Industry News & Updates

If you run a business, work as a sole trader, or sit on the board of a company, this week brings a mix of news worth knowing about. HMRC has published an update on its digital progress, the Supreme Court has handed down an important ruling for partnerships, and new consultations are underway that could affect how tax debts are collected in future. Here's what it all means for you.

The latest figures from HMRC reveal that the Treasury had a substantial £59.2 billion shortfall from unpaid taxes for the tax year 2024-2025. The 'Measuring tax gaps 2026 edition' found that the tax gap, which measures the difference between the amount of tax expected to be paid and what was actually collected, stood at an estimated 6.4%, up from 5.3% for 2023-24.

The deadline for applying for a PAYE Settlement Agreement (PSA) or making any amendments to an existing PSA is 5 July following the first tax year to which it applies. PSAs are an agreement between an employer and HMRC.

HMRC's 'Don't get caught out' campaign encourages contractors working through umbrella companies to take a closer look at their circumstances and watch out for tax avoidance.

The government made a significant number of tax announcements on 23 June 2026 under the banner of 'Tax Update 2026: Simplification, Modernisation and Fairness'. With over 40 individual measures, consultations and calls for evidence, it was a busy day on the tax front.

The announcement of mandatory payrolling for Benefits In Kind was originally expected to start in April 2027, but following industry pressure, it will now be introduced in two phases. 

If you're a company director or a Person with Significant Control (PSC), one of the most important compliance tasks on your list right now is identity verification with Companies House. Here's where things stand and what you need to do.

If you're a sole trader or landlord, this one's important. Making Tax Digital for Income Tax (MTD for IT) went live on 6 April 2026, and it marks one of the biggest changes to the UK tax system in a generation. For many of our clients, this is no longer something coming down the line. It's here!

Companies House and the Intellectual Property Office (IPO) are asking businesses to take special care of misleading requests for payment sent by fraudulent organisations.

The Chancellor of the Exchequer last week announced a 10p per mile increase in the tax-free mileage rate that applies to the first 10,000 business miles travelled in a car or van in a tax year.

The government has announced a temporary reduced rate of VAT for children’s meals in restaurants and family leisure activities over the summer.

Following its mention in the King’s Speech, the Small Business Protections Bill has now been put before Parliament.

The government have announced some fuel duty and road tax changes designed to help with the increased costs caused by the Middle East conflict.

The Pensions Commission has published an interim report showing that many people are not saving enough for retirement.

Originally proposed in last autumn’s Budget, HM Revenue & Customs (HMRC) have introduced a targeted advance assurance service for Research and Development (R&D) tax relief claims. The service, which is a pilot, aims to provide businesses with clarity on complex or high-risk areas before they make a claim.

The government has opened a consultation on the High Value Council Tax Surcharge (HVCTS) expected to come into force in England from 1 April 2028.

HM Revenue and Customs (HMRC) have reported that 298,905 people filed their Self Assessment tax return in the first week of the tax year, with a record total of 737,891 returns being filed during the month of April 2026.

Companies House are currently reviewing how long they hold the records of dissolved companies. Concerns have been raised about whether records should be held for longer than 20 years.

It might be a few years away, but a significant change is coming to the way VAT-registered businesses issue invoices, and it will affect almost every business that sells to other businesses or to the government.

If your business invests in innovation, research or development, there's welcome news from HMRC this spring. A new pilot scheme is being introduced that gives small and medium-sized businesses the chance to get advance confirmation on key elements of their R&D tax relief claim before they submit it.

Incorrect advice provided by Artificial Intelligence (AI) and other websites is contributing to a growing trend of late VAT return filing and payment.

The ongoing Middle East conflict has raised concerns over its effect on UK inflation and interest rates in the coming months.

The National Cyber Security Centre (NCSC) announced at CYBERUK 2026 in Glasgow that it will begin recommending the use of passkeys wherever a service supports them, and two-step verification (2SV) where it does not.

If you're a sole trader or landlord, this one's important. Making Tax Digital for Income Tax (MTD for IT) went live on 6 April 2026, and it marks one of the biggest changes to the UK tax system in a generation. For many of our clients, this is no longer something coming down the line. It's here!

The Renters’ Rights Act came into force on 1 May 2026 and represents the biggest change to renting in England for a generation. All landlords must be ready, as the new rules apply to both new and existing tenancies from day one.

If you are a director who takes a combination of salary and dividends, this one is for you. From 6 April 2026, taxes on dividend income have risen. The ordinary rate has moved from 8.75% to 10.75%, while the upper rate has jumped from 33.75% to 35.75%. 

From 6 April 2026, the rules around Statutory Sick Pay changed significantly for all UK employers, and for small and medium-sized businesses in particular, this is more than just an admin update.

HMRC's latest figures reveal that more than 730,000 PAYE tax refunds went unclaimed last year. The average refund was worth £855. That's a significant sum to miss out on, especially when claiming it takes just a few minutes.

If you use your own car for work and claim mileage, you'll know the current approved rate of 45p per mile has been stuck at the same level since 2011. The government has now announced a formal review of Approved Mileage Allowance Payment (AMAP) rates, with changes expected to be announced at a future Budget.

⚠️ If you have an outstanding Self Assessment tax return, or know someone who has been putting one off, this is worth reading. HMRC has been stepping up its enforcement activity, and the consequences of late filing and late payment are more costly than many people realise.

🚗 If you or your employees use a company car, the benefit-in-kind (BIK) rates that determine how much tax is payable changed again from 6 April 2026, and for many drivers, that means a higher tax bill.

🏠 HMRC has made it very clear that landlords are firmly in its sights this year. With Making Tax Digital for Income Tax now live for those earning over £50,000, and a wider rollout to those with income above £30,000 on the horizon for April 2027, the scrutiny on rental income has never been greater.

If you're a business owner thinking about selling all or part of your business, this is an important one. From 6 April 2026, the Capital Gains Tax rate under Business Asset Disposal Relief (BADR) has increased.

From 1 April 2026, the way business rates are calculated has changed significantly, and whether you're better or worse off depends on where your property sits and what sector you're in.

This week marked one of the biggest shake-ups to UK employment law in years. From 6 April 2026, the first major wave of changes under the Employment Rights Act 2025 officially came into force, and if you have employees, it's worth knowing what's changed.

From 1 April 2026, the National Living Wage has gone up. If you have employees, your payroll needs to reflect the new rates straight away.

The biggest change to the UK tax system in nearly 30 years has arrived. From 6 April 2026, Making Tax Digital (MTD) for Income Tax Self Assessment is live, and it affects sole traders and landlords with qualifying income above £50,000.

If you run a limited company and pay yourself partly through dividends, you'll want to take note of this one.

As you’ll be aware from our previous updates, Companies House is in the process of introducing mandatory ID verification for company directors and People with Significant Control (PSCs).

With just 3 weeks to go until the new tax year, many businesses are preparing for the changes that Making Tax Digital (MTD) will bring.

The Competition and Markets Authority (CMA) has launched a Clearing Pricing campaign aiming to encourage businesses to be upfront, transparent and fair in their pricing.

The Institute of Chartered Accountants in England and Wales (ICAEW) has said that doing business in the UK is too uncertain and expensive, and more stability in the tax system is needed. Their comments were in response to the government’s call for evidence on how the tax system can better support entrepreneurs.

The government has announced an over 40% increase in charge point grant amounts that will mean businesses, landlords and renters could save up to £500 on installing an electric vehicle (EV) charge point. Previously, the grant provided a discount of £350.

According to the latest figures released by the Office for National Statistics, UK inflation eased to 3% in January, down from 3.4% in December. Lower food, fuel and airfare prices appear to have been the biggest contributors to the reduction.

A new campaign has been launched to encourage small and medium-sized businesses to take some simple, practical steps to protect themselves from the most common cyber-attacks. The main drift is that basic cyber hygiene still prevents the majority of incidents.

The UK’s unemployment rate has risen again, according to the latest data from the Office for National Statistics (ONS). In the three months to December 2025, unemployment increased to 5.2%, up from 5.1% in the three months to November. This marks the highest rate in almost five years.

With just a few weeks to go until the beginning of a new tax year, a new round of tax changes take effect from April 2026. While many people won’t see a big difference in their day-to-day tax position, there are some areas worth having on the radar.

HM Revenue & Customs has started using GOV.UK One Login for taxpayers signing up to its digital services for the first time.