Tax news in brief

New guidance on advance tax certainty service

HMRC has published draft guidance for the new advance tax certainty service to be launched in July 2026. The service will be open to businesses undertaking major investment projects and is intended to provide “certainty on complex tax issues”. The draft guidance is based on legislation included in Finance Bill 2025-26 (cl263-271) and will be finalised ahead of the formal launch of the service in July 2026.

HMRC service levels: October 2025

HMRC has updated its performance data for 2025-26 to include the figures for October 2025. Key statistics for October 2025 include:

• Calls handled: 86.5%. The year to date figure is 84.1%, close to HMRC’s target of 85%.
• Post handled within 15 working days of receipt: 89.2%. This is a significant improvement on earlier in 2025-26 and reflects a renewed focus on new correspondence from HMRC. The year to date figure is 76%, still some way below the target of 80%.

Further information

Signs of improvement in HMRC's half-year report | ICAEW

Action needed for PAYE refunds

Employees may have received a tax calculation letter (P800) telling them that they are due a tax refund. If this is the case, the employee will need to claim the refund as it will not be processed automatically. Guidance provided in HMRC’s latest employment bulletin explains how to do this, including through the HMRC app.

CIS repayment delays

HMRC has reported delays in processing construction industry scheme (CIS) tax repayment claims. HMRC has apologised for any inconvenience caused and said that it is “actively deploying additional resource and refining processes to improve turnaround times”.

Further information

Check when you can expect a reply from HMRC - GOV.UK

Issues with agent online authorisations

ICAEW has been informed that members have being experiencing delays between client authorisations being processed and the client appearing on the agent’s client list. We understand that HMRC is aware of the issue, has deployed a fix for new authorisations and that all older authorisations will appear on client lists in the next few days. Any issues should be addressed to HMRC’s online services helpdesk.

Using technology to close the tax gap

HMRC has announced that two businesses have been awarded one-year contracts to develop and test technologies to help close the tax gap. This follows a competition launched in July 2025 to explore “the use of novel analytical techniques and data to modernise the tax system”.

Further information

Economy explainers: what is the tax gap? | ICAEW

ICS2 must be used after 31 December

From 1 January 2026, Import Control System 2 (ICS2) must be used to make entry summary declarations when moving goods from:

• Great Britain to Northern Ireland;
• countries outside the EU into Northern Ireland; and
• Great Britain to the EU.

Further information

Register to use the Import Control System 2 - GOV.UK
Make an entry summary declaration using the Import Control System 2 - GOV.UK

Changes to Scottish visitor levy

The Scottish Government has said that a bill is being prepared to “give councils greater flexibility over how they design and implement a visitor levy”. The intention is for the bill to be introduced in early 2026.