Taxes Archives

Tax Defaulting in Croydon: HMRC’s Crackdown on Non-Compliant Businesses

Posted on 6 April 20266 April 2026 by Farazia Gillani

Tax defaulting in Croydon has moved back into focus following an update to HM Revenue & Customs’s (HMRC) “current list of deliberate tax defaulters” on GOV.UK. The list was updated on 26 March 2026 and publishes details where HMRC has charged penalties for deliberate defaults involving more than £25,000 of tax and where the taxpayer did not secure the maximum penalty reduction by fully disclosing the defaults.

In the latest publication, several entries are linked to Croydon addresses, including a BOXPARK-linked food business: WTP Croydon Ltd (formerly trading as What the Pitta). HMRC’s published figures for that entry show £146,629.43 of tax on which penalties were based and a £64,150.37 penalty for a period of default from 1 July 2017 to 31 January 2023.

HMRC’s deliberate defaulters list really means

HMRC’s deliberate defaulters publication is not a general “late payment” list. It is a specific legal regime that allows HMRC to publish identifying details after an investigation, after deliberate-default penalties are charged, and once those penalties are final (for example, once an appeal window has passed, an appeal is determined, or a contract settlement is agreed).

Publication is permitted where the penalties involve tax of more than £25,000 and the person did not achieve the maximum reduction available through full disclosure. In other words, disclosure behaviour matters: people can keep their details off the list by cooperating and fully disclosing from the outset of a compliance check.

A few points that are easy to miss but crucial for reading the list correctly:

Addresses are time-specific. HMRC explicitly warns that the address shown is the one associated with the person or business at the time of the default—and that current occupants at that address may have no connection to the published person/business.
The figures are not “total debt”. HMRC notes the amounts shown relate to the tax/duty on which penalties are based, and the list “does not necessarily represent the full default of the taxpayer”.
Publication is time-limited. Details remain on GOV.UK for a maximum of 12 months, with HMRC typically reviewing and updating the list quarterly to keep within that legal limit.

HMRC also makes clear that the list itself is time-bounded and not archived for the National Archives, reinforcing that it is designed as a deterrent mechanism rather than a permanent record.

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Tax defaulting in Croydon – The BOXPARK case study

The BOXPARK-linked entry matters because BOXPARK is not just another high street unit—it is a highly visible venue. BOXPARK Croydon was developed as a container-based food and drink destination beside East Croydon station, with the council publicly backing the regeneration narrative around a “gateway” location.

Council-backed launch and funding context

Croydon Council published its intention to support bringing a Boxpark marketplace to Ruskin Square, explicitly describing the stripped and refitted shipping-container design and the aim of creating a year-round events courtyard.

A council key-decision document (April 2015) records approval of a £3,000,000 loan to support delivery, alongside references to a programme of council-backed activity and operational support (including a five-year pop-up programme and a viability grant).

Later local reporting also describes the council redirecting an “Ambition Festival” budget towards BOXPARK-related launch/event activity and refers to additional subsidies in the first years of operation.

Vendor pressures in the early years

It is important to separate venue trading conditions from tax conclusions. HMRC’s listing is about deliberate defaults and closed penalty positions; it does not, by itself, explain why a business got into difficulty or how cash flow was managed.

That said, contemporary reporting from 2018–2019 describes pressure points commonly faced by street-food operators in container venues: significant fixed costs, footfall volatility, and churn among traders. For example, one report described monthly rents and service charges totalling £2,750 (£2,000 rent plus £750 service charge) for a trader at the time and noted a sharp reduction in listed outlets between late 2016 and early 2018.

A later report quoted tenants discussing typical combined rent/service-charge costs of around £3,000 per month (plus electricity), alongside complaints about footfall and event-day disruption.

Croydon entries on the HMRC list updated 26 March 2026

The table below summarises the Croydon-linked (address-associated) entries visible on HMRC’s current list updated 26 March 2026, including the BOXPARK-linked takeaway and other sectors (commercial vehicle sales, property development, care, and property income).

Listed name (as published by HMRC)	Trade/occupation (HMRC description)	Address context (HMRC wording)	Period of default	Tax on which penalties are based	Penalty charged	Penalty as % of tax (calculated)
WTP Croydon Ltd (formerly trading as ‘What the Pitta’)	Takeaway	Formerly of Unit 9, Boxpark, 99 George Street, Croydon, CR0 1LD	1 Jul 2017 to 31 Jan 2023	£146,629.43	£64,150.37	~43.8%
J-Mech Waste Solutions Ltd	Commercial vehicle sales	Formerly of 93 Southbridge Road, Croydon, CR0 1AJ	1 Mar 2022 to 30 Sep 2022	£598,945.00	£568,997.75	95.0%
Lionwood Ltd	Building developer	Formerly of 29 Banstead Road, Purley, CR8 3EB	1 Aug 2023 to 31 Dec 2023	£50,258.21	£42,719.45	~85.0%
Leiston Old Abbey Ltd	Residential care home	Formerly of 4 Arkwright Road, Sanderstead, CR2 0LD	1 Apr 2019 to 31 Mar 2021	£44,410.75	£31,087.52	~70.0%
Maria Jose De Souza Campos	Property income	Formerly of 31 Hardcastle Close, Croydon, CR0 6XQ (and another address)	6 Apr 2017 to 5 Apr 2020	£34,940.40	£20,178.06	~57.8%

Two practical cautions are worth repeating when an address is high-profile (like BOXPARK):

HMRC states that the address is the one associated at the time of the default, and current businesses trading at the same site may be unrelated.

Underpaid tax, penalties, and what the published figures do not tell you

The “nearly £150k” framing seen in local discussion is consistent with the published tax figure for WTP Croydon Ltd: £146,629.43 is close to £150,000, and that can be enough to trigger strong public reaction because publication is designed to deter deliberate non-compliance.

But there are three important technical limits to what you can conclude from the published table:

HMRC Publishes Only the Tax and Penalty Figures

HMRC releases two key numbers in each entry:

The amount of tax or duty on which the penalty is based
The penalty charged by HMRC

However, the list does not explain the underlying issue. For example, it does not state whether the case involved the following:

VAT underpayments
Corporation Tax errors
PAYE or payroll failures
A combination of several tax issues

This means the published entry gives only a financial snapshot rather than a detailed narrative of the compliance failure.

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The Published Tax Figure May Not Reflect the Full Default

Another important clarification is that the amount labelled as “tax” in the list does not necessarily represent the total liability discovered during HMRC’s investigation.

HMRC explicitly notes that:

The figures shown relate only to the tax on which the penalty calculation is based.
The actual amount owed to HMRC may be higher.
Additional liabilities may have been settled separately during the investigation process.

Because of this, readers should not assume that the tax figure shown equals the full underpayment identified in the case.

Penalty Percentages Can Vary Widely

The relationship between the tax amount and the penalty can differ significantly across cases.

For example, Croydon-linked entries on the March 2026 list show penalties ranging from around 44% to 95% of the tax involved.

This variation occurs because HMRC calculates penalties based on several factors, including:

The behaviour of the taxpayer (careless vs deliberate actions)
Whether the taxpayer disclosed the issue voluntarily
The level of cooperation during the investigation
The timing of disclosure and corrective action

Businesses that make an early disclosure and cooperate with HMRC often receive lower penalties and may avoid public naming altogether.

If you are checking the list for due diligence (suppliers, landlords, franchise partners), here is the approach we recommend in practice:

Treat the list as a risk flag, not a complete case file.
Cross-check publication timing. HMRC only keeps details up for 12 months and updates regularly (often quarterly). A person may disappear because the legal time limit expired, not because the situation “improved”.
Remember there is no right of appeal against the decision to publish (separate from appeal rights on tax/penalty decisions), so the correct moment to manage exposure is early—before penalties become final and publication criteria are met.

How We Help Businesses in Croydon Stay Tax Compliant

At Apex Accountants, we help Croydon businesses reduce the risk of painful compliance surprises and reputational damage.

We typically support clients with:

Tax compliance health checks (VAT, PAYE, and CIS where relevant) to spot weaknesses before HMRC does.
Bookkeeping clean-ups so returns are supported by reliable records and the right evidence trail.
Disclosure support where errors are discovered, focusing on early, complete, and well-structured disclosure in line with HMRC expectations.
Penalty and appeal support by working with your legal/tax advisers on the evidence and timeline behind HMRC decisions (especially where deliberate behaviour is alleged).
Cashflow planning around tax liabilities, including support preparing information that can help with HMRC engagement when a business is under pressure.

Conclusion

The March 2026 HMRC publication puts a sharper lens on tax defaulting in Croydon, not because the borough is unique, but because the list makes deliberate compliance failures visible—often with headline figures that are easy to misunderstand without context.

For local readers, the BOXPARK-linked entry is a reminder of two parallel truths: high-profile venues can amplify reputational fallout, and the published figures are still a narrow slice of a wider compliance story (time-bounded, address-specific, and not necessarily the full amount owed).

FAQs about the HMRC deliberate tax defaulters list

1. What is the HMRC deliberate defaulters list?

It is a GOV.UK publication where HMRC can publish identifying details of people or businesses that have been charged penalties for deliberate defaults involving more than £25,000 of tax, once penalties are final.

