MTD income tax 

April saw the start of MTD income tax for an estimated 864,000 taxpayers. In addition to updating TAXguide 04/25 (which contains answers to questions asked in webinars) and presenting a webinar on digital record-keeping requirements (available to watch on-demand), we published articles on the following topics: 

• the cessation of MTD income sources prior to April 2026; 
• updated HMRC guidance on exemptions; 
• preparing for quarterly updates; and 
• signing up for MTD ahead of the deadline for the first quarterly return.  

Agents 

Another key development in April was the start of a new regime that allows HMRC to impose significant penalties on tax advisers who engage in sanctionable conduct. In our most popular article for April, we explore the definition of ‘sanctionable conduct’.   

Look out for an episode of the Tax Track podcast in May where we discuss mandatory agent registration. In the meantime, see our article from February covering HMRC’s initial guidance.  

We also published the following articles that may be of interest to agents: 

• Five tips for using HMRC’s resolution services for agents | ICAEW
• How agents can prepare for multi-factor authentication | ICAEW 

Tax compliance 

To help taxpayers and agents prepare for the start of a new tax year, we published a series of articles in the run-up to April. Key changes made by the government include: 

• for individuals, increasing the dividend ordinary rate and the dividend upper rate by 2 percentage points;
• for employees, removing the ability to make a claim for tax relief for homeworking expenses; and
• for businesses, reducing the main rate of writing down allowances, from 18% to 14%.  

Later in the year, we intend to publish a series of articles on preparing the 2025/26 self assessment tax return. If there are any topics you’d like us to cover, please contact us. In the meantime, Katherine Ford’s recent TAXline article provides a timely reminder of the points to consider when claiming or advising on rollover relief. 

The main topic of April’s The Tax Track podcast was how to ensure that tax returns are correct and complete, paying close attention to HMRC’s guidelines for compliance 13.  

HMRC service performance 

In April, we shared surveys from the Charter Stakeholder Group and the Administrative Burdens Advisory Board. Later this year we are planning to rerun our joint report with the Chartered Institute of Taxation, which we undertook in 2024. If you are interested in participating, please contact us.     

Our article from February on HMRC’s performance data explains that, although the statistics suggest that HMRC’s performance is improving, members continue to raise concerns.  

Tax reform 

We launched a major programme of work in April to identify areas that require improvement in the tax system. The project began with revisions to the ten tenets for a better tax system. Going forward, we will look at the five institutional pillars on which a functioning tax system depends:  

• policy makers; 
• administration; 
• digital infrastructure; 
• judiciary; and 
• the tax profession.  

To get involved, contact Ed Saltmarsh.  

Consultations 

Several tax-related consultations are currently open, including: 

• possible new reporting requirements for close companies; and
• proposed extension of the uncertain tax treatment regime, including to trusts and to individuals. This was also the subject of a recent The Tax Track podcast episode. 

Follow the links to the articles to find out more and how to get involved.  

Other tax news 

Other topics covered in articles include: 

• capital allowance for predevelopment costs, following the decision of the Supreme Court in Orsted; 
• a warning from HMRC to be aware of winter fuel scams; and
• the importance of claiming pay as you earn tax refunds. We also contributed to an ICAEW press release on this topic which was picked up by a number of media outlets.