Tax news and updates
Plain-English coverage of HMRC, Treasury and gov.uk announcements. What changed, when it takes effect, who it affects, and what to do - each update linked to its primary source.
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· VAT
VAT on household electricity cut to 0% from October 2026
VAT on domestic electricity falls from 5% to 0% on 1 October 2026, worth about £45 a year off the Ofgem price cap for a typical household. Gas VAT is unchanged at 5%.
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· Benefits & Credits
Child Benefit rates uprated for 2026/27: £27.05 and £17.90 a week
Child Benefit weekly rates increased to £27.05 for the eldest or only child and £17.90 for each additional child, up from £26.05 and £17.25 in 2025/26.
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· Self-employment & Sole Trader
AMAP mileage rate rises from 45p to 55p per mile, backdated to 6 April 2026
The AMAP rate for cars and vans rises from 45p to 55p per mile for the first 10,000 business miles in a tax year, retrospectively from 6 April 2026. The rate above 10,000 miles stays at 25p.
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· Self-employment & Sole Trader
MTD for Income Tax: first quarterly deadline is 7 August 2026
The first MTD ITSA quarterly update covering 6 April to 5 July 2026 must be filed by 7 August 2026.
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· Income Tax & Allowances
Self Assessment: second payment on account due 31 July 2026
The second payment on account towards your 2025 to 2026 Self Assessment tax bill is due by midnight on 31 July 2026. You can pay in one go or spread the cost with a weekly or monthly plan.