Category: Taxes

How to Complete Your UK Self-Assessment Tax Return for 2024/25

Posted on by Nida Umair

The deadline for self-assessment tax returns is fast approaching, and the thought of completing it can be overwhelming. But don’t panic—starting early will not only help you avoid the last-minute stress but will also allow you ample time to gather all the necessary information. If you delay, you run the risk of making mistakes and losing out on tax-saving opportunities.

In this comprehensive guide, we’ll walk you through the process of completing your self-assessment return for the 2024/25 tax year (6 April 2024 to 5 April 2025), with practical tips and essential deadlines.

Deadline for Self-Assessment Tax Returns

  • 31 January 2026 – Deadline for online Self-Assessment submissions and payment.
  • 31 January 2026 – Any tax due must be paid by this date.
  • 31 October 2025 – Deadline for paper tax return submissions (already passed, so you must file online if you haven’t already).

It’s critical to avoid rushing your tax return. If you don’t submit your return on time, HMRC may impose penalties. Plus, if you’re struggling to get all your documents in order, there are fewer phone lines open closer to the deadline, which can lead to delays.

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UK Tax Return Deadlines: Penalties for Late Submissions and Payments

Failing to file or pay your tax return on time can result in significant penalties. Here’s an overview of the penalties you may face and how to avoid them:

Late Filing Penalties

If you miss the UK tax return deadline, you’ll face the following penalties:

  • Initial £100 Penalty: Applied if your return is filed late, regardless of the amount due.
  • Daily Penalties: After 3 months, you’ll incur a daily penalty of £10, up to a maximum of £900.
  • Further Penalties: After 6 months, you’ll face an additional penalty of 5% of the tax due or £300, whichever is greater. Another 5% penalty will be applied after 12 months.

Late Payment Penalties

If you miss the deadline for paying your tax bill, you will face the following penalties:

  • 5% Penalty: Applied after 30 days, 6 months, and 12 months for the amount still unpaid.
  • Interest Charges: You’ll also be charged interest on the amount owed, which can add up over time.

Failure to Notify Penalties

If you register for Self-Assessment late (after 5 October), or fail to pay your tax bill by 31 January, you may face a ‘failure to notify’ penalty. This penalty is calculated based on the amount of tax still due and will be issued within 12 months after HMRC receives your return.

To avoid these penalties, it’s crucial to file and pay your Self-Assessment tax return promptly.

Who Needs to Complete a Self-Assessment Return?

Not everyone needs to file a Self-Assessment tax return. However, you are required to submit one if any of the following apply to you:

  • Self-Employed as a Sole Trader: If you earned more than £1,000 before expenses from self-employment.
  • Business Partner: If you were a partner in a business partnership during the tax year.
  • Capital Gains Tax: If you had to pay Capital Gains Tax on the sale or disposal of assets such as property, shares, or other investments.
  • High-Income Child Benefit Charge: If you or your partner earn more than £60,000 a year and claim child benefit, you need to declare this charge.
  • Untaxed Income: If you received income that wasn’t taxed automatically, such as rental income, freelance earnings, income from savings or investments, or foreign income.
  • Income Tax Reliefs: If you want to claim income tax reliefs, such as pension contributions, gift aid, or any other allowances,

If you’re unsure whether you need to file, HMRC provides an online tool that helps you determine whether you’re required to submit a return. If you’ve never filed a return before, you must tell HMRC by 5 October 2026.

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Necessary Documents For UK Tax Return

Before you start filling out your Self-Assessment return, you’ll need to gather all the necessary documents. These include:

  • P60/P45/P11D Forms: These provide details of your income from employment or pension.
  • Bank Statements: If you have self-employment income or other untaxed income, you’ll need to provide statements and records.
  • Tax Certificates: If you’ve received dividends from shares or interest from savings, ensure you have tax certificates to report on your return.
  • Invoices and Receipts: If you’re self-employed or have other taxable income, ensure you have records of your business expenses, such as receipts for purchases or invoices issued.

Using the HMRC App

To streamline the process, you can use the HMRC app, which is free and secure. The app allows you to:

  • Check your unique taxpayer reference (UTR).
  • Track your employment income and view your tax records.
  • Set reminders for tax payments and submission deadlines.
  • Get help from HMRC’s digital assistant if you have questions about your return.

Using the app can save you time compared to manually searching for documents or calling HMRC’s customer support, especially during busy periods.

Don’t Forget About Your Side Hustles

If you have any additional income from freelance work, casual jobs (such as babysitting or dog walking), or property rentals, you must report it in your Self-Assessment return.

  • Trading Allowance: If you earn up to £1,000 from side jobs (like tutoring, freelancing, or selling goods), you don’t need to pay tax. However, if you earn more than this, you’ll need to register as a sole trader and submit a return.
  • Property Income: Income from renting out property is taxable, and you’ll need to declare it in your return. You can deduct certain expenses, such as maintenance and repairs, from your rental income.

Tax on Savings and Investments

With interest rates increasing, more people are exceeding their personal savings allowance and need to declare their savings income. Here’s what you need to know:

  • Basic-rate taxpayers can earn up to £1,000 in savings interest tax-free.
  • Higher-rate taxpayers can earn up to £500 tax-free.
  • Additional-rate taxpayers do not have a savings allowance.

Interest earned in ISAs or some NS&I products is not subject to tax, so you don’t need to declare it.

Claiming Pension Tax Relief

If you’re contributing to a pension, you may be eligible for pension tax relief, which can reduce your taxable income. There are two main types of pension tax relief:

  • Net Pay Arrangement: Contributions are deducted from your income before tax is calculated, meaning you get relief immediately at your highest rate of tax.
  • Relief at Source: If you contribute to a personal pension or some workplace pensions, you receive basic-rate relief automatically. However, if you’re a higher-rate taxpayer, you’ll need to claim the additional relief through your Self-Assessment return.

To claim, enter the total contributions you made, including the basic rate relief you received. HMRC will calculate any further relief due to you based on your tax rate.

