Tax E-News – June 2026

Welcome to the June 2026 edition of Tax E-News. We hope that you find this informative. Please contact us if you wish to discuss any matters in more detail.

GREAT BRITISH SUMMER SAVINGS

On 21 May 2026, the Chancellor, Rachel Reeves MP, announced ‘Great British Summer Savings’, a package of measures aimed at cutting costs for families, particularly those with children.

The following two measures are of particular importance to businesses:

TAX-FREE MILEAGE RATES

A 10p per mile increase in tax‑free mileage rates will apply in the 2026/27 tax year, backdated to April 2026. The increase relates to the amount per business mile driven that attracts tax relief and affects both employees and the self-employed. HMRC’s mileage rates guidance has been updated as follows:

For the self-employed:

For employees:

Note that only the rate for cars and vans for the first 10,000 miles has increased; other rates are unchanged.

TEMPORARY REDUCED RATE OF VAT

From 25 June to 1 September 2026, the 5% reduced rate of VAT will apply to the following eligible activities […]

DIVIDENDS ON THE 2025/26 SELF ASSESSMENT TAX RETURN

For taxpayers required to submit a self assessment tax return, new boxes on the 2025/26 employment page form will require the following information for each directorship held by an individual:

• If the company was a close company;
• The company’s name and registration number;
• Dividends the taxpayer received from the close company during the tax year; and
• The highest percentage shareholding that the taxpayer held during the tax year.  […]

RESEARCH & DEVELOPMENT: AN UPDATE

NEW R&D TARGETED ADVANCE ASSURANCE SCHEME

HMRC have introduced a targeted advance assurance service for Research and Development (R&D) tax relief claims. The service, which is a pilot, aims to provide Small and Medium-sized Enterprises (SMEs) with clarity on complex or high-risk areas before a claim is made.  […]

R&D CLAIMS AT THE FIRST TIER TRIBUNAL

A recent First Tier Tribunal case (Beer Express Ltd v HMRC) demonstrates the pitfalls involved in overreliance on R&D advisers. The FTT’s task was to answer a straightforward question: had Beer Express proved that its projects met the BEIS Guidelines for R&D? […]

EMPLOYMENT STATUS OF PROFESSIONAL FOOTBALL MATCH OFFICIALS

In Professional Game Match Officials Ltd (PGMOL) v HMRC, the First-tier Tribunal (FTT) concluded that football referees engaged by PGMOL were not employees for tax purposes. The decision followed a long procedural history, including appeals up to the Supreme Court, and focused on the correct application of employment status principles.

[…]

DIARY OF MAIN TAX EVENTS

JUNE  / JULY 2026