2. How often does HMRC publish or update the list?

HMRC reviews the list regularly and says changes are usually made on a quarterly basis, partly to ensure entries are not published longer than the 12‑month legal maximum.

3. How long do names stay on the list?

A defaulter’s details are held on GOV.UK for a maximum of 12 months from the date first published.

4. Can you avoid being named and shamed?

HMRC advises taxpayers involved in a compliance check to disclose errors early, cooperate, and resolve the check promptly—because that affects penalty reductions and publication risk.

5. Can you go to jail for tax evasion in the UK?

Being on the deliberate defaulters list relates to civil penalties and is not the same as a criminal conviction. Separately, serious tax fraud offences can be prosecuted and can carry substantial custodial sentences, with the Sentencing Council noting maximums that include 14 years’ custody for certain fraudulent evasion offences, and life imprisonment for “cheat the public revenue.”

Everything About UK Non‑Dom Tax Changes in April 2026

Posted on 6 April 20266 April 2026 by Farazia Gillani

What changed in non-dom tax from April 2025

From 6 April 2025, the long‑running remittance basis ended. In practical terms, the UK no longer taxes most “non‑dom” individuals on foreign income and gains only when money is brought into the UK. Instead, UK tax residence is now the main driver, with a new relief aimed at genuinely new arrivals.

What that means day‑to‑day: from 6 April 2025, UK residents are generally taxed on worldwide income and gains as they arise, unless they qualify for and claim the new Foreign Income and Gains regime for new/returning residents.

Topic	Up to 5 April 2025 (remittance basis era)	From 6 April 2025 (current rules)
Main “gateway”	Domicile + a remittance basis claim (and related rules)	Residence‑led: worldwide taxation on the arising basis, unless it is in the new regime
Foreign income & gains (newly arising)	Often taxed only if remitted (subject to conditions)	Taxed as they arise for most UK residents; relief available for qualifying new residents
Bringing foreign funds to the UK	Could trigger UK tax if the funds were untaxed FIG	For eligible FIG under the new regime, remitting does not create a UK charge; for historic FIG, old remittance concepts still matter

The Foreign Income and Gains regime for new residents

The cornerstone of the reform is a four‑tax‑year “Foreign Income and Gains” relief for people who are genuinely new (or returning) to the UK tax net.

Who can claim foreign income and gains relief

You can claim foreign income tax and gains relief if you are a UK tax resident under the Statutory Residence Test and are still within your first four tax years of UK residence after at least ten consecutive tax years of non-UK residence.

A key point many people miss is that if your UK residence started before 6 April 2025, you may still be able to use the regime from 2025/26 onwards for whatever part of your four‑year window remains (there is no “reset” unless you have a further ten‑year non‑resident period).

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What relief you get

If you make a valid claim, you do not pay UK tax on eligible foreign income and foreign gains for the sources you claim, and remitting those relieved amounts to the UK does not create a tax charge.

Eligible foreign income includes, for example, overseas trade profits, overseas property business profits, non‑UK dividends and foreign interest.

The trade-offs: what you give up

Claiming comes with a cost. If you claim under the regime, you lose key UK allowances for that tax year, including income tax and capital gains tax allowances and certain marriage‑related allowances.

Also, even where relief applies, foreign income and gains typically still need to be reported (the old “leave it offshore and don’t report it” mindset is no longer a safe default).

Transitional rules for former remittance basis users

The reform did not wipe the slate clean for earlier years. Historic offshore funds still need careful handling, and this is where many accidental tax bills arise.

Historic foreign income and gains are still “historic”:

Where someone used the remittance basis before 2025/26, the remittance basis can still apply to income and gains that arose in those earlier tax years. In simple terms, those historic amounts can still become taxable if and when they are remitted, unless you use a specific transitional facility.

The Temporary Repatriation Facility:

The main transition tool is the Temporary Repatriation Facility. It runs for a fixed three‑tax‑year period and is designed to let former remittance basis users bring pre‑6 April 2025 offshore income and gains to the UK at a flat, reduced charge by designating amounts and paying the TRF charge.

TRF designation year	Flat TRF charge on designated “qualifying overseas capital”
2025/26 or 2026/27	12%
2027/28	15%

Two practical points matter in real life:

You do not have to remit the designated amount during the TRF window to benefit from the reduced rate; designation can be done and funds brought over later without further UK tax on that designated amount.
If you remit an amount in a tax year but fail to designate it in that same year’s return, you can be exposed to the normal remittance taxation (designating later will not “fix” a prior remittance).

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CGT rebasing for certain foreign assets:

A separate transitional relief allows some former remittance basis users to rebase certain personally held foreign assets to their market value at 5 April 2017, so that only post‑rebasing growth is taken into account for UK capital gains tax on a later disposal. The government’s published design includes conditions such as holding the asset at 5 April 2017 and disposing of it on or after 6 April 2025.

Payroll support for mobile employees:

For globally mobile employees, employers can notify HM Revenue & Customs that they will operate PAYE on only the proportion of earnings related to UK duties (the mechanism previously associated with “section 690”). The current guidance also covers split‑year cases and employees eligible for Overseas Workday Relief.

Inheritance tax becomes residence-based

Inheritance tax is now aligned with residence history, not domicile labels.

From 6 April 2025, the domicile and deemed‑domicile framework for bringing non‑UK assets into inheritance tax was replaced by a long‑term UK resident test. If you are long‑term resident, your overseas assets can fall within UK inheritance tax on death or on certain lifetime transfers.

Who is a “long-term resident”

You are generally a long‑term resident if you have been UK tax resident for at least ten out of the prior twenty tax years. There is also a rule set that can treat you as long‑term resident after ten consecutive years.

The “tail” after leaving the UK

Leaving the UK does not necessarily end exposure immediately. The inheritance tax manual sets out a tail that can run from three up to ten tax years, depending on how many years of UK residence you have in the look‑back period.

Trusts are directly in scope

The long‑term residence framework also affects trusts. The official guidance states that inheritance tax can be charged on overseas assets in a trust you set up or added to, with specific conditions and exceptions depending on when assets were settled and their location at key dates.

How We Help Clients Navigate UK Non-Dom Tax Changes

At Apex Accountants, we focus on the practical work clients need to stay compliant and avoid avoidable tax costs under the post‑April 2025 rules.

We typically help with:

Residence and eligibility reviews to confirm whether the Foreign Income and Gains regime is available and which claims are worth making.
TRF planning and designation support, including fund tracing, mixed-fund cleanup strategy, and ensuring designations align with remittance timelines.
CGT modelling and rebasing support, including “before and after” disposal scenarios and valuation requirements.
Inheritance tax exposure mapping, particularly around long‑term resident status, tail periods, and trust interaction.
Employer and payroll guidance for globally mobile employees, including PAYE proportion notifications and split‑year considerations.

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Conclusion

The abolition of the remittance basis from 6 April 2025 has shifted the UK to a residence‑led approach: worldwide taxation is now the default for UK residents, with a tightly defined new‑arrival relief, specific transitional tools for historic offshore funds, and a major reset for inheritance tax based on long‑term residence.

FAQs

1. Can I still use the remittance basis?

Not for new income and gains from 6 April 2025. However, the remittance concept remains relevant for pre‑6 April 2025 foreign income and gains that arose while you were on the remittance basis.

2. Do I get four years completely tax‑free in the UK?

You can receive 100% UK relief on eligible foreign income and gains during your qualifying period, but only if you qualify and make a claim. You may also lose UK allowances in the year(s) you claim.

3. If I claim the new regime, do I still have to report foreign income and gains?

In most cases, yes. The reporting position has tightened, and many more UK residents now need to report foreign income and gains even when relief applies.

4. Can I bring historic offshore income to the UK tax‑free during the transition window?

No “amnesty” applies. The transition tool is the TRF, which offers a reduced flat charge (not a zero rate) if you designate correctly.

5. What happens after the qualifying period ends?

Once your qualifying period ends, your default position is the normal UK arising‑basis taxation on worldwide income and gains.

6. When does inheritance tax start applying to overseas assets?

From 6 April 2025, overseas assets can be within UK inheritance tax if you meet the long‑term resident test, with a tail that can continue after departure.

UK Tax System for Expats Explained – Who Must Still Pay UK Tax?

Posted on 3 April 20263 April 2026 by Nida Umair

Many people move abroad and assume that ends their UK tax position. In practice, it often does not. The UK tax system for expats can still apply in several situations. At Apex Accountants, we regularly see expats caught by UK tax rules because they still have UK income, return to the UK too often, keep a home here, sell UK property, or come back after a short period overseas. UK tax is driven mainly by residence status and specific UK connections, not by where you feel permanently settled.

The key point is simple. You can live abroad and still be drawn into the UK tax system in several different ways. You might become a UK tax resident again under the Statutory Residence Test. You might stay non-resident but still have to pay UK tax on rental income, wages for UK workdays, or gains on UK property. You might also face extra rules if you return to the UK after a short spell overseas.

Understanding the UK Tax System for Expats

Why many people still get caught by UK tax for expats

The most common mistake is thinking there is one simple “day count” that keeps you safe. There is not. The UK uses the Statutory Residence Test, which looks at automatic overseas tests, automatic UK tests and then the sufficient ties test. Your position is tested tax year by tax year. That means someone can be non-resident one year and resident the next, even if their lifestyle feels broadly the same.

