The government has confirmed it will review approved mileage rates for business users ahead of a future Budget.

The announcement comes after more than a decade without change - despite rising fuel, insurance and maintenance costs leaving many workers covering the gap themselves.

Rachel Reeves, the Chancellor of the Exchequer, highlighted the issue earlier this month, recognising that approved mileage allowance payment rates have not changed since 2011 even as motoring costs have evolved significantly.

The government says the workers-first review will focus on people who rely on their car to do their job, ensuring 'they are not left out of pocket'. As part of this, the government says it will meet with people struggling with increased costs to inform this review as it develops.

In the meantime, the government says wider action is being taken to support people with the cost of living and keep prices down at the pump, including by freezing fuel duty until September.

Dan Tomlinson, Exchequer Secretary to the Treasury, said:

'Millions of working people rely on their car to do their job. But mileage rates have been unchanged since 2011 and that's increased the cost of working. A review is well overdue.

'Keeping prices down at the pump is an important way we can help people with the cost of living which is why fuel duty is already frozen.'

Internet link: GOV.UK

Vaping-related businesses and supply chains need to register now for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme, says HMRC.

Businesses need to provide the required information now to register for HMRC approval and begin the process of applying for duty stamps.

From 1 October 2026, this information will be used to determine when duty becomes payable, making registering now an essential step in early preparation.

Businesses can visit GOV.UK and search for 'vaping duty' to access guidance. It explains which vaping products are liable to the new excise duty, the key dates and milestones ahead, and the roles and responsibilities of manufacturers, importers, warehousekeepers and other businesses across the supply chain.

It also sets out how and when businesses need to register and apply for the relevant approvals, which will take at least 45 working days if further information is needed.

Rachel Nixon, HMRC's Director of Indirect Tax, said:

'From 1 April 2026, UK vape manufacturers, importers and warehousekeepers can apply to HMRC for VPD and VDS Scheme approval, which is essential for these businesses to continue trading legally from 1 October.

'Our guidance brings all the key information together, and using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.'

Internet link: HMRC press release

Small businesses to be backed by new, stronger measures to tackle late payments, the government has announced.

The Small Business Commissioner will be given sweeping new powers to investigate poor payment practices, adjudicate payment disputes, and fine the worst offenders – with fines worth tens of millions for firms that persistently pay late or fail to comply with the new laws.

The government says the measures will tackle a problem costing the UK economy £11 billion every year.

The changes will include a new 60-day cap on payment terms on all large firms when paying smaller suppliers. New mandatory interest on late payments will also be introduced, with a requirement for all commercial contracts to include statutory interest set at 8% above the Bank of England base rate.  

Business Secretary Peter Kyle said:

'Far too many businesses are forced to shut down because they have not been paid – that is simply unacceptable.

'We are unveiling the strongest, most robust changes to payment laws in over a generation – laws that will transform the fortunes of small businesses for years to come and make their day to day lives much easier.'

Internet link: GOV.UK

The government's new procurement rules that target opportunities for smaller businesses offer hope to SMEs, according to the British Chambers of Commerce (BCC).

Government departments have, for the first time, set individual spending targets for SMEs to deliver over £7.4 billion a year to small businesses by 2028.

Departments have for the first time, individually set direct SME spending targets and will publish yearly progress updates ensuring they are held to account, those who fall behind will need to set out robust actions on how they will improve.

In 2024, the BCC and Tussell's SME Procurement Tracker found only 20% of direct procurement spend from the wider public sector, including central government, went to SMEs.

Jonny Haseldine, Head of Business Environment policy at the BCC, said:

'This shake up is long overdue as public procurement spend with SMEs has been stuck in a rut. Although the value of contracts with SMEs has continued to rise their slice of the pie is still far too small. For too many businesses, government contracts remain out of reach.  

'This new scheme has the potential to be a game changer, giving smaller firms across the UK greater access to procurement opportunities and supply chains. 