High-Income Child Benefit Charge

If you or your partner earn more than £60,000 and claim child benefit, you must pay the High Income Child Benefit Charge. This charge is calculated on a sliding scale and reduces the child benefit you receive. If your income exceeds £60,000, the full child benefit will be clawed back.

You can use HMRC’s child benefit tax calculator to estimate your adjusted net income and determine how much charge you owe.

Reporting Crypto Gains

HMRC is increasingly focused on cryptoassets, such as Bitcoin and Ethereum. If you sold or exchanged any crypto during the 2024/25 tax year, you must report any gains or losses in your Self-Assessment return.

  • Crypto assets are subject to Capital Gains Tax.
  • The Self-Assessment form now includes specific boxes (13.1 to 13.8) to declare crypto gains.

Make sure to keep accurate records of your transactions, as HMRC requires full disclosure of all crypto-related earnings.

Gift Aid Donations

If you’ve made charitable donations under the Gift Aid scheme, you can claim additional tax relief. As a higher-rate taxpayer, you can reclaim 20% or 25% of the donation amount. For example, if you donate £100, the charity claims £125. You can then claim back £25 in tax relief.

Remember to keep records of all charitable donations made throughout the year.

Avoiding Scams

HMRC has warned about an increase in self-assessment scams, including fake emails and phone calls that attempt to steal personal information. If you receive any suspicious messages, don’t click on links or provide personal information. Report any scams directly to HMRC.

How We Can Help File Your Self-Assessment Tax Return

At Apex Accountants, we provide expert support for completing your self-assessment tax return accurately and on time. Here’s how we help:

Filing Your UK Tax Return

We ensure that your Self-Assessment tax return is filed correctly, whether online or via paper. Our team helps you gather all necessary documents (P60, P45, P11D, bank statements, and more) and submits your return on time, avoiding late penalties.

Tax Planning

We offer personalised tax planning to minimise your liability, such as maximising allowances (e.g., personal savings allowance, capital gains allowance) and guiding you on tax-efficient investments. We help higher earners take advantage of tax-saving strategies like income splitting and pension contributions.

Business Support

For self-employed individuals, contractors, and partnerships, we provide expert guidance on managing income from multiple sources, including freelance work and side hustles. Our support covers bookkeeping, tax deductions, and filing returns for sole traders and partnerships.

Whether you’re self-employed, a freelancer, or a business owner, Apex Accountants ensures you remain tax-efficient, compliant, and on top of your financial obligations.

Contact us today to get expert advice and assistance with your self-assessment tax return.

Conclusion

The self‑assessment deadline for the 2024/25 tax year is fast approaching. Filing your return by 31 January 2026 and paying any tax due on time avoids costly penalties. Register early, gather your documents and make use of allowances to reduce your bill. Keep an eye on hidden income sources such as savings interest, side hustles and crypto gains, and remember to claim pension and Gift Aid reliefs. If you need support, Apex Accountants are here to help you navigate the process confidently and stay compliant.

FAQs 

How do I register for self‑assessment?

Register online through HMRC’s site. If you’re new to self‑assessment, you’ll receive a UTR; if you previously filed, reactivate your account. Allow at least two weeks to receive your UTR and activation code. You must tell HMRC by 5 October following the end of the tax year.

What records should I keep and for how long?

Keep evidence of income, expenses and tax reliefs for at least five years and ten months after the submission deadline. This includes invoices, receipts, bank statements, P60s and P45s, dividend vouchers and interest certificates.

Can I submit my return early?

Yes. You can file anytime after the tax year ends on 5 April and well before the deadline. Filing early helps you know your tax liability and budget for payment. If HMRC owes you a refund, you’ll get it sooner.

What happens if I make a mistake?

You can amend an online return up to 12 months after the filing deadline. If you realise you’ve overpaid tax or missed claiming reliefs, amend your return or write to HMRC asking for a refund.

How can I pay my tax bill?

You can pay through online banking, by direct debit, by debit/credit card or via the HMRC app. If you file by 30 December 2025, HMRC may collect tax owed through your PAYE code. Otherwise, pay by 31 January 2026 to avoid penalties.

What if I cannot pay on time?

Contact HMRC as soon as possible. You may be able to set up a Time to Pay arrangement to spread payments. Ignoring the deadline will trigger late payment penalties of 5% of the tax unpaid after 30 days, 6 months and 12 months, plus interest.

How do I protect myself from HMRC scams?

HMRC warns that thousands of self‑assessment scams are reported each year. Beware of suspicious emails, texts and phone calls asking for personal information or offering refunds. HMRC never asks for personal or financial details by text or email. If in doubt, contact HMRC directly via official contact details and report the scam.

Fat Cat Tax: Why Tackling Extreme CEO Pay Gaps Matters

Posted on by Maliha Javaid

Growing attention is turning to the idea of a “Fat Cat Tax” in response to these widening pay gaps. The proposal centres around applying an additional corporate tax surcharge to companies that choose to pay executive directors many times more than their workforce. Instead of setting a strict limit on pay, this system would connect tax costs to very high pay differences, with bigger taxes applied as the difference between top salaries and average worker pay gets larger. 

Supporters argue this approach targets corporate behaviour rather than individual income while encouraging firms to either rein in excessive remuneration or invest more in wages, training, and long-term growth. With transparency measures already in place and executive pay still rising year after year, the Fat Cat Tax is increasingly seen as a corrective tool designed to restore balance, rebuild trust and ensure that corporate success delivers broader economic benefits.

The Scale of Executive Pay Gap in UK

The High Pay Centre’s annual “Fat Cat Day” analysis illustrates how extreme the executive pay gap in UK pay has become. Their 2026 calculations found that:

  • Median FTSE 100 CEO pay: The typical chief executive earned £4.22 million in 2025 (excluding pension), a 113‑to‑1 ratio relative to a full‑time worker earning £37,430.
  • Average FTSE 100 CEO pay: Mean pay was even higher at £4.40 million, still about 113 times the median full‑time wage. CEOs earned a median worker’s annual salary by midday on 6 January 2026.
  • High outliers: Individual companies show far bigger disparities. Aerospace group Melrose paid its CEO nearly £59 million, a staggering 1509‑to‑1 ratio, while some retailers such as Tesco paid their chief executives over 400 times the typical employee salary.