The first route: becoming UK tax resident again

For many expats, the biggest risk is drifting back into UK residence without realising it. HMRC says non-residents only pay UK tax on their UK income, while residents normally pay UK tax on all their income, whether it comes from the UK or abroad. That is why residence status matters so much.

A quick guide to the residence rules for expats

Rule area	What it means
Automatic overseas tests	These can keep you non-resident if you meet strict day and work limits
Automatic UK tests	These can make you resident automatically
Sufficient ties test	If no automatic test applies, your UK ties and UK day count decide the outcome

HMRC’s automatic overseas tests include two headline day limits that expats often rely on. If you were a UK resident in one or more of the previous 3 tax years, you usually need to spend fewer than 16 days in the UK to meet the first automatic overseas test. If you were not a UK resident in any of the previous 3 tax years, the second automatic overseas test usually requires fewer than 46 days in the UK. There is also a third overseas test for people working sufficient hours overseas, provided UK workdays stay below 31 and total UK days stay below 91.

On the UK side, the clearest trigger is 183 days or more in the UK in the tax year. There is also a home test. HMRC says you may become a resident if there is at least one 91-day period in which you have a UK home and spend enough time there, while spending fewer than 30 days in any overseas home.

Also Read: Could Returning to the UK Trigger a Returning Expatriates UK Tax Bill? What You Need to Know

The “ties” that catch expats out

If none of the automatic tests settle your status, HMRC applies the sufficient ties test. This is where many expats run into trouble. The number of ties needed depends on how many days you spend in the UK and whether you were a resident in any of the previous 3 tax years. For someone recently resident in the UK, even 46 to 90 UK days can be enough if they have at least 3 ties.

The main ties include the following:

Family tie: for example, a UK resident spouse, partner or child under 18 in the UK in the relevant way.
Accommodation tie: a place to live in the UK available for at least 91 continuous days, with enough nights spent there.
Work tie: UK workdays can matter, especially where more than 3 hours of work are performed on enough days.

This is why casual visits can become risky. Staying with family, keeping a UK flat, doing a few work trips, or spending more time here during school holidays can shift the result.

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The second route: staying non-resident but still paying UK tax

Many expats are surprised to learn that leaving the UK does not remove UK tax from UK income. GOV.UK is clear that you usually have to pay tax on your UK income even if you are not a UK resident. That includes things like pension income, rental income, savings interest and wages.

Common areas where tax still applies

Income or asset	Why it matters
UK rental income	Usually remains taxable in the UK
UK workdays	UK tax for expats can apply to work performed here
UK property sales	Non-residents must report all disposals of UK property or land
UK pensions and other UK income	Treaty relief may help, but the UK position still needs checking

Rental income is one of the most common traps. You need to pay tax on UK rental income if you rent out a property here. If you live abroad for 6 months or more per year. HMRC classifies you as a non-resident landlord for these purposes, even if you are still a UK resident for tax. Tax may be deducted by a letting agent or tenant unless HMRC approves gross payment through the relevant application route.

Double taxation agreements can help if the country where you live also taxes that income. GOV.UK says you may be able to claim full or partial relief, depending on the treaty. But that does not mean you can ignore the UK side. It means you need the position reviewed properly.

The third route: selling UK property while abroad

This is another major area where expats get caught. If you are not resident in the UK, you must report all sales of UK property or land even if you have no tax to pay. That applies to residential and non-residential property.

For UK residential property sold on or after 27 October 2021, the reporting and payment deadline is generally within 60 days of completion. GOV.UK warns that you should not wait until the next tax year to deal with it, because interest and penalties may apply.

This is often missed because people assume no tax means no filing. That assumption is wrong for non-residents selling UK property. Even where a loss arises, or relief means little or no tax is due, the reporting duty can still apply.

The fourth route: returning to the UK too soon

Some expats leave the UK, realise gains or receive income abroad, and then return within a few years expecting those transactions to stay outside the UK tax net. HMRC’s temporary non-residence rules are designed to stop that. HMRC states that when an individual returns to the UK after a period of temporary non-residence, they may be charged to tax on certain income and gains received during that period.

A person can be temporarily non-resident if, among other conditions, they had sole UK residence before departure, were solely UK residents in 4 or more of the 7 tax years before leaving, and their period of non-residence is 5 years or less. HMRC also states that for these special rules not to apply, the period of non-residence must exceed 5 years, in effect at least 5 years and 1 day.

For capital gains in particular, gains arising during a period of temporary non-residence can become chargeable to Capital Gains Tax in the period of return. This is a key trap for expats who sell assets while abroad and then move back sooner than planned.

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Split-year treatment can help, but it is not optional

When someone leaves or arrives in the UK during a tax year, split-year treatment may apply. HMRC explains that a split year divides the year into a UK part and an overseas part. The UK part is taxed broadly as resident, while the overseas part is taxed broadly as non-resident for most purposes.

However, this is not something you simply choose because it suits you. If you meet the conditions for one of the split-year cases, it applies. If you do not, it does not. That makes it essential to review the facts carefully rather than relying on assumptions.

New rules on foreign income and gains

Since 6 April 2025, the old remittance basis has been replaced by the 4-year foreign income and gains regime. If you qualify and claim under this regime, you will not pay tax on eligible foreign income and gains covered by the claim. To qualify, you must be a UK tax resident under the Statutory Residence Test and still be within your first 4 years of UK tax residence after at least a 10-year period of non-UK tax residence.

This matters for expats returning to the UK after a long period abroad. The new regime may offer relief, but it has conditions and limits. GOV.UK also says unused years cannot be rolled forward. So a returning expat should review their position as soon as they become a UK resident again, not years later.

Inheritance Tax can still follow some expats after they leave

Income Tax and Capital Gains Tax are not the only issues. From 6 April 2025, GOV.UK says the old domicile and deemed domicile rules for Inheritance Tax were replaced by long-term UK residence rules. If you are a long-term UK resident, your overseas assets may be subject to Inheritance Tax.

A person is a long-term UK resident if they were a UK tax resident for either the previous 10 consecutive years or for 10 years or more in the previous 20 years. GOV.UK also says you can keep long-term UK residence for up to 10 tax years after leaving the UK, although that tail can be shorter depending on how long you lived here before departure.

That means some expats can leave the UK and still remain exposed to UK Inheritance Tax on overseas assets for years afterward. This is a major point that is often missed in international estate planning.

Key deadlines expats should not miss

Obligation	Main deadline
Tell HMRC you need a return	By 5 October after the relevant tax year
Paper Self Assessment return	By 31 October
Online Self Assessment return	By 31 January
Self Assessment tax payment	By 31 January
UK residential property CGT report	Usually within 60 days of completion

GOV.UK says HMRC must receive your tax return and any money owed by the deadline. Missing these dates can trigger penalties and interest.

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How We Can Help You

At Apex Accountants, we help expats and internationally mobile individuals understand exactly where they stand before problems build up.

Our support includes:

reviewing your UK residence position under the Statutory Residence Test
checking whether split-year treatment may apply
reviewing UK rental income and non-resident landlord obligations
handling UK property disposal reporting
advising returning expats on temporary non-residence risks
assessing whether the 4-year foreign income and gains regime may apply
reviewing longer-term Inheritance Tax exposure for former UK residents

Each case turns on detailed facts. A few extra days in the UK, a family connection, a retained home, or a return to Britain sooner than expected can change the outcome.

Conclusion

Yes, expats can absolutely be dragged into the UK tax system. Sometimes that happens because they become UK residents again. Sometimes it happens because UK income and UK property remain taxable even while they live abroad. In other cases, the issue only becomes clear when they return to the UK, sell property, or begin reviewing their estate planning.

The rules are not impossible, but they are technical. The safest approach is not to assume. It is to review your residence status, income sources, property exposure and future plans early using current HMRC guidance. If you are unsure how these rules apply to you, contact Apex Accountants for professional guidance. Our specialists can review your circumstances and help you manage your UK tax position with confidence.

How to Claim Tax Relief on Donations in the UK

Posted on 31 March 202631 March 2026 by Nida Umair

If by “renew tax relief on donations” you mean keeping your charity tax relief claims correct and up to date, the main UK route is still Gift Aid. There is no annual renewal process for donors. Instead, you claim relief by using the right method, keeping records, and following HMRC’s time limits. Since 6 April 2024, relief on donations to non-UK charities has ended, so eligibility now depends much more clearly on the charity meeting the UK tax definition.

At Apex Accountants, our view is simple. This area is often treated like a small admin point, but it can affect your tax return, your adjusted net income, your Higher Income Child Benefit Charge position, and, in some cases, your Inheritance Tax planning. HMRC’s own guidance shows that the rules are straightforward once you separate them into the correct relief route.

