Making Tax Digital for income tax
HMRC has published breakdowns by industrial sector and geographic region of the taxpayers expected to be within scope of MTD income tax from April 2026. The data is based on information from the 2023/24 self assessment tax return.
Further information
Construction industry scheme (CIS)
HMRC has used the latest edition of its Agent Update publication to remind agents that the CIS nil filing requirement, and the full CIS late filing penalty regime, will be restored from April 2026. Separately, HMRC is writing to businesses in the construction sector to let them know about measures applying from April 2026 to help tackle tax fraud in labour supply chains.
For further information about the changes to the CIS applying from April 2026, see our article for businesses on preparing for 2026/27.
Employer PAYE for agents online service
HMRC has announced that it will make the following changes to the employer PAYE for agents online service in the coming weeks:
- add a new credit allocation page. This will display how where the credit arose and provide details of the allocation of credits; and
- introduce an additional link that provides a breakdown of each charge relating to end of tax year adjustments.
Official rate of interest (ORI)
HMRC has confirmed that the ORI, which is used to calculate benefits in kind in respect of employment-related loans and living accommodation, will remain at 3.75% from 6 April 2026. The ORI is now assessed quarterly, with any adjustments taking effect on 6 April, 6 July, 6 October and 6 January.
Temporary repatriation facility webinar
HMRC will deliver a webinar on the temporary repatriation facility on 27 April 2026 and 6 May 2026. Further details, including how to register for the webinar, are provided in the latest issue of Agent Update.
Country-by-country reporting (CbC)
HMRC has:
- updated its guidance for taxpayers on checking if a CbC report is required to include a section on how a taxpayer can authorise an agent to submit a report on their behalf; and
- published new guidance on how to send a CbC report to HMRC.
Pillar two
HMRC is writing to businesses that it believes may have missed the deadline to register for the domestic top-up tax and the multinational top-up tax using HMRC’s pillar two online service. The letter explains the circumstances in which registration is required and asks the business to take appropriate action within 42 days of the date of the letter.
Further information
Tax Faculty
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