25/06/2026
The Government has launched a wide-ranging package of tax consultations that could affect individuals, landlords and businesses over the next few years.
While nothing has been confirmed yet, these proposals show the direction HMRC is heading.
Some of the headline proposals include:
💷 HMRC bank account recovery powers
HMRC is consulting on powers to recover lower-value tax debts by collecting instalments directly from bank accounts where taxpayers have ignored repeated attempts to make contact.
📅 Income Tax changes from April 2029
Some Self Assessment taxpayers who also receive PAYE income could begin paying their forecast Income Tax throughout the year, rather than waiting until the following January.
🏦 ISA reforms
The Government has confirmed anti-avoidance rules for ISA reforms, including a proposed 22% tax charge on interest earned on cash held within non-cash ISAs, alongside plans for a new ISA designed to help first-time buyers.
💻 More digital tax
Plans continue to move the UK tax system further online, including:
• Mandatory electronic VAT invoices from **April 2029**
• Greater use of accounting software data
• Potential mandatory Direct Debits for PAYE and VAT
• Peppol confirmed as the UK's e-invoicing network
📊 VAT proposals
Consultations include extending online marketplace VAT rules to UK businesses and introducing a 0% VAT rate on land intended for the construction of social housing.
📄 Company tax changes
Possible reforms to dividend taxation, company distributions, Capital Gains Tax reliefs and Corporation Tax quarterly instalment payment rules.
⚠️ Stronger HMRC compliance powers
The Government is also consulting on tougher compliance measures, including:
• Publishing more details of deliberate tax defaulters
• New powers to tackle tax avoidance
• A new criminal offence for reckless false tax declarations
• Modernising HMRC's inspection and information powers
If you'd like to understand how any of these potential changes could affect you or your business, get in touch with our team today.
