MTD income tax: guidance and legislation
HMRC has published guidance explaining what HMRC Assist is and why it may be of benefit to taxpayers and agents who use MTD income tax. Briefly, HMRC Assist uses information provided through quarterly updates and the tax return, and other data held by HMRC, to provide tailored feedback and guidance. To access the new service, the taxpayer or agent must use compatible software that includes HMRC Assist (see HMRC’s MTD income tax software finder tool).
Separately, the regulations for Making Tax Digital (MTD) for income tax were laid on 24 March 2026, and the notices for quarterly updates and digital record-keeping were updated on 26 March 2026. To learn more, see Legislation for Making Tax Digital| Making Tax Digital | ICAEW, which is in the process of being updated.
ICAEW responds to CBAM consultation
ICAEW has responded to the government’s technical consultation on draft regulations providing for the administrative requirements of CBAM, including around registration, returns and record keeping. In particular, ICAEW has urged the government to give more thought to the evidentiary standard for precursor good weight and verifier independence. CBAM will be introduced in the UK from 1 January 2027. An earlier article explains how CBAM is expected to work.
Review of mileage allowance payments
The government has announced that it will carry out a review of approved mileage allowance payment rates “ahead of a future Budget”. The rates, which are set out on GOV.UK, have not changed since April 2011.
Advanced corporation tax (ACT) reform
The government has published a call for evidence seeking views and data on remaining unrelieved surplus ACT. As reported previously, the shadow ACT rules are repealed with effect for accounting periods ending on or after 1 April 2026. The government is now investigating the possibility of abolishing the remaining ACT regime in April 2029. The consultation closes on 11 June 2026. If you have feedback that could contribute to ICAEW’s response, please contact the Tax Faculty by 7 May 2026.
Impacts of new UK-Luxembourg agreement
HMRC has used the latest edition of its pension schemes newsletter to warn that:
- a new double taxation agreement (DTA) between the UK and Luxembourg changes how some UK pension payments to people living in Luxembourg are taxed; and
- individuals have until November 2026 to elect to be taxed under the previous DTA on an ongoing basis, should they choose to do so.
New VAT guidelines for compliance (GfC)
HMRC has published GfC 18 explaining how to determine the VAT place of supply of services for businesses operating in the oil and gas sector. HMRC’s GfC collection page explains that the guidelines “offer HMRC’s view on complex, widely misunderstood or novel risks that can occur across tax regimes”.
Corporate re-domiciliation regime
The government is consulting on the design of an inward corporate re-domiciliation regime that would make it possible for a foreign company to re-domicile to the UK without having to change its legal identity. The government says that once re-domiciliation framework has been finalised, it will consider what changes to tax legislation might be required, taking into account section 6 of the Independent Expert panel’s report of October 2024. The consultation closes on 19 June 2026.
Proposed changes to the Welsh tax acts
The Welsh Revenue Authority (WRA) has published a summary of the responses it received to the consultation on proposed legislative changes to the Welsh tax acts. The WRA says that the responses to the proposals were positive overall and that the Welsh Government will now consider whether to give effect to the proposals.
Review of land and buildings transaction tax
The Scottish Government has published an independent review of land and buildings transaction tax (LBTT). The review focuses on areas where LBTT policy diverges from the position elsewhere in the UK or where there was an identified need to explore the role of LBTT in the context of wider Scottish Government policy. This includes non-residential and mixed-use transactions, multiple dwellings relief and the additional dwelling supplement.
In its response to the report, the Scottish Government says that the report’s recommendations “offer a constructive basis for future policy development”.
Tax Faculty
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