HLAS

It can be hard to keep track of tax changes, with the start of a new tax year often bringing new rates, allowances and other legislative changes. To make things easier, here is a list of the key tax changes that will take effect from April 2026. INCOME TAX In 2026/27 income tax rates, thresholds and bands generally remain at their 2025/26 levels. One key change from 6 April 2026 is the rate of income tax that applies to dividend income. For dividends falling within a taxpayer’s £37,700 basic rate band, the rate increases to 10.75% (from 8.75%). For dividends [...]

Returning to corporation tax, a new consultation, ‘Reporting company payments to participators’ has been published, inviting views on proposals to introduce new requirements to report transactions between close companies and their participators to HMRC. The government believes that the risk of error and tax evasion is greatest in close companies, where the legal distinction between the company and its participators is sometimes misunderstood, and the level of control can enable tax avoidance. HMRC's investigations have concluded that they are not receiving the full picture on how close companies interact with their participators. Under the proposals, close companies will be required to provide HMRC with detailed information on transactions between [...]

In a recent VAT case (Charge My Street Ltd v HMRC [2026] TC09802), the First Tier Tribunal found that electric vehicle charging supplied at public charging stations qualified for a 5% reduced rate VAT charge. This ruling contradicts HMRC’s long-held policy that electric vehicle charging at public charging stations is subject to a standard 20% rate of VAT. Charge My Street Ltd (CMS) supplied electric vehicle charging at charging stations in public places in the North of England, which were installed and operated by CMS. CMS considered that VAT was due on the supplies at the reduced rate of 5% [...]

On the topic of company cars, it should be remembered that as we head into a new tax year, the flat-rate figures used in the computation of some employer-provided vehicle benefits-in-kind calculations will be increased for inflation. From 6 April 2026: The flat-rate van benefit charge will be increased from £4,020 to £4,170. The flat-rate van fuel benefit charge will be increased from £769 to £798. The multiplier for the car fuel benefit charge will be increased from £28,200 to £29,200. Where an employer provides an employee or a director with a company car, this is usually a taxable benefit-in-kind. [...]

HMRC have published new advisory fuel rates from 1 March 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. The petrol, diesel and home charging rates have remained static this quarter, while the LPG and public charging rates have changed. Previous rates are shown in brackets. *Fully electric cars only. Note that for hybrid cars, you must use the petrol [...]

If you have paid too much tax, perhaps because you made an error on a return, or because you believe a sum determined by HMRC as being due is incorrect, there is a general rule that a refund cannot be claimed more than 4 years after the end of the relevant tax year. For example, a refund claim in relation to the 2021/22 tax year would need to be made by 5 April 2026. However, if you do believe you’ve paid too much tax in the past, you may be able to claim it back through a mechanism known as [...]

We are continuing to work with a number of our clients as they prepare for Making Tax Digital (MTD) for income tax. This new regime for self-employed individuals and landlords will start to apply from April 2026 if they have business and/or property income (i.e. total takings, not net profits) of more than £50,000 per annum. The system requires digital record-keeping and quarterly updates to HMRC, with the first such update due by 7 August 2026. Last month, HMRC issued a press release confirming that the changes will affect 860,000 individuals. They are keen to encourage people to take action [...]

During a week dominated by news of the Middle East conflict, on 3 March 2026, Chancellor Rachel Reeves presented the Spring Forecast to Parliament. The Chancellor told MPs she had “restored economic stability” as she presented the Office for Budget Responsibility’s (OBR’s) economic forecasts. The Chancellor focused on how the government’s policies are delivering economic growth, particularly when looking at Gross Domestic Product (GDP) per person. However, the OBR’s report indicates a more nuanced picture and notes that the fiscal context for the next Budget will remain challenging. As part of the government’s policy of one major fiscal event a [...]

The government has released fresh guidance on the new business rates discount for pubs and live music venues in England for the 2026/27 tax year. If you run a hospitality business, or a venue that hosts live performances, the new relief could reduce your rates bills over the next three years. As announced in January 2026, eligible properties will receive a 15% reduction on their 2026/27 business rates bill. Those rates bills will then be frozen in real terms for 2027/28 and 2028/29. Further guidance will be provided nearer the time on how that freeze will work. Which properties qualify? [...]

Environment Secretary Emma Reynolds has announced a new Sustainable Farming Incentive (SFI) offer while addressing the National Farmers' Union Conference, stating that it will be simpler, fairer and more stable. The revised SFI will include 71 actions, reduced from the current 102, and will be capped at £100,000 per year. Applications will open in June 2026 for small farms (holdings of three to 50 hectares) and for those without a live Environmental Land Management (ELM) revenue agreement. In September, a second application window will open for all farmers. Further details will be provided in due course. See: https://www.gov.uk/government/news/reynolds-farm-tech-supercharged-to-boost-profitability