Newsletter 205

 

30 January 2026

In this month’s Enews, we look at the government’s plans to regulate cryptocurrency, the news on the Inheritance Tax relief for farmers and businesses. We also report a big rise in use of the HMRC app, a warning on the impact that business rates increases will have on high street businesses and more

• HMRC offers time to help pay self assessment tax bills
• UK Treasury to regulate cryptocurrency under new legislation
• Latest guidance for employers
• Inheritance Tax reliefs threshold to rise to £2.5 million for farmers and businesses
• Spring Statement set for 3 March 2026
• Over 4,800 self assessment scams reported
• HMRC app usage surged in 2025
• Over 4,700 file festive self assessment returns on Christmas Day
• Tax timebomb poses existential threat to high streets, government warned
• Government must ramp up its growth strategy, says think tank
• Self assessment payments via the HMRC app up 65%

HMRC offers time to help pay self assessment tax bills

HMRC is sending self assessment taxpayers a reminder that help is available to manage their tax bill.

The deadline to file and pay any tax owed is 31 January 2026, but people who are unable to pay in full by then may be able to set up a Time to Pay arrangement online and spread the cost over monthly instalments.

For those with bills of up to £30,000, such an arrangement can be set up without even needing to contact HMRC directly.

According to HMRC, since 6 April 2025 nearly 18,000 payment plans have been set up using the service, helping customers avoid late payment penalties by arranging regular payments that suit their own circumstances.

A Time to Pay arrangements cannot be set up until a self assessment return has been filed. If the tax owed is more than £30,000, or a longer repayment period is needed, people can still apply but will need to contact HMRC directly.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘We’re here to help customers get their tax right. If you are worried about paying your self assessment bill, assistance is available. Our online payment plans offer financial flexibility and can be tailored to individual circumstances. We want to support all our customers in meeting their tax obligations with confidence.’

Internet link: HMRC press release

UK Treasury to regulate cryptocurrency under new legislation

The UK will bring cryptocurrencies, including Bitcoin, into a regulatory framework with legislation due by 2027.

The government says that firm and proportionate rules will give legal clarity over the sector’s regulatory position.

It says they will also boost consumer confidence by ensuring consumers are robustly protected.

The changes mean that firms will need to be regulated by the Financial Conduct Authority in the same way as other providers of financial products – including being subject to established transparency standards.

Through this new regime the UK is helping to shape global standards for cryptoassets regulation.

The regime is designed to support responsible innovation, ensure open and competitive markets, and promote the UK as a destination of choice for digital asset businesses.

Chancellor of the Exchequer, Rachel Reeves MP, said:

‘Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world leading financial centre in the digital age.

‘By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.’

Internet link: HM Treasury website

Latest guidance for employers

HMRC has published the latest issue of the Employer Bulletin. The December issue has information on various topics, including:

• Changes take effect 6 April 2026 — prepare for new PAYE responsibilities in labour supply chains.
• Clarifying the Optional Remuneration Arrangement rules at section 228A ITEPA.
• Important update regarding tax refunds.
• Payrolling of benefits in kind.
• Employment Rights Bill autumn consultations.
• Tell ABAB survey report — now live.

Internet link: GOV.UK

Inheritance Tax reliefs threshold to rise to £2.5 million for farmers and businesses

The level of the Agricultural Property Relief (APR) and Business Property Relief (BPR) thresholds will be increased from £1 million to £2.5 million, the government has announced.

The change will allow spouses or civil partners to pass on up to £5 million in qualifying agricultural or business assets between them before paying Inheritance Tax (IHT), on top of existing allowances.

The government says the changes come after it listened to concerns of the farming community and businesses about the reforms.

It says it will protect more farms and businesses, while maintaining the core principle that the most valuable agricultural and business assets should not receive unlimited relief.

The change will be introduced to the Finance Bill in January and will apply from 6 April.

Environment Secretary Emma Reynolds said:

‘Farmers are at the heart of our food security and environmental stewardship, and I am determined to work with them to secure a profitable future for British farming.

‘We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms. We are increasing the individual threshold from £1m to £2.5 million which means couples with estates of up to £5 million will now pay no inheritance tax on their estates.

‘It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.’

Internet link: GOV.UK

Spring Statement set for 3 March 2026

The Spring Statement has been scheduled for 3 March 2026 by the Chancellor of the Exchequer Rachel Reeves.

Ms Reeves has asked the Office for Budget Responsibility to prepare an economic and fiscal forecast for publication on that date.

The government said:

‘As set out at the Budget, the Spring forecast will not make an assessment of the government’s performance against the fiscal mandate and will instead provide an interim update on the economy and public finances.

‘The government will respond to the March forecast through a statement to Parliament, in line with the government’s commitment to deliver one major fiscal event a year at the Budget.

‘This approach gives families and businesses the stability and certainty they need and supports the government’s growth mission.’

Internet link: GOV.UK

Over 4,800 self assessment scams reported

More than 4,800 self assessment scams have been reported since February 2025, according to data released by HMRC.

The tax authority says scammers are using persuasive and threatening tactics to target people when they are more likely to receive correspondence from HMRC. The scammers send fake tax demands or attempt to pressurise people to hand over personal information.

In the last 10 months, taxpayers have reported more than 135,500 HMRC-related scams, including 29,000 scams referring to fake tax refund claims.