Claiming Tax Relief on Donations in UK

For most individuals, tax relief on donations is claimed through one of these routes:

Donation route	How relief works	Who benefits first
Gift Aid	Charity reclaims 25p for every £1 donated	Charity first; the donor may claim extra if there is a higher or additional rate.
Payroll Giving	Donation comes out of pay or pension before Income Tax	Donor gets relief at the source.
Shares, land or buildings	Donor can deduct the value from taxable income and may also avoid Capital Gains Tax on qualifying gifts	Donor
Gifts in a will	Gift is taken off the estate before Inheritance Tax is calculated, and 10% or more to charity can reduce the IHT rate on some assets to 36%	Estate

What Gift Aid actually does

Gift Aid lets a charity or Community Amateur Sports Club reclaim 25p for every £1 you donate. So a £100 donation is treated as £125 gross for tax purposes. It does not cost the donor anything extra at the point of giving.

To use Gift Aid, you must give the charity a Gift Aid declaration. That declaration can cover:

current donations
future donations
donations made in the last 4 years

That point matters. Many people think they need to “renew” Gift Aid every year. Usually, they do not. What matters is that the declaration remains valid and that you still pay enough qualifying UK tax.

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Tax Rules for Donors

The tax condition many donors miss

You must have paid enough Income Tax or Capital Gains Tax in the tax year to cover the amount the charity reclaims. HMRC says your Gift Aid donations must not be more than 4 times the tax you paid in that year. If the charity reclaims more than you paid, HMRC may ask you to pay the difference.

This is one of the most important compliance points. A donor can complete a declaration in good faith, then later stop paying enough tax. HMRC says you must tell the charities you support if that happens.

Can higher-rate and additional-rate taxpayers claim more?

Yes. If you pay tax at 40% or 45%, you may claim the difference between the basic-rate relief already given to the charity and your higher rate of tax. HMRC explains that this relief is given by increasing your basic rate band and higher rate band by the grossed-up amount of your gifts.

The following example shows the mechanics clearly:

donate £200
charity treats it as £250 gross
a 40% taxpayer can claim £50
a 45% taxpayer can claim £62.50

How to claim the extra relief

If you complete a Self Assessment return, enter your qualifying charitable giving on the return using HMRC’s charitable giving guidance and helpsheet HS342. If you do not normally file a return, you can contact them and ask for your tax code to be adjusted.

If you are claiming tax relief on donations of £10,000 or more without sending a tax return, HMRC says you need to tell them the following:

the date of the donation
who you donated to

Can you claim for past donations?

Yes, but the route depends on timing.

1. Past donations under a Gift Aid declaration

A declaration can cover donations made in the last 4 years. That helps the charity reclaim Gift Aid on qualifying donations if the declaration is valid.

2. Carrying back a donation to the previous tax year

HMRC allows certain Gift Aid donations made after the tax year ends to be treated as if they were made in the previous tax year, but only if you make that claim on the original return and submit it by the filing deadline. HMRC is clear that it cannot accept a first claim or a higher claim in an amended return for that carry-back treatment.

3. Correcting an overpayment through HMRC

If the issue is not carry-back but overpaid tax more generally, HMRC’s overpayment relief rules may be relevant. That is a separate claims process and not a way to reopen the specific carry-back rule after the deadline.

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What changed from April 2024?

This is the key policy change.

From April 2024, non-UK charities and CASCs are no longer eligible for UK charitable tax reliefs. GOV.UK states that only charities falling within the relevant UK court jurisdictions now qualify under the UK tax definition. HMRC also states in HS342 that you no longer get relief on gifts to non-UK charities after 5 April 2024.

So if you previously gave to an EU or EEA body and expected UK tax relief, you now need to re-check eligibility carefully. That is one of the main reasons people feel their donation relief needs to be “renewed” or revisited.

Other donation tax relief routes people often overlook

Payroll Giving

Payroll Giving works differently from Gift Aid. The donation is taken from wages or pension before Income Tax is deducted. HMRC says that to donate £1, a basic-rate taxpayer pays 80p, a higher-rate taxpayer 60p, and an additional-rate taxpayer 55p.

This donation tax relief route can be simpler for regular donors because the relief is built in through payroll. You do not then claim the same higher-rate difference separately in the way you do with Gift Aid.

Gifts of shares, land or buildings

HMRC says you can claim relief by deducting the value of the gift from your total taxable income for the tax year in which you made the gift or sale to charity. For qualifying shares and securities, HMRC also states that the relief is in addition to the Capital Gains Tax exemption on such gifts.

If the charity asks you to sell the asset on its behalf, you can still claim relief, but HMRC says you must keep the records of the gift and the charity’s request. Without them, you might have to pay Capital Gains Tax.

Gifts in your will

A gift to charity in your will is deducted from your estate before Inheritance Tax is worked out. If you leave 10% or more of the net value of the estate to charity, HMRC says the Inheritance Tax rate on some assets may reduce to 36%.

Does Gift Aid affect adjusted net income?

Yes. When working out adjusted net income, you deduct the grossed-up value of Gift Aid donations. For every £1 donated under Gift Aid, you take off £1.25 from net income.

That can matter where income-linked thresholds apply. Adjusted net income is used for rules such as the Personal Allowance taper and the High Income Child Benefit Charge.

Record-keeping rules

Good records are essential. You need to keep records of donations if you want to take them off your taxable income. For land, buildings and shares, you should keep the legal transfer papers and any document showing the charity asked you to sell on its behalf. Individual taxpayers normally need to keep records for at least 22 months from the end of the tax year.

For charities, Gift Aid declarations must be kept for 6 years after the most recent donation is claimed.

Common mistakes to avoid

Assuming Gift Aid must be renewed every tax year
Claiming relief for donations to a non-UK charity after 5 April 2024
Signing a Gift Aid declaration without paying enough Income Tax or Capital Gains Tax
Missing the filing deadline for a carry-back claim
Forgetting that Payroll Giving and Gift Aid work differently
Failing to keep donation evidence and supporting records

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How We Help Claim Tax Relief on Donations in UK

At Apex Accountants, we help clients review charitable giving from a tax and compliance angle, not just a paperwork angle. That includes:

checking whether Gift Aid declarations still work for your current tax position
reviewing higher-rate and additional-rate relief claims
checking whether adjusted net income has been calculated correctly
helping with Self Assessment reporting of charitable donations
reviewing whether a current-year donation can still be carried back
advising on gifts of shares, land or buildings
Reviewing Inheritance Tax planning where charitable legacies are involved
helping directors and owner-managed businesses separate personal giving from company giving rules

We also help clients avoid simple errors that can create HMRC problems later, especially where there are large donations, changing income levels, overseas charities, or missed filing deadlines.

Conclusion

The main point is this: tax relief on donations in the UK does not usually need “renewing”, but it does need checking. The right claim depends on the donation method, the tax year, the charity’s eligibility, and your own tax position. Since the April 2024 restriction to UK charities, it is even more important to confirm that a donation still qualifies before you rely on relief.

If you are unsure how your charitable donations affect your tax position, contact Apex Accountants today. Our team can review your donations, confirm eligibility under HMRC rules, and help you claim the correct tax relief on your Self Assessment return.

FAQs About Tax Relief on Donations

Do I need to renew Gift Aid every year?

No. In most cases, a valid Gift Aid declaration can cover current donations, future donations, and donations made in the last 4 years. What you must keep under review is whether you still pay enough qualifying tax.

Can I claim tax relief on donations without Self Assessment?

Yes. Higher-rate taxpayers who do not complete a return can contact HMRC and ask for a tax code adjustment instead.

Can I amend an old return to carry back a Gift Aid donation?

Not for a first or higher carry-back claim once the deadline has passed. Carry-back must be claimed in the original return for that year.

Do donations to overseas charities still qualify?

Usually no, for UK charitable tax relief purposes after 5 April 2024. GOV.UK states that non-UK charities and CASCs are no longer eligible after that point.

Can Gift Aid help if my income is over £100,000?

It can. Gift Aid donations reduce adjusted net income using the grossed-up amount. That can affect income-linked tax positions such as the Personal Allowance taper.

Is Payroll Giving the same as Gift Aid?

No. Payroll Giving gives tax relief through your pay before Income Tax is deducted. Gift Aid lets the charity reclaim basic-rate tax, and higher-rate donors may then claim extra relief separately.

Understanding HMRC-Approved Tax-Free Mileage Rates: A Potential Lifesaver for UK Drivers

Posted on 19 March 202619 March 2026 by Nida Umair

For many UK workers, driving their own vehicles for business purposes can be a costly endeavour. Fortunately, there is a tax-free benefit available that can provide significant financial relief: the HMRC-approved tax-free mileage rates. These rates allow employees to claim tax-free reimbursement for using their own vehicles for business travel. However, with the rising cost of motoring, there’s growing pressure to increase these rates to reflect the actual expenses workers incur.

This article dives into the current rates, the proposed changes, and what it means for both employees and the self-employed.

What Are HMRC-Approved Tax-Free Mileage Rates?

The HMRC-approved tax-free mileage rates are the maximum amounts that can be reimbursed by an employer without the employee being taxed on the reimbursement. These rates are designed to cover all aspects of motoring costs, including fuel, vehicle wear and tear, insurance, and other associated costs of using a personal vehicle for business purposes.

Currently, the rates are:

Vehicle Type	First 10,000 Business Miles	Above 10,000 Miles
Cars & Vans	45p per mile	25p per mile
Motorcycles	24p per mile	24p per mile
Bicycles	20p per mile	20p per mile

Employees can also claim an extra 5p per mile per passenger carried on a business trip.

