HLAS

What you need to know Sole traders and landlords earning more than £50,000 have been required to keep digital records and send quarterly updates to HMRC via Making Tax Digital (MTD) since April 2026. For those who haven't, HMRC is preparing to step in and sign you up. HMRC will automatically sign up taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from 2026-27 but have yet to register, and they have published guidance setting out the steps affected individuals should take if they are affected. What happens when HMRC automatically signs up a taxpayer? Once HMRC have [...]

The table below sets out the HMRC advisory fuel rates from 1 September 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 (14p) 11p (11p) 1600cc or less 15p (15p) 1401cc to 2000cc 17p (17p) 13p (13p) 1601cc to 2000cc 16p (17p) Over 2000cc 27p (26p) 22p (23p) 20p (21p) Previous [...]

HMRC has begun writing to landlords where the information it holds from third parties does not appear to match the taxpayer's records. The letters encourage recipients to review whether all rental income has been declared and remind them of their obligations under Making Tax Digital (MTD) for Income Tax.  HMRC receives information from a variety of sources, including tenancy deposit schemes and other statutory reporting systems. This data is increasingly being used to identify landlords whose tax returns may not accurately reflect their property income. If you receive one of these letters, it is important not to ignore it. HMRC [...]

Making Tax Digital (MTD) for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with combined gross income from self-employment and property exceeding £50,000, based on their 2024/25 tax return. Qualifying income is measured before expenses are deducted.  The scope of MTD will widen in future years: From April 2027, it will apply to those with qualifying income above £30,000. From April 2028, it will apply to those with qualifying income above £20,000.  Under MTD, affected taxpayers must keep digital records and submit quarterly updates to HMRC using compatible software, together with an end-of-year submission.  HMRC [...]

Mandatory payrolling of benefits in kind (BiKs) will begin from 6 April 2027, with a phased introduction designed to give employers and payroll providers time to adapt.  Under the first phase, covering the 2027/28 tax year, mandatory payrolling will apply to: Company cars Company car fuel Vans Van fuel Private medical benefits These benefits will need to be reported through payroll in real time rather than being reported after the end of the tax year on form P11D.  Mandatory payrolling will then be extended to most other benefits and expenses from April 2028. HMRC has confirmed that employers will be [...]

Progress update on late payments, tax administration, finance access and apprenticeships The government has published a one-year-on update to its Small Business Plan, which is intended to support small and medium-sized business to start, scale and grow. Key highlights from the report include: Late payment The Small Business Protections Bill was laid before Parliament in May 2026. The new legislation includes stricter maximum payment terms, mandatory interest upon late payments, increased board-level scrutiny of large company payment practices, and stronger powers for the Small Business Commissioner. The report reveals that the Small Business Commissioner recovered £1.5m in late payments for [...]

Acas provides advice and resources for employers Acas's Julie Dennis has set out how HR teams should approach the Employment Rights Act 2025, one of the most significant changes to UK employment law in recent years, which became law on 18 December 2025 and is being phased in through 2026–2027. Several changes are already in force, including:  Statutory sick pay from day one (with the lower earnings limit removed). Day-one paternity and unpaid parental leave rights. A new bereaved partner's paternity leave.  Stronger whistleblowing protection for those reporting sexual harassment.  For these changes, employers should have already reviewed related policies, [...]

What should you do if you receive a letter? HMRC is writing to some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their State Pension. If you receive a letter, don’t ignore it. In some cases, you may be able to boost your State Pension by making voluntary NI contributions for missing years going back as far as 2015-16. The issue affects some people who were self-employed between 2015 and early 2024. HMRC believes up to 800,000 taxpayers could be affected. What should you do? If HMRC contacts you, check: Your State Pension forecast. Your [...]

‘Token’ pricing leads to uncertainty According to a recent BBC report, businesses investing in Artificial Intelligence (AI) are finding it increasingly difficult to predict what their technology bills will look like, as reliance on AI increases. Software purchasing is generally straightforward in that businesses typically pay a fixed monthly or annual fee based on the number of users or licences required. However, AI charges are increasingly being linked to usage rather than simple subscriptions. Many AI tools are priced according to “tokens”, the units used to measure how much information is processed used by an AI model. While this may [...]

HMRC to begin signing up taxpayers they believe need to register Under Making Tax Digital (MTD) for Income Tax, sole traders and landlords with income of more than £50,000 have been required to keep digital records and send quarterly updates to HMRC since 6 April 2026.  The first quarterly submission deadline, covering the first three months of the 2026-27 tax year, passed on 7 August 2026. HMRC have since issued a press release confirming that 436,000 taxpayers filed their first quarterly tax update by the deadline and reminding those who have not submitted their update to do so using HMRC-recognised [...]