E-invoicing

Businesses will have to issue all their VAT invoices in a specified electronic format from April 2029. The government will work with stakeholders to develop an implementation roadmap to be published at Budget 2026.

Tax penalties and making tax digital (MTD)

The penalty for late submissions of corporation tax returns will be doubled from 1 April 2026.

Penalties for late submissions and late payments under MTD will apply to all income tax self-assessment (ITSA) taxpayers who are not already due to join the new system from 6 April 2027. Penalties for late payment of ITSA and VAT will rise from 1 April 2027.

New powers will be introduced from 1 April 2026 to ensure that MTD and the new penalty reform legislation works as intended.

Incorporation relief

Taxpayers will have to actively claim incorporation relief for transfers of a business to a company from 6 April 2026. The relief will no longer apply automatically.

Cryptoassets

UK reporting cryptoasset service providers will be required to report on their UK tax resident customers under the Cryptoasset Reporting Framework. Information for first reports to HMRC will be collected from 1 January 2026 and reported to HMRC in 2027.

Tax advisers

HMRC will be given enhanced powers and sanctions against tax advisers who facilitate non-compliance from 1 April 2026. HMRC will also work with the sector to raise standards in the tax advice market.

Following consultation the government has decided that tax advisers will not be regulated.

Share exchanges and reorganisations

The capital gains tax anti-avoidance provisions that apply to share for share exchanges and company reorganisations will be changed to make them more effective and they will apply immediately.

Low value imports

Customs duty relief on goods imported into the UK valued at £135 or less will be removed by no later than March 2029.

Construction industry scheme

HMRC will be given stronger powers to tackle fraud in the construction industry scheme (CIS) from April 2026.

Advance corporation tax (ACT)

The shadow ACT rules will be repealed from 1 April 2026. The government will consult on the future of the remaining ACT regime.

Creative industries and research and development expenditure credits

New legislation will set out the corporation tax treatment of intra-group payments made in return for surrendered R&D and the various creative industries tax credits.

VAT and deposit return schemes (DRS)

Administration of the DRS will be simplified by removing the requirement for individual producers to account for VAT on unreturned deposits. This will be done by the Deposit Management Organisation instead.

Consultations

The government is consulting on a number of matters including:

• HMRC powers obliging taxpayers to correct inaccuracies where they are identified.
• Modernising and standardising corporation tax submissions.
• Reporting company payments to participators.
• VAT treatment of land intended for social housing.