MTD software choices tool
HMRC has informed ICAEW that it has made improvements to its software choices tool to better support taxpayers and agents in preparing for Making Tax Digital (MTD) for income tax. The tool now includes software features described as being “in development”. HMRC says that “these are features that software providers have either built or committed to build ready for when you need to submit your 2026 to 2027 tax return”.
Learn more about MTD income tax
Payments made under the Capture Redress Scheme
The Department for Business and Trade has launched the Capture Redress Scheme (CRS) to provide redress to postmasters affected by accounting shortfalls caused by Capture software. Regulations have been made that exempt compensation payments made under the CRS from income tax, capital gains tax, corporation tax and national insurance contributions, and relieve them from inheritance tax.
Further information
Tax treatment — payments made under the Capture Redress Scheme - GOV.UK
The Post Office Capture Redress Scheme (Tax Exemptions and Relief) Regulations 2025
The Social Security (Contributions) (Amendment No. 7) Regulations 2025
HMRC webinar: transfer of assets abroad
On 2 December 2025, HMRC will deliver a webinar on the transfer of assets abroad (ToAA) exemptions, commonly referred to as the “motive defence”. HMRC says that attendees should have a reasonable working knowledge of ToAA as HMRC will only cover the motive defence and not the conditions that must be present for a ToAA charge to arise.
TaxAid launches fundraising campaign
ICAEW has been asked to pass on the following message from TaxAid.
“TaxAid, Britain's leading tax advice charity, is launching a fundraising campaign to support disadvantaged taxpayers facing the transition to Making Tax Digital for income tax.”
“The campaign follows TaxAid's merger with Tax Help for Older People in July 2025. The funding will enable the charity to invest in technology, tools, resources, training and online services, helping them support more disadvantaged people.”
“To donate your last hour’s pay or find out how your organisation can support this vital campaign visit Fundraiser - TaxAid.”
Outsourced labour payroll fraud
HMRC has added a video to its guidance on how to check for signs of outsourced labour payroll fraud. The video explains how fraudulent companies in the supply chain operate and why companies should complete regular checks and keep detailed records.
Scottish Budget
The Finance and Public Administration Committee of the Scottish Parliament has published a report in the run-up to the Scottish Budget on 13 January 2026. The report includes the following updates from the Scottish Government on:
- air departure tax (ADT): discussions on ADT “are progressing well [and] we will come back with a timeframe that we think is realistic”; and
- VAT assignment: “it is neither our intention, nor that of the UK Government, to move forward with that because of the inability to resolve the risks”.
Welsh visitor levy
The Welsh Government has published guidance for visitor accommodation providers ahead of the introduction of the Welsh visitor levy. Councils in Wales may introduce the levy from April 2027. Visitor accommodation in Wales must be registered with the Welsh Revenue Authority, starting in autumn 2026.
Tax Faculty
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