Corporation tax post
In July 2025, HMRC began a trial in which it stopped sending corporation tax reminder letters (CT208) to a small number of companies that had agents. HMRC has now informed ICAEW that, from March 2026, it will extend the trial to a small number of companies that do not have an agent. HMRC says that it will monitor the effects of the trial and is prepared to stop the trial if it finds that it is having a negative impact on companies.
Learn more about the trial
Company accounts and tax return service
As first announced in March 2025, HMRC will close its online service for filing a company’s accounts and tax return (commonly referred to as CATO) on 31 March 2026. From 1 April 2026, companies will need to use commercial software. CATO has never been available to agents.
HMRC’s Agent Update 140 includes guidance on filing exemptions, alternative filing routes and commercial software.
HMRC guidance for employers
In the latest issue of its Agent Update, HMRC reminds employers of the following changes from 6 April 2026:
- state pension age for men and women increases from 66 to 67 years, phased in over two years;
- student loan plan 5 is introduced into repayment for the first time; and
- eligible employees are able to get statutory sick pay regardless of income and from the first full day of sickness absence.
Further information
Prepare for 2026/27: Employers | ICAEW
Economy explainers: How student loans work | ICAEW
Vaping products duty
Registration will open for vaping products duty (VPD) and the vaping duty stamps (VDS) schemes from 1 April 2026 ahead of their introduction from 1 October 2026. HMRC has produced a stakeholder communications pack for trade associations, industry groups, representative bodies and other organisations with links into the vaping sector to use to encourage businesses to understand and prepare for the upcoming changes.
Further information
Vaping Products Duty and Vaping Duty Stamps Scheme: detailed information - GOV.UK
Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.