In this edition’s eNews, we look at the record numbers of taxpayers filing early self assessment returns in April, new legislation to deal with late payments, the IMF’s latest forecast, the first increase in the approved mileage rates for 15 years, and how crime against business is putting growth at risk. The Government has also announced a temporary reduction in VAT on certain supplies to help families.
- Record number of taxpayers file self assessment in April
- Late payment legislation is ‘historic’ moment
- UK growth forecast upgraded by IMF but risks remain
- Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage
- Crime against business putting growth at risk
- Temporary reduced rate of VAT for children’s meals, tickets and family attractions
Record number of taxpayers file self assessment in April
A record 737,891 taxpayers filed their 2025/26 self assessment returns in April, according to figures from HMRC.
The tax authority said that 86,270 taxpayers submitted their return on the first possible day, which was Easter Monday. That made 6 April, the first day of the new tax year, the most popular date for filing.
In total, 298,905 people filed their 2025/26 self assessment tax return in the first week of the tax year.
HMRC says that people who file their tax return early and are owed a tax refund, can receive it sooner.
Anyone unsure whether they need to complete a tax return can use the checker tool on GOV.UK to find out. People new to self assessment must first register to receive their Unique Taxpayer Reference, which they will need when they complete and file their return.
Myrtle Lloyd, Chief Customer Officer at HMRC, said:
‘For thousands of people, filing early and staying on top of their finances has become the norm. It takes the pressure off in January and means they can spend their time focusing on their business and doing things they love.
‘Make a start on your tax return today by searching ‘self assessment’ on GOV.UK.’
Internet link: HMRC press release
Late payment legislation is ‘historic’ moment
The UK government’s formal commitment to legislation to stamp out late payments is an historic moment, according to the Federation of Small Businesses (FSB).
The FSB says small firms have spent years battling a culture of poor payment practices by big businesses towards their smaller suppliers.
The government’s plans for more stringent rules around prompt payment will go ahead in this parliament, the King’s Speech confirmed.
These will include maximum payment terms of 60 days while late payments will also be subject to mandatory interest of 8% above Bank of England base rate.
Tina McKenzie, Policy Chair of FSB, said:
‘Late payment destroys thousands of viable small firms a year, damages growth, hits confidence, and keeps hardworking business owners up at night wondering how they will cover wages, bills, and tax payments.
‘For too long, large businesses have used small suppliers as a free overdraft. That’s why FSB has fought hard for these changes and worked in partnership with the government to make them happen.
‘Among the other measures, regulating unscrupulous third-party intermediaries, such as energy brokers and consultants, ending hidden commissions and cowboy sales tactics, is a much-needed move, and we hope the plans set out today will mean small firms finally get a fair deal and transparent energy prices.
‘Proposals to raise visitor levies in England come at a time when the tourism and hospitality sectors are on their knees. If the legislation goes ahead, it must be designed with small firms in mind and avoid being a deterrent to tourism itself.’
Internet link: FSB website
UK growth forecast upgraded by IMF but risks remain
The International Monetary Fund (IMF) has upgraded its forecast for the UK’s growth this year but warned the Iran war could hit the economy.
The growth estimate has been upgraded to 1% from 0.8% for 2026 by the IMF.
It said inflation would increase ‘temporarily’ due to higher energy prices. As the UK imports more energy than it produces domestically, it is more sensitive to rapid rises in global prices.
But the IMF suggested the Bank of England does not need to raise interest rates, which are currently at 3.75%, this year in response.
Chancellor of the Exchequer, Rachel Reeves, said:
‘The IMF upgrading its growth forecasts and backing our fiscal strategy is yet more proof that this government has the right economic plan.
‘The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran. Putting our stability at risk when signs of progress are emerging would leave families and businesses worse off.
‘Instead, this government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future.’
Internet link: IMF website HM Treasury press release
Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage
The government has announced increases to AMAPs, MAR and self-employed mileage rates, which will be backdated to 6 April 2026. This is the first uprating of the mileage rates in 15 years. The new rates are:
- an increase from 45p to 55p per mile for the first 10,000 miles
- over that, the rate will remain at 25p per mile for mile 10,001 and over
All other mileage rates will remain the same.
Employers are able to increase the amount they reimburse their employees for business mileage, in line with the new rates. The change is retrospective to 6 April 2026.
If an employee is reimbursed less than the new AMAPs rate, they can claim tax relief for their job expenses. HMRC’s job expenses tax relief claim forms are currently being updated with the new mileage rates.
Employers who reimbursed their employees above the old rates, where tax and NIC was deducted, may need to re-run their payroll for April and May to account for the increase to AMAPs.
Self-employed customers will be able to use the new rates in their 2026/27 return.
In a statement, Dan Tomilinson, The Exchequer Secretary to the Treasury, said ‘This will represent the largest ever increase to these mileage rates, benefitting around 2 million employees and 1 million self-employed individuals, saving over £120 a year for a worker doing 6,000 business miles.’
Internet link: UK Parliament Website
Crime against business putting growth at risk
Decisive action is needed to tackle the ‘hidden threat’ of crime against businesses damaging growth, according to the British Chambers of Commerce (BCC).
Theft, fraud, scams and cyber-attacks are increasingly affecting firms of all sizes and across all sectors, BCC research has found.
The business group’s research shows that 42% of UK businesses experienced some form of crime in the past year.
The data reveals larger firms are more vulnerable, increasing from 32% among micro-businesses to 58% among firms employing more than 250 people. The manufacturing sector is the hardest hit, with 50% of firms reporting business crime.
The BCC report concludes that business crime is a ‘structural constraint’ and ‘measurable brake’ on UK economic performance.
The BCC is calling for a National Business Crime Strategic Assessment to properly measure the economic harm caused by crime against businesses.
It is also asking for a single cyber-attack reporting system for firms and the creation of Regional Business Crime Hubs.
Ellis Shelton, Policy Manager at the BCC, said: ‘Crime against business is now a serious barrier to growth and investment across the UK.
‘Our research shows many firms are dealing with rising levels of theft, fraud and cyber-attacks. Bosses are being forced to divert crucial time and money to tackling this anchor on growth.
‘Crime is becoming more sophisticated and there needs to be a step change in the support businesses can count on.
‘Reducing crime against business isn’t just about protecting balance sheets. It’s about removing structural barriers to growth.’
Internet link: BCC Website
Temporary reduced rate of VAT for children’s meals, tickets and family attractions
The government is helping families this summer with the cost-of-living crisis by cutting VAT on attractions and meals out. The temporary reduced rate of VAT will cover children’s meals, tickets and family attractions.
HMRC guidance explains that a temporary reduced rate of VAT of 5% will apply to:
- certain supplies of children’s meals
- children’s admission to theatres, cinemas, concerts, exhibitions and shows
- all admission tickets to attractions suitable for families with children, such as soft play and theme parks.
The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).
In addition, children aged 5 to 15 years will be able to travel for free on local bus services in England throughout August. This will make it easier and more affordable for families to get out and about.
Speaking about the announcement, the Prime Minister Keir Starmer said:
‘I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.
‘This summer we’re cutting the cost of a day out together – free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions – so families can afford more time together.’
Internet link: Press release
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