These rates have remained unchanged since 2011, and there are growing calls to increase them due to rising motoring costs.

What Are Mileage Allowance Payments (MAPs)?

Mileage Allowance Payments (MAPs) are amounts paid by an employer to an employee for using their own vehicle for business travel. These payments are intended to cover travel costs such as fuel, vehicle wear and tear, insurance and other running costs. MAPs are defined in HMRC’s tax rules for business travel reimbursements.

Under HMRC rules, employers are permitted to pay employees a set amount for business mileage without reporting it to HMRC — as long as the total does not exceed the approved amount defined by HMRC.

MAPs can be paid:

Per mile based on distance driven
As a lump sum that covers business use of a vehicle
Or as a reimbursement that reflects actual business mileage costs

These payments can apply whether the vehicle used is a car, van, motorcycle or bicycle.

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What Is Mileage Allowance Relief (MAR)?

Mileage Allowance Relief (MAR) is the tax relief you can claim if:

You are paid less than the HMRC‑approved tax‑free mileage rates, or
You are not paid any mileage allowance by your employer for business travel.

MAR lets you claim tax relief on the difference between what you were paid and the HMRC‑approved rate. In other words, it protects employees who aren’t fully reimbursed for their work‑related mileage.

To be eligible:

You must have used your own vehicle (car, van, motorcycle, or cycle) for business travel.
You must have received less than the HMRC AMAP rate for that mileage.

How MAR works: If your employer only pays 30p per mile but the approved amount is 45p per mile, you may claim relief on the difference (15p per mile) through your tax return or other claim method.

Also Read:

April 2026 Car Tax Changes: What UK Drivers Need to Know About UK Vehicle Excise Duty

How Much Tax‑Free Mileage Can You Claim?

The simple answer:

You can claim up to 45p per mile tax‑free for the first 10,000 business miles in a year.
If you go above 10,000 business miles, you can claim 25p per mile tax‑free for additional miles.

This means if you drive 8,000 business miles in a tax year and are fully reimbursed at 45p, you could receive £3,600 tax‑free.

However, if your employer pays a lower rate, you may be able to claim tax relief on the difference between what you’re paid and the HMRC rate.

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How Many Kilometres Can You Claim Tax‑Free?

UK mileage rules use miles, but to translate to kilometres:

45p per mile ≈ 28p per kilometre
25p per mile ≈ 16p per kilometre

These aren’t official HMRC figures but a simple conversion for context.

What Is the 45p Mileage Allowance?

The 45p mileage allowance applies to the first 10,000 business miles you drive in a tax year using your own car or van.

This rate was last updated back in 2011 — meaning it hasn’t changed in well over a decade despite significant rises in motoring costs.

Many workers, particularly those who drive long distances for work (e.g., social workers, field engineers), argue this rate is no longer sufficient to cover real running costs.

The 45p Mileage Allowance Update: Why It Has Become a Point of Controversy

The 45p-per-mile rate, while once adequate, has been widely viewed as outdated. The real cost of running a car is now significantly higher, with figures suggesting it costs around 67p per mile to own and operate a car. When considering the overall increase in fuel prices, insurance, and maintenance costs over the past decade, the 45p rate no longer adequately reflects the true costs faced by drivers.

Is Mileage Exempt from Tax?

Yes, but only if the reimbursement stays within the HMRC‑approved amount.

Payments up to the approved AMAP rates are exempt from tax and National Insurance.
Anything above this must be reported and will be taxed as employment income.

Crucially, if you receive less than the HMRC rate, you can usually apply to HMRC for Mileage Allowance Relief — a tax refund on the amount you weren’t reimbursed.

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What Would an AMAP Rate Increase Mean for Drivers?

An increase in the Approved Mileage Allowance Payment (AMAP) rate would allow employees to claim higher amounts for using their own vehicles for work without triggering tax liabilities. Currently, if an employee is reimbursed at a rate above the HMRC-approved amount, the excess is considered taxable income. On the other hand, if the rate is below the approved amount, employees can claim Mileage Allowance Relief on the shortfall.

For instance, if an employer reimburses a worker at 30p per mile instead of 45p, the difference (15p per mile) can be claimed as tax relief. However, if the reimbursement rate is increased to reflect actual motoring costs—say, to 67p per mile—employees could significantly benefit from higher tax-free reimbursements.

Is a Change to the Mileage Rates Coming?

Recent comments by Chancellor Rachel Reeves indicate the government is reviewing the mileage allowance, acknowledging that costs have risen and the current rate hasn’t been updated in years.

According to reporting from last week, Reeves said the government is “looking at the issue” and will consider changes as part of a future fiscal update.

An increase to align AMAPs more closely with actual motoring costs — which some estimates put nearer to 60p+ per mile — could significantly benefit those who drive frequently for work. While no official new rate has been announced yet, pressure is rising for a formal AMAP rate increase.

Who Benefits Most from Higher Mileage Rates?

Increased HMRC mileage rates would help:

Field‑based employees (sales reps, engineers, consultants)
Healthcare and social care workers with long travel distances
Self‑employed drivers, including tradespeople who use a personal vehicle for work
Those whose employers reimburse less than the HMRC‑approved amounts

For example, healthcare workers like social workers and NHS staff, who drive long distances to visit patients, would benefit greatly from a higher AMAP rate. If the rate were increased to 67p per mile, an employee driving 200 miles a week for work could potentially claim an additional £44 per week tax-free—a significant relief considering the rising costs of fuel and car maintenance.

For the self‑employed, using the tax‑free mileage rates can reduce taxable profits when they choose to use this instead of actual vehicle costs in their accounts.

You might also want to read about VAT regulations for car rentals:

VAT on Car Hire in the UK – What Businesses Need to Know

Self-Employed Drivers Tax-Free Mileage

The self-employed also stand to benefit from a rise in the HMRC-approved tax-free mileage rates. Many self-employed individuals, such as tradespeople, are entitled to claim mileage as an allowable expense when filing their taxes. However, this can only be claimed if they have not already deducted actual running costs or capital allowances for their vehicles.

The increase in the mileage rate could help self-employed individuals reduce their tax bills more effectively, as they would be able to claim a higher tax-free reimbursement for the business miles they drive.

How Apex Accountants & Tax Advisors Can Help

At Apex Accountants, we offer expert advice and support for both employees and self-employed individuals looking to maximise their mileage claims. Our services include:

Mileage policy and payroll treatment reviews
Calculations for Mileage Allowance Relief (including back-claims for up to 4 prior tax years)
Sole trader advice on simplified expenses versus actual vehicle running costs

If the AMAP rate increase goes ahead, now is the perfect time to ensure that your mileage claims are compliant and optimised for maximum savings.

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Conclusion

The HMRC-approved tax-free mileage rates are an essential tool for employees and self-employed individuals alike, providing a tax-free way to reimburse driving costs for business travel. However, the current rates, which have remained unchanged for over a decade, are no longer sufficient to cover the increasing costs of motoring. An increase in these rates, as discussed by Chancellor Rachel Reeves, could provide much-needed financial relief to millions of workers across the UK.

With the government considering changes to these rates, it’s crucial to stay informed about the latest developments and ensure that you are claiming the full benefits available to you. At Apex Accountants, we’re here to help you navigate these changes and ensure that your claims are accurate, compliant, and maximised to reduce your tax liabilities.

Coventry Transport Company Tax Defaulter Fined For Owing £26,000 In Tax: What It Means For UK Hauliers

Posted on 19 March 202619 March 2026 by Sidra

A Coventry‑based transport company tax defaulter has appeared on HMRC’s current list of deliberate tax defaulters for failing to pay more than £26,000 in tax. Elvis Transports UK Limited, previously registered at 292 Grangemouth Road, was listed in HMRC’s March 2026 update covering deliberate defaults. The agency found that the company deliberately defaulted on tax from 1 November 2023 to 30 November 2023 and 1 January 2024 to 31 March 2024, owing £26,217 in unpaid tax; HMRC imposed a penalty of £17,434.30. This penalty equates to roughly two‑thirds of the tax owed, signalling that HMRC viewed the default as deliberate and used a high penalty within its permitted ranges.

Why HMRC Names Transport Company Tax Defaulters And How Penalties Are Calculated

HMRC’s power to publish details of deliberate tax defaulters stems from section 94 of the Finance Act 2009. The department publishes a list when it has investigated and charged a person or business with one or more penalties for deliberate defaults where the total tax involved exceeds £25,000. The intention is deterrence: by naming non‑compliant taxpayers, HMRC aims to create a level playing field and encourage voluntary compliance. The information is only published once penalties are final (after any appeals) and is removed after 12 months.

Penalties for deliberate inaccuracies, such as HMRC penalty for transport companies, vary. HMRC’s compliance handbook states that for an unprompted disclosure of a deliberate inaccuracy, the maximum penalty is 70 per cent of the tax underpaid and the minimum is 20 per cent.

For prompted disclosures (where HMRC has already begun an enquiry), penalties range between 35 per cent and 70 per cent. In Elvis Transports UK Limited’s case, the penalty equates to about 66.5 per cent of the unpaid tax – near the upper end of the scale – suggesting that the company did not volunteer the error and that there may have been limited cooperation.

