Agents 

May saw the start of mandatory registration of tax advisers with HMRC. As explained in our article, mandatory registration is being phased in between 18 May 2026 and 31 March 2027, with the start date depending on the agent’s circumstances. Agents have a three- month window from their start date to register for an agent services account.   

A separate article explains the consequences for the agent of continuing to interact with HMRC if they are unregistered or suspended as a tax adviser.  

Another significant change on the horizon for agents is the activation of multi-factor authentication (MFA) on HMRC accounts. Although HMRC is yet to set a date for this, agents can get ahead by reading our article from April 2026 on preparing for MFA.  

Also in May, we published an article reminding agents not to use their client’s login details.    

Income tax 

In our most viewed article in May, we explain why taxpayers carrying on a trade and directors of close companies may find it difficult to comply with new requirements to provide additional information in their self assessment tax return for 2025/26. We hope to return to this subject in a future article, once further details emerge.

Inheritance tax 

Legislation included in Finance Act 2026 makes significant changes to inheritance tax (IHT), including bringing most unused pension funds and pension death benefits within the value of a deceased person’s estate for IHT purposes with effect for deaths on or after 6 April 2027. In a recent article, we highlight the key points from HMRC’s technical note on the changes.  

Employment taxes 

In May, the First-tier Tribunal (FTT) may have brought the long-running case of Professional Game Match Officials Ltd to an end. As we explain in our article, the FTT found for the taxpayer that football referees officiating matches in the English Football League were self-employed for tax and national insurance purposes. HMRC is considering its position and may seek permission to appeal, although this appears to be unlikely.     

Other articles that may be of interest to employers and their agents provide guidance on: 

• preventing and resolving pay as you earn issues; and 
• preparing for the 6 July 2026 deadline to submit share scheme returns.  

Business taxes 

Since July 2011, a UK-resident company operating overseas through a permanent establishment (PE) has been able to elect for the profits and losses of the foreign PE to be exempt from UK corporation tax. This is often referred to as the ‘foreign branch exemption’.  

In May, the government announced that the foreign branch exemption will be made mandatory for accounting periods beginning on or after 1 January 2027, and earlier in some cases. Our article explains more about the foreign branch exemption, how the change is expected to work and how you can give your views.  

Businesses undertaking major investment projects or considering claiming research and development tax relief may appreciate new opportunities to seek certainty from HMRC on how the tax rules will apply in the circumstances.   

VAT 

VAT was in the news again in May as the government announced that the rate of VAT on children’s meals and certain activities and attractions will be reduced from 20% to 5% between 25 June and 1 September 2026. Although this may be welcomed by families, it could pose significant implementation challenges for businesses, as we explain in our article.  

In other articles, we: 

• highlight a HMRC campaign asking businesses to check if they need to register for VAT; and
• remind businesses of the deadlines for submitting VAT returns. This article was prompted by reports of an increase in businesses submitting VAT returns late where the deadline falls on a weekend, perhaps due to misinformation online.

Consultations 

A number of consultations close in early to mid-June, including the consultations on possible new reporting requirements for close companies and the proposed extension of the uncertain tax treatment regime. ICAEW will respond to the consultations and we’ll be highlighting the key points from those responses in articles. Make sure you are signed-up to receive the weekly TAXwire newsletter so you don’t miss out.