Hello,
It's been a busy week on the tax front, with HMRC's 'Tax Update 2026' delivering a raft of tax policy announcements and consultations. While simplification and modernisation have been cited as driving the changes, there also seems to be a theme of tightening compliance in a bid to shrink the tax gap, currently estimated at £59.2 billion.
Among the consultations are proposals to explore more timely payments for Self Assessment taxpayers, the company distribution rules, and requiring payment of PAYE and VAT by Direct Debit. Check out our summary below to see what else was included. We will be diving into the details over the coming weeks, so do keep checking back for updates.
Elsewhere, the Employer Bulletin for June 2026 confirms that mandatory payrolling of Benefits in Kind will be rolled out in phases. It will begin with company cars, car fuel, vans, van fuel and medical benefits from April 2027. Most other benefits will be introduced in April 2028.
If you deal with estate administration, HMRC's latest Agent Update includes a useful clarification on informal and formal reporting. It also covers upcoming activation dates for Multi-Factor Authentication and flags a new type of fraudulent arrangement identified by HMRC.
HMRC's new policy paper on automation tools has raised eyebrows. In particular, software that logs into Agent Service Accounts and uses 'screen scraping' to pull client data into dashboards is likely to breach HMRC's terms. If you are using these tools, it will be worth checking with your provider to make sure they are compliant.
Finally, don't forget our sister service, Virtual Tax Partner (VtaxP), is available to provide personalised tax support. Paid subscribers to rossmartin.co.uk benefit from a 25% discount on VtaxP fees.
More news, cases and updates below.
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Quick News
HMRC's 2026 tax update
On 23 June 2026, the government made several tax policy announcements as part of HMRC's 'Tax Update 2026'. Several consultations were launched, including ones exploring more timely payments for Self Assessment taxpayers, the company distributions rules, and a proposal to require payment of PAYE and VAT by Direct Debit.
HMRC announces phased roll-out of mandatory payrolling
HMRC have announced that mandatory payrolling, originally due to commence in April 2027, will now be introduced in two phases. Phase 1 will continue to be rolled out from 6 April 2027, with Phase 2 commencing a year later on 6 April 2028.
HMRC tightens stance on sign-in details and automation tools
HMRC has published a new policy paper clarifying its position on access to its online services. The policy confirms that agents must only access client data through their own authorised account. Firms using automated tools that 'screen scrape' to extract data from their Agent Services Account (ASA) may also be in breach of Government Gateway Terms and Conditions.
Agent Update 144: June 2026
HMRC have published their Agent Update for June 2026. We have summarised the key content, including activation dates for Multi-Factor Authentication, a reminder of the upcoming deadline for employment-related securities returns, the first quarterly update for Making Tax Digital for Income Tax is approaching, a new fraudulent arrangement has been identified, and HMRC provide clarification on formal and informal reporting for estates.
HMRC tackling high street tax fraud
HMRC have started making unannounced visits to high street businesses as part of an initiative to tackle tax fraud and illegal activity on the high street. More than 30,000 interventions are planned for 2026-27.
Multi-Factor Authentication voluntary registration
Agents using HMRC's online services are now being asked to voluntarily register for Multi-Factor Authentication (MFA) when they log in. HMRC are rolling out voluntary MFA to agents who wish to register for it before the mandatory system is implemented later in the year.
Employer Bulletin: June 2026
HMRC have published their Employer Bulletin for June 2026. Key content includes an update to the implementation of mandatory payrolling of benefits and a reminder of the upcoming deadlines for reporting employee benefits.
Tax Cases
CoA upholds payment deferral on exit charge
In Trustees of Panico Panayi A&M Settlements and Redevco Properties UK v HMRC [2026] EWCA Civ 744, the Court of Appeal (CoA) upheld the Upper Tribunal's decision that, by way of a conforming interpretation, UK legislation could be read as permitting exit tax liabilities to be paid in five equal annual instalments when the taxpayers moved their tax residences abroad.
Editor's Choice
This week's Editor's Choice was selected by Dan Hurst. You can meet our team of editors and writers here: Meet the team.
Do I pay a salary or dividend? 2026-27
This guide explores the tax-planning points and pitfalls of creating a tax-efficient pay package. Should 'excess profits' or one-off amounts of income be paid out of a company as a salary or dividend?
Running an LLP in tandem with a company
It is possible to run a Limited Liability Partnership (LLP) or any type of partnership in tandem with a company. Partnerships can also have corporate partners. What needs to be considered?
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Guides & Updates
Self-employed
Losses, trade losses and sideways relief
How can trade losses be utilised? What are the restrictions?
Directors & Companies
Share capital: What's an ordinary share?
What is an ordinary share? Why is it important to know for tax purposes what ordinary shares are? When can a preference share be an ordinary share? Is a preference share treated as debt or equity? What do you need to consider when setting up new share classes?
R&D: Advance Assurance
What are Research and Development (R&D) targeted and full claim advance assurance? How can I apply? What are the conditions? What are the benefits?
Employers
P11D: Reporting benefits and expenses
How do you report benefits and expenses? What is the P11D deadline?
P11Ds: Employers' checklist & top tips
Top Tips for employers on preparing form P11D together with a checklist.
PAYE Settlement Agreements
What are PAYE Settlement Agreements? How do they work? What can be included?
Private Client & Estate Planning
Self Assessment Return 2025/26: What's new?
2026 Self Assessment toolkit: top tips for completing tax returns for the year ending 5 April 2026. Additional reporting requirements for directors of close companies are one of the significant issues this year: what needs to be reported, and how? What is the latest guidance?
CGT: Loans to traders relief
What is loans to traders relief? When can it be claimed? What are the conditions of the relief?
Land & Property
Furnished Holiday Letting (FHL): Abolition of the regime briefing
The Furnished Holiday Letting (FHL) regime was abolished in April 2025. We consider the practical impact of losing the FHL rules and provide some essential planning points.
Penalties & Compliance
Penalties: DOTAS
What are the penalties for failure to disclose under the Disclosure of Tax Avoidance Schemes (DOTAS) regulations? Can DOTAS penalties be appealed? What are the post-March 2026 rules on DOTAS penalties?
More Tax Guides
Finance Acts 2026-27: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2026-27 tax year and beyond. This planner is updated on an ongoing basis.
VAT
Flat rate scheme
What is the VAT Flat Rate Scheme (FRS)? Who can apply? How do you apply? What are the rules? What are the rules for capital expenditure and pre-registration VAT?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Capital Gains Tax Planning Strategies to Maximise Net Proceeds (free)
- Practice Insight - June 2026 (free)
- Monthly Tax Update - June 2026
- Mandatory HMRC Agent Registration Part 2 – Where We Are Now
- Practice Insight - May 2026 (free)
- Monthly Tax Update - May 2026
- Mandatory HMRC Agent Registration Part 1 – Getting Started Before May 2026
- Ethics and PCRT for Tax Advisors
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax Update 11 June 2026
- HMRC's new and improved agent webchat service
- Official government AI chatbot to answer tax queries
- No personal goodwill to transfer to LLP
- Umbrella company travel expense claim rejected
- Land & Property: an Adviser's Tax Update 2026-27 NEW
- HMRC's Multi-Factor Authentication for agents UPDATED
- Employment-Related Securities: Reporting
- Overpayment Relief
- MTD: Toolkit for accountants ...More
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