Monthly Tax Update - May 2025

Objectives

To update delegates on recent and proposed changes in taxation that are relevant to their clients.

Key topics

HMRC’S ‘SPRING 2025 TAX UPDATE’

• Employment Taxes

VAT

• Corporation Tax – International Aspects
• Professional standards in compliance: improving guidance and support for taxpayers in compliance checks
• Tackling non-compliance
• Consultation on improving HMRC's approach to dispute resolution
• Full Summary

DOUBLE CAB PICK UP – REFRESHER

• Car versus van
• Impact on previous concessions for double-cab pick-ups (DCPUs)

CASH BASIS - REFRESHER

• Cash Basis is now the ‘default’
• Entry and Exit thresholds abolished
• Interest restriction abolished
• More flexible loss reliefs
• Legislation and guidance
• Disadvantages
• Advantages
• Who could benefit from using the cash basis?
• Who is unlikely to choose the cash basis?
• Who is prohibited from using the cash basis?
• Cash Basis webinar

EMPLOYMENT

• Employment Related Securities

PLANNING WITH OMBS

• Profit extraction

NON-UK DOMICILED INDIVIDUALS

• Overseas Workday Relief (OWR)
• CGT rebasing
• Inheritance tax

CAPITAL TAXES

• IHT chargeable on gifts made with reservation
• PROPERTY
• Spotlight 69: Liquidation of an LLP used to avoid CGT

VAT

• Spotlight 70: VAT grouping structure arrangements used by care providers
• Mobile ride-hailing services are within the scope of Tour Operators Margin Scheme
• Supply of telematics devices for insurance VAT-exempt

STAMP TAXES

• Changes to share stamp taxes planned

HMRC ADMINISTRATION

• Public Accounts Committee (PAC) report – the cost of the tax system

MAKING TAX DIGITAL FOR INCOME TAX

• Where are we? A quick MTD refresher

Who should attend

Accountants in general practice who advise on tax planning and compliance.