Pillar Two: penalties
HMRC has updated its guidance to confirm that, under its transitional approach to the implementation of the Pillar Two top-up taxes, no late filing penalties will be charged for the late submission of a UK tax return, overseas return notification or information return provided the return is filed before 1 August 2026.
HMRC has also published a paper setting out its transitional approach to the central filing and exchange of global information returns.
MTD income tax: downtime
HMRC’s services for taxpayers to sign-up for Making Tax Digital (MTD) for income tax, and for agents to sign-up their clients, will be down from 5pm on Friday, 10 July to 9am on Monday, 13 July.
Legislation update
The Taxation (Energy and Vehicles) Bill was presented to Parliament by the government on 24 June 2026. The bill increases the rate of the electricity generator levy and mileage amounts relating to income tax and provides for temporary rates of vehicle excise duty for goods vehicles. An earlier article provides further information.
The following regulations have been made in connection with the taxation of pensions:
- The Registered Pension Schemes (Net Pay Arrangements) Regulations 2026 (SI 2026:671).
- The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (SI 2026:673).
- The Pensions (Abolition of Lifetime Allowance Charge, etc) Regulations 2026 (SI 2026:698).
HMRC has published directions applying to the delivery of specified information by employees who need to notify HMRC and claim income tax relief in respect of deductible job expenses.
Tax Faculty
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