Taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from April 2026 should sign up now if they haven't done so already, says the Institute of Chartered Accountants in England and Wales (ICAEW).

Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD for Income Tax from April 2026.

More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so.

HMRC estimates that approximately 864,000 taxpayers are required to use MTD for Income Tax from April 2026. The ICAEW says that approximately only 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily. 

The Institute said:

'ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.'

Internet link: ICAEW

The UK government's formal commitment to legislation to stamp out late payments is an historic moment, according to the Federation of Small Businesses (FSB).

The FSB says small firms have spent years battling a culture of poor payment practices by big businesses towards their smaller suppliers.

The government's plans for more stringent rules around prompt payment will go ahead in this parliament, the King's Speech confirmed.

These will include maximum payment terms of 60 days while late payments will also be subject to mandatory interest of 8% above Bank of England base rate.

Tina McKenzie, Policy Chair of FSB, said:

'Late payment destroys thousands of viable small firms a year, damages growth, hits confidence, and keeps hardworking business owners up at night wondering how they will cover wages, bills, and tax payments.

'For too long, large businesses have used small suppliers as a free overdraft. That's why FSB has fought hard for these changes and worked in partnership with the government to make them happen.

'Among the other measures, regulating unscrupulous third-party intermediaries, such as energy brokers and consultants, ending hidden commissions and cowboy sales tactics, is a much-needed move, and we hope the plans set out today will mean small firms finally get a fair deal and transparent energy prices.

'Proposals to raise visitor levies in England come at a time when the tourism and hospitality sectors are on their knees. If the legislation goes ahead, it must be designed with small firms in mind and avoid being a deterrent to tourism itself.'

Internet link: FSB

Families travelling this summer will benefit from free bus travel for children as part of the government's efforts to help with the cost of living.  

The government is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required and at no cost to families. 

It is part of a scheme called 'Great British Summer Savings', which also includes cutting VAT on family activities from 25 June to 1 September 2026.

The government says this will reduce the costs of children's meals in restaurants, children's tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres and theme parks.

In addition, products including biscuits, chocolate, dried fruit and nuts are set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices. 

Prime Minister Keir Starmer said: 

'We know many hard-working families are still feeling the squeeze and too often think they have to hold back.

'By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we're putting money back into people's pockets and making life that bit easier.

'This government is focused on practical steps that help right now - easing pressure on household budgets, supporting parents during the school holidays and backing British businesses.'

Internet link: GOV.UK GOV.UK

The government will contact thousands of young people about forgotten Child Trust Funds (CTFs) in a bid to reunite account holders with their accounts that are now worth £2,200 on average.

CTFs were introduced by the government in 2005 and applied to children born between 1 September 2002 and 2 January 2011.

The government is now undertaking an extensive awareness campaign urging young people to locate their CTFs through the free 'Find My Child Trust Fund' service on GOV.UK.

Many young people are unaware they have a CTF and over 750,000 accounts are unclaimed. The government says it is determined to act so every young person that has a CTF is aware of how to access it.

In order to build on existing efforts, HMRC will be writing to all 21-year-olds whose accounts remain unclaimed to make them aware they have a CTF.

Economic Secretary to the Treasury, Lucy Rigby, said:

'Hundreds of thousands of young people in this country don't know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.

'I'm determined that those who have CTFs are made aware they have this money.

'Together, we will ensure funds from these Child Trust Funds can be accessed by young people to help give them the best start to adult life.'

Internet link: HM Treasury

The government must take the chance to fix the UK's broken business rates system, says the British Chambers of Commerce (BCC).

The business group says anxiety about business rates rose to 41% in its Quarterly Economic Survey for the first quarter of 2026.

This is the highest level since the BCC started asking the question in 2017.

Companies cite cost pressure from business rates as a key reason for increasing prices and delaying expansion of their premises. 

While the government made some concessions on business rates for pubs and live music venues earlier this year, BCC research shows business concerns are much wider. 

Kate Shoesmith, Director of Policy and Insights at the BCC, said: 

'Reforming business rates was a key manifesto pledge of the government, but it has only tinkered around the edges.

'The government must deliver the more ambitious root and branch reform of the whole system that it promised. 

'As first steps, it should mitigate the steep jumps in bills across all sectors caused by the 2026 revaluation and introduce a single flat rate multiplier.

'This shift should then jumpstart a more rigorous consultation with business on how to fully reform what is a complex and rigid system.

'They are ready to contribute innovative thinking on change without costing the Exchequer. There are other tax mechanisms that can meet the goal of widening the tax base to allow for a lower multiplier.'

Internet link: BCC

Decisive action is needed to tackle the 'hidden threat' of crime against businesses damaging growth, according to the British Chambers of Commerce (BCC). 

Theft, fraud, scams and cyber-attacks are increasingly affecting firms of all sizes and across all sectors, BCC research has found. 

The business group's research shows that 42% of UK businesses experienced some form of crime in the past year. 

The data reveals larger firms are more vulnerable, increasing from 32% among micro-businesses to 58% among firms employing more than 250 people. The manufacturing sector is the hardest hit, with 50% of firms reporting business crime. 

The BCC report concludes that business crime is a 'structural constraint' and 'measurable brake' on UK economic performance. 

The BCC is calling for a National Business Crime Strategic Assessment to properly measure the economic harm caused by crime against businesses. 

It is also asking for a single cyber-attack reporting system for firms and the creation of Regional Business Crime Hubs. 

Ellis Shelton, Policy Manager at the BCC, said: 'Crime against business is now a serious barrier to growth and investment across the UK. 

'Our research shows many firms are dealing with rising levels of theft, fraud and cyber-attacks. Bosses are being forced to divert crucial time and money to tackling this anchor on growth. 

'Crime is becoming more sophisticated and there needs to be a step change in the support businesses can count on. 

'Reducing crime against business isn't just about protecting balance sheets. It's about removing structural barriers to growth.'

Internet link: BCC

New company car advisory fuel rates have been published and took effect from 1 June 2026.

The guidance states: 'you can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR

There is less than a year to go before all employers must tax benefits-in-kind via the payroll, the Chartered Institute of Taxation has warned.

Benefits-in-kind are non-cash benefits provided by employers to employees or directors. Common benefits include company cars, private medical insurance and gym membership.

While the benefit is paid for by the employer the recipient is required to pay Income Tax and potentially National Insurance contributions (NICs) on the value of the benefit, as if this value had been added to their salary.

Additionally, the employer must pay employer NICs on the value of the benefit. According to HMRC more than 3.5 million employees receive a taxable benefit-in-kind.

Currently, most employers compute the value of a taxable benefit after the end of the tax year and report it on a P11D form to HMRC and the employee. This means the employer potentially has up to 15 months to calculate, verify and report the value of a benefit.

From 6 April 2027 it will be a legal requirement to report and pay Income Tax and NICs on most benefits-in-kind and taxable expenses payments via payroll rather than waiting until the end of the tax year.

Sarah Hewson, Vice-Chair of the CIOT's Employment Taxes Committee, said:

'Mandatory payrolling of benefits will have a big impact on employers, employees and software providers. Don't leave it too late to get ready for this change.'

Internet link: CIOT

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