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HMRC has launched a fresh summer campaign reminding people with "side hustles" that extra income may need to be reported for tax purposes. The announcement specifically highlights people earning income from wedding services, online selling, content creation, freelancing and similar activities. The key figure remains the £1,000 trading allowance. If total income from side activities exceeds £1,000 during the tax year, there may be an obligation to register for Self Assessment and declare the income to HMRC. This is particularly relevant because HMRC now receives increasing amounts of information from digital platforms. Data from marketplaces and gig economy platforms can [...]

Prior to Andy Burnham’s appointment as Prime Minister and the appointment of John Healey as Chancellor, HMRC published a raft of consultations and policy announcements on 23 June 2026. The wide-ranging package of consultations and policy announcements was aimed at making the tax system simpler, more digital and, in HMRC's words, fairer. While many of the proposals are still at consultation stage, they give us an indication of the government's direction of travel over the next few years. ACCELERATED, MORE FREQUENT, TAX PAYMENTS Perhaps the most significant proposal is a consultation on "Timely Payments" for Self Assessment taxpayers. The government [...]

Since becoming Prime Minister, Andy Burnham has made cost-of-living support a key focus. One headline measure announced this month is the planned removal of VAT on household electricity from October 2026, which the Government estimates could reduce average household bills by around £45 a year. Household electricity is currently subject to VAT at 5%. At the same time, attention is turning towards how future tax policy might develop. Economists and commentators are already speculating about whether further tax reform could feature in the Autumn Budget. For business owners, landlords and investors, the key message is not to react to headlines. [...]

Businesses may face changes to how they pay tax The government has published a consultation on proposals that will require most VAT-registered businesses and employers to pay VAT and PAYE liabilities by Direct Debit. The aim is to reduce late payment and simplify the payment process. HMRC consider that automating the payment process by requiring Direct Debit could help businesses to reduce administrative work, minimise errors and avoid missing a payment deadline. Paying by Direct Debit is already an option available for paying both VAT and PAYE, although most businesses currently pay using other electronic methods. The government is therefore [...]

Proposed new software standards likely to make tax audits easier The government is consulting on potential measures that target Electronic Sales Suppression (ESS). Proposals include the introduction of new software standards for Point of Sale systems. In recent years, ESS has been the subject of government reports, consultations and new legislation, yet it remains a cause of concern for HMRC. ESS involves manipulating digital sales records to reduce income tax and evade tax. HMRC have identified that certain individuals and businesses in Electronic Point of Sale (EPOS) and Mobile Point of Sale (MPOS) supply chains are developing or modifying POS [...]

Report sheds light on challenges facing HMRC and the impact on taxpayers The latest annual report from the Charter Stakeholder Group remains highly critical of HMRC's service performance, with scores either stagnant or deteriorating across most standards. Alongside poor scores for responsiveness and ease of use, the report highlights overwhelmingly negative feedback on Making Tax Digital (MTD). The Charter Stakeholder Group monitors HMRC's performance against the HMRC Charter, a set of service standards. The 2025-26 assessment was based on a survey of 719 taxpayers and agents who were asked to rate HMRC's performance against each standard on a scale of [...]

Can Cyber Essentials help make your business more secure from online threats? Cyber Advisors are offering free 30-minute consultations to help small businesses get started with cybersecurity. As smaller businesses become more frequently targeted, the National Cyber Security Centre (NCSC) is reiterating the need for them to be more robust in their approach to digital security. It’s aware that investing in cyber security can seem more like a costly distraction than a priority for smaller companies as they concentrate on keeping customers happy, managing cash flow and day-to-day business. The NCSC points to the statistics. In 2025, 65% of medium [...]

Are you ready to file? Sole traders and landlords that are required to use Making Tax Digital (MTD) to report their earnings are due to send their first quarterly update by 7 August 2026. The quarterly update involves sending income and expenses for the first three months of the tax year to HMRC. After an update is made, it is possible to see an estimated tax bill based on the figures provided. How accurate the estimate is will depend on earnings for the rest of the tax year, but it may help with budgeting for payments. Quarterly updates do not [...]

VAT reduction, cap on public transport and business rates cut announced Andy Burnham’s first days as Prime Minister have been marked by a flurry of announcements designed to show that his government intends to move quickly. Presenting himself as a leader focused on easing pressure on households and rebuilding trust in politics, Burnham has begun reshaping government while signalling the priorities that will define his administration. His first major moves were aimed directly at the cost-of-living crisis, announcing a reduction in VAT on household energy bills, followed by a single bus fare policy across England that will be capped at [...]

The table below sets out the HMRC advisory fuel rates from 1 June 2026. These are the suggested reimbursement rates for employees' private mileage using their company car.  Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.   Engine Size Petrol     Diesel    LPG 1400cc or less 14p (12p) 11p (10p) 1600cc or less 15p (12p) 1401cc to 2000cc   17p (14p) 13p (12p) 1601 to 2000cc 17p (13p) Over 2000cc 26p (22p) 23p [...]