The UK tax system is undergoing a significant digital transformation through Making Tax Digital (MTD) — an HMRC initiative designed to modernise the way businesses, landlords, and individuals record, report, and manage taxes. The goal of MTD is simple yet powerful: to make tax administration more efficient, accurate, and easier for everyone. At Care Accountancy,...
HMRC now estimates that 42 per cent of the 7 million taxpayers in income self-assessment for the 2023/24 tax year will need to comply with Making Tax Digital (MTD) for income tax. Of these 2.9 million people, 864,000 will need to comply from April 2026, roughly 1 million from April 2027 and a further 975,000...
HMRC has lost its attempt to tax the pension of a retired employee who transferred his pension fund into a self-invested personal pension (SIPP) and then moved to Portugal, where withdrawals from the SIPP were tax-free under the country’s non-habitual resident exemption (Masters v HMRC, 2025 UKFTT 967 TC). Disclaimer The information on this Blog is for...
Why VAT Needs a Fresh Look The UK’s Value Added Tax (VAT) system, first introduced in 1973, has become increasingly complex. With thousands of exceptions and outdated thresholds, businesses often find compliance time-consuming and costly. A VAT reform is long overdue—not just to simplify administration, but also to ensure fairness and efficiency for both small...
Stamp Duty Land Tax (SDLT) can be a confusing area, especially when dealing with run-down or damaged properties. A recent Court of Appeal ruling in the case Mudan v HMRC ([2025] EWCA Civ 799) brings important clarity to the residential SDLT rules, especially regarding properties in poor condition at the time of purchase. Background to...
The amount of inheritance tax (IHT) collected by HMRC continues to rise rapidly, reaching £ 6.7 billion in the 2022/23 tax year, some 12 percent higher than the 2021/22 figure. One in every 21 deaths resulted in an IHT charge, equal to the previous high of 2016/17 before the residential nil-rate band was introduced. The...
HMRC has launched an enforcement campaign targeting tax agents who claim repayment of stamp duty land tax (SDLT) because the property needs extensive repairs, is uninhabitable, and therefore not liable to residential SDLT. HMRC’s stance is based on the recent England and Wales Court of Appeal decision in Mudan v HMRC (2025 EWCA Civ 799), which agreed with...
Criminals have hacked the online tax accounts of 100,000 taxpayers to claim GBP47 million of fraudulent repayments, HMRC has acknowledged. Most of the attacks were conducted by phishing using credentials obtained from non-HMRC sources to either set up new HMRC accounts or hijack existing ones, rather than by breaches of HMRC security. HMRC is writing...
The First-tax Tier Tribunal (FTT) has rejected three business owners’ claims that GBP10 million they received from cancelled shares in their company was exempted from tax under the transactions in securities legislation. The FTT accepted HMRC’s contention that the legislation contained an error and the words ‘despite the fact’ meant ‘where’, not ‘even where’. This...
HMRC’s annual ‘compliance yield’ from wealthy taxpayers more than doubled from GBP2.2 billion in the 2019/20 tax year to GBP5.2 billion in 2023/24, according to a report from the government’s National Audit Office (NAO). The NAO says the large increase suggests that underlying levels of non-compliance among the wealthy population could be greater than previously...
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Copyright by CareAccountancy. All rights reserved.
