To be eligible, you must be a business or public body and do less than half your work in the public sector. You can also be a charity or employ a care/support worker. Since April 2025, if your company pays more than £100,000 in Class 1 NI, you can claim. However, you cannot claim if your company only has one director, and they are the only employee liable for secondary Class 1 NI.

You make the claim through your payroll software by stating “yes” in the Employment Allowance indicator field on your Employment Payment Summary (EPS) submission. If successful, HMRC will reduce your Class 1 NI liability once you’ve run your payroll each month, until the £10,500 (or the amount you were eligible for) is used up or the tax year ends (whichever comes sooner).

The Chancellor made this announcement recently and the change has been backdated to 6 April 2026. This is the first increase since 2011 and applies to employees and self-employed workers using their own car or van for work. You cannot claim separately for fuel, tax, MOT, repairs, etc. – the mileage rate is meant to cover all running costs.

If your employer pays less than 55p, you can claim tax relief on the difference (for example, employer only pays 30p, so you claim tax relief on 25p). If your employer pays nothing, you can claim tax relief on the full 55p. Claims are made via HMRC or a self-assessment tax return.

This measure will only last over the summer holidays (25^th June until 1^st September) and is intended to give families “a bit of breathing room to enjoy moments that matter without the same level of financial strain”, according to the Prime Minister, Kier Starmer. It will cost the Government around £300m but is hoped to stimulate spending in the UK’s visitor attraction sector, giving a much-needed boost to the economy.

Formal enquiries are triggered when HMRC believes an IHT return may be incomplete or inaccurate. HMRC can demand documents, valuations, and explanations from families or accountants during these checks. However, only 40% of last year’s checks resulted in amendments, down from 45% the previous year. Still, IHT receipts hit a record £8.5bn last year.

Frozen IHT thresholds, combined with rising property values and inflation, mean more estates are being pulled into the tax net each year. This will increase further in 2027, when pensions are added to the value of estates.

VCTs are listed funds that invest in young, unquoted companies. They are a crucial source of capital for early-stage businesses. They have raised £4.3bn in the last five years, according to HMRC. Past beneficiaries include Graze, Virgin Wines, and Zoopla.

The annual VCT investment limit has doubled to £10m, intending to help companies scale beyond the start-up phase. But cutting the tax relief at the same time is seen as contradictory – “giving with one hand and taking with the other.” The last time VCT relief was cut – from 40% to 30% in 2006 – fundraising dropped by two-thirds year-on-year. Wealthier investors may redirect their money elsewhere, for example EIS/SEIS (offering 30-50% relief), pensions or mainstream equity income funds.

Estates above the nil rate band will face a 40% IHT charge. It is believed that 10,500 estates will pay IHT for the first time and 38,500 estates will see higher bills, averaging £34,000 extra. However, this change will only see a move from 5% to 8% of all estates paying IHT.

Despite this, research shows widespread anxiety with 54% of adults fearing their families will face higher IHT and 22% now feeling less confident about their pensions. People are already reacting to the impending change, with savers withdrawing £3.9bn in lump sums in the year after the announcement – £868m more than the previous year. One in seven are spending more of their pension; nearly half plan to. Other things to consider, if you feel your family will now receive an IHT bill, is to exchange your pension for an annuity (these are normally outside the scope of IHT) or use the gifting rules to reduce your estate’s overall value.

Please get in touch to discuss your options if you feel this rule change is going to affect you.

Taxpayers can apply if they cannot use digital tools because of age, disability, health conditions, or religious beliefs. Those approved can continue filing traditional Self-Assessment returns.

759 of the approved exemptions related to taxpayers entering the system in April 2026, ahead of the first rollout phase. Applications are expected to rise as the April 2027 deadline approaches as more sole traders and landlords will be eligible due to the earnings threshold dropping from £50k (earned in the 2024/25 tax year) to £30k (earned in the 2025/26 tax year).

As digital exclusion is hard to define and evidence, please get in touch if you would like us to assist in an exemption application.

This does not change the need to submit a self-assessment tax return by 31 January 2027. Tax payments are also still due on 31 January and 31 July each year, as before.

These quarterly updates must be submitted using HMRC recognised software. There are many free and paid for options available, as well as utilising an accountant to act as an agent for you. Don’t forget that separate submissions must be made for each income stream, for example if you earn money from being self-employed but also receive rental income, you’ll need to submit two updates.

Research shows 70% of sole traders don’t understand what they need to do under the new MTD system, only 37% know about the first deadline and just 8% currently use software to manage their tax records.

Please get in touch if you need assistance in choosing the right option for you or want to check that your choice will keep you compliant with the new rules as HMRC is introducing fines for non-compliance and late submissions.

HMRC still issues cheques when people don’t respond to rebate letters within 21 days – a legacy process that hasn’t fully adapted to the digital era. 1.74 million cheques were issued last year; although this is fewer than in the past, a significant number still go unclaimed.

HMRC is transitioning to a new system where cheques are only sent if someone specifically requests one. Around 20% of taxpayers are still on the old system, but HMRC aims to complete the switch by April next year.

Overpayments happen for common reasons such as job changes, incorrect tax codes or having multiple sources of income.

If you have an uncashed cheque from HMRC that was issued over six months ago, you will no longer be able to cash it. HMRC says it can be replaced on request.

The government wants to signal that Britain is ‘open for business’ and Ms Reeves has used the recent IMF meetings in Washington to promote the UK as a competitive destination for investment and residency. A senior Treasury official says geopolitical risk is reshaping where people choose to live and invest, and the UK wants to respond strategically.

The Treasury will launch a formal consultation on how Limited Liability Companies (LLCs) are taxed, as this has been a sticking point for potential wealthy arrivals. The review will look at targeted reliefs for new arrivals and possible reforms to offshore structures.

The Chancellor has faced criticism that her earlier tax increases drove millionaires out of the UK. The government hopes these new measures will reverse the exodus and bring high earners back.