Hello,
In last year’s Transformation Roadmap, HMRC set out their intention to become a digital-first organisation, with at least 90% of taxpayer and agent interactions taking place digitally by 2030. This week, a progress update was published, revealing that in 2025-26, 78% of taxpayer interactions with HMRC were through automated or digital self-serve channels, up from 76% in 2024-25.
However, the Institute of Chartered Accountants in England and Wales (ICAEW) has noted that digital services for agents fall some way short of those for taxpayers, and that, “...it is disappointing that in the last year agents have seen little in the way of positive change in the services they can access”. Clearly, there is still work to do. In his foreword, Dan Tomlinson MP, Exchequer Secretary to the Treasury, said, “Transformation of this scale does not happen overnight … but I am confident that HMRC is heading in the right direction”.
In other news, the Supreme Court has published its decision in BlueCrest Capital Management (UK) LLP, which relates to the partnership salaried members' rules. The decision provides significant clarity on the application of ‘Condition B’ and the meaning of ‘significant influence’, contradicting HMRC’s historic guidance that 'influence' can be de facto, deriving from what happens in practice. This now marks an important time for Limited Liability Partnerships to review their member agreements and governance frameworks.
This week, we continue our examination of the consultations released at HMRC’s 2026 ‘Tax Update’. Highlights this time include proposals to introduce a new criminal offence for making reckless, untrue statements or declarations in direct tax, and an extension of HMRC’s powers that will allow the monthly collection of lower-value tax debts directly from a taxpayer’s UK bank or building society account.
More news, cases and updates below, including a new 'AI hub' for accountants from the Consultative Committee of Accountancy Bodies (CCAB).
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Quick News
Progress update on HMRC's Transformation Roadmap
HMRC have published a progress update to their 2025 Transformation Roadmap. The update shows how changes are being made to allow HMRC to collect more of the tax that is due through automation.
CCAB weighs in on ethical AI use
The Consultative Committee of Accountancy Bodies (CCAB) has unveiled a new 'AI hub' for accountants, including a draft statement and case studies on the ethical use of Artificial Intelligence (AI). The CCAB emphasises that an accountant remains responsible for work produced by AI. The committee provides some practical tips on using AI tools and systems.
Proposed offence for reckless, untrue statements for direct taxes
HMRC have opened a consultation 'Proposed offence for reckless untrue statements - direct taxes'. This seeks views on proposals to introduce a new criminal offence for making reckless, untrue statements or declarations in direct tax.
Consultation on tackling lower-value tax debts
HMRC have opened a consultation, 'Tackling lower value tax debts'. It sets out proposals to extend an existing enforcement power to recover lower-value tax debts directly from taxpayers' bank accounts where they have persistently failed to engage with HMRC.
More List 3 updates on approved organisations and societies
More updates to HMRC's ‘List 3’, its list of approved professional organisations and learned societies, have been made over the last six months. Several new organisations have been added.
Consultation on VAT treatment of land for social housing builds
The government have launched a new consultation, 'VAT treatment of land intended for the construction of new social housing'. The consultation seeks opinions on the administration of a new zero-rate VAT relief.
Consultation on extending VAT online marketplace liability
HMRC and the Treasury have launched a consultation, 'Extending VAT online marketplace liability to combat non-compliance', inviting views on plans to extend the existing Online Marketplaces (OMP) VAT liability rules. The proposals would bring within scope sales made via OMPs by UK-based businesses where their goods are situated in the UK at the point of sale.
Consultation on new First Time Buyer ISA
HM Treasury has opened a consultation on a proposed First Time Buyer ISA (FTB ISA). The intention is that this new ISA product will support people to buy their first home and replace the Lifetime ISA (LISA).
New proposals to tackle Electronic Sales Suppression
The government is consulting on potential measures that target Electronic Sales Suppression (ESS). Proposals include the introduction of new software standards for Point of Sale systems.
Help to Save Reform consultation response
The government has published its response to the consultation on the future delivery of the Help to Save scheme. Most respondents supported the proposed reforms and a move to a multi-provider model. The government has confirmed that Help to Save will become a permanent scheme and will be offered through multiple providers from 2028.
Tax Cases (subscription content)
Supreme Court narrows 'significant influence' test in salaried member rules
In HMRC v BlueCrest Capital Management (UK) LLP [2026] UKSC18, the Supreme Court upheld the Court of Appeal's decision that in assessing Condition B for the partnership salaried members rules, only 'influence' deriving from legally enforceable rights and duties should be taken into account and not 'de facto' influence arising from other arrangements.
£34m payment to clear loans disallowed by UT
In Swiss Centre Limited v HMRC [2026] UKUT 00227, the Upper Tribunal (UT) disallowed a payment made in connection with loans secured on a property. It was not directly connected to the relevant loan relationship.
Editor's Choice
This week's Editor's Choice was selected by Rachel Davies. You can meet our team of editors and writers here: Meet the team.
Incorporation: Property business/Buy-to-let
What relief can I claim if I incorporate my residential property business? What claims and elections do I need to make? What are the Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT) implications?
Loan relationships: Connected Companies
How do the loan relationship rules apply to connected companies? What are the special rules? When do they apply? What are the exceptions to the special rules? What are deemed releases?
IHT: Gifts with reservation
What are the Gift With Reservation (GWR) rules? When do they apply?
Guides & Updates
Self-employed
Woodlands: Overview
Woodlands and forestry ownership carry significant tax reliefs, including Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT).
Directors & Companies
CGT: Share-for-share exchanges
How does tax relief for a share-for-share exchange work? What are the rules for an exchange of shares or securities? Are there anti-avoidance rules to consider? Is tax clearance needed?
Companies: Trading, non-trading and accounting periods
When is a company classed as trading, non-trading or dormant for Corporation Tax? What are the tax filing obligations in each case?
Employers
Broadband
Can home-workers benefit from employer-provided broadband? What tax relief is available? How is it calculated?
Agency workers: Umbrellas & anti-avoidance PAYE rules
What is an umbrella company? Who is responsible for operating PAYE in labour supply chains? What is the new legislation for umbrella companies? How will this affect existing labour supply chains?
Private Client & Estate Planning
How to close a UK trust
What are the tax implications of winding up a trust? What do I need to do as a trustee to wind up a trust? Why wind up a trust?
Investment bonds & tax
How are investment bonds taxed? What is an investment bond? What is a chargeable event gain and how is it calculated? How do notional tax credits work? How is Top Slicing relief calculated? What is deficiency relief?
Charities
Gift Aid: How it works
What is Gift Aid? How does it work? What are the rules?
Capital Allowances
Cars, vans & other four-wheel vehicles: Capital Allowances
What capital allowances are available for cars, vans and other four-wheel vehicles? How does HMRC classify 'what is a car; or 'what is a van'?
Land & Property
Non-Resident Landlord Scheme
What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
VAT
Partial exemption & input VAT
How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?
Time of supply (Tax Point)
The time of supply of goods or services determines the date on which VAT becomes due. There are a number of different rules which must be considered.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Practice Insight - July 2026 (free)
- Monthly Tax Update - July 2026
- Capital Gains Tax Planning Strategies to Maximise Net Proceeds (free)
- Practice Insight - June 2026 (free)
- Monthly Tax Update - June 2026
- Mandatory HMRC Agent Registration Part 2 - Where We Are Now
- Mandatory HMRC Agent Registration Part 1 - Getting Started Before May 2026
- Ethics and PCRT for Tax Advisors
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Virtual Tax Partner© Support
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Missed the Last Tax Update?
Ross Martin Tax: SME Tax Update 2 July 2026
- Self Assessment in-year payment reform
- Mandatory Direct Debit proposed for VAT and PAYE payments
- Consultation on modernising the taxation of distributions and repayments of capital from companies
- Call for evidence on PAYE Settlement Agreements (PSAs)
- Call for evidence on voluntary National Insurance Contributions
- Land Remediation Relief consultation response
- Partnership allocations were miscellaneous income, not capital
- Discovery invalid - HMRC had information to open enquiry
- Demergers: What are your options?
- Leases in relation to land
- Land Remediation Relief (LRR) ...More
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