In this edition of eNews, we look at HMRC’s strengthened tax fraud reporting scheme, government finance for SMEs, new regulation for crypto assets, and HMRC’s reminder to people with side hustles to register for Self-Assessment. We also cover the Government’s announcement that VAT will be cut on household electricity bills, as well as the Chartered Institute of Taxation’s view that HMRC still has a long way to go in improving customer service.
- HMRC bolsters award schemes for reporting tax fraud
- Government unlocks major finance package for small businesses
- FCA sets landmark crypto rules
- HMRC reminds people with side hustles to register for self assessment
- Government announces VAT will be cut from household electricity bills
- HMRC still has a long way to go on customer service, says CIOT
HMRC bolsters award schemes for reporting tax fraud
HMRC says it is making it easier for informants to report serious tax fraud and avoidance through the Strengthened Reward Scheme.
Informants may be eligible for a financial reward if the information they provide leads to HMRC recovering at least £1.5 million in unpaid tax.
The strengthened scheme encourages reporting of high-value tax fraud and avoidance and specifically targets serious non-compliance involving large companies, wealthy individuals, offshore structures and avoidance schemes. It is a significant expansion of the existing scheme for lower value reporting, which remains in place.
The tax authority has recorded a webinar and created a short explainer video to provide practical guidance on how to report tax wrongdoing and what information HMRC needs.
Subject to meeting eligibility criteria, informants could receive between 15% and 30% of the value of any additional tax collected by HMRC because of the information provided. These are awarded at HMRC’s discretion and are not guaranteed. They will be paid once the tax has been collected and the matter resolved.
Andy Leggett, HMRC’s Director of Risk and Intelligence Services, said:
‘Tax fraud is a crime that cheats honest taxpayers and diverts money from vital public services. This scheme is designed to incentivise people to do the right thing, whether they are members of the public or industry professionals such as accountants and lawyers.
‘Your report could make a meaningful difference.’
Internet link: HMRC press release
Government unlocks major finance package for small businesses
Significant reforms to small business finance have been announced by the government.
The centrepiece of the plans is an expansion of the British Business Bank’s (BBB) Growth Guarantee Scheme (GGS) which provides a 70% government guarantee on commercial loans to SMEs of up to £2 million.
The scheme will scale up to facilitate an additional £2 billion of SME lending per year by 2028/29. This will bring the total SME lending supported through the scheme to £3.35 billion per year, more than double the current £1.35 billion.
The maximum term length of a loan is also increasing from six to ten years for loans of up to £1.1 million.
In addition, the maximum size of businesses that are eligible for a loan under the scheme is rising from £45 million in annual turnover to £54 million.
The BBB estimates these changes will support an additional 12,000 businesses per year by 2028/29, a 150% increase on the 8,000 currently being supported, bringing the total to 20,000.
Louise Hellem, Chief Economist at the Confederation of British Industry, said:
‘The government deserves credit for listening to business and putting forward a package that recognises the practical finance challenges firms face. The priority now is delivery and making sure the support is simple to access, well understood by businesses and effective in crowding in private capital.
‘If implemented well, these reforms can help more SMEs scale, export and adopt new technologies here in the UK – supporting productivity, stronger local economies and long-term growth.’
Internet link: HM Treasury website CBI website
FCA sets landmark crypto rules
Firms supporting people to buy, trade and hold crypto will need to meet new standards under landmark rules set out by the Financial Conduct Authority (FCA).
All firms must meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules. These cover areas such as insider trading and market manipulation.
The new framework also sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, typically by being linked to a currency such as the pound. The regulator says stablecoins will be subject to clear, strong and transparent standards, helping to build trust in how they are used over time.
The FCA says it drew upon international best practice, applying established financial services standards where risks are comparable, including the Consumer Duty.
David Geale, Executive Director of Payments and Digital Finance at the FCA, said:
‘This is a significant moment for crypto regulation in the UK. We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate – this regime means they can have both in a stable, competitive home to build and grow. For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.’
Internet link: FCA website
HMRC reminds people with side hustles to register for self assessment
HMRC is reminding people with side hustles that they will need to tell it if they earn more than £1,000.
The Help for Hustles campaign aims to assist individuals with side hustles to ‘get their tax right, quickly and easily’.
New entrants to self assessment should register for the 2025/26 tax year by 5 October 2026.They must file their online tax return and pay any tax due by 31 January 2027. HMRC has an online tool to help people with side hustles to check if and when they need to report their additional income.
Kevin Hubbard, Director of Small Business and Individuals at HMRC, said: ‘For many people, a side hustle is a valuable source of extra income. If you’re earning more than £1,000 a year from your side hustle it’s important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible.
‘You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK.’
Internet link: HMRC press release
Government announces VAT will be cut from household electricity bills
The government recently announced that VAT will be cut from household electricity bills from 1 October in time to impact the next Ofgem price cap.
The move is part of new Prime Minister Andy Burnham’s commitment to help ease the cost of living.
The cost of this immediate action for this financial year is being funded from the cancellation of the £1.8 billion Digital ID programme.
Any further action on energy bills will be taken at the Budget, alongside the publication of a forecast from the Office for Budget Responsibility (OBR). All decisions at that point will continue to be funded and also consistent with the government’s fiscal rules.
The Prime Minister said: ‘Westminster has not been working for people for too long, with families struggling with the cost of living.
‘We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.’
Internet link: Government website
HMRC still has a long way to go on customer service, says CIOT
HMRC’s performance data for 2025/26 shows it has made progress on customer service but still has a way to go, according to the Chartered Institute of Taxation (CIOT).
The data shows a mixed picture with progress on compliance activity, digital adoption and HMRC’s telephone service.
However, challenges remain around debt levels, correspondence handling and customer satisfaction.
The CIOT welcomed the news that HMRC has met their target of 85% of attempts to get through to an HMRC helpline adviser succeeding. This is the first time it has met their target in this area.
The CIOT also noted that HMRC has missed its other four customer experience targets.
Charlotte Barbour, Chair of the CIOT’s Technical Policy and Oversight Committee, said: ‘HMRC has some notable achievements in 2025/26 including record compliance yield, improved telephone performance and increased usage of digital channels. However, service levels are still below where they should be, customer satisfaction remains below target and HMRC continue to struggle with a persistently high level of tax debt.
‘Use of HMRC’s digital channels continues to tick up but it will need an acceleration if HMRC are to hit their target of 90% of customer interactions online by 2030. It’s good news that HMRC are answering their phone lines more quickly than a year ago, but it is still taking twice as long as it did in the 2010s.’
Internet link: CIOT website
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