Tax news
175 stories on tax, newest first. Every story is dated and cites its sources.
- October 2026
0% VAT rate on domestic electricity bills begins for 6 months
VAT on domestic electricity bills falls from 5% to 0% for six months from 1 October 2026, a cut worth around £45 a year to a typical household, announced the day after Andy Burnham became Prime Minister.
- September 2026
HMRC to begin signing up remaining MTD for Income Tax customers from September 2026
HMRC will begin signing up sole traders and landlords who should already be using Making Tax Digital for Income Tax but have not registered, in stages from September 2026.
- August 2026
Fuel Duty cut to continue to 31 August 2026 with rates rising thereafter
The temporary 5p cut to fuel duty runs to 31 August 2026, after which duty rises in stages in September and December 2026 and March 2027, returning rates to March 2022 levels.
More than 436,000 sole traders and landlords send first MTD for Income Tax quarterly update
HMRC says more than 436,000 sole traders and landlords sent their first Making Tax Digital for Income Tax quarterly update by the 7 August 2026 deadline, with over 570,000 signed up.
Pensioners begin receiving Simple Assessment letters
HMRC has begun sending Simple Assessment letters to pensioners from 12 August 2026, part of around 1.8 million letters for the 2025 to 2026 tax year.
Deadline for first Making Tax Digital for Income Tax quarterly update
More than 864,000 sole traders and landlords must send their first Making Tax Digital for Income Tax quarterly update to HMRC by 7 August 2026, covering income and expenses for the first three months of the tax year.
- July 2026
HMRC publishes Transformation Roadmap update with app usage figures
HMRC has published a Transformation Roadmap update reporting 7.6 million app users in 2025 to 2026 and confirming plans to move more than 100 personal tax letters online from summer 2027.
- June 2026
Working-age customers begin receiving Simple Assessment letters
HMRC has begun sending Simple Assessment letters for the 2025 to 2026 tax year, with around 1.8 million due and payment owed by 31 January 2027 unless a letter shows otherwise.
Great British Summer Savings VAT cut takes effect
A temporary VAT cut from 20% to 5% on children's restaurant meals and eligible attraction tickets took effect on 25 June 2026, with the scheme launched at ODEON Milton Keynes.
Consultation on tackling lower value tax debts opens
HMRC has opened a consultation on extending its existing powers to recover lower value tax debts through direct monthly deductions from people who persistently do not engage with it.
Temporary reduced VAT rate for children's meals, tickets and family attractions added
HMRC's VAT guidance now sets out a temporary reduced rate for children's meals, tickets and family attractions running from 25 June to 1 September 2026, replacing an earlier temporary rate.
- April 2026
NICs rates, limits and thresholds for 2026-27 take effect
National Insurance rates, limits and thresholds for the 2026-27 tax year take effect from 6 April 2026, with Class 2 and Class 3 rates and the lower earnings limit rising in line with September CPI.
Pension interests brought into inheritance tax from 6 April 2027
Pension pots and other pension death benefits will form part of a person's estate for inheritance tax purposes for deaths on or after 6 April 2027, under the Finance Act 2026.
Scottish income tax basic and intermediate thresholds to rise by 7.4% from April 2026
Scotland's draft Budget for 2026-27 raises the basic and intermediate income tax thresholds by 7.4% from April 2026, while the higher, advanced and top rate thresholds stay frozen.
New tax year changes take effect from Monday
The new tax year begins on Monday 6 April 2026 with frozen thresholds, the lifting of the two child limit, and day one rights to statutory sick pay and unpaid parental leave.
Tool updated with 2026 to 2027 tax year rates
HMRC has updated its online tool for checking tax on dividends and savings interest with the 2026 to 2027 rates, alongside its tax code checker and published Income Tax rates and allowances.
Trust CGT guidance updated for rates and UK property reporting changes from 6 April 2026
HMRC has updated its trusts and Capital Gains Tax guidance to reflect rate changes and UK property reporting rules taking effect from 6 April 2026, including a new 18% rate for Business Asset Disposal Relief.
Big Council Tax rises take effect in England
Council Tax in England rises for almost every household from April, averaging £111 more a year for Band D homes, with the lowest-income families spending nearly 5 per cent of income on the tax.
Council tax rises from April 2026
Council tax bills rose across England and Wales from 1 April 2026, with most authorities increasing by the maximum 4.99% allowed without a referendum and six councils permitted to go further.
DRD rollout to more customers from April 2026
HMRC is widening the use of Direct Recovery of Debts from April 2026, allowing it to take money owed directly from some customers' bank and building society accounts.
Late submission penalties to apply to MTD ITSA taxpayers with income over £50,000
From 6 April 2026, HM Revenue & Customs will apply its points-based late submission penalties to businesses, self-employed people and landlords with income over £50,000 who are mandated into Making Tax Digital for Income Tax.
Making Tax Digital for Income Tax becomes mandatory for sole traders and landlords with qualifying income over £50,000
Making Tax Digital for Income Tax became mandatory in April 2026 for sole traders and landlords with qualifying income over £50,000, with the first quarterly update due by 7 August 2026.
Uprated council tax reduction figures apply from schemes beginning on or after 1 April 2026
Welsh ministers have laid regulations uprating council tax reduction figures and adding new disregards, applying to council tax reduction schemes made for financial years beginning on or after 1 April 2026.
VED rate changes to take effect from 1 April 2026
Vehicle Excise Duty rates for cars first registered on or after 1 April 2017 rise from 1 April 2026, with the flat annual rate increasing from £195 to £200.
VOA functions integrated into HMRC
The Valuation Office Agency's functions move into HM Revenue and Customs on 1 April 2026, and the agency ceases to exist, with council tax band challenges and business rates checks continuing.
- March 2026
GOV.UK news page first published
The Valuation Office Agency will be integrated into HM Revenue and Customs on 1 April 2026 and will cease to exist as an executive agency, HMRC and the VOA have announced.
- February 2026
Alcohol duty rates change from 1 February 2026 until 1 February 2027
New alcohol duty rates per litre of pure alcohol apply in the UK from 1 February 2026 until 1 February 2027, under rates published alongside the 2025 Budget.
Lost in the system report launched
The Money Advice Trust has published Lost in the system, a report on council tax in England that finds support is not widespread and sets out recommendations to Government and local authorities.
- January 2026
2026 to 2027 Scottish Income Tax rates and bands added
The Scottish Budget on 13 January 2026 set out proposed Scottish Income Tax rates and bands for 2026 to 2027, keeping the six rates but widening the starter, basic and intermediate bands.
2026 to 2027 Scottish rates and bands added to guidance
The Scottish Government factsheet on Scottish Income Tax rates and bands was updated on 13 January 2026 to add the 2026 to 2027 rates and bands, alongside the existing 2025 to 2026 figures.