In this edition’s eNews, there is a reminder for vaping businesses to prepare for the introduction of duties later this year, vital advice for those who missed the self assessment deadline, the latest HMRC guidance for employers, and a warning for sole traders and landlords who will be affected by the next stage of Making Tax Digital. We also look at calls to reform the apprenticeship system and there is a reminder for those eligible to claim their Child Trust Funds to update you on.
- Vaping businesses urged to prepare for Vaping Products Duty registration
- Get tax affairs back on track if self assessment deadline was missed
- Latest guidance for employers
- Sole traders and landlords given MTD warning
- Apprenticeship system reform must go further
- HMRC urges young people to claim Child Trust Funds
Vaping businesses urged to prepare for Vaping Products Duty registration
HMRC is urging manufacturers, importers, and warehousekeepers involved with vaping products to prepare for new duties.
Businesses involved in vaping products can register for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme from 1 April 2026.
From 1 October 2026, VPD will apply to all vaping liquids sold or supplied in the UK at a flat rate of £2.20 per 10ml, regardless of nicotine content.
At the same time, duty stamps must be affixed to the retail packaging of individual vaping products for the UK market.
A six‑month grace period will apply for older stock already in retail channels; from 1 April 2027 all UK vaping products outside duty suspension must carry a duty stamp.
Non‑compliance may result in civil or criminal sanctions.
Rachel Nixon, HMRC’s Director of Indirect Tax, said:
‘We are working closely with the vaping sector on this new excise duty ahead of its introduction.
‘From 1 April this year, manufacturers, importers and warehousekeepers must apply to HMRC for approval to continue supplying vaping products in the UK. This gives them six months to obtain our approval before the new duty and duty stamps go live.
‘GOV.UK guidance sets out everything businesses need to know. Searching ‘vaping duty’ is the best place to start. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.’
Internet link: HMRC press release
Get tax affairs back on track if self assessment deadline was missed
The Low Incomes Tax Reform Group (LITRG) is urging the estimated one million taxpayers who failed to file their tax return on time to get their tax affairs back on track.
HMRC says that around one million customers missed the cut-off date.
Failing to meet the self assessment deadline carries an automatic £100 late filing penalty, with further penalties at stake the longer the return remains outstanding.
The LITRG recommends four steps to get tax affairs back on track:
- Checking whether a return is even needed.
- Filing outstanding returns as soon as possible.
- Paying tax as soon as possible will prevent additional penalties for late payment.
- If taxpayers have a reasonable excuse for not meeting the deadline, they usually have 30 days to appeal any penalties charged.
Antonia Stokes, LITRG Senior Manager, said:
‘Missing the self assessment deadline can feel daunting or worrying, and some people might be unsure how to put things right.
‘But there are some practical steps people can take. This includes working out whether a return was even needed in the first place. If it was, then it is better to act now by filing the return and paying the tax, penalties and interest charges that are due. Payment plans are available to help people who might not be able to settle their tax bill in full.
‘If they have what is called a reasonable excuse, it might even be possible to appeal the penalty, but they will still need to file their tax return as soon as possible.’
Internet link: Chartered Institute of Taxation website
Latest guidance for employers
HMRC has published the latest issue of the Employer Bulletin. The February issue has information on various topics, including:
- Reporting expenses and benefits for the tax year ending 5 April 2026.
- End of year reporting.
- Upcoming State Pension age changes — impact on payroll operation.
- Implementation of the Employment Rights Act 2025.
- Statutory Sick Pay changes — what employers need to know.
- Tax code changes for winter payment recovery.
Internet link: GOV.UK
Sole traders and landlords given MTD warning
Sole traders and landlords have been warned they need to act now to be ready for Making Tax Digital (MTD) for Income Tax.
HMRC is reminding those earning more than £50,000 from self-employment and property of major changes from 6 April 2026. They will need to use recognised software to keep digital records and send light-touch quarterly updates of their income and expenses.
The tax authority says these are not extra tax returns.
Free software options are available and once income and expenses are recorded, the software generates a simple summary to send to HMRC.
HMRC says that at the end of a tax year, those within MTD for Income Tax will still need to file a tax return by the following 31 January. However, the software will already hold the information from the quarterly updates, meaning no last-minute hunt for records or receipts.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said:
‘With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.
‘This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.
‘Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.’
Internet link: HMRC press release
Apprenticeship system reform must go further
The government must reform the apprenticeship system to make it fit for the 21st Century, according to a new report published by the British Chambers of Commerce (BCC).
The report says that the current framework is too rigid, lacks clarity, neglects higher-level skills and is failing to meet the needs of business.
The report found that while 67% of firms were facing skills shortages, more than half of them do not feel that current training options are plugging this gap.
It also identifies that over a third of businesses say lowering the threshold for the National Living Wage from 21 to 18 will make them less likely to recruit younger people.
Kate Shoesmith, Director of Policy and Insights at the BCC, said:
‘There can be no doubt how truly transformational this training system is. Becoming an apprentice provides a direct route for young people into work, to earn and learn, while setting out a clear pathway for their future development.
‘For established employees they offer the opportunity to upskill, while remaining productive in their current role, a key reason that they remain attractive to employers.
‘But it has been clear for a while that the system has many flaws. Take up and completion rates have been falling, and some businesses have turned their backs on it.
‘The government has recognised it needs to stop this rot and shake things up. But its proposed reforms do not go far enough and lack clarity.’
Internet link: BCC website
HMRC urges young people to claim Child Trust Funds
HMRC is urging young people who have yet to claim their Child Trust Fund (CTF) to do so during National Apprenticeship Week.
HMRC’s figures show 758,000 young people could be missing out on cash as they have yet to claim the savings in their CTF account.
CTF are long term, tax-free savings accounts which were set up for children born between 1 September 2002 and 2 January 2011 with an initial government deposit of at least £250.
Young people can take control of their account at 16, but once they turn 18 years old the account matures and they can decide whether they want to withdraw the money or re-invest it.
With hundreds of thousands of apprentices under the age of 24 across the UK a CTF worth on average £2,242 each, will give them a financial head start.
Myrtle Lloyd, HMRC’s Chief Customer Officer said:
‘Whether young people are on an apprenticeship, starting their first job, or making plans to go to university, a CTF can make all the difference. Find yours today by searching ‘find my Child Trust Fund’ on GOV.UK.’
Internet link: HMRC press release
For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.