Making Tax Digital for Income Tax letters
With just one month to go before the first tranche of individuals are required to sign up to MTD for income tax, HMRC is writing to taxpayers it believes might be affected From April 2026, sole traders and landlords with qualifying income above £50,000, based on the information included in their 2024-25 self assessment tax […]
New penalties regime for all income taxpayers
The new points-based penalties system will apply to all self assessment taxpayers from April 2027, not just those within Making Tax Digital for income tax (MTD IT) The new rules will apply first to taxpayers mandated to join MTD IT from April 2026 (those with qualifying income over £50,000); then to those required to join […]
How winter fuel payments will be taxed
Most people who were eligible to receive the 2025-26 winter fuel payment (WFP) and did not opt out will have received it automatically in November or December 2025 The payment is means-tested, so individuals with gross income for 2025-26 above £35,000 will be required to repay the full amount received. This is known as the […]
Self assessment payments via PAYE
From April 2029, income tax self assessment taxpayers who also have PAYE income will pay some of their self assessment liability via PAYE Currently, if you owe additional tax due to a previous underpayment HMRC can collect that amount gradually by adjusting your tax code for the following tax year. This ‘coding-out’ adjustment increases the […]
Private hire taxis excluded from VAT TOMS
From 2 January 2026, suppliers of most standalone private hire and taxi journeys can no longer use the tour operators’ margin scheme (TOMS) Previously, some private hire operators, including certain app-based platforms acting as principal in supplying the journey, applied the TOMS to account for VAT only on the difference between what the passenger paid […]
Changes to statutory sick pay
Two major changes to statutory sick pay will be introduced by the Employment Rights Act 2025 from 6 April 2026 Statutory sick pay (SSP) is the minimum amount of sick pay that employers in the UK must pay eligible employees when they are off work due to illness. To qualify for SSP an employee must be […]
APR and BPR restrictions relaxed
The Government has announced an easement to planned changes to business property relief (BPR) and agricultural property relief (APR) from 6 April 2026 APR and BPR are valuable inheritance tax (IHT) reliefs that can reduce or even eliminate tax on farms and trading businesses passed on after death. They are designed to protect family-owned agricultural […]
Voluntary NICs for periods abroad
The Government has announced important changes to voluntary national insurance contributions (NICs) for individuals working abroad UK residents working abroad can currently pay voluntary Class 2 NICs to maintain their national insurance record. Voluntary Class 3 NICs are also available for periods abroad without strict residency requirements. From April 2026 (for tax years 2026-27 onwards) […]
Changes to capital allowance
The writing-down allowance (WDA) for capital assets will be lowered from April 2026 and a new first year allowance is introduced Currently, companies can claim full expensing to deduct 100% of the cost of new and unused qualifying assets from their taxable profits. The annual investment allowance (AIA) also provides 100% tax relief on up […]
High value council tax surcharge
From April 2028 residential properties valued at £2m or more will attract a new high value council tax surcharge Announced in the Autumn Budget, eligible owners (rather than occupiers) of properties identified as being valued £2m or more by the Valuation Office will pay this recurring annual surcharge on top of their existing council tax. […]