Tax Bites - April 2026

Welcome to the latest edition of RPC's Tax Bites – providing monthly bite-sized updates from the tax world.

News

HMRC publishes Guidance on when you should register as a tax adviser

The requirement for tax advisers to register with HMRC will come into effect in May 2026 and HMRC has published Guidance on how to check whether you are required to register.

HMRC's Guidance can be viewed here.

HMRC publishes Guidance on penalties for Making Tax Digital for Income Tax

From April 2026, new penalties for late submission and late payment will apply for those taxpayers required to use Making Tax Digital for Income Tax. HMRC has published Guidance on these new penalties.

HMRC's Guidance can be viewed here.

HMRC updates its Guidance for off-payroll working (IR35)

HMRC as updated its Guidance entitled "Understanding off-payroll working (IR35)" to clarify that a deemed employer is not responsible for deducting student or postgraduate loan repayments. The worker must make these repayments by registering for Self-Assessment.

HMRC's updated Guidance can be viewed here.

UK government publishes a consultation with proposals to extend the Uncertain Tax Treatment regime

The Uncertain Tax Treatment (UTT) regime, introduced by the Finance Act 2022, requires large businesses to notify HMRC when they adopt an uncertain tax position in their VAT, corporation tax, or PAYE returns, where the amount of tax at stake is over £5 million.

The UK government's latest consultation explores the possibility of extending the UTT regime to individuals and trusts, and to include Stamp Duty Land Tax, National Insurance Contributions, Construction Industry Scheme contributions, Capital Gains Tax, and Inheritance Tax.

The consultation can be viewed here.

HMRC publishes Guidance on software required to report Pillar 2 Top-up Taxes

HMRC has published Guidance on what commercial software companies will need to report Pillar 2 Top-up Taxes.

HMRC's Guidance can be viewed here.

HMRC publishes Guidance on what information it can publish for misconduct by a tax adviser

HMRC has published Guidance on what information it can publish about a tax adviser who has carried out misconduct and has received an HMRC sanction. HMRC will be able to publish such information from 1 April 2026.

HMRC's Guidance can be viewed here.

Case reports

Purchase of an apartment and storage unit was a mixed-use acquisition for SDLT purposes

In Raj Sehgal and another v HMRC [2025] UKFTT 1439 (TC), the First-tier Tribunal (FTT) held that a storage unit acquired alongside a luxury apartment were separate land transactions and therefore the mixed/non-residential rates of SDLT applied to the purchase.

The FTT commented, at [167] of its decision, that this appeared to be a surprising result given the relatively small value of the storage unit. However, the SDLT legislation unambiguously provides that residential rates only apply if the relevant land consists entirely of residential property, the FTT considered that Parliament would not have used this word unless this was the intended outcome.

This is a significant decision and will be of wider interest due to the significant difference between residential and non-residential rates of SDLT.

You can read our commentary on the decision here.

Court of Appeal considers burden of proof in penalty appeals

In HMRC v Sintra Global Inc and another [2025] EWCA Civ 1661, the Court of Appeal decided that taxpayers, not HMRC, must prove they are not liable to the underlying tax, when challenging penalties on that basis.

This judgment is notable, not only because it overturned the conclusions reached by both the FTT and the Upper Tribunal, but because it has confirmed that when a taxpayer challenges a civil evasion penalty on the basis that the underlying tax liability underpinning the penalty is incorrect, the taxpayer bears the legal burden of proving that they are not liable for the underlying tax. 

It is understood that the taxpayers have sought permission to appeal to the Supreme Court.

You can read our commentary on the decision here.

Tribunal confirms licence to use client list qualifies for fixed asset amortisation

In Ripe Ltd v HMRC [2025] UKFTT 1606 (TC), the FTT held that a licence to use a client list constituted an intangible fixed asset (IFA), entitling the company to amortisation relief under what is now parts 8 and 9, Corporation Tax Act 2009.

This decision provides a helpful reminder that the tax treatment of an asset will often depend on its substance rather than its form. The fact that the licence was not documented and was incorrectly described as 'goodwill' in the accounts of the company was not determinative.

It would no doubt have saved a great deal of time and expense if the licence had been carefully documented at the time it was granted, but the FTT was nevertheless satisfied that both the licence and its assignment existed, based on the witness evidence relied upon by the appellant taxpayer. 

Although this decision is a helpful illustration of some of the basic principles applicable to the taxation of IFAs, it should be noted that the rules for taxing goodwill and customer-related IFAs have changed significantly since the events considered by the FTT in this case.

You can read our commentary on the decision here.

And finally…

Webinar available on dawn raids

On 10 March 2026, Michelle Sloane and Tom Jenkins delivered a webinar to in-house Counsel and business leaders on 'dawn raids'.

Dawn raids by regulatory authorities can be highly disruptive and, if mishandled, are likely to result in serious repercussions for a business. This webinar will equip you with the essential knowledge to understand what dawn raids involve, why they occur, and how to prepare effectively in advance.

A recording of the webinar can be viewed here.