Other news in brief

On 30 September 2025, HMRC published an online tool to help businesses check if a project might include activities that qualify as Research and Development (R&D) for tax purposes. While the tool is quite basic, it could provide a useful ‘interactive’ accompaniment for use alongside reading and applying the R&D eligibility criteria per the Department for Science, Innovation & Technology (DSIT) Guidelines. As the covering guidance from HMRC suggests, the tool is not intended to replace taking professional advice from a qualified tax advisor, but it may be of some assistance in the initial stages of a company considering claiming R&D tax incentives.

The UK is signed up to the OECD model rules for reporting by platform operators. On 19 September 2025, HMRC published new guidance for platform operators on complying with these requirements in the UK. This includes guidance on how to collect, verify and submit the required information. More detailed guidance available from HMRC at IEIM900000 has not been changed, indicating that the new updates are primarily aimed at helping platforms to understand the rules and their compliance obligations.

On 25 September 2025, HMRC published the latest in their Guidelines for Compliance (GfC) series: Help with Freeports - GfC14. This guidance is aimed at businesses that are operating, or intending to operate, within a Freeport. It outlines the tax reliefs and customs benefits available, details how to qualify for them and highlights common errors businesses make. 

HMRC have added the ‘Synthesised text of the Multilateral Instrument and the 1982 UK-Tunisia Double Taxation Convention’ to the collection of published tax treaties on their website. The synthesised text reflects the changes made to that treaty by the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (commonly known as the Multilateral Instrument or MLI).

On 29 September 2025, HMRC published guidance on how taxpayers, who would otherwise be mandated to sign up for Making Tax Digital (MTD) for Income Tax, can apply for an exemption if they are ‘digitally excluded’. The guidance explains that ‘digitally excluded’ means “it’s not reasonable for you to use compatible software to keep digital records or submit them to HMRC”. The examples given as to why this may be include age, health conditions, disability, religious conviction and lack of internet access. It is the same definition as was used for granting exemption from MTD for VAT and, although it is understood that taxpayers who have already been granted an exemption for VAT will also be granted an exemption for income tax, HMRC’s systems unfortunately cannot automatically carry this exemption over so taxpayers will need to apply again for an exemption for income tax. The application can only be made in writing or by calling HMRC. As a reminder, sole traders and landlords with income above £50,000 will be mandated to sign up for MTD from April 2026, and those with income above £30,000 will join from April 2027 and income above £20,000 from April 2028. HMRC suggest that those unsure of their position should continue to prepare for MTD in case their application for the digitally excluded exemption is rejected. They aim to process applications within 28 days.

On 21 July 2025, the Government published draft legislation on tackling non-compliance in the umbrella company market – our previous article provided more details. This has now been followed by the publication of HMRC guidance on 17 September 2025, alongside new content in the HMRC Employment Status Manual. The guidance is based on the draft legislation as it was published for consultation but HMRC have confirmed that it will “be updated if there are any changes before it becomes law”.

The Scottish Government’s Finance Minister has confirmed that she plans to present the draft Budget for 2026/27 on 15 January 2026. The devolved Scottish Budget is typically delivered to Parliament in December, after the central funding for each devolved administration has been confirmed in the UK Budget. However, the later scheduling of this year’s UK Budget necessitates a delay to allow the Scottish Government to finalise its fiscal plans. The Scottish Spending Review, Infrastructure Investment Plan, and Infrastructure Delivery Pipeline are also expected to be published alongside the Budget.

In their UK economic outlook for September 2025, KPMG’s economics team look at the potential impact of increasing global trade frictions, potential tax rises, inflation and interest rates and the implications for UK fiscal and monetary policy.

The 2025 Global Family Office Compensation Benchmark Report, developed by KPMG Private Enterprise and Agreus Group, has now been published. This features quantitative and qualitative insights into Family Office composition and compensation structures. It also provides remuneration benchmark data based on responses from 585 Family Office professionals to an online survey conducted by KPMG and Agreus. In addition, 20 in-depth qualitative interviews were carried out with Chief Executive Officers, Managing Directors, and senior leaders from the Family Office industry across all continents. The Global Family Office Compensation Benchmark report represents the combined findings from both the survey and the interviews.