HMRC is reminding customers to be vigilant as the self assessment deadline nears and check whether the email, SMS message or phone call claiming to be from HMRC is genuine on GOV.UK.

The self assessment deadline to file returns and pay any tax owed for the 2024/25 tax year is 31 January 2026.

Lucy Pike, HMRC’s Chief Security Officer, said:

‘Millions of people file a tax return each year and scammers mimic HMRC to try and catch unsuspecting victims out.

‘I’m urging people to stay vigilant and if any emails, text messages or phone calls appear suspicious – don’t be lured into clicking on links or sharing your personal information – report it directly to HMRC. Just search ‘report an HMRC scam’ on GOV.UK to find out more.’

Internet link: HMRC press release

HMRC app usage surged in 2025

Use of the HMRC app surged last year as millions of users downloaded it for the first time, according to the tax authority’s figures.

HMRC says the app was downloaded 4.2 million last year and people logged in to the app 136 million times, a 20% increase on 2024, reflecting growing confidence in managing tax digitally.

Total annual app users have now surpassed 7.18 million, up from 5.09 million the previous calendar year.

There has also been significant growth from older and retired users, especially checking State Pension forecasts.

Other areas that saw growth were Child Benefit and National Insurance (NI).

Almost 960,000 people used the Child Benefit area of the app in 2025 - 160,000 more than in 2024.

In addition, 383,000 people stored their NI number on the app during 2025, 70,000 more than the previous year.

HMRC says the rise in app use this year reflects its ambition to make it easier for customers to self‑serve on straightforward tasks.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘The HMRC app has become one of the quickest and easiest ways to check your tax affairs and we’ve seen even more customers embrace it this year. If you choose to use the app you can access the information you need straight through your phone.’

Internet link: HMRC press release

Over 4,700 file festive self assessment returns on Christmas Day

More than 4,600 self assessment taxpayers filed their tax return on Christmas Day, according to data from HMRC.

In total, 37,435 customers filed between 24 and 26 December. Christmas Eve was the most popular day with 22,350 tax returns filed while Boxing Day saw 10,479 tax returns filed.

The most popular times to file were between 11am and midday on Christmas Eve, between 1pm and 2pm on Christmas Day and between 3pm and 4pm on Boxing Day.

The self assessment deadline is 31 January and HMRC is encouraging taxpayers, who have not yet filed their tax return, to visit GOV.UK to start theirs.

Myrtle Lloyd, HMRC's Chief Customer Officer, said:

‘Millions of customers have already completed their tax returns and can start 2026 with one less thing to worry about.

‘For anyone yet to file, don't leave it until the last minute. Filing now means you know exactly what you owe and have time to arrange payment. Search 'self assessment' on GOV.UK to get started.’

Internet link: HMRC press release

Tax timebomb poses existential threat to high streets, government warned

Small businesses such as cafes, shops and hairdressers are facing three years of business rates misery with an average 52% hike in bills, analysis from the Federation of Small Businesses (FSB) has revealed.

This is due to the removal of business rates relief for 230,000 small firms across the retail, hospitality and leisure (RHL) sectors in England.

The removal of the relief combined with other business rates changes being introduced by the government from this April, leaves many having to pay thousands of pounds extra, says the FSB.

In a letter to the Government, FSB has urged ministers to deploy the full relief available to them for small firms in RHL. Currently, only a quarter of the potential relief included in the government’s own formula is being used.

FSB Policy Chair Tina McKenzie said:

‘Striving small businesses in retail, hospitality and leisure – from bakeries and coffee shops to garden centres, gyms and dry cleaners - are on the brink unless Chancellor makes a decisive intervention now.

‘The tax timebomb that’s currently ticking will see three years of soaring bills, threatening our high streets and the jobs and services they provide.

‘Combined with other cost pressures going up in April as well, the Chancellor has to be realistic that without action on business rates relief, the burden will become too much to bear for some, who will either shrink or close down altogether.’

Internet link: FSB website

Government must ramp up its growth strategy, says think tank

Despite falling behind its peers the UK economy could be on the brink of a turnaround so the government must up rather than run-down its growth strategy, says the Resolution Foundation.

A report by the think tank warns that the UK’s poor post-financial crisis economic performance has continued well into the 2020s. Its GDP per head is now languishing 15% behind its former peers, including France, Germany and Canada.

There are signs that the UK economy may be turning a corner however, with productivity growing by 3.4% over the past 18 months.

The report says the government’s three-pronged strategy of restoring stability, increasing investment and reforming the economy is the right one for the challenges Britain faces.

Greg Thwaites, Research Director at the Resolution Foundation, said:

‘There’s lots to welcome in the government’s economic growth strategy. But it has spent much of the past 18 months undermining that strategy with policy U-turns, kite-flying tax ideas and timidity in areas like trade where it needs to be bold.

‘With signs that productivity may be turning a corner, the government must capitalise by ramping up its plans. It should redouble efforts to unblock housebuilding in major cities, focus job support for young and older workers, and decide whether to bite the bullet and reverse some of the damage from Brexit.’

Internet link: Resolution Foundation website

Self assessment payments via the HMRC app up 65%

The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.

Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.

Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.

The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your self assessment payment.’

Internet link: HMRC press release