.

While the speech confirmed there would be no further tax increases, the Chancellor did take aim at tax evasion. She revealed that the government will continue to invest in “cutting-edge technology” and HMRC capacity to “crack down on tax avoidance”. She explained that this clampdown will raise a further £1bn in total revenue from reducing tax evasion.

It was announced that late payment penalties will be increased for VAT and ITSA taxpayers as they join the MTD program from April 2025 in an effort “to encourage taxpayers to pay on time.

A key update on Making Tax Digital (MTD) set a date for the income threshold reduction to £20,000, outlining new exemptions and deferrals and confirming that HMRC won’t be providing an online service for year-end filings.

 

 

Legally Compliant Employment Contracts

From 6 April 2020, the Good Work Plan, which was designed to take forward many of the recommendations in the Taylor Review of Modern Working Practices, came into force.

This amended the Employment Rights Act 1996 (ERA) and brought in a requirement that from that date, all new employees and workers must get their statement of written particulars (part of the employment contract) on or before their first day.

The Act sets out what must be included in a statement of written particulars and includes:

• the names of the employer and employee
• the dates the employment commenced and of any period of continuous employment
• details about hours of work and pay and the interval of payment
• holiday entitlement and holiday pay.
• the days of the week the worker is required to work and whether working hours or days may be variable, with details of how they may vary
• any entitlement to paid leave, including all paid statutory family related leave, which includes neonatal care leave from 6 April 2025 neonatal care leave
• any other remuneration or benefits provided by the employer
• any probationary period, including any conditions and its duration
• any training provided by the employer which the worker is required to complete and any other required training in respect of which the employer will not bear the cost.
• the notice periods for termination by either side
• terms relating to absence due to incapacity and sick pay
• terms as to length of temporary or fixed-term work
• terms related to work outside the UK for a period of more than one month.
• Other information, such as that about a disciplinary procedure, can be given in another statement or reasonably accessible document.

If you are not complying with the Act, then, amongst other things, it could weaken your case should you find yourself before an employment tribunal.

 

 

HICBC Via PAYE

From August 2025, employed individuals earning over £60,000 and falling under the high-income child benefit charge (HICBC) will be able to report their family’s child benefit payments through a new HMRC online service.

Once registered with HMRC, they will be able to opt to pay the HICBC charge directly through PAYE via their company payroll, without having to register to complete a self-assessment tax return.

Although parents will not have to file a tax return, assuming they have no other additional income outside their PAYE earnings, they will have to use the online service to register their PAYE income from August.

 

 

Treasury Review ISAs

The Spring Statement confirmed that the government is ‘looking at options for reforms to individual savings accounts (ISAs).

Currently, most savers put their money into regular ISAs rather than stocks and shares ISAs, which the chancellor wants to change to help drive her growth objectives.

The likelihood is that the annual £20,000 allowance for standards ISAs will be reduced, perhaps to as low as £4,000, to encourage regular savers to invest in the higher risk stocks and shares ISAs.

For some people who do not want the risk of investing in stocks and shares, this may mean not investing in ISAs at all, preferring to leave their money in regular savings accounts.

 

 

Companies House ID Changes

Changes to identity verification requirements for company directors and individuals with significant control came into effect from 8 April 2025 on a voluntary basis. Mandatory ID verification comes in for new appointments and incorporations from autumn 2025, which also marks the start of a 12-month transition period for existing directors to complete ID verification.

This will impact approximately 7.4m existing officers listed on the register, who will need to undergo verification.

Under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), Companies House must verify the identity of anyone submitting information to the public register, including those acting on behalf of a company.

Requiring third-party agents to register their businesses and verify their identities will allow Companies House to confidently identify who is filing information on the register and acting on behalf of companies.

All third-party providers will need to register as an Authorised Corporate Service Provider (ACSP) before they can submit information and conduct identity verification checks on their clients.

Individuals in senior roles within a business, such as directors, will need to complete a registration process to establish their business as an ACSP. This process will include identity verification as part of the application. Applicants will also need to provide business information, which must be kept up to date once registered as an ACSP. Sole traders must supply additional personal information, such as their name and date of birth.

Upon successful registration, the ACSP will receive a new digital account and a unique identification number. This account will allow them to file information and conduct identity verification checks for their clients. It will also enable Companies House to confirm that the information comes from an authorised source.

The person registering the ACSP will be able to add other staff members to the ACSP account once it is approved. These additional employees will not need to complete identity verification but will be permitted to access services on behalf of the authorised agent, including performing identity checks and filing accounts for clients.

When an ACSP verifies someone’s identity, they must:

• collect the person’s full name, date of birth, and address;
• review documents that verify the person’s identity;
• authenticate documentation using Identification Document Validation Technology (IDVT) or manually by a trained professional; and
• Ensure the identity belongs to the person claiming it by cross-referencing documents and biometric data.

 

 

Keep up with Excel Functions

Excel, which is now 40 years old, continues to evolve, and its capabilities are getting stronger all the time. Spreadsheets and, in particular, Excel are essential to most businesses, so even if you don’t use them yourself, you should be familiar with what they can do for you and your business.

If you learnt your Excel a few years ago, have you considered XLOOKUP in place of VLOOKUP, SWITCH in place of nested IF functions and GROUPBY in place of PivotTables? What else have you missed?

Have you seen the Python programming language, which Microsoft made available in Excel last September?

You probably are up to date with all the features on your smartphone, but what about Excel?

 

 

Questions?

If you have any questions about any of these, you know where to find us. If you prefer, just give me a ring on 07770 738770 or email me at alan.long@thelongpartnership.co.uk.