What People Think

The public strongly supports closing these gaps. Several surveys show overwhelming support for limiting executive pay and demanding higher wages for frontline staff:

  • A High Pay Centre and Survation poll found that 62% of respondents believe CEOs should not be paid more than 10 times their typical employee, while only 3% thought pay gaps above 50 times are acceptable.
  • In a 2025 ShareAction poll, 70% of UK adults said it is unacceptable for CEOs to earn 100 times more than their lowest‑paid staff, and 93% of shoppers at retailer Next said employers should pay the real Living Wage rather than just the legal minimum.
  • The High Pay Centre notes that the majority of people think CEOs should be paid no more than 20 times as much as their typical employees and that wider pay gaps damage employee morale, engagement, and corporate reputation.

This disconnect between boardroom rewards and public expectations undermines trust in business and fuels calls for reform. Even many investors are pressing for fair pay policies, as evidenced by resolutions filed at annual general meetings demanding living‑wage commitments.

The Proposed Fat Cat Tax

To tackle these extreme inequalities, the High Pay Centre and the Equality Trust propose a “Fat Cat Tax”. The policy would add a surcharge to corporation tax payable by any firm whose CEO’s single‑figure remuneration exceeds a multiple of the median UK worker’s salary. Key features include:

  • Progressive thresholds: The surcharge would start when the CEO‑to‑worker ratio exceeds 10:1 and increase to 50:1, 100:1, 200:1, and 500:1.
  • Ring‑fenced revenues: Tax receipts would be earmarked for education and early years provision, investing in social mobility and addressing inequality at its roots.
  • Incentives not prohibitions: Companies could still pay high executive salaries if they choose, but the tax would create a clear financial cost for extreme pay gaps. The policy aims to encourage boards to share corporate wealth more fairly or raise wages for lower‑paid staff.

Why This Matters

Extreme pay gaps are not just unfair; they carry broader economic and social costs:

  • Curb UK income inequality: Evidence compiled by the Equality Trust shows that high income inequality is linked to financial crises, increased debt and inflation. Societies with greater equality typically experience longer periods of sustained growth, whereas inequitable economies are more vulnerable to cycles of boom and bust.
  • Lower productivity: Studies indicate that reducing the wages of low-paid workers lowers their productivity more than increasing the pay of high-paid workers raises theirs. Whether employees perceive their pay as fair affects their productivity. Therefore, workers perceive excessive CEO pay as unfair, which can negatively impact productivity and commitment.
  • Health and wellbeing: Living in an unequal society produces stress and status anxiety. Research compiled by the Equality Trust finds that more equal societies have a longer life expectancy and lower rates of mental illness, obesity, and infant mortality. Greater inequality is associated with higher levels of depression and schizophrenia.
  • Corporate trust and product quality: Surveys compiled by the Equality Trust link excessive CEO pay to lower trust in corporations, bad relations with employees, worse job satisfaction and even higher inflation. These factors damage long‑term corporate performance.

Why Apex Accountants Supports Fair Pay Reform

As chartered accountants and business advisers, we at Apex Accountants believe that sustainable success depends on fairness, transparency, and good governance. We support efforts to close extreme pay gaps because they make economic sense and foster a healthier society. We also acknowledge that businesses need practical guidance to navigate new regulations. Here is how we can help:

Our Services

  • CEO‑worker pay ratio analysis: We help clients analyse their executive pay ratios, benchmark against industry norms and identify opportunities to narrow gaps responsibly.
  • Tax planning and compliance: Our experts stay up to date with proposed changes such as the Fat Cat Tax. We can model potential surcharges, assess how they will affect your corporation’s tax liabilities, and devise strategies to optimise your tax positions.
  • Remuneration structuring: We advise on balanced compensation packages that align executive incentives with long‑term value creation. This includes designing bonus schemes, shared plans, and pensions that reward performance without creating unsustainable pay gaps.
  • Pay policy reporting: Companies are already required to disclose CEO‑worker pay ratios. We assist with narrative reporting that explains pay practices, communicates fairness and meets regulatory requirements.
  • Living‑wage implementation: Many clients choose to adopt the real Living Wage. We provide budgeting and payroll support to implement living‑wage policies and assess their impact on recruitment and retention.
  • Training and governance: Apex Accountants offers training for remuneration committees on best practice and helps boards integrate worker voice into pay decisions, consistent with emerging standards for fair reward frameworks

Building a Fairer Future

The Fat Cat Tax proposal highlights growing dissatisfaction with a system that funnels corporate wealth to a privileged few. Polls indicate that most Britons support limiting CEO pay to modest multiples of average wages and that many consumers are prepared to boycott companies that fail to pay a real living wage. At the same time, decades of UK income inequality and wage stagnation mean that millions of households have seen little improvement in their living standards.

A tax surcharge for companies with very high pay ratios would not fix inequality on its own, but it would send a strong message that businesses should help society as a whole. By disincentivising excessive remuneration, encouraging higher wages for the lowest paid, and generating revenues for education and early years programs, the policy could make a real difference. Ultimately, businesses thrive in societies where workers are healthy, educated and motivated. Closing the gap between the boardroom and the shop floor is in everyone’s interests.

Tax Investigations for Schools and Training Providers and How to Stay Compliant

Posted on by Farazia Gillani

Tax investigations for schools and training providers are becoming increasingly common as HMRC tightens its oversight of the education sector. Whether you’re running a private school, a vocational training centre, or a multiservice education provider, understanding how tax rules affect you is critical. Many organisations also struggle with a key question: how does VAT work for educational services? The answer depends on your structure, income streams, and recent regulatory changes. At Apex Accountants, we help education providers stay fully compliant and prepared for HMRC scrutiny.

