In this edition’s eNews, we look at HMRC’s reminder to extend child benefit for those eligible, warnings that small firms are being excluded from EU markets, the heavy tax burden contributing to pub closures, and the ICAEW’s advice that taxpayers sign up to the next stage of Making Tax Digital. There is also a forecast on the costs of the conflict in the Middle East and a plea for the government to take action on business rates to update you on.
- HMRC reminds parents to extend Child Benefit claims
- Small firms pushed out of EU markets by red tape and rising costs
- ‘Disproportionate tax burden’ closing two pubs a day
- ICAEW encourages taxpayers to sign up to Making Tax Digital
- Iran war could cost Treasury up to £8 billion a year
- Government must fix ‘broken business rates’
HMRC reminds parents to extend Child Benefit claims
HMRC is reminding parents of 16-19-year-olds to extend their Child Benefit claim if their teenager is staying in certain types of education or training after their GCSEs or National 5s.
Child Benefit will automatically stop on 31 August on or after a child’s 16th birthday unless parents confirm their teenager’s plans. Around 1.5 million reminder letters will be sent from late April, with most landing on doorsteps in early May.
HMRC’s digital service for extending opened on 1 April, so those who already know their teenager’s plans can act immediately.
Claim extensions can be made on the HMRC app or online at GOV.UK. The letters also include a QR code linking directly to the digital service.
Child Benefit is worth £27.05 a week – or £1,406.60 a year – for the eldest or only child and £17.90 a week for each additional child. Last year, 874,000 parents extended their claim, with more than half doing so online or through the HMRC app.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said:
‘Child Benefit is a real financial boost for families, so if your teenager already knows they’re staying in education or training after their GCSEs or National 5s, you don’t need to wait for our letter.’
Internet link: HMRC press release
Small firms pushed out of EU markets by red tape and rising costs
Red tape, rising costs, and complex rules are pushing small firms out of EU markets, new research by the Federation of Small Businesses (FSB) has warned.
The FSB’s data shows that 34% of SME traders expect to reduce or stop EU trade altogether if current rules do not change.
Meanwhile, 45% expect to maintain current trading levels and only 6% see an opportunity to grow trade with the EU under the existing arrangements.
The FSB says compliance costs are also eating into margins, with 34% facing expenses of more than £5,000 a year.
Disruption at the border is common, with firms reporting goods being turned away or held up, resulting in unpredictable delivery times and damage to customer relationships.
Tina McKenzie, Policy Chair at the FSB, said:
‘With growth at the top of the agenda, now is the time to get EU trade working for small firms.
‘Small firms are not short of ambition but they’re being worn down by a system that feels stacked against them. Many want to grow into EU markets, but don’t have time to be swallowed by paperwork, creeping costs and delays that put hard-won customer relationships at risk.
‘This isn’t complicated – a de minimis deal, an SPS agreement, simpler VAT rules and our other recommendations could unlock so much potential. They would take pressure off small firms and give them the breathing space they need to grow.’
Internet link: FSB website
‘Disproportionate tax burden’ closing two pubs a day
A total of 161 pubs closed across Britain in the first three months of 2026, an equivalent of almost two a day, according to figures from the British Beer and Pub Association (BBPA).
The industry body blamed a ‘disproportionate tax burden and heavy new costs’ for the closures.
The BBPA says that the scale of closures underlines exactly why the pub-specific business rates relief that came into effect in April was so necessary for the sector – and why a long-term plan is needed to save local pubs.
It said the key to securing the future of pubs is delivering permanent, fair business rates reform, a cut in beer duty and VAT, and reducing the regulatory burden.
Emma McClarkin, CEO of the BBPA, said:
‘The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and huge costs.
‘For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers, and the wider economy.
‘This underscores why government’s business rates relief was so necessary, and the support such a welcome relief.
‘We want to work with government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector. This means more people in jobs, precious community spaces protected, vibrant high streets, and more investment and growth.’
Internet link: BBPA website
ICAEW encourages taxpayers to sign up to Making Tax Digital
Taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from April 2026 should sign up now if they haven’t done so already, says the Institute of Chartered Accountants in England and Wales (ICAEW).
Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD for Income Tax from April 2026.
More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so.
HMRC estimates that approximately 864,000 taxpayers are required to use MTD for Income Tax from April 2026. The ICAEW says that approximately only 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily.
The Institute said:
‘ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.’
Internet link: ICAEW website
Iran war could cost Treasury up to £8 billion a year
Prolonged conflict in the Middle East could cost the Treasury up to £8 billion a year through higher debt interest payments and lost tax revenue, warns the Institute for Public Policy Research (IPPR).
The think tank says inflation could peak as high as 5.8% and is urging the government to act.
The IPPR recommends a temporary energy price cap at £2,000 to target the most severe scenarios and a 10p fuel duty cut, alongside lower speed limits to help reduce energy demand.
It says the package would cost up to £5 billion a year depending on the severity of the shock. At worst, the intervention is broadly fiscally neutral, with policy costs offset by lower borrowing costs and protected tax revenues, says the IPPR.
However, if intervention succeeds in preventing permanent ‘scarring’ damage to the economy, or in averting sharper interest rate rises, the government could stand to save between £6-10 billion a year compared to doing nothing, it adds.
Sam Alvis, Associate Director at the IPPR, said:
‘A well-designed intervention, that pairs capping prices with clear incentives to reduce energy demand, would not only protect living standards but prevent the need for damaging interest rate rises, and insure against the risk of more severe damage.
‘This is cost-effective, and if permanent damage is avoided, this actually saves the government money. Keeping interest rates lower and investment higher prevents any damage to deploying and using clean energy, the long-term solution to crises like this.’
Internet link: IPPR website
Government must fix ‘broken business rates’
The government must take the chance to fix the UK’s broken business rates system, says the British Chambers of Commerce (BCC).
The business group says anxiety about business rates rose to 41% in its Quarterly Economic Survey for the first quarter of 2026.
This is the highest level since the BCC started asking the question in 2017.
Companies cite cost pressure from business rates as a key reason for increasing prices and delaying expansion of their premises.
While the government made some concessions on business rates for pubs and live music venues earlier this year, BCC research shows business concerns are much wider.
Kate Shoesmith, Director of Policy and Insights at the BCC, said:
‘Reforming business rates was a key manifesto pledge of the government, but it has only tinkered around the edges.
‘The government must deliver the more ambitious root and branch reform of the whole system that it promised.
‘As first steps, it should mitigate the steep jumps in bills across all sectors caused by the 2026 revaluation and introduce a single flat rate multiplier.
‘This shift should then jumpstart a more rigorous consultation with business on how to fully reform what is a complex and rigid system.
‘They are ready to contribute innovative thinking on change without costing the Exchequer. There are other tax mechanisms that can meet the goal of widening the tax base to allow for a lower multiplier.’site
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