In this edition of eNews, we look at HMRC’s warning for those sole traders and landlords who will soon be required to use Making Tax Digital, the Chancellor’s plan to level the playing field for UK businesses, research on AI adoption, and HMRC’s new online tool that will help businesses and individuals complete compliance checks. There are also new rules protecting consumers of crypto assets and a warning over Gen Z’s employment crisis to update you on.
- Sole traders and landlords get Making Tax Digital warning
- Chancellor unveils plans to maintain level playing field for British business
- Lack of trust and board expertise putting brakes on AI adoption
- HMRC launches new online help for compliance checks
- New cryptoasset rules aim to protect consumers
- Government warned over ‘lost generation’
Sole traders and landlords get Making Tax Digital warning
Sole traders and landlords with an income over £50,000 have been warned that there is less than a year before they will be required to use Making Tax Digital for Income Tax (MTD for IT).
HMRC says the launch of MTD for IT on 6 April 2026 will mark a significant and time-saving change in how these individuals will need to keep digital records and report their income to the tax authority.
HMRC says that by keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities.
Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush.
HMRC is urging eligible customers to sign up to a testing programme on GOV.UK and start preparing now.
Craig Ogilvie, HMRC’s Director of MTD, said:
‘MTD for IT is the most significant change to the self assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.
‘By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.’
Internet link: HMRC press release
Chancellor unveils plans to maintain level playing field for British business
Chancellor Rachel Reeves has said British businesses will be supported to trade freely as she takes action on practices that undercut fair trade, such as the dumping of cheap goods into the UK.
The government announced immediate action by the Trade Remedies Authority (TRA), the body responsible for defending the UK against certain unfair international trade practices.
The Chancellor also announced her intention to review the customs treatment of Low Value Imports, which allows goods valued at £135 or less to be imported without paying customs duty.
Major UK retailers have called on the government to amend the customs treatment, arguing that it disadvantages them by allowing international companies to undercut them.
William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said:
‘There are still many twists and turns to go in the trade war between the US and China. It remains to be seen whether cheap Chinese goods will flood the UK as a result.
‘But the risk is present. It is sensible for the TRA to have all the necessary tools and resources to take action to prevent the UK being swamped with unfairly cheap products.
‘If domestic production suffers from a surge in imports or dumping of goods it is right that business has clearer access to make their case to the TRA. It must have the resources it needs to enforce a level playing field.’
Internet link: GOV.UK BCC website
Lack of trust and board expertise putting brakes on AI adoption
A lack of trust and a shortage of expertise at board level are limiting the adoption of AI in UK businesses, according to research from the Institute of Directors (IoD).
Just over half of survey respondents said limited expertise or understanding of models and tools at management and board level was restricting adoption of AI. In addition, 50% said that lack of trust in AI outcomes was their biggest concern.
Security risks, such as cyber, data protection and privacy, as well as employee skills gaps and ethical risks, are also significant barriers for business leaders.
Of the half of UK business leaders whose organisations use AI, 78% cite increased productivity and operational and administrative efficiencies as the most significant benefits.
Dr Erin Young, Head of Innovation and Technology Policy at the IoD, said:
‘While UK business leaders in early AI adoption are enthusiastic about greater productivity and efficiencies, they face a complex set of barriers to top-down implementation and governance – from skills and expertise gaps at board level, to a lack of trust and fundamental concerns about reliability, security and business value across AI capabilities, tools and applications.
‘Given a focus on addressing private sector user-adoption barriers in the UK government’s AI Opportunities Action Plan, it is important that these concerns are addressed strategically for businesses of all sizes across sectors in the Industrial Strategy.’
Internet link: IoD website
HMRC launches new online help for compliance checks
HMRC has launched a new online interactive tool to help guide both businesses and individuals through tax compliance checks.
The Interactive Compliance Guidance tool available on GOV.UK provides information to help customers understand:
· HMRC compliance checks.
· Why HMRC has requested specific information or documents.
· How to request extra support due to health or personal circumstances.
· How to appoint someone to act on your behalf.
· What to do if you disagree with a decision made by HMRC.
· How to pay a tax assessment or penalty.
The new tool brings together existing compliance guidance and videos in one place, making it easier to find and navigate the appropriate information, HMRC says.
Joanne Walker, Low Incomes Tax Reform Group (LITRG) Technical Officer and Customer Experience Advisory Group (CEAG) member, said:
‘When unrepresented customers have a tax compliance problem, it can be difficult for them to find the help they need.
‘This new interactive tool from HMRC makes compliance guidance readily accessible in one place, and easier for people to find the information that is relevant to them. The links to the extra support available will be especially valuable for the most vulnerable customers.’
Internet link: HMRC press release
New cryptoasset rules aim to protect consumers
The government is introducing legislation to regulate cryptoassets and improve consumer protection for the asset class.
The new rules will apply to firms offering services for cryptoassets like Bitcoin and Ethereum.
The government says that around 12% of UK adults now own or have owned crypto, up from just 4% in 2021. But it says owners have too often been left exposed to risky firms and scams.
Under the new rules, crypto exchanges, dealers and agents will be brought into the regulatory perimeter. Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection and operational resilience, like their counterparts in traditional finance.
Chancellor of the Exchequer, Rachel Reeves said that the UK and US will use the upcoming UK – US Financial Regulatory Working Group to continue engagement to support the use and responsible growth of digital assets.
Ms Reeves said:
‘Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.’
Internet link: GOV.UK
Government warned over ‘lost generation’
The government should urgently tackle the jobs crisis among young people or it will risk facing a ‘lost generation’, according to the British Chambers of Commerce (BCC).
In a report the BCC says immediate action is needed to remove barriers preventing almost a million people in Generation Z from engaging with work, education and contributing to society.
The report highlights that the economic benefit of tackling the challenge of young people not in employment, education of training (NEETs) could add £69 billion to UK output.
And it calls for government to align its response to the issue across all departments as the problem is likely to worsen in the short term.
The report also calls for business to look for ways to open up employment opportunities to young people, as just 13% of firms currently have specific recruitment, training or retention plans for under 25s.
SMEs in particular are missing out on the benefits of a targeted approach to youth employment, the BCC adds.
Shevaun Haviland, Director General of the British Chambers of Commerce, said:
‘The UK’s active workforce is rapidly ageing, while the number of young people who are not in employment, education or training is at its highest level for a decade.
‘Generation Z face a double whammy of increasing barriers to entering the workforce, and reducing opportunities as the number of vacancies continues to fall.
‘But research shows the longer we leave this pool of talent to drift away from the workplace the harder it becomes for them to engage.’
Internet link: BCC website
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