Why HMRC May Investigate

HMRC can open a compliance check at any time. Most enquiries begin when something on a return looks unusual or inconsistent.

Common Investigation Triggers

  • Incorrect-looking figures

Large VAT refunds, low tax despite high turnover, or errors on returns often prompt a review.

  • Sudden income or cost changes

Sharp increases or drops without a clear business reason attract HMRC’s attention.

  • Mismatch between data sources

HMRC’s “Connect” system compares your tax returns with bank activity, land registry information, lifestyle indicators, and benefits or employment records. Any mismatch between data sources raises questions and can trigger a review.

  • High expenses or late filings

Repeated amendments, late submissions, or expense claims outside sector norms may raise concerns.

  • Sector-specific campaigns

Education providers offering mixed services, taking cash payments, or using complex fee structures are frequently targeted.

If HMRC opens an investigation, the organisation must continue filing returns on time. Quick cooperation usually reduces penalties.

Key Risk Areas for Schools and Training Providers

1. Mixed Income Streams

 Most education providers receive several types of income, such as tuition, boarding, workshops, exam fees, grants, and merchandise sales. Each income stream may have a different tax or VAT treatment, so clear financial separation is essential. The best approach is to keep separate ledgers, maintain clear audit trails, and record every income category accurately with supporting detail.

2. Employment Status and Payroll


Schools and training centres often rely on visiting tutors, freelance instructors, or part-time lecturers. HMRC may challenge whether these individuals should actually be treated as employees. This creates risks such as backdated PAYE liabilities, unpaid National Insurance, incorrect self-employment classification, and missing contracts or schedules. From April 2025, self-assessment returns must also include start and end dates for self-employment, giving HMRC more data to test worker status.

3. Expense Scrutiny


Education organisations frequently buy items, such as instruments, artistic materials, IT equipment, and classroom resources. HMRC verifies the complete and exclusive use of these purchases to meet the organisation’s needs. Personal use, unclear usage, or missing receipts can result in disallowed expenses and potential penalties.

4. VAT Complexity and New Rules for Private Schools

VAT is one of the biggest areas of confusion, which leads many providers to often ask the question: how does VAT work for educational services? The answer depends on the organisation’s structure.

Eligible bodies for VAT exemption:

These include:
• academies
• universities
• non-profit schools
• colleges
• charities
Such bodies can treat education as VAT-exempt.

Commercial providers (standard-rated)

Training companies, tutorial colleges, and corporate training providers generally must charge VAT unless a specific exemption applies.

Private schools (new VAT rule from 1 January 2025)

These institutions must now charge 20% VAT on tuition and boarding. Items like textbooks may still be exempt.

5. Anti-Forestalling Rules on Prepaid Fees

Some schools encouraged advance payments to avoid the 2025 VAT change.
HMRC is checking all payments received between 29 July 2024 and 30 October 2024 for terms beginning on or after 1 January 2025.
If caught, VAT still applies.

6. Digital Records and Making Tax Digital (MTD)

All VAT-registered education providers must keep digital records, use MTD-compatible software, maintain digital links between systems, and store their records for six years. These requirements apply to every organisation in the sector and form a key part of HMRC’s move toward full digital compliance.

MTD for income tax begins in 2026 for individuals earning over £50,000 and expands in 2027 and 2028. Schools with rental income or self-employed tutors must prepare early.

7. HMRC’s Use of AI and Data Analytics

HMRC uses AI to examine:

  • bank transactions
  • overseas income
  • property ownership
  • social media activity

This makes it easier for HMRC to spot discrepancies between reported income and real financial behaviour.

How To Prepare for Tax Investigations for Schools and Training Providers

1. Strengthen Record Keeping

Maintain digital records for all income streams, grants, payroll, expenses, VAT calculations, and contracts. Good documentation is your strongest defence in the event of an enquiry, as it shows clear evidence to support every figure on your returns.

2. Run Compliance Reviews

Carry out regular reviews of VAT treatment, employment status, grant reporting, the accuracy of returns, and consistency across different taxes. These internal checks reduce the risk of errors and provide strong protection during HMRC compliance checks for education providers.

3. Manage VAT and Prepayments

Please ensure the correct VAT status is confirmed for each service you offer and take the time to understand how VAT applies to education within your specific structure. Review all prepayments made ahead of VAT changes and keep detailed logs for exempt services. Proper VAT management helps prevent disputes and avoids unexpected liabilities.

4. Review Tutor Contracts

Make sure tutor contracts, invoices, and work records are accurate and updated. Clear documents help confirm the correct employment status and reduce the risk of PAYE or NI issues during HMRC checks.

5. Use MTD-Ready Systems

Use MTD-compliant software and keep full digital audit trails. It reduces manual errors, supports accurate VAT reporting, and prepares your organisation for future MTD requirements.

6. Cooperate During an Investigation

Respond quickly to HMRC requests, provide accurate information, and keep all communication professional. Continue filing your returns on time during the investigation to avoid extra penalties or delays.

7. Seek Professional Support

Apex Accountants provides specialist help with tax investigations, VAT reviews, employment status assessments, and MTD compliance. We guide education providers through HMRC queries, prepare the right documents, and represent you in meetings to reduce disruption and protect your position.

Conclusion

HMRC compliance checks for education providers are becoming more detailed, data-driven, and frequent. With mixed income streams, complex VAT rules, and stricter reporting requirements, schools and training centres must be proactive to avoid penalties and disruptions. Strong digital records, accurate VAT treatment, and clear tutor contracts all help reduce the risk of an HMRC enquiry. For expert support with tax investigations, VAT reviews, and full compliance oversight, contact Apex Accountants today.

Why Does HMRC Cryptocurrency Tax Reporting Require Users to Share Their Account Details?

