New charity tax compliance rules taking effect from April 2026 will tighten the treatment of donations, investments and legacies. Trustees and managers should prepare for increased scrutiny and stronger HMRC enforcement powers.
Inside HMRC’s Use of Algorithms and Big Data
HMRC uses advanced data analytics and algorithms to identify tax errors, evasion and hidden relationships between income and lifestyle. Its Connect system now raises billions in additional tax each year, making accurate records and compliance more important than ever.
VAT Zero Rating and Food: Lessons from a Tax Tribunal Case
A Tax Tribunal case on the VAT treatment of nitrous oxide cream chargers shows how difficult food zero-rating can be in practice. Despite its culinary use, HMRC successfully argued the supply was standard-rated, leaving the taxpayer with a £1.4 million VAT bill.
Why AI Is No Substitute for Professional Advice in Tax Disputes
A tax case at the Upper Tribunal highlights the risks of relying on AI-generated material. HMRC identified non-existent Tribunal decisions in documents prepared using AI, prompting a warning that taxpayers remain responsible for accuracy and evidence.
High Income Child Benefit Charge: Paying Through PAYE
HMRC now allows eligible taxpayers to pay the High Income Child Benefit Charge through PAYE by adjusting their tax code, removing the need to file a self assessment return in many cases.
New Online Process for Reporting VAT Errors to HMRC
HMRC has replaced the VAT652 form with an online process for notifying VAT return errors. While the correction rules stay the same, businesses must now report most errors digitally to avoid interest and penalties.
Inheritance Tax Changes to APR and BPR from April 2026
Planned changes to agricultural and business property relief for inheritance tax have been significantly improved. Following revisions to earlier proposals, qualifying couples may now pass on up to £5 million of business or agricultural assets free of IHT, subject to conditions set by HMRC.
Making Tax Digital for Income Tax: What You Need to Do from April 2026
Making Tax Digital for Income Tax is being phased in from April 2026 for sole traders and landlords above set income thresholds. Affected taxpayers must keep digital records and submit quarterly updates to HMRC using compatible software.
