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Artificial intelligence (AI) apps like ChatGPT and Copilot have become very popular in recent years. AI apps are versatile, and can help with a wide range of tasks, from writing reports to language translation.

Mark McLaughlin warns of potential dangers for taxpayers of using AI when dealing with disputes with HM Revenue and Customs. 

A significant development will reshape the way small businesses in the UK manage their tax affairs from 6 April 2026. VAT-registered businesses are already using Making Tax Digital (MTD) for VAT reporting, which was introduced in 2019; but MTD for income tax self-assessment (MTD for ITSA) is a major change to the reporting and recording of business income. 

While the aim is to streamline tax collection and improve accuracy, small business owners must be prepared for a range of new obligations and potential pitfalls.

Richard Curtis highlights the major changes in small business accounts reporting that start in April 2026.

HMRC once had a generous policy on misdirection – although it was not necessarily generously applied! In Notice 48 (March 2002) Extra-Statutory Concessions, it stated:
‘If a Customs & Excise officer, with the full facts before him, has given a clear and unequivocal ruling on VAT in writing or, knowing the full facts, has misled a registered person to his detriment, any assessment of VAT due will be based on the correct ruling from the date the error was brought to the registered person’s attention.’

Andrew Needham looks at what happens when HMRC gives a business incorrect advice or a ruling.

The ‘nominated partner’ of a partnership is responsible for:
•    filing the partnership tax return; 
•    dealing with matters arising from an enquiry; and
•    keeping the other partners informed of the progress of any enquiry.
Crucially (for the other partners), any appeal rights relating to the partnership are conferred only on the nominated partner. 

Kevin Read examines the appeal rights within partnerships.

As well as being the two certainties in life, death and taxes often go hand in hand. This article highlights how they interact in certain instances.

Tristan Noyes explores some of the lesser-known tax rules applicable on death. 

Whilst having a large bank balance represents financial security and flexibility, leaving significant sums of cash sitting idle in the company’s bank account (i.e., more than a contingency or 'rainy day fund', or more than needed for expansion or investment) is not always the best long-term strategy. 

Jennifer Adams looks at some options to consider if companies have more cash in their bank accounts than is needed for their day-to-day operations or future needs. 

Many small businesses will start out as sole traders – the owner and the business are one and the same. Personal and business assets are kept apart only by a set of accounts and a balance sheet; and for tax purposes, the sole trader is taxed on the profit, not withdrawals. In effect, they are the business. 
Risks inherent within that business, or the high burdens of income tax (or both), may lead to ‘incorporation’ (i.e., transferring the business into a limited company); but is incorporation worth it?

Chris Thorpe outlines some potential dangers inherent in incorporating a business.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.