'As has been demonstrated by Chamber-led supply chains at major infrastructure projects such as Sizewell C and Hinkley Point, SMEs are a vital part of the ecosystem. They provide local skills and knowledge to projects as well as significantly boosting regional economic growth.'

Internet link: BCC GOV.UK

HMRC is warning pensioners to be on high alert for scams as the recovery of Winter Fuel Payments begins this month.

Almost two million people are expected to repay their winter 2025 payment due to their annual income being more than £35,000.

HMRC saw more than 25,000 Winter Fuel Payment scam referrals over the last 12 months. It is warning that scammers may now use the recovery process to target this group.

For most, the payment will be recovered through a change to their PAYE tax code from April 2026 with no need to contact HMRC.

For those in self assessment who file online, the payment should be pre-populated in their 2025/26 tax return. Customers should check and add it manually if it is not shown. Paper filers will need to add it on their tax return.

This applies across the UK - including in Scotland, where the payment is known as the Pension Age Winter Heating Payment and in Northern Ireland, where payments were made by the Department for Work and Pensions on behalf of the Northern Ireland Executive. In all cases, recovery is handled by HMRC.

Myrtle Lloyd, HMRC's Chief Customer Officer, said:

'Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

'I'd encourage anyone who's unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered - there's no need to call us.'

Internet link: HMRC press release

Higher energy prices due to the conflict in the Middle East are set to make the median working-age British household £480 worse off this year, according to the Resolution Foundation.

The think tank based its estimates on market-forecasts for the rise in energy prices consistent with market pricing after the announcement of a ceasefire.

For families with above average income, rising energy prices will likely tip living standards growth into negative territory, says the Foundation.

The typical household, previously on track for 0.9% growth, is now set to see its income fall by 0.6% – a difference of £480 – over the course of the current financial year.

It says that average income growth for the poorest fifth this year is now set to be just 1.2%, down from 2.8% before the conflict.

James Smith, Chief Economist at the Resolution Foundation, said:

'Despite hopes for a sustained peace, the path of this conflict remains uncertain and energy prices remain well above pre-war levels, meaning many households face a decline in their purchasing power this year.

'This squeeze will run right through the income distribution. Lower-income households will still see some income growth thanks to a long-awaited rise in real benefit levels, but inflation will likely knock more than a percentage point off what they stood to gain.

'For those in the middle and towards the top of the income distribution, even the thin growth they had been expecting has tipped into negative territory.'

HMRC has published the latest issue of the Employer Bulletin. The April issue has information on various topics, including:

• Reminder of key dates and processes for reporting benefits in kind (BiKs).
• Real Time Information submission problems - Incorrect handling of Payroll ID.
• Removal of the tax relief for non-reimbursed homeworking expenses.
• The official rate of interest from 6 April 2026.
• The 'Tell ABAB' survey 2026.
• Statutory Sick Pay changes - what employers need to know.

Internet link: GOV.UK

HMRC's large business directorate has doubled the amount of tax revenue it collects, according to the National Audit Office (NAO).

A hands-on approach to tax compliance for large businesses yielded £15.8 billion during 2024/25. That is double what the unit collected in 2021/22.

The large business directorate has a return on investment of £95 for every £1 spent on staff pay, which is four times higher than HMRC achieves across all taxpayers.

The tax gap for large businesses has steadily decreased over the long term, from £7.5 billion in 2005/06 to £5.8 billion in 2023/24.

Since 2006, HMRC has put 70 large businesses through its High Risk Corporates Programme, designed to tackle its most complex or riskiest cases. This has brought in more than £32 billion in extra tax.

The NAO recommended that HMRC expands the hands-on approach with other businesses as well as improving its IT systems.

Gareth Davies, Head of the NAO, said:

'Through its large business directorate, HMRC has developed an efficient and effective approach to ensuring large businesses remain tax compliant. This has made a significant contribution to reducing the tax gap.

'HMRC should continue to explore whether this approach could usefully be extended to other complex and high-risk businesses.'

Internet link: NAO

HMRC has taken in over £137 million from late payment interest so far for 2023/24, a freedom of information request from investment platform AJ Bell shows. 

