The government is seeking views on bringing forward Income Tax Self Assessment (ITSA) payments so that more is paid in-year from April 2029. Proposals show how this may work for taxpayers both with and without PAYE income.
SME Tax News
In HMRC v HFFX LLP; Atkins & Ors v HMRC [2026] UKSC 17, the Supreme Court confirmed that allocations to individual members of a mixed-member partnership by a corporate member were chargeable to Income Tax as miscellaneous income under s.687 ITTOIA 2005. HMRC's argument that the amounts were taxable as profit shares under the profit-sharing arrangements rules in s.850 ITTOIA 2005 was rejected.
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.
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.
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.
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.
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.
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.
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.
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.