Impact On The Transport Sector And Wider Business Community

The March 2026 list includes several logistics businesses, highlighting HMRC’s focus on deliberate tax default in UK transport. Alongside Elvis Transports, other West Midlands haulage firms such as Valeriutrans Ltd and Iordan Transport Limited were named in local news reports for unpaid taxes exceeding £25,000.

The road haulage industry operates on tight margins and is heavily exposed to fuel costs, subcontractor arrangements and cross‑border VAT rules. That pressure may tempt some operators to delay tax payments or under‑declare takings.

However, the financial and reputational risks of non‑compliance, including an HMRC penalty for transport companies, are far greater. Being named on HMRC’s defaulters list signals deliberate wrongdoing, can undermine trust with customers and suppliers, and may impede access to finance or public contracts.

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Record‑keeping and Registration Obligations

Many tax defaults stem from poor record keeping or failure to register for taxes on time. Limited companies must maintain separate business bank accounts and keep both company records and detailed accounting records. Accounting records must include all money received and spent, assets owned, debts owed and details of stock and goods bought and sold. Failure to keep adequate records can result in fines of up to £3,000 or even disqualification as a director. Businesses must retain these records for at least six years.

For VAT‑registered businesses, HMRC’s record‑keeping notice stresses that business records must generally be retained for six years and that VAT invoices are critical evidence for recovering input tax.

With Making Tax Digital now mandatory for most VAT‑registered businesses, records must be kept digitally in functional compatible software. Transport companies that regularly import or export goods should pay particular attention to these requirements. The VAT registration threshold currently stands at £90,000 in taxable turnover, while deregistration can be optional if turnover falls below £88,000. Operators approaching these thresholds must monitor turnover and register promptly to avoid penalties for failing to register.

Lessons For Hauliers: Compliance, Disclosure and Cooperation

The Elvis Transports case underscores several points that all businesses – not just those in transport – should heed:

Understand whether a default is deliberate. HMRC defines a deliberate default as a deliberate inaccuracy in a return, a failure to comply with an obligation or a VAT or excise wrongdoing. Accidental errors attract lower penalties; knowingly under‑declaring or failing to register triggers higher sanctions and possible publication.
Maintain accurate records and segregate finances. Keep business and personal finances separate and maintain complete accounting and VAT records as set out above. Digital record‑keeping software, integrated with cloud invoicing and banking, helps ensure compliance.
Monitor turnover and register for VAT promptly. If turnover exceeds £90,000 in any rolling 12‑month period, register for VAT. Delay can lead to penalties and interest, while unregistered businesses cannot reclaim input tax.
File returns and pay tax on time. Late returns or payments increase the risk of HMRC inquiries and create cash‑flow problems. The consequences are more serious when errors are considered deliberate.
Cooperate with HMRC. Unprompted disclosures and full cooperation can significantly reduce penalties. HMRC can reduce penalties to as low as 20 per cent of the tax underpaid where businesses make an unprompted disclosure.

Commentary: What Lies Behind HMRC’s Approach

HMRC’s deliberate defaulters programme balances deterrence with fairness. Publishing names is not automatic; the law requires that the tax at stake exceeds £25,000 and that HMRC has charged penalties after investigation.

Businesses that fully disclose errors can avoid publication. The focus on a Coventry transport company indicates that HMRC is looking beyond high‑profile tax avoidance schemes and tackling compliance in everyday sectors. Rising fuel prices, cost‑of‑living pressures and the administrative burden of Brexit‑related customs rules may have strained cash‑flow for hauliers.

Nevertheless, HMRC expects businesses to prioritise tax obligations, and the penalty calculation reflects the seriousness with which deliberate defaults are viewed. The penalty imposed on Elvis Transports is close to the 70 per cent maximum for prompted disclosures, suggesting limited cooperation.

Businesses should also note that a deliberate tax default in UK transport may lead to the defaulters list being removed after 12 months, impacting reputation. Quick resolution and improved compliance can therefore help rehabilitate a company’s reputation. In contrast, ignoring correspondence, failing to appeal promptly or continuing non‑compliance could lead to further penalties, director disqualification or even criminal proceedings.

How Apex Accountants & Tax Advisors Can Help

Navigating UK tax law is challenging, especially for transport businesses juggling multiple taxes and tight margins. Apex Accountants & Tax Advisors offers tailored support:

VAT and duty compliance: we help assess whether you need to register for VAT, ensure returns are filed on time and advise on border‑related rules that affect hauliers.
Digital record‑keeping and Making Tax Digital: our accountants can set up compatible software and train your team to keep digital records, issue VAT invoices and store records for six years.
Corporate tax planning: we advise on separating personal and business finances, maintaining statutory records and preparing accurate Corporation Tax returns.
HMRC investigations: if HMRC raises a compliance check, we provide representation, guide you through disclosure and appeal procedures and work to minimise penalties.

In an environment of heightened enforcement, professional advice is invaluable. For a confidential discussion, contact Apex Accountants today to ensure your business stays on the right side of the law.

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Frequently Asked Questions

What did the Coventry transport company do wrong?

HMRC’s March 2026 defaulters list shows that Elvis Transports UK Limited deliberately defaulted on tax between November 2023 and March 2024, owing £26,217 in tax and receiving a £17,434 penalty.

When does HMRC publish names of tax defaulters?

HMRC may publish a taxpayer’s details when it has charged penalties for deliberate defaults involving more than £25,000 in tax. Publication happens only after the penalty becomes final and the name remains public for up to 12 months.

What is the current VAT registration threshold?

Businesses must register for VAT when taxable turnover exceeds £90,000 in a 12‑month period; deregistration is optional when turnover falls below £88,000.

How long must I keep business records?

Limited companies must keep accounting records for six years. VAT records must also be kept for at least six years.

How are penalties for deliberate errors determined?

For unprompted disclosures of deliberate inaccuracies, penalties range from 20 per cent to 70 per cent of the tax owed. Prompted disclosures carry a minimum of 35 per cent and maximum of 70 per cent. Full cooperation can reduce penalties; failure to cooperate may result in penalties near the maximum.

What should I do if I cannot pay my tax bill?

Do not ignore the problem. Contact HMRC as soon as possible to arrange a payment plan and seek professional advice. Unpaid tax and poor disclosure can lead to higher penalties and publication on the deliberate defaulters list.

Could Returning to the UK Trigger a Returning Expatriates UK Tax Bill? What You Need to Know

Posted on 19 March 202619 March 2026 by Sidra

Returning from the Middle East during wartime is an emotional decision, but for many British expatriates, it also brings a potential returning expatriates UK tax bill.The UK tax system doesn’t simply ‘start fresh’ the day you land at Heathrow; under HM Revenue & Customs’ statutory rules the moment you cease to be a non‑resident, your worldwide income and gains may fall into the UK tax net. Understanding the statutory residence test (SRT), the temporary non‑residence rules and recent changes to the non‑dom regime can make the difference between an orderly transition and an unexpected six‑figure tax bill.

How the Statutory Residence Test for Returning Expatriates Captures Tax Residency

The SRT determines whether you are a UK tax resident in any tax year. It begins with simple day-count rules. Spending 183 days or more in the UK during a tax year automatically makes you a UK resident. Conversely, if you were a UK resident in at least one of the three preceding tax years and spend fewer than 16 days in the UK, you are automatically a non‑resident; that threshold rises to 46 days if you were not a resident in the prior three years. A third automatic overseas test allows non‑residence if you work full‑time abroad, spend fewer than 91 days in the UK, and do not exceed 30 UK workdays.

For those who do not meet an automatic test, HMRC applies the ‘sufficient ties’ test, a crucial aspect of the tax residency rules for returning expatriates. The more connections (family, accommodation, work, and 90-day ties) you have to the UK, the fewer days you can spend here before becoming a resident.

Individuals who were UK residents in one or more of the preceding three years can become residents with as few as 16 days in the UK if they have four UK ties, 46 days with three ties or 91 days with two ties, illustrating how strict the tax residency rules for returning expatriates can be. Those with no recent UK residence need more days to trigger residency, but the principle is the same: the greater your social and economic ties, the sooner HMRC will treat you as back in the UK tax net.

Exceptional circumstances offer only limited respite. HMRC allows up to 60 days of UK presence to be disregarded where events beyond your control keep you here, but the bar is high. The internal manual explains that the concession usually applies only when the Foreign Office advises against all travel to your host country, such as during civil unrest or natural disasters. Even then, the maximum 60 days is a limit; any additional days count towards residence. HMRC emphasises that exceptional circumstances generally do not apply merely because a crisis prompted you to return to the UK.

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The Five‑Year Trap: Temporary Non‑Residence Rules

Simply being a non-resident doesn’t automatically exempt you from UK tax on gains. Under the temporary non-residence rules UK, gains and income can still be taxed when you return within five years. HMRC’s temporary non‑residence rules catch individuals who were UK residents in four out of the seven tax years before departure and return within five years. In that case, capital gains and some distributions realized during the period of non‑residence are treated as arising in the tax year of return.