The tax authority has charged 1.3 million taxpayers late payment interest for the last tax year with the average interest payment standing at just over £100.

The figures only count taxpayers once the interest accrued or late filing penalty has been paid, meaning the figures for the 2023/24 tax year will likely be significantly higher than they are now.

This can be evidenced by looking back to 2022/23, where the total amount paid has jumped by over 30% in the last year to just over £200 million.

The sums have risen since HMRC hiked late payment interest rate to 4% above the Bank of England base rate from 6 April 2025.

Charlene Young, senior pensions and savings expert at AJ Bell, said:

'These latest figures suggest that taxpayers still face difficulty navigating the UK's complex tax system and HMRC are cashing in as a result.

'Millions have paid late payment interest in recent tax years, despite moves to relax the rules on who must file a self-assessment return.

'Taxpayers can become unstuck if they find the systems and deadlines difficult to navigate, and others potentially face higher interest and penalties when it comes to mistakes and not paying on time.'

Almost 400 employers from across the UK have been named for failing to pay the minimum wage to tens of thousands of workers, says the government.

Around 60,000 workers were found to have been underpaid, collectively missing out on £7.3 million in pay.

The findings come alongside enforcement action against businesses failing to pay their staff the legal National Minimum Wage.

In addition to repaying the underpaid £7.3 million penalties totalling £12.6 million have now been issued to businesses that failed to pay staff correctly.

The Department for Trade and Industry says this makes it clear that 'workers won't be made to pay for the mistakes or negligence of those they work for, regardless of how big or well-known they are'.

The announcement also comes ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay boost of £900 for those working full time.

Business Secretary Peter Kyle said:

'The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It's not fair on them when others are able to get ahead by not paying the wages their workers are owed.

'A good employer doesn't build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don't apply to them.'

Internet link: GOV.UK

Renters, flat owners, homeowners without driveways and businesses will be able to save up to £500 when installing electric vehicle (EV) charge points, the government has announced.

The 40% uplift in the chargepoint grant will cover almost half the cost of a typical charge point installation until March 2027, says the government.

It says this will help drivers access cheaper domestic electricity rates at home or work to power their car for as little as 2p per mile.

The latest government figures show EV drivers can save up to £1,400 on running costs versus a comparable petrol car when accessing cheaper domestic rates.

The move comes as the government aims to tackle two of the biggest barriers to driving electric - upfront costs and worries about finding somewhere to charge.

Keir Mather. Aviation, Maritime and Decarbonisation Minister, said:

'We're taking action to make EV ownership the affordable choice for everyone - not just those with driveways. Bigger grants mean families, flat owners, renters and small businesses can now install a charger for almost half the usual cost, with home charging costing as little as 2p a mile.

'Combined with our Electric Car Grant which has saved over 55,000 drivers thousands off the price of a new EV whilst boosting sales for carmakers, and record funding for our national public charging network, we're backing the EV revolution for drivers, businesses, and industry.'

Internet link: GOV.UK

The government has unveiled a youth employment drive that aims to create 200,000 jobs for young people and reform apprenticeships.

It comes as apprenticeship starts amongst young people are down 40% in the last decade and almost one million young people are not earning or learning.

There is also a new Youth Jobs Grant, through which businesses will receive £3,000 for every young person they hire who is aged 18-24 and has been on Universal Credit and looking for work for six months.

It is also expanding the Jobs Guarantee to a wider age range, from 18-21 to 18-24, which it says will create more than 35,000 extra subsidised jobs.

In addition, there is an Apprenticeship Incentive of £2,000 for each new employee aged 16-24 taken on by an SME.

Lizzie Crowley, Skills Adviser for the Chartered Institute of Personnel Development (CIPD), said:

'We welcome the Government's focus on tackling youth unemployment and supporting more young people into work, particularly through new incentives to help employers create entry-level jobs and apprenticeships.

'Many of these measures reflect changes we have been calling for, including stronger support for employers to create high-quality opportunities and more flexible routes into work for young people.

