New capital allowances tool
On 1 April 2026 for corporation tax, and 6 April 2026 for income tax, the main rate of writing down allowance (WDA) reduced from 18% to 14%. A hybrid rate applies where an accounting period begins before and ends after the date on which the rate changed. HMRC has published an online tool that can be used to calculate the hybrid rate.
Further information
Creative industries tax reliefs
From 6 April 2026, companies claiming creative industries tax reliefs or expenditure credits must include the new CT600P supplementary pages when submitting their company tax return. HMRC has published guidance on how the complete the pages.
HMRC is aware of a validation issue with the CT600P, has said that this will be fixed in April 2027 and has suggested how this should be dealt with in returns submitted before that date.
Update on Making Tax Digital testing
HMRC has published the final edition of its newsletter dedicated to the testing of Making Tax Digital (MTD) for income tax. The newsletter:
- provides a summary of improvements made to the service;
- reminds taxpayers that the deadline for the fourth quarterly update for 2025/26 is 7 May 2026; and
- gives an update on taxpayer participation. As of the end of March 2026, approximately 4,500 taxpayers were actively participating in testing.
Employment intermediaries
HMRC has written to selected businesses and asked them to check if they need to submit an employment intermediary report for the period from 6 January 2026 to 5 April 2026. HMRC says that the business should take the following action by 5 May 2026:
- submit the report; or
- contact HMRC, using the details given in the letter, to explain why a report is not required.
Further information
National insurance replacement credits
The national insurance replacement credits service has been delayed until April 2027. HMRC says that most eligible parents and carers will not be affected by the delay to the service, and can still apply for credits when the service opens in April 2027. Individuals who think they may suffer a financial loss can check their position with HMRC. Where there is a financial loss, the individual can report it to HMRC by following the HMRC complaints process.
Further information
Check a UK VAT number
HMRC has announced that new VAT registrations may not appear on its Check a UK VAT number online service between 9am on Monday 20 April and 5pm on Friday 24 April 2026.
VAT and charities
HMRC has written to charities to remind them of the circumstances in which it is necessary to register for VAT. The letter provides an overview of the rules supported by references to more detailed guidance on GOV.UK, including VAT Notice 700/1 (registering for VAT) and VAT Notice 701/1 (VAT and charities).
Notifying HMRC about an option to tax
New guidance explains how to tell HMRC about an option to tax land or buildings as part of cancelling a VAT registration. This includes options to tax which have been previously excluded or disapplied.
Update on the carbon border adjustment mechanism
HMRC has published draft secondary legislation for the carbon border adjustment mechanism (CBAM) for technical consultation. The draft secondary legislation includes some of the CBAM administrative requirements, including those relating to embodied emissions and the monitoring and verification of emissions data.
If you have feedback that could contribute to ICAEW’s response to the consultation, please contact Ed Saltmarsh by 24 April 2026. The consultation closes on 21 May 2026.
Separately, HMRC has published communication resources that stakeholders can use to publicise the introduction of CBAM.
Valuation Office now part of HMRC
From 1 April 2026, the Valuation Office will perform the work previously carried on by the Valuation Office Agency (VOA), including valuing properties for business rates and council tax, as part of HMRC. A government press release explains that the Valuation Office customer helpline and online contact form are available as normal and that caseworkers will continue to receive emails to their old VOA address for the foreseeable period.
Communications from Revenue Scotland
The Scottish Government is consulting on proposals relating to communications from Revenue Scotland to taxpayers. The proposals include moving from an opt-in to an opt-out module for the use of electronic communications. This would allow Revenue Scotland to use electronic communications by default where a taxpayer has provided suitable contact details and has not opted out of electronic communications.
If you have feedback that could contribute to ICAEW’s response to the consultation, please contact the Tax Faculty by 1 May 2026. The consultation closes on 15 June 2026.
Tax Faculty
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