Posted on by Farazia Gillani

HMRC Cryptocurrency tax reporting has entered a new phase. From 1 January 2026, crypto platforms operating in or serving the UK must collect and share user account details with HM Revenue & Customs (HMRC).

This change directly affects individuals who buy, sell, trade, or hold cryptoassets. It also signals a clear message from HMRC. Crypto activity is no longer outside the tax system.

At Apex Accountants, we are already supporting clients who need clarity on what this means and how to stay compliant.

For more information on crypto tax reporting, read crypto tax reporting requirements and what they mean for the UK.

What Has Changed From January 2026

Crypto exchanges and similar platforms now have legal reporting duties. They must gather accurate information about their users and submit this data to HMRC.

This includes UK residents using both UK-based and overseas platforms.

The rules are part of the Cryptoasset Reporting Framework, an international standard adopted by the UK through domestic legislation.

The goal is simple.

Give HMRC reliable data to match against tax returns.

What Information Crypto Platforms Must Collect

Crypto platforms must now obtain and verify key personal and transaction details.

This includes:

  • Full name
  • Date of birth
  • Home address
  • Country of tax residence
  • National Insurance number or Unique Taxpayer Reference
  • Transaction history
  • Values recorded in pound sterling

Platforms must also carry out due diligence to confirm the accuracy of this information.

If a user does not provide the required details, the platform may restrict access or report the failure. Penalties can apply.

Why Strict HMRC Cryptocurrency Tax Reporting Rules Are Being Introduced

HMRC has long been concerned about crypto tax non-compliance. Many investors misunderstood their obligations. Others failed to declare gains altogether.

Crypto prices have risen sharply recently. That created significant taxable profits.

At the same time, HMRC struggled to obtain consistent data. The new framework changes that.

HMRC can now:

  • Identify undeclared crypto gains
  • Compare exchange data with tax returns
  • Detect patterns of non-reporting
  • Share information with overseas tax authorities

This reduces the scope for error and avoidance.

Does This Create a New Crypto Tax?

No. The tax rules themselves have not changed. Cryptoassets are already taxed in the UK.

Depending on activity, this may include:

  • Capital Gains Tax on disposals
  • Income Tax on mining, staking, or trading activity

What has changed is visibility. HMRC now receives structured data directly from platforms.

What Counts as a Taxable Crypto Disposal?

Many UK investors are still unclear on this point.

A taxable event can arise when you:

  • Sell crypto for cash
  • Exchange one cryptoasset for another
  • Use crypto to buy goods or services
  • Gift crypto to someone other than a spouse or civil partner

Each of these can trigger a gain or loss. Accurate records are essential.

Reporting Deadlines UK Crypto Users Must Know

If you made crypto disposals during the 2024–25 tax year, you may need to submit a self-assessment return by 31 January 2026.

HMRC has updated tax return forms to include a specific crypto section. This removes any doubt about disclosure expectations.

Losses can still be claimed. These may be carried forward if reported correctly.

What Happens If You Have Undeclared Crypto Gains

HMRC is encouraging taxpayers to correct past errors voluntarily. If you have undeclared crypto gains from earlier years, acting early matters.

Voluntary disclosure often leads to:

  • Lower penalties
  • Reduced interest
  • Better control over the process

Waiting for HMRC to contact you usually leads to harsher outcomes.

How We Can Help With Cryptoasset Tax Compliance

Apex Accountants provide specialist support for cryptoasset tax compliance, including:

  • Crypto capital gains calculations
  • Self-assessment preparation and filing
  • Review of historic crypto activity
  • Voluntary disclosure support
  • Record-keeping systems and reconciliation
  • HMRC enquiry and investigation assistance

Our crypto tax accountants in the UK work with individuals, investors, and business owners who want certainty, not surprises.

Conclusion

Apex Accountants support individuals and businesses with clear, practical crypto tax advice. We help you understand your reporting obligations, calculate gains accurately, and prepare compliant self-assessment returns. Where historic issues exist, we guide you through voluntary disclosure with care and precision.

Our approach is straightforward. We focus on accuracy, clarity, and timely action. This allows you to meet HMRC requirements with confidence and avoid unnecessary penalties or stress.

If you hold or trade cryptoassets and want certainty over your tax position, contact Apex Accountants today. Our team of crypto tax accountants in the UK is ready to review your situation and provide tailored support.

FAQs About Cryptoasset Tax Reporting

Do small crypto gains need reporting?

Yes. Even small gains may need reporting. HMRC reporting rules differ from tax payment thresholds. You must declare disposals if total proceeds or activity meet reporting criteria.

What if I used an overseas exchange?

Using an overseas exchange does not remove UK tax obligations. Platforms serving UK residents fall within reporting rules, and HMRC can receive data through international information-sharing agreements.

Will HMRC see my full transaction history?

Crypto platforms submit user details and transaction summaries. HMRC can request additional records during compliance checks or enquiries if figures reported on tax returns appear inconsistent.

Does holding crypto trigger tax?

No. Simply holding crypto does not trigger tax. Tax usually arises when you sell, exchange, spend, gift, or receive crypto income, such as staking or mining rewards.

How to avoid tax on crypto in the UK?

You cannot legally avoid tax on taxable crypto gains. The correct approach is accurate reporting, using allowances where available, claiming losses properly, and taking professional tax advice.

Can HMRC check my crypto account?

HMRC can access information reported by crypto platforms. It may also request records directly from taxpayers during reviews or investigations to confirm declared gains and income.

What are the new rules for HMRC crypto?

From January 2026, crypto platforms must collect and report UK users’ identity and transaction data to HMRC under international reporting standards, improving transparency and compliance checks.

How to hide crypto from HMRC?

You should not attempt to hide crypto. Failing to declare taxable activity is illegal. New reporting rules significantly reduce anonymity and increase penalties for non-compliance.

Does Crypto.com share information with HMRC?

Crypto platforms operating in or serving the UK must comply with reporting rules. This can include sharing user details and transaction data with HMRC where required by law.