'With the number of young people not in education, employment, or training rising significantly in recent years, rebuilding clear pathways into work must be a priority.

'However, different incentive schemes have been tried in the past with varying degrees of success. It is important that meaningful jobs are created which also support skills development, and that the process for claiming the incentives are simple and clearly communicated.'

Internet link: GOV.UK CIPD

The start of the new tax year on 6 April 2026 brings contentious changes with it, warns the Chartered Institute of Taxation (CIOT).

The most controversial change is the taxation of dividends and employee benefits as well as the introduction of Inheritance Tax (IHT) on family businesses and farms.

The government's Making Tax Digital for Income Tax programme requires most sole traders and landlords with income of more than £50,000 a year to keep digital records and make quarterly submissions to HMRC.

Over the next three tax years HMRC plans to bring 2.9 million self-assessment taxpayers into the programme, requiring them to use compatible software to keep digital records and submit quarterly updates and an annual return.

Most of the changes took effect on Monday 6 April, the start of the new tax year, though a few changes were in place from Wednesday 1 April.

Ellen Milner, CIOT Director of Public Policy, said:

'Spring is a time of fresh starts, and for taxpayers it also marks the arrival of a new tax year and new tax rules.

'The most contentious change being made this April is bringing business and agricultural assets into the scope of IHT, albeit with an additional allowance and being taxed at a lower rate. This will mean many more valuations of estates will be?required. Farmers and business owners potentially in scope will need to pay careful attention to their tax planning.'

Internet link: CIOT

HMRC has launched a new 'Tax Confident' website which it says will help people fill their tax knowledge gaps.

The tax authority says the site is designed around real-life situations, helping people to find information that is relevant to their circumstances. These include 'tax in retirement', 'small businesses' and 'working life'.

The website also features 'tax basics', to help people understand the essentials and includes information about the free HMRC app and how to get further support.

HMRC says that with simple explanations, videos, and examples, Tax Confident makes it easier for people to understand tax. It also has links to GOV.UK guidance for when people are ready for more detail.

As well as the basics, current resources are aimed at pensioners, and people establishing new small businesses, who sometimes feel unsure about tax and are more likely to look for help.

Myrtle Lloyd, HMRC Chief Customer Officer and Customer Services Director General, said:

'We know that tax can feel confusing at times, especially when you are not sure where to start. HMRC's Tax Confident website is here to help people get to grips with the basics, covering everything from the tax essentials for new businesses to the need to knows for retirement.

'Tax Confident is designed to help you feel informed, capable and in control when it comes to managing your tax.'

Internet link: HMRC

Chancellor Rachel Reeves insisted she has the 'right economic plan' for the UK in her Spring Forecast Statement announcement.

Ms Reeves acknowledged the economic uncertainty caused by war in the Middle East and pledged to chart a course through the turbulence.

The Chancellor's speech focused on economic growth, the cost of living and public borrowing.

The Office for Budget Responsibility (OBR) cut its growth forecast for this year to 1.1% from 1.4%. However, it said the economy will grow faster in 2027 and 2028.

The OBR's forecast shows GDP per person is now set to grow more than was expected in the Autumn Budget, with growth of 5.6% over the course of this Parliament.

In addition, Ms Reeves said she was cutting the cost of living, including reducing people's energy bills by £150 and freezing rail fares.

The OBR's forecast shows inflation, borrowing and debt interest are falling, whilst investment is rising.

The Chancellor also said she has cut public borrowing, which the OBR said is down by nearly £18 billion compared to the autumn, with borrowing this year set to be the lowest in six years and falling below the G7 average. 

The Chancellor concluded:

'My plan is the right one. I am in no doubt about how great the rewards can be if we stay the course. The forecasts today confirm that the choices this government has made are the right ones.

'Stability in our public finances, interest rates and inflation falling, living standards rising, more children lifted out of poverty, more appointments in our NHS, more investment in our infrastructure, a growing economy and more money in the pockets of working people.'

Internet link: GOV.UK

An estimated one million taxpayers missed the self assessment deadline for the 2024/25 tax year, according to HMRC.

Over 11.48 million taxpayers filed their self assessment tax returns before midnight on 31 January.

However, more than 12 million self assessment taxpayers were expected to file a tax return and pay any tax owed by the deadline.

HMRC says that anyone who needs to file a return and missed the deadline should meet their tax obligations as soon as possible, as late filing and late payment penalties are charged.

The tax authority said that 97.25% of tax returns were filed online with 475,722 taxpayers waiting until the final day to file their return.

On 31 January, 27,456 people submitted their returns in the final hour while the busiest hour for submitting a return was 17:00 to 17:59, when 32,982 people filed.

HMRC advisers handled 5,409 webchats and 10,483 calls to the helplines which, unusually, were opened on a Saturday to provide extra support to taxpayers on deadline day.

Myrtle Lloyd, HMRC's Chief Customer Officer, said:

'Thank you to the millions of people and agents who filed their self assessment tax return and paid any tax owed by 31 January.

'HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs.'

Internet link: HMRC

The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.

Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.

Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.

The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.

Myrtle Lloyd, HMRC's Chief Customer Officer, said:

'The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search 'download the HMRC app' on GOV.UK to access the app and make your self assessment payment.'

Internet link: HMRC

The introduction of Making Tax Digital (MTD) for Income Tax this April will be the biggest change to the UK's tax system since self assessment, says the Low Incomes Tax Reform Group (LITRG).

From 6th April 2026, taxpayers with more than £50,000 of gross income from self-employment and/or rental income in the 2024/25 tax year will need to comply with the new rules from that date.

Unless they are exempt, taxpayers who meet the income threshold will be required to follow these new rules, which will include keeping digital records, submitting quarterly updates of their income and expenses, and filing an annual tax return using commercial software.

According to HMRC's data, more than 200,000 unrepresented taxpayers will be required to follow the new rules.

The LITRG has published new guidance to help taxpayers navigate the change.

Victoria Todd, Head of LITRG, said:

'MTD is the biggest tax change since self assessment and with just over two months to go, time is running out to get ready.

'Many taxpayers will have the support of a tax adviser or accountant to guide them through the process. But for those who can't afford professional tax advice, the new rules may seem confusing and the requirements daunting.

'We want to make it as easy as possible for taxpayers to understand whether the rules apply to them and what they need to do if that is the case.'

The lending commitment is one of the largest collective moves by the banking sector in over a decade. The government says this represents an 'historic show of confidence in the UK economy'. 

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the government on 26 January at a roundtable in Westminster convened by the Business Secretary and the CEO of UK Export Finance Tim Reid. 

Combined, the banks serve half of all British businesses across all corners of the country.  

Peter Kyle, the UK's Business Secretary, said:

'Strengthening Britain's export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.

'The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders' confidence in the growth prospects of British enterprise.'

Internet link: GOV.UK

Over 200 hospitality and leisure CEOs have urged the government to scrap plans for a Visitor Levy in England.

In a letter to the Chancellor, they warn that the proposed holiday tax will 'hit families hardest, put jobs at risk and drain money from local businesses and communities'.

Signatories to the letter warn that 'holidays are for relaxing, not taxing', with the proposed tax meaning tourists would face an extra £100 or more for a two-week holiday in the UK.

The letter says this could force families to shorten trips, skip travel altogether or head overseas, spending their money elsewhere.

The letter also says there will be significant damage to local communities across England that rely on tourism for survival, as fewer visitors mean fewer local jobs and lower spending at local businesses.

Allen Simpson, Chief Executive of UKHospitality, said:

'Holidays are for relaxing - not taxing.

'Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you're already paying your fair share of tax.

'In fact, it's one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.

'We are so lucky to enjoy these wonderful islands and we should be encouraging people to visit every part of our country – not taxing them for doing so.

'The government needs to scrap the holiday tax.'

Internet link: UKHospitality