Tax news in brief

Principles for making tax policy

The government has published a paper setting out the following principles which underpin its approach to tax policy making.

• Predictability and stability. This includes commitment to a single major fiscal event each year.
• A smart and agile approach to consultation. Although draft legislation will continue to be published on Legislation day (L-day) in the summer, the government will look to publish technical consultations at other points in the cycle to ease the burden on stakeholders.
• Transparency. the government will explore options for creating a dedicated resource that will provide:
  
  
  • the latest information on all technical tax announcements;
  • an overview of work to date; and
  • links to any relevant publications.

Non-compliant umbrella companies

HMRC has published Spotlight 71, providing guidance for agency workers and contractors on how to avoid being involved in tax avoidance schemes. The Spotlight lists a number of “warning signs” that may indicate tax avoidance, including with regard to employment contracts, payslips and salary payments. The Spotlight explains what the person should do if they think they are involved in tax avoidance, and provides links to further guidance.

In April 2025, ICAEW published an article that explains how and why umbrella companies can be used and looks ahead to changes taking affect from April 2026.

VAT fund raising events

HMRC has published an update on the VAT treatment of supplies made by charities and other qualifying bodies in connection with fundraising events (Revenue and Customs Brief 3). The Brief confirms HMRC’s position that “the primary purpose of the event must be that of fundraising and that the event must be advertised as a fundraising event “.

The Brief has been published following, and makes reference to, the decision in HMRC v Yorkshire Agricultural Society [2025] UKUT 00004 (TCC). The Upper Tribunal found in favour of Yorkshire Agricultural Society and HMRC has not appealed the decision.

International tax round-up

CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. It includes:

• a report from a recent European Parliament workshop to examine the taxation of the European Union’s financial sector, including financial transaction taxes, bank levies, windfall profit taxes and the VAT exemption on financial services; and
• an overview of documents published by the OECD concerning the automatic exchange of information in tax matters.