The 2025 version of the HMRC helpsheet notes that a gain made while abroad can be taxed when UK residence is resumed. Crucially, the five‑year clock counts full tax years; someone who left in April 2021 and returns before April 2026 will fall within the rules even if they lived abroad for almost five calendar years.

The implications for Gulf‑based executives are stark. Many earn tax‑free salaries and realize gains on shares or businesses while abroad. If they return within five tax years, those historic gains can be taxed at UK rates of up to 20 percent for capital gains and 39.35 percent for dividends. The rules also apply to certain income, such as close company distributions and some partnership profits. Assets acquired during the overseas period are normally exempt, but exceptions apply where relief was rolled over from a UK asset.

A New Non‑Dom Regime: Who Qualifies?

HM Treasury announced in 2024 that the long‑standing domicile‑based tax regime would end from 6 April 2025. Domicile will no longer determine access to the remittance basis; instead the government is introducing a residence‑based foreign income and gains (FIG) regime.

The policy paper states that the new rules will provide 100 per cent relief on foreign income and gains for newcomers during their first four tax years of UK residence, provided they have not been UK tax resident in any of the ten preceding years.

Protection for income and gains in trusts will end for non‑doms who do not qualify. This relief is aimed at attracting internationally mobile talent, not at returning expatriates; most Gulf returnees will have been UK tax resident within the last decade and therefore will not qualify. In addition, any foreign income or gains that arose before 6 April 2025 under the old remittance basis will still be taxed when remitted to the UK.

Practical Considerations and Risks for a Returning Expatriates UK Tax Bill

Day Counts and Tax Residency:
- Vigilance over day counts is crucial. An unplanned overnight stay or UK business trip could result in triggering tax residency.
- 183 days automatically makes you a tax resident in the UK, but fewer days can still suffice, particularly if family or accommodation ties are considered.
- Meticulous record-keeping of your arrivals and departures is essential to avoid being caught out.
- If travel to the Gulf is unsafe, consider spending time in a third country to manage your days of residency.
Split-Year Treatment:
- For permanent returns, explore whether split-year treatment can reduce UK tax exposure.
- HMRC’s Statutory Residence Test (SRT) allows a tax year to be split into UK and overseas parts.
- Only income arising in the UK part of the year will be taxed.
Temporary Non-Residence Rules:
- If you’ve sold a business or other assets while abroad, ensure you review whether the temporary non-residence rules apply.
- Gains on assets acquired after leaving the UK are generally excluded from UK tax.
- However, exceptions apply to assets linked to earlier UK holdings.
- To avoid unexpected tax liabilities, consider timing disposals to ensure the five-year period elapses before your return, as required under the temporary non-residence rules UK, or arrange to defer your return until after the tax year ends.
National Insurance Contributions (NICs):
- When returning to work in the UK, your National Insurance contributions will likely resume.
- You must notify HMRC and file a Self Assessment tax return by 5 October following the tax year if you have untaxed income to report.

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How Apex Accountants & Tax Advisors Can Help

Apex Accountants & Tax Advisors has extensive experience supporting globally mobile clients. We help expatriates calculate their UK day counts, interpret the SRT and assess whether exceptional circumstances can be claimed. Our advisers can model the impact of temporary non‑residence rules on historic gains, evaluate eligibility for the new FIG regime and structure asset disposals to mitigate UK tax. If you are considering returning from the Middle East, we can assist with split‑year claims, Self Assessment registration and National Insurance planning, and liaise with HMRC on your behalf.

Contact us for a confidential consultation before you book your flight home; proactive planning is essential when days in the UK are limited.

FAQs

1. How many days can I spend in the UK without becoming tax resident?

If you spend 183 days or more in the UK in a tax year, you are automatically a resident. However, you may become a resident with far fewer days once your UK ties are taken into account.

2. Do exceptional circumstances excuse additional UK days?

HMRC may disregard up to 60 days if you are forced to stay in the UK due to events beyond your control, but only where the Foreign Office advises against all travel to your country.

3. What is the temporary non‑residence rule?

It applies if you were UK resident for at least four of the seven tax years before departure and you return within five tax years. Gains and certain income arising during that overseas period are taxed in the year of return.

4. Can I avoid tax on assets sold while abroad?

Gains on assets acquired after you left the UK are usually excluded, but gains on assets owned before departure or linked through rollover relief can be charged under the temporary non‑residence rules.

5. Who qualifies for the new foreign income and gains (FIG) regime?

From 6 April 2025 new arrivals can claim 100 per cent relief on foreign income and gains for four years if they have not been UK tax resident in the previous ten years. Returning expats who were recently UK resident are unlikely to qualify.

6. Do I need to register for Self Assessment when I return?

You must tell HMRC by 5 October following the tax year if you have foreign income or gains to report. Employees without other untaxed income may not need to register.

April 2026 Car Tax Changes: What UK Drivers Need to Know About UK Vehicle Excise Duty

Posted on 4 March 20264 March 2026 by Farazia Gillani

From 1 April 2026, many motorists will pay more UK vehicle excise duty (VED). The increase is inflation-linked and applies across several parts of the system, not only the “headline” band for the highest CO₂ cars.

For most people, the change is modest. For buyers of brand-new, high-emission cars, the first-year bill can be eye-watering. And for electric vehicle owners, there is still tax to pay, even if the first-year rate stays low.

Also Read: Van Tax Changes and How they Affect Employer Vehicle Costs

Car Tax Changes on 1 April 2026

Area	What changes from 1 April 2026	Why it matters
Standard rate (most cars registered after April 2017, years 2+)	£195 → £200	Small rise for many drivers
Top first-year CO₂ band (new cars over 255 g/km)	£5,490 → £5,690	Up to £200 extra in year one for top emitters
Expensive Car Supplement (ECS) amount	£440 per year (years 2–6)	Extra cost on top of standard rate for expensive cars
ECS threshold for zero-emission cars	£40,000 → £50,000 (rule takes effect 1 April 2026)	Helps many EVs avoid the ECS if priced between £40k–£50k

How VED Works

For cars first registered on or after 1 April 2017, VED is usually split into two parts:

First-year rate (based on CO₂ emissions)
Standard rate (a flat annual rate from year two onwards)

On top of that, some cars pay the Expensive Car Supplement for five years (years 2–6).

For cars registered between 1 March 2001 and 31 March 2017, VED follows a different CO₂ band table and does not work the same way as the post-2017 system.

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The Big Headline: Higher First-Year Bills For High-Emission New Cars

If you are buying a new petrol or diesel car with very high CO₂ emissions, the first-year “showroom tax” can be the biggest cost shock.

For cars emitting over 255 g/km, the first-year rate rises to £5,690 from 1 April 2026. That is £200 more than the 2025–26 level.

This matters most if you are:

Buying a high-performance model
Buying a heavy SUV or large engine vehicle with high CO₂
Registering a brand-new vehicle close to the April changeover date

Read: VAT on Car Hire in the UK – What Businesses Need to Know

What About UK Vehicle Excise Duty on Electric Vehicles In 2026?

Electric cars are no longer fully exempt from VED. Under the rules that came in from 1 April 2025, new zero-emission cars pay a £10 first-year rate, and then pay the standard rate afterwards.

From 1 April 2026, that standard rate becomes £200 (up from £195).

There is also a helpful change for many EV buyers: the government is increasing the Expensive Car Supplement threshold for zero-emission cars to £50,000, effective 1 April 2026, for eligible vehicles registered from 1 April 2025 onwards.

Practical takeaway: an EV priced at £45,000 may avoid the ECS once the new threshold applies, while a petrol or diesel car still faces the £40,000 threshold.

VED For Older Cars (Registered 2001 To 2017): Rates Rise Too

If your car was registered between 1 March 2001 and 31 March 2017, your annual VED is still based on CO₂ bands.

Here are the top-end bands for 2026–27:

Band (2001–2017 system)	CO₂ emissions	Standard rate from 1 April 2026
L	226–255 g/km	£760
M	Over 255 g/km	£790

Planning Tips For Households And Businesses

Small increases add up, especially for fleets. A few sensible checks can protect cash flow.

If you are ordering a new car, confirm the official CO₂ figure and expected first-year VED before you sign.
If you run a fleet, build the new rates into your 2026–27 budgets and forecasts.
If you are considering an EV, check the list price carefully and whether the £50,000 ECS threshold will apply to your licence date.
Keep records tidy. For business vehicles, VED is typically treated as a running cost in the accounts, so clean bookkeeping helps your year-end work and reporting.

How We Can Help You Plan For Upcoming Car Tax Changes in UK

At Apex Accountants, we help drivers and businesses understand how motoring costs affect tax, budgeting, and cash flow.

Our support can include:

Fleet cost forecasting and budgeting reviews
Bookkeeping clean-up for vehicle and mileage records
Company structure and cost planning for vehicle-heavy businesses
Management reporting so you can track motoring costs month by month

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Conclusion

The April 2026 updates to UK vehicle excise duty are not a single “one-off” change. They raise the standard annual rate, increase first-year charges for the highest CO₂ cars, and adjust how the expensive car rules apply to many EVs.

If you want help modelling the cost impact for your household or fleet, contact Apex Accountants for a practical review and clear next steps.