Crypto Tax Reporting Requirements and What they Mean for the UK

Posted on by Nida Umair

From 1 January 2026, crypto platforms in the UK and across the EU will start collecting far more tax-relevant customer and transaction data than before. This is not a new “crypto tax”. It is a new crypto tax reporting system that gives tax authorities better visibility of crypto activity, particularly where money moves across borders.

For many people, the impact will feel practical rather than theoretical. You will see tougher onboarding questions, more follow-up requests, and regular reviews of your account information. If you have crypto gains or income, the days of “HMRC will never see it” thinking are ending fast.

What CARF means for the UK

The UK is implementing the Crypto-Asset Reporting Framework (CARF), designed by the OECD, through UK regulations and guidance on how to report crypto tax to HMRC.

In plain terms, CARF requires reporting cryptoasset service providers to:

  • identify users
  • verify tax residence details
  • track reportable transactions
  • submit annual reports to HMRC

HMRC has also confirmed domestic reporting will cover UK resident customers using UK-based reporting providers, so the information is not only for non-UK customers. 

What DAC8 means for Europe

Across the EU, DAC8 extends tax transparency to crypto-asset transactions.

Key points from the European Commission:

  • rules enter into force on 1 January 2026
  • Platforms should start collecting data on reportable transactions from that date on.
  • reporting is due within 9 months after the end of the first fiscal year, which puts first reporting deadlines into 2027

Irrespective of whether your platform sits in the UK or the EU, the direction is the same: more data collection, then formal reporting.

The timeline that matters most

Here is the timeline we want clients to focus on:

  • 1 January 2026: UK providers begin collecting user and transaction data under HMRC’s CARF rules.
  • 1 January to 31 December 2026: first reporting period for many providers. 
  • By 31 May 2027: the first UK reports are submitted to HMRC for the 2026 calendar year.
  • 2027 onwards: tax authorities begin international data exchanges, depending on jurisdiction commitments.
  • EU reporting deadlines: due within 9 months after year-end for the first covered year, pointing to reporting windows into 2027.

What information will platforms collect and report

You should expect platforms to request and verify details that help determine who you are and where you pay tax.

Common items include:

User identity and tax residence

  • full name
  • address
  • country or countries of tax residence
  • Tax Identification Number (TIN)
  • date of birth (for individuals)

Transaction reporting

  • types of cryptoassets involved
  • gross proceeds or values for certain transactions
  • transfer activity and related values in scope of the reporting rules 

If you do not provide the required information, penalties can apply. HMRC-linked guidance highlights penalties up to £300 in relevant cases for missing or incorrect information. 

What this means for UK crypto users

CARF does not replace your current tax duties. You still need to work out whether activity triggers Capital Gains Tax or Income Tax, then report correctly through self-assessment when required.

What changes is visibility.

HMRC guidance explains the goal is to link reported crypto activity to a taxpayer’s records, so the right tax gets paid.

You will likely notice:

  • more questions when you open new accounts
  • requests for your TIN and tax residence confirmation
  • periodic prompts to reconfirm details
  • higher audit risk where figures reported by platforms do not match your tax return

Steps to take before 1 January 2026

If you hold or trade crypto, here are sensible actions you can take now.

1) Get your records in order

  • download full transaction histories from every platform you use
  • save wallet transfer records and transaction IDs
  • keep fee data, since fees can affect gain calculations

2) Reconcile what you did, not only what you remember

  • check token-to-token swaps
  • check gifts
  • check crypto used to pay for goods or services

Many people miss that certain “non-cash” disposals can still trigger a taxable event. HMRC guidance on selling or disposing of cryptoassets covers core principles. 

3) Review whether you need to correct past returns

If you have historic gains or income not reported, voluntary disclosure often provides a better outcome than waiting for HMRC contact. HMRC provides routes for paying unpaid tax on cryptoassets. 

4) Plan for 2025/26 reporting early

If you trade actively, consider quarterly record checks. It reduces the year-end scramble and cuts errors.

What this means for crypto platforms and businesses

If you operate a UK cryptoasset platform, the starting point is simple: data collection and due diligence begin from 1 January 2026 under HMRC guidance. 

The UK framework sits in law through the 2025 regulations, with registration and penalties built in. Practical priorities for providers as per requirements for crypto tax reporting include:

  • mapping required data fields
  • building tax residence and TIN capture into onboarding
  • due diligence processes to validate user information
  • reporting file preparation and controls for annual submission 

If you operate in the EU, DAC8 creates similar demands, with collection from 1 January 2026 and reporting timelines into 2027. 

How We Help You Navigate Crypto Tax Reporting

Apex Accountants help individuals and businesses prepare for CARF and DAC8 and report crypto tax to HMRC with practical, tax-led support.

For crypto investors

  • Capital Gains Tax calculations for disposals, swaps, gifts, and withdrawals
  • income reviews for staking, rewards, airdrops, mining, and employment-linked tokens
  • Self-assessment support and report preparation
  • record clean-up where histories sit across multiple platforms

For crypto businesses and platform operators

  • readiness reviews for HMRC reporting expectations.
  • user data and due diligence process design.
  • governance, controls, and reporting workflow support
  • advisor support for year-end reporting preparation and internal checks

If you want a clear plan before 1 January 2026, book a consultation with Apex Accountants.

FAQs

Does CARF introduce a new UK crypto tax?

No. CARF is a reporting and information-sharing framework. Your existing UK tax duties still apply. 

When will HMRC receive the first reports?

HMRC guidance indicates the first report covers 1 January to 31 December 2026, then it is due by 31 May 2027.

What will platforms ask me for?

Expect tax residence details and a TIN, plus identity data used to verify you. HMRC-linked commentary also notes penalties where required info is not provided. 

Does DAC8 change reporting across the EU?

Yes. DAC8 expands EU automatic exchange rules to crypto-asset transactions, with rules in force from 1 January 2026 and reporting timelines into 2027. 

