HMRC update for IAB members
HMRC tax updates for IAB members: Self Assessment, tax adviser registration and 2026 guidance
HMRC has issued its latest stakeholder update, with several changes and reminders that may affect bookkeepers, tax advisers, payroll professionals, supervised firms, employers and their clients.
Several of the updates are time-sensitive. These include the move to mandatory tax adviser registration, the 2025 to 2026 Self Assessment filing window, Child Benefit renewals for 16 to 19-year-olds, new Vaping Products Duty requirements, mileage rate changes and consultation activity around the proposed High Value Council Tax Surcharge.
Member priority:
Review the sections below against your client base. If a client is affected, do not wait until the deadline is close. Early communication is the safest route.
Self Assessment: early filing helps clients plan without paying early
HMRC is encouraging anyone who needs to complete a Self Assessment tax return for the 2025 to 2026 tax year to file early, rather than waiting until the 31 January 2027 online filing deadline.
This is a useful message for members to share with self-employed clients, landlords and individuals with untaxed income. Filing early does not mean paying early. The payment deadline remains 31 January 2027, but early filing gives clients more time to understand what they owe, plan their cash flow and avoid the pressure that often builds close to the January deadline.
HMRC has said that more than 290,000 people submitted their 2025 to 2026 Self Assessment tax return in the first week of the financial year. Members may wish to use this as a simple behavioural prompt when speaking to clients. The earlier a return is prepared, the easier it is to deal with missing records, queries and payment planning.
Read HMRC guidance on filing a Self Assessment tax return early and check Self Assessment deadlines on GOV.UK.
Personal tax updates: National Insurance abroad and Child Benefit
From 6 April 2026, for the 2026 to 2027 tax year onwards, the option to pay voluntary Class 2 National Insurance contributions for periods abroad has been removed. New applications to pay Class 3 National Insurance contributions for periods abroad will now require either 10 years of continuous UK residency or 10 years of National Insurance contributions.
This change does not affect the ability to pay voluntary National Insurance contributions for tax years before 2026 to 2027. Members with clients who live abroad, work abroad or have historic gaps in their National Insurance record should check whether the change is relevant.
Read the GOV.UK guidance on voluntary National Insurance if you live or work abroad and review the Tax Information and Impact Note.
Child Benefit for 16 to 19-year-olds
Parents and carers may be able to continue receiving Child Benefit for children aged 16 to 19 who remain in full-time non-advanced education or approved training. Child Benefit automatically stops on 31 August on or after a child’s 16th birthday unless HMRC is told that the child is staying in eligible education or training.
The quickest way to update a claim is through the HMRC app or online. Clients with income over £60,000, or with a partner whose income is over this amount, should also consider the High Income Child Benefit Charge. HMRC guidance explains when the charge may apply and how it can be paid.
Read the Child Benefit guidance for children aged 16 to 19, download the HMRC app and check the High Income Child Benefit Charge guidance.
Mandatory tax adviser registration: firms should check their status now
Mandatory tax adviser registration went live on 18 May 2026. Firms that submit returns, make payments or communicate with HMRC on behalf of clients should use HMRC’s checker tool to confirm whether they need to register and when their registration window opens.
Once a firm’s registration window opens, it will have three months to apply. HMRC has stated that firms with an existing Agent Services Account do not need to take immediate action unless HMRC contacts them through the account for more information.
This is one of the most important updates for members who interact with HMRC on behalf of clients. The requirement applies at firm level and is not limited to businesses that describe themselves as tax advisers. If the firm is paid to interact with HMRC on another person’s tax affairs, it should check the guidance.
Recommended action for members
Check your firm’s position, record the outcome and make sure the relevant person in the business owns the registration process. Do not assume this only affects larger tax practices.
Check if and when you need to register as a tax adviser with HMRC and view HMRC’s mandatory tax adviser registration communication resources.
Professional Membership
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Business tax updates: Vaping Products Duty, AML training and umbrella company risks
HMRC has also highlighted several business tax and compliance updates. These will not affect every client, but where they do apply, the consequences of inaction may be significant.
Vaping Products Duty and Vaping Duty Stamps
Since 1 April 2026, UK vaping product manufacturers, importers and warehouse keepers have been able to apply for Vaping Products Duty and Vaping Duty Stamps approval. HMRC has advised affected businesses to apply as early as possible so they are approved before 1 October 2026.
Businesses will need a Government Gateway ID linked to a Unique Taxpayer Reference, along with relevant business, premises and financial details. Members with affected clients should check whether they understand the new approval requirement and the possible trading impact if approval is not in place on time.
Check whether a business is impacted by Vaping Products Duty and Vaping Duty Stamps and read HMRC guidance on applying for approval.
New AML training resources for supervised businesses
Under the Money Laundering Regulations, supervised businesses must ensure employees receive appropriate training so they understand the risk profile of the business and the procedures they need to follow.
HMRC has published new anti-money laundering education resources on GOV.UK. These include short scripted films showing how fictional businesses may make mistakes when applying the regulations, supported by discussion documents that can be used with employees or by sole practitioners.
These resources may be useful as part of a wider AML training programme. They should not be treated as a substitute for firm-specific policies, risk assessments, procedures or sector guidance.
View HMRC’s anti-money laundering communication resources.
Contractors and umbrella companies
HMRC continues to encourage contractors working through umbrella companies to take a closer look at how they are paid and to watch for signs of tax avoidance. The message is direct: HMRC does not approve tax avoidance schemes, even if promoters claim otherwise.
Members working with contractors, payroll clients or businesses that use temporary labour may wish to share HMRC’s campaign material with relevant clients. HMRC also publishes details of named tax avoidance schemes and promoters, although this list is not exhaustive.
Visit HMRC’s Don’t Get Caught Out campaign and check HMRC’s list of named tax avoidance schemes and promoters.
VAT, fuel and mileage changes: review affected clients before deadlines
From 25 June to 1 September 2026, the government is introducing a temporary reduced VAT rate for certain family leisure activities. The reduced 5% rate will apply to eligible services, including children’s meals served in restaurants, children’s and family tickets for certain cultural activities, and tickets for some attractions.
Businesses affected by the temporary relief should review the detailed rules before applying the reduced rate. VAT treatment can become more complex where a business sells mixed packages, family tickets, adult and child tickets, food and activity bundles, or services that do not clearly fall within the temporary relief.
Read the Great British Summer Savings VAT relief fact sheet and view HMRC VAT webinars and support.
Fuel duty, red diesel, HGV VED and mileage rates
HMRC has also highlighted a package of support affecting fuel duty, red diesel, HGV Vehicle Excise Duty and mileage rates. For the 2026 to 2027 tax year, the approved mileage rate for cars and vans increases to 55p per mile for the first 10,000 business miles. The rate after 10,000 miles remains 25p per mile.
Employers may need to review mileage reimbursement policies. Where employees have been reimbursed above the previous approved rate and Income Tax or National Insurance has been deducted, payroll treatment for April and May may need to be reviewed.
Self-employed clients using mileage rates should also be aware of the updated rates when preparing their 2026 to 2027 tax return.
Check HMRC mileage and fuel rates, read the employee tax relief guidance for work vehicles and view HMRC’s Business Income Manual guidance on simplified motor expenses.
High Value Council Tax Surcharge consultation
The government has opened a consultation on the proposed High Value Council Tax Surcharge. From April 2028, residential properties in England valued at £2 million or more are expected to be liable for the surcharge in addition to their existing Council Tax bill.
The consultation is seeking views on the design and delivery of the surcharge, including scope, administration, support for those who may struggle to pay, and how owners can challenge a valuation or appeal a bill.
Members with property clients, high-net-worth clients or clients involved in property advisory work may wish to review the consultation. The consultation closes on 14 July 2026.
HMRC events and engagement with the profession
HMRC’s update also included a round-up of recent events and sector engagement. HMRC representatives attended Accountex and the Financial Directors Show, where sessions covered Making Tax Digital, e-invoicing, customer service and HMRC’s transformation roadmap.
HMRC also attended sector events including the Construction Industry Show, DeafEXPO, the Landlord Investment Show and the CIOT and ATT joint presidents’ reception. The common theme across these appearances is clear: HMRC continues to focus on digital services, Making Tax Digital, customer support and compliance readiness.
For members, this reinforces the need to keep clients informed early and to make sure internal systems, authorisations and workflows are ready for continued digital change.
What IAB members should do next
Members should review this update against their own firm, their clients and any supervised business activity. The most important next steps are:
- Check whether mandatory tax adviser registration applies to your firm.
- Encourage Self Assessment clients to file early so they can plan ahead.
- Identify clients affected by the voluntary National Insurance changes for periods abroad.
- Remind parents and carers to update Child Benefit claims before 31 August where relevant.
- Check whether any clients are affected by Vaping Products Duty and Vaping Duty Stamps.
- Use HMRC’s AML resources as support material within appropriate AML training.
- Review mileage reimbursement and payroll treatment for affected employers.
- Monitor the temporary VAT relief if you act for hospitality, leisure, entertainment or attraction clients.
Useful HMRC and GOV.UK links
Self Assessment early filing guidance
Voluntary National Insurance if you live or work abroad
Child Benefit when your child turns 16
High Income Child Benefit Charge
Check if and when you need to register as a tax adviser
Mandatory tax adviser registration communication resources
Check whether you are impacted by Vaping Products Duty and Vaping Duty Stamps
Anti-money laundering communication resources
HMRC Don’t Get Caught Out tax avoidance campaign
Great British Summer Savings VAT relief fact sheet
FAQs
Does filing a Self Assessment tax return early mean the client has to pay early?
No. Filing early helps the client understand what they owe, but the payment deadline remains 31 January 2027 for the 2025 to 2026 tax year.
Who should check mandatory tax adviser registration?
Any firm that is paid to submit returns, make payments or communicate with HMRC on behalf of clients should check whether registration applies and when its registration window opens.
Can HMRC’s AML training films replace a firm’s AML training programme?
No. They can support training, but businesses still need training that reflects their own risk profile, policies, procedures and regulatory obligations.
What is the approved mileage rate for cars and vans in 2026 to 2027?
For the 2026 to 2027 tax year, the approved mileage rate for cars and vans is 55p per mile for the first 10,000 business miles and 25p per mile after that.
