Latest from HMRC

HMRC has received reports of more than 4,800 Self Assessment scams since February 2025, with more than 135,500 suspected scam reports made in the past 10 months.

Scammers often mimic HMRC, sending fake tax demands or refund offers to steal personal information. Ahead of the 31 January Self Assessment deadline, HMRC urges customers to stay vigilant.

Check any email, text or call claiming to be from HMRC on GOV.UK before responding. If you receive a suspicious message, report it immediately: forward emails to phishing@hmrc.gov.uk, texts to 60599, and report calls on GOV.UK.

Visit ‘Report suspicious HMRC emails, texts, social media accounts and phone calls’ on GOV.UK for more information and guidance.

Supporting customers to go paperless

As part of HMRC’s digital first approach, we’re improving digital communications whilst retaining paper correspondence for those who need it.

From January to March 2026, customers who receive a tax code notification letter (P2), tax refund calculation letter (P800), or Child Trust Fund letters will also receive a flyer explaining the benefits of downloading the HMRC app and instructions on how to opt for paperless communications.

By going paperless, customers can get their tax information quickly and easily in the HMRC app and online at a time and place that suits them with no need to wait for post.

To mitigate carbon leakage, the government is introducing a CBAM from 1 January 2027. This will ensure highly traded, carbon intensive goods imported to the UK face a comparable carbon price to that paid by domestic producers.

The Finance Bill 2025-26 included primary legislation for this, marking a key milestone in the CBAM’s introduction. The Budget in 2025 announced that indirect emissions associated with CBAM goods will be excluded until at least 2029. The government is also considering the feasibility and impacts of including refined products in CBAM in future.

Voluntary National Insurance Contributions (NICs) abroad    

From April 2026 for tax years 2026-27 onwards, the option to pay voluntary Class 2 NICs for periods abroad will be removed and new Class 3 NICs applications for periods abroad will require 10 years’ continuous UK residency or National Insurance contributions.

If you have workers abroad, please inform them of the changes coming into effect from April 2026.

The changes do not affect the ability of anyone to purchase voluntary National Insurance contributions (VNICs) for tax years prior to 2026-27.

HMRC encourages anyone affected to review the latest guidance: Voluntary National Insurance contributions for periods abroad from April 2026.

Important changes to Automatic Exchange of Information (AEOI)

Significant updates to the Organisation for Economic Co-operation and Development’s (OECD’s) Common Reporting Standard (CRS) have brought more Financial Institutions and products into scope.

New mandatory AEOI registration requirement

All Reporting Financial Institutions and Trustee-Documented Trusts must now register for the AEOI service. The deadline was 31 December 2025, or 31 January following the calendar year in which the entity first falls within the definition of a Reporting Financial Institution or Trustee-Documented Trust.

CRS 2.0 changes from January 2026

As of 1 January 2026, the CRS includes electronic money products, central bank digital currencies, and indirect crypto-asset investments. Enhanced due diligence requirements and additional reporting data fields also apply.

What you need to do now

• register for the AEOI service if you haven’t already. Guidance on mandatory registration is available on GOV.UK or you can email enquiries.aeoi@hmrc.gov.uk for registration support
• review which products and accounts are now in scope
• update onboarding, due diligence and reporting systems.

Future business rates valuations available to view now 

Every three years the Valuation Office Agency (VOA) updates the rateable values of all commercial properties in England and Wales. These are used by local councils to calculate business rates bills.

Customers can view their draft valuations using the VOA’s online service. These come into effect on 1 April 2026. More information about revaluation is available on GOV.UK.

Customers have until 31 March 2026 to request changes to their current valuation. After this they will only be able to request changes to their future valuation.

A £4.3 billion support package was announced at the Budget to cap business rates for those sectors most impacted. A support package has also been announced for pubs including a 15% relief and the freezing of bills for a further two years.

January 2026 – the story so far

On Saturday 3 January BBC Money Box on Radio 4 featured Jonathan Athow, HMRC’s Director General of Customer Strategy and Tax Design, discussing Making Tax Digital for Income Tax, which launches April 2026.

Jonathan responded to concerns raised by contributors to the programme about software costs and HMRC’s phone capacity. He explained that one in three Self Assessment returns currently contain errors, resulting in approximately £6 billion in lost revenue annually, and that MTD is expected to recover just under £1 billion per year, when fully rolled out through improved record-keeping.

He acknowledged the scale of change but confirmed additional resources for the first year, no penalties for missed quarterly updates initially, and stated that HMRC expects quarterly Self Assessment updates to smooth demand throughout the year rather than creating a single January peak.

Jonathan Athow was also in attendance for the Backing Britain’s Small Businesses parliamentary reception held on Wednesday 7 January, where Exchequer Secretary to the Treasury (XST) Dan Tomlinson MP gave remarks.

The reception, also attended by MPs, other HMRC officials and trades, including plumbers, joiners and decorators, as well as the wider technology industry, was supported by Sage and Checkatrade.

The event focused on the need to accelerate digital adoption as Making Tax Digital for Income Tax comes into force from April 2026. From that point, sole traders earning over £50,000 will be required to keep digital records and submit quarterly updates to HMRC. With 70% still unaware of these changes, the event showcased AI-powered tools from Sage, Checkatrade and Monzo to simplify compliance and boost productivity.

In his remarks, Dan Tomlinson MP emphasised that supporting small businesses with straightforward digital solutions is key to driving growth and making life easier for taxpayers.

On 20 January the inaugural podcast for the Chartered Institute of Payroll Professionals (CIPP), ‘Behind the Button’, went live. This opening episode featured HMRC’s First Permanent Secretary and Chief Executive, JP Marks, in conversation with CIPP’s Lora Murphy.

JP shared reflections on his first few months leading HMRC, his career history, and how the organisation is working with stakeholders to deliver its ambitious Transformation Roadmap plans. He also discussed HMRC’s close partnership with the payroll profession, his role at the helm, and key priorities for the year ahead – including improving customer service, strengthening digital services, and supporting payroll professionals across the sector.

You can catch the full episode now.

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