UK HMRC Tax Update June 2026: 40 Measures to Simplify Tax and Customs

On 23 June 2026 HMRC published Tax update 2026: simplification, modernisation and fairness — a package of around 40 tax and customs measures aimed at cutting admin, digitising processes, and tightening compliance where gaps remain.

Most items target larger businesses, agents, and customs operators, but several proposals will reach sole traders, landlords, and small employers over the next two years. Understanding what opened for consultation in June helps you plan cash flow, software, and adviser relationships now.

The update groups measures across personal tax, business tax, VAT, customs, and agent regulation. HMRC framed it as a single roadmap rather than scattered policy notes — useful for seeing how digitisation, timely payment, and compliance enforcement fit together.

Consultations opened in June 2026 on more timely Self Assessment payments, extending VAT online marketplace liability to UK-based sellers, and a criminal offence for reckless false statements in direct tax (mirroring existing indirect tax rules).

Draft legislation was also published on capital gains tax gift hold-over relief for business assets and reforms to civil information powers — technical changes that may affect family companies and share transfers.

HMRC is consulting on moving Income Tax Self Assessment towards more timely payments — potentially reducing the January and July lump sums that catch sole traders off guard. No final rules yet, but the direction aligns with MTD ITSA quarterly reporting already rolling out for in-scope taxpayers.

A separate consultation on modernising how companies distribute profits to individual shareholders could affect owner-managed businesses paying dividends alongside salary — watch for interaction with the April 2026 dividend allowance and rate changes already in force.

Reforms to Publishing Details of Deliberate Defaulters raise the publication threshold to £50,000 potential lost revenue while allowing HMRC to disclose more detail — a compliance signal rather than a day-to-day filing change, but it underscores accurate return filing.

VAT consultations include extending marketplace liability rules to UK-established sellers — relevant if you sell through platforms and assumed only overseas operators were in scope.

Customs measures cover digitisation pilots, e-invoicing interoperability, and a call for evidence on modernising border processes. Importers and e-commerce businesses should monitor how digital records tie into existing MTD VAT obligations.

Corporate measures include excluding certain R&D expenditure credits from quarterly instalment payment thresholds and a mandatory foreign permanent establishment exemption from 2027 — mainly large-company topics, but group structures with Irish parents may need cross-border review.

Read consultation summaries that affect your sector before August 2026 closing dates if you use an agent — responses shape final legislation.

Keep digital records MTD-ready even if you are below current ITSA thresholds; HMRC's June package assumes continued digitisation across taxes.

FinnAccountings tracks HMRC and Revenue changes from your connected accounts — start a free trial to see how upcoming rules affect your estimated tax and compliance calendar.