Tax E-News – September 2026

Welcome to the September 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.

BENEFITS IN KIND: MANDATORY PAYROLLING FROM 6 APRIL 2027

Mandatory payrolling of benefits in kind (BiKs) will begin from 6 April 2027, with a phased introduction designed to give employers and payroll providers time to adapt.

Under the first phase, covering the 2027/28 tax year, mandatory payrolling will apply to:

• Company cars
• Company car fuel
• Vans
• Van fuel
• Private medical benefits

These benefits will need to be reported through payroll in real time rather than being reported after the end of the tax year on form P11D.

[…]

MAKING TAX DIGITAL FOR INCOME TAX: AN UPDATE

Making Tax Digital (MTD) for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with combined gross income from self-employment and property exceeding £50,000, based on their 2024/25 tax return. Qualifying income is measured before expenses are deducted.

The scope of MTD will widen in future years:

• From April 2027, it will apply to those with qualifying income above £30,000.
• From April 2028, it will apply to those with qualifying income above £20,000.

[…]

HMRC USING THIRD-PARTY INFORMATION TO TARGET LANDLORDS

HMRC has begun writing to landlords where the information it holds from third parties does not appear to match the taxpayer’s records. The letters encourage recipients to review whether all rental income has been declared and remind them of their obligations under Making Tax Digital (MTD) for Income Tax.

HMRC receives information from a variety of sources, including tenancy deposit schemes and other statutory reporting systems. This data is increasingly being used to identify landlords whose tax returns may not accurately reflect their property income.

[…]

ADVISORY FUEL RATES FOR COMPANY CARS

The table below sets out the HMRC advisory fuel rates from 1 September 2026. These are the suggested reimbursement rates for employees’ private mileage using their company car.

Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.

[…]

DIARY OF MAIN TAX EVENTS

SEPTEMBER  / OCTOBER 2026