FAQs About UK Road Tax

1. Is car tax rising for electric vehicles?

Yes. Since April 2025 EVs lost their tax exemption. A new EV now pays £10 in its first year and then £200 per year. However, EV buyers get a higher luxury threshold: if the car’s list price is under £50,000, the extra £425 tax doesn’t apply.

2. How does the luxury tax change?

The Expensive Car Supplement (also called luxury car tax) stays at £425 per year, but now only applies above £40k list price for petrol/diesel cars, and above £50k for EVs. This means many £40–£50k EVs bought since April 2025 are now exempt from the extra fee.

3. What about car tax on diesel cars?

Most diesel models follow the same bands as petrol. However, non-RDE2 compliant diesels still pay one band higher (up to £5,490 in 2025). The 2026 update likely maintains that rule.

4. What about car tax on Older cars (pre-2001)?

These are taxed by engine size. The 2026 rates (via RPI) are modest: e.g. £220 for 12 months on a small petrol car. For cars from 2001–2017, old CO₂ bands now have even the cleanest cars at £20 (no free road tax any more).

5. How to pay UK road tax & check?

You can pay or renew online via GOV.UK. Input your reg to see the exact VED due. If unsure, consult a tax professional for advice on company cars or vehicle financing, as these changes can affect tax planning.

6. Why are some people saying “£200 extra”?

That refers to the jump in the top first-year band for new cars over 255 g/km, which rises by £200 (to £5,690).

Rockstar’s “Grand Theft Tax” Row, Explained: What UK Video Games Tax Relief Really Does

Posted on 2 March 20262 March 2026 by Farazia Gillani

Rockstar Games’ UK tax position is back in the headlines. A recent report, picked up by The Scotsman and widely repeated across the games press, says Rockstar’s UK studio claimed more than £70 million through the UK’s Video Games Tax Relief (VGTR) in the 2024–25 financial year. The same coverage points to reported UK profits of over £87 million and dividends of around £85 million, which is why the story has sparked a fresh debate about whether the relief still hits its original target. A Labour MP has also criticised the scale of relief being claimed, using the phrase “Grand Theft Tax”, while worker representatives and unions have argued that public support should come with stronger expectations around fairness and workplace rights. Rockstar, for its part, says it has invested heavily in the UK and created a large number of creative-sector jobs.

At Apex Accountants, we see two separate issues getting mixed together:

How VGTR (and its replacement, VGEC) works in law
Whether the policy outcomes still match what taxpayers expect

This article explains both, so studio owners, finance teams and founders can make informed decisions.

What is VGTR and why does it exist?

VGTR was introduced in 2014 to support the development of video games with cultural value and to encourage production in the UK and Europe. An HMRC-commissioned evaluation describes VGTR as one of the UK’s creative industry tax reliefs, designed to incentivise culturally British or European games and strengthen the sector.

In practice, VGTR reduces corporation tax for qualifying games projects or produces a payable credit for loss-making companies. It has been especially important for smaller studios that need cashflow support while they build and ship a game.

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The key eligibility points (VGTR)

To claim VGTR, HMRC guidance says the game must:

Be certified as British by the BFI cultural test
Be intended for supply to the public
Have started production on or before a stated deadline in the guidance
Exclude certain categories, such as gambling and advertising products

The “British values” phrase that appears in some commentary is often a shorthand for the BFI cultural test and certification process, which is the formal route in the law and HMRC guidance.

The policy row: why Rockstar’s claim is controversial

The argument is not that claiming VGTR is illegal. It is about whether it is desirable for a very large studio, owned by a global group, to claim a large share of relief in the same years it reports strong profits and pays substantial dividends.

Several points are driving the debate:

Concentration risk: A significant portion of VGTR has been claimed by Rockstar across multiple years, raising questions about the policy balance between inward investment and support for smaller studios.
Worker allegations: A UK MP has raised concerns in Parliament after being contacted by constituents who believed they were dismissed for organising at work and said the claims should be scrutinised given the scale of relief.
Fairness optics: When headlines highlight large relief claims alongside profits and dividends, the public often reads the relief as “avoiding tax”, even though the mechanism is a relief built into the tax system.

Rockstar’s tax case response has been to emphasise local investment and job creation, stating that it has created substantial UK employment and helped build skills and innovation in the creative sector.

The practical reality: VGTR is changing, and studios must plan for 2026 and beyond

If you develop games in the UK, the bigger operational story is not Rockstar. It is the transition from VGTR to the Video Games Expenditure Credit (VGEC).

VGEC: the new regime replacing VGTR

HMRC guidance confirms:

VGEC can be claimed on qualifying expenditure incurred from 1 January 2024
The credit is calculated at a headline rate of 34% of qualifying expenditure (subject to the scheme’s rules)
Qualifying expenditure is based on UK core costs and is capped through the scheme’s formula

The BFI also explains that expenditure credits are available from 1 January 2024, with new productions moving to the expenditure credits from 1 April 2025, and a full move by 1 April 2027.

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VGTR vs VGEC: what changes in real life

Here are the differences that matter for finance teams.

VGTR (older relief)

Relief is linked to the qualifying trade computation and can reduce tax or create a payable credit.
It relies on the BFI cultural test and qualifying expenditure rules.
It applies to games that meet the scheme conditions and timeline restrictions.

VGEC (new credit)

It is a taxable expenditure credit calculated on qualifying spend.
HMRC sets a 34% headline rate, but you still need to model the net impact after corporation tax and your company’s position.
UK spending rules are central, so your outsourcing and subcontracting profile matters.

This is why two studios can have the same budget and receive very different outcomes.

The compliance risks studios need to manage

Whether you are a five-person indie team or a multi-site studio, most VGTR and VGEC problems come from avoidable process gaps.

Watch out for:

Incorrect “core costs” classification (mixing production costs with non-qualifying spend)
Weak evidence files for cultural test scoring, interim certification and final certification
Project boundary issues if several products or expansions are treated inconsistently
Late planning around the transition dates, which can affect relief choice and cashflow
Overlaps with R&D claims that are not properly mapped, documented and reconciled

HMRC expects clear, supportable numbers, with a proper trail from bookkeeping to claim schedules.

What grand theft tax means for the UK games sector

The headline row will continue. But for most UK studios, the key takeaway is simpler:

The UK still backs game development through tax policy.
The mechanism is shifting to VGEC.
Better record keeping and earlier modelling will decide who benefits most.

Public pressure may also increase scrutiny, even for fully compliant claims. So your documentation and governance matter more than ever.

How We Can Help You

If you are a UK game developer, publisher or creative studio group, Apex Accountants can support you with:

VGTR and VGEC eligibility reviews and project structuring
BFI cultural test support and evidence packs
Claim preparation and submission support with clear audit trails
R&D tax credit reviews where relevant to your development activity
Management accounts and forecasting for project cashflow control
Bookkeeping and cloud accounting setups built around clean cost coding
Payroll and contractor payments support aligned to project reporting

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Conclusion

Rockstar’s tax case has reignited a public argument about the purpose of creative tax support and who should benefit most from it. The political optics are real, and so are the concerns about policy concentration and fairness.

For studios, though, the action point is not the headlines. It is your own compliance and planning.

VGTR and VGEC can be valuable. But the rules are detailed, and the transition timeline is active. HMRC and the BFI guidance is clear on certification, qualifying spend and the move to expenditure credits.

If you want to claim with confidence, start with clean project cost tracking, early modelling and a strong evidence file. That is how you protect cashflow, reduce risk and keep your claim defensible if questions arise.

If you would like support with Video Games Tax Relief or the new expenditure credit, you can contact Apex Accountants today. Our team can review your eligibility, prepare your claim, and guide you through HMRC requirements. Visit our website or get in touch to discuss your project.

FAQs: Video Games Tax Relief and VGEC in the UK

1. How does VGTR work in the UK?

Video Games Tax Relief (VGTR) allows eligible companies to reduce Corporation Tax or receive a payable credit. Relief is based on qualifying core costs, such as designing and testing. Claims can cover up to 80% of costs, with an effective benefit around 20%.

2. Who qualifies for video games tax relief?

A company can qualify if it develops a game intended for public release, passes the BFI cultural test, and is subject to UK Corporation Tax. The company must be responsible for design, production, and testing and cannot claim for advertising or gambling products.

3. What is the BFI cultural test, and how do you pass it?

The BFI cultural test assesses whether a game is “British”. It is points-based, requiring at least 16 out of 31 points across areas such as cultural content, contribution, location, and personnel. Certification is mandatory for both VGTR and VGEC claims.

4. VGTR vs VGEC: which is better?

VGTR offers a deduction or payable credit on profits or losses, while VGEC provides a taxable credit at a headline rate of 34% of qualifying UK expenditure. The better option depends on project timing, cost structure, and whether production began before April 2025.

5. Is VGTR ending, and when?

Yes, VGTR is being phased out. New productions starting after 1 April 2025 must use the Video Games Expenditure Credit. Existing projects can continue claiming VGTR until 31 March 2027, after which all claims will move fully to the new system.

6. Can overseas-owned studios claim UK relief?

Yes, overseas-owned studios can claim UK relief if they operate a UK company subject to Corporation Tax. The company must meet eligibility rules, including passing the cultural test and carrying out qualifying development activity within the UK.