Conclusion

From 1 January 2026, the requirements for crypto tax reporting move into a new phase in the UK and Europe. Platforms will collect more data, tax authorities will receive more reports, and cross-border information sharing will increase. 

If you invest in crypto, the best move now is simple: tidy your records, confirm your tax position, and then report consistently. If you run a crypto business or platform, treat 2026 data capture like a live compliance project starting on day one.

What You Need To Know About UK Tax Rules For Moving Abroad

Posted on by Nida Umair

Many people move to the UAE for a fresh start, career growth, family reasons, or lifestyle. UK tax rules for moving abroad sit somewhere in the mix. While it may not always be the primary motivator, it can make a significant difference between a smooth transition and an unexpected financial burden in the future.

If you are leaving the UK, the aim is simple. Get your UK tax residence position clear, plan the year you leave, and tidy up the areas HMRC tends to scrutinise.

This guide covers the practical steps we see most often, with a focus on the 2025/26 tax year that ends on 5 April 2026.

10 UK Tax Rules For Moving Abroad

Step 1: Work Out When You Actually Become Non-UK Resident

Leaving the UK does not automatically make you a non-resident from the day you board the plane. UK tax residence is worked out under the Statutory Residence Test (SRT), which uses a mix of day counts and “ties” to the UK. 

The quick reality check

You can be “usually non-resident” if you meet one of the overseas tests, for example:

  • You spend fewer than 16 days in the UK in a tax year (or 46 days if you were not UK resident in the previous 3 tax years), or
  • You work full-time overseas and keep UK days within specific limits (including fewer than 91 UK days and no more than 30 UK workdays).

If you do not meet the criteria for the automatic overseas tests, you will then be subject to the ties test. That is where people get caught out.

Common UK ties that change the answer

The SRT ties test looks at connections such as family, accommodation, work, and prior UK presence.

In plain terms, the more ties you keep, the fewer days you can safely spend in the UK without drifting back into the UK tax residence position.

Step 2: Split-Year Treatment Can Matter In The Year You Leave

The UK tax year runs from 6 April to 5 April. In the year you leave, you may still be a UK resident for the year under the SRT but eligible for split-year treatment, which can treat part of the year as “overseas” for UK tax. 

Split-year rules are case-based. A frequent one is where you leave to work full-time overseas, but the facts need to line up.

This is one reason planning timing matters. A move on 10 March 2026 can look very different from a move on 10 April 2026.

Step 3: Use Your ISA Allowances Before You Become Non-Resident

If you move abroad and become a non-UK resident, you cannot pay into your ISA (unless you are a Crown employee overseas or their spouse or civil partner). You can keep the ISA open and retain UK tax relief on what is already inside it. 

Practical planning idea (before leaving):

  • Consider using the current year’s ISA allowance while you are still a UK resident.
  • Review whether you want to rebalance investments inside the ISA before departure, because future contributions may pause for years.

What about Junior ISAs?

A Junior ISA is for a child who is under 18 and living in the UK, with a limited exception for children of Crown servants. 

If the family is relocating, do not assume contributions can continue as normal. Check the child’s residence position and confirm with the provider.

Step 4: Pensions, Contributions, And The “Five Tax Years” Point People Miss

Pension contributions can still work well around a move, but the rules need handling carefully.

Annual allowance

The standard annual allowance is £60,000 for many people, but it can be lower in some cases, and carry forward may be available depending on your circumstances. (This part is very fact-specific.)

If you are non-UK resident

Tax relief on personal contributions depends on whether you are a “relevant UK individual” and whether you have relevant UK earnings. 

Key points from HMRC guidance:

  • The general limit for relief is the higher of £3,600 or your relevant UK earnings chargeable to UK tax.
  • If you are no longer a UK resident, you can still be treated as a relevant UK individual if you were a UK resident at some time in the five tax years before the tax year in question and you were a UK resident when you joined the scheme.

If you want to make larger, tax-relieved contributions, the window before departure often matters. After departure, relief may be more limited unless you still have qualifying UK earnings.

Step 5: Do Not Ignore CGT Planning Before You Leave

Capital Gains Tax planning is often overlooked because people assume, “The UAE has no personal income tax, so I’m fine.” The UK position still depends on your UK residence status and what assets you sell.

The CGT’s annual exemption

The Annual Exempt Amount is £3,000 for individuals in 2025/26. It is use-it-or-lose-it. 

Common planning steps while still a UK resident:

  • Review investment portfolios for gains and losses.
  • Consider whether a disposal makes sense before leaving.
  • If you are married or in a civil partnership, transfers between spouses can be part of a broader plan (again, facts matter).

Step 6: Understand “Temporary Non-Residence” Before You Sell Anything Significant

If you become non-resident and then return to UK residence within a defined window, the temporary non-residence rules can bring certain gains into charge in the year you come back. HMRC’s guidance explains how the rules apply and flags that the SRT determines residence.

Why this matters in real life

People move to the UAE, sell shares or exit a business, then return to the UK sooner than planned. If the return falls within the temporary non-residence window, the UK tax result can change materially.

Such an event is exactly the sort of “expensive surprise” that good pre-departure planning prevents.

Step 7: UK Property Remains in the UK Tax Net

Even if you are fully non-resident, UK property can still trigger UK tax reporting and UK tax.

UK rental income

UK property rental profit remains taxable in the UK. HMRC collects this through the Non-resident Landlord Scheme, and landlords can apply to receive rent without tax withheld if approved. 

Selling UK property

Non-residents who sell UK property or land generally need to report disposals and follow the non-resident CGT process. The rules expanded from 6 April 2019 to cover disposals of all UK property or land (including certain indirect disposals).

There are also rebasing options depending on the type of property and dates, which can affect how gains are calculated. 

And if you are temporarily non-resident, HMRC explicitly notes that different rules can apply on return to the UK. 

Step 8: Leaving the UK, Tell HMRC the Right Way

If you are not filing Self Assessment for the year you leave, HMRC allows you to tell them you are leaving and claim any tax refund due using P85. It also asks questions about UK homes, overseas work, salary paid in the UK, and time spent in the UK over the next 3 years. 

This is not a tick-box exercise. HMRC closely links its questions to your residence status.

Step 9: Inheritance Tax Planning Now Includes “Long-Term UK Resident” Rules

From 6 April 2025, the domicile and deemed domicile rules were replaced by long-term UK resident rules for IHT. 

You can be a long-term UK resident if you are a UK tax resident for:

  • The previous 10 consecutive years, or
  • A total of 10 years or more in the previous 20 years.

HMRC also states you can keep long-term UK residence for up to 10 tax years after you leave, depending on how long you lived in the UK before departure. 

This is a big change. If you are leaving the UK and you have meaningful wealth, you should not guess your IHT exposure. You should model it properly with expert UK tax advice for expats.

Step 10: EIS and SEIS Can Be Useful In The Final UK Tax Year (for the right person)

If you have a high-income final UK tax year, EIS or SEIS can sometimes form part of a wider plan.

  • EIS income tax relief is generally 30%, subject to limits, and you can elect to treat some subscriptions as made in the previous tax year (carry back) if conditions are met.
  • SEIS can offer higher income tax relief and also has carry-back rules in HMRC’s helpsheet.

These investments are higher risk and not suitable for everyone. They also need careful timing, and you must have enough UK income tax liability to use the relief.

A practical timeline for a move before 5 April 2026

3–6 months before leaving

  • Map your expected travel days and UK ties under the SRT.
  • Decide whether you need split-year treatment and which case may apply.
  • Review the ISA strategy before contributions have to stop. 
  • Review pension contribution options and relief position.
  • Review CGT exposures, especially if you may sell assets shortly after leaving.

4–8 weeks before leaving

  • Check employment timing, bonus timing, and final payroll details.
  • Review UK property plans, rental management, and NRL scheme position.

After leaving

  • Keep evidence of travel, work location, and accommodation.
  • Keep UK days under control, especially in the first couple of tax years.

How We Can Help You With UK Tax Rules For Moving Abroad

Apex Accountants help clients moving to the UAE build a clear plan before they leave and stay compliant after they arrive. Our UK tax advice for expats typically includes:

  • UK Statutory Residence Test reviews, including day-count planning and UK ties analysis.
  • Split-year treatment advice for the year of departure.
  • Pre-departure planning for ISAs, pensions, and CGT exposures.
  • UK property tax planning for non-residents, including NRL scheme set-up and disposal reporting.
  • Temporary non-residence risk reviews before major disposals.
  • IHT exposure reviews under the long-term UK resident rules.

Conclusion

A UAE move can simplify parts of your tax life, but it does not automatically switch the UK off. The smart approach is to pin down your residence position, plan the year you leave, and deal with the big-ticket items early, especially ISAs, pensions, CGT, UK property, and IHT.

If you want a clean, practical plan before 5 April 2026, we can review your timeline, day counts, income sources, and assets, then map out the steps in the right order.

FAQs

1. How many days can I spend in the UK and stay non-resident?

It depends on the SRT and your UK ties. Some people can be non-resident with very low day counts, while others need tighter limits due to family or accommodation ties. 

2. Do I pay UK tax on my UAE salary?

If you are genuinely a non-UK resident, overseas income is generally outside UK tax, but the residence analysis comes first. 

3. Will HMRC still tax my UK rental income?

Yes, UK rental profit is still taxable in the UK, usually through the Non-resident Landlord Scheme. 

4. If I sell UK property while living in Dubai, do I need to report it?

Often yes. Non-residents have UK reporting obligations for UK property disposals, and the rules cover UK property and land disposals widely from 6 April 2019. 

5. What is temporary non-residence, and why does it matter?

If you return to the UK tax residence within the relevant temporary non-residence window, you may have to pay taxes on any gains you made abroad. 

6. Is there a tax treaty between the UK and UAE?

Yes. The UK has a double taxation convention with the UAE, which can be relevant for certain types of income and relief claims.

How the UK’s 2025 Tax Changes Impact Media and Tech Companies

Posted on by Nida Umair

2025 ended with a clear message from government policy. As per the 2025 tax changes, the government wants more production, more innovation, and cleaner reporting. Media and tech firms sit right in the middle of that plan.

Some changes went into effect already in 2025. Others were confirmed through Autumn Budget 2025 documents and ongoing consultations. For business owners, the practical question is simple: 

  1. What can you claim?
  2. What must you prove, and 
  3. What needs tighter systems before 2026?

Apex Accountants work with production companies, studios, agencies, software firms, digital platforms, and game developers. Here is what mattered most through 2025.

1) Media tax relief moved into expenditure credits

The biggest structural tax changes for media companies have been the shift to expenditure credits, with HMRC providing clear guidance.

Audio-Visual Expenditure Credit (AVEC)

For qualifying films and TV programmes, HMRC confirms a 34% rate and a separate treatment for visual effects costs. 

Key points businesses need to build into budgets and claims:

  • AVEC is taxed at the main rate of Corporation Tax, then used against the Corporation Tax liability.
  • From 1 April 2025, productions within the 34% category can claim an additional credit for qualifying visual effects costs.
  • VFX costs can qualify at 39% and are exempt from the 80% cap on total core costs.
  • HMRC notes costs incurred from 1 January 2025 can be eligible for this VFX treatment

Tax changes for media companies on the ground in 2025:

Credits improved certainty for many productions. However, evidence requirements became more important. Cost classification, supplier contracts, and workpapers now carry more weight in risk reviews.

2) Video games moved into a credit regime with a transition window

Video game studios had their own major change. HMRC guidance confirms the Video Games Expenditure Credit (VGEC) can be claimed on qualifying expenditure incurred from 1 January 2024.

What should you take from these tax changes for tech companies:

  • Production start dates matter for transitional choices
  • Documentation around qualifying spend matters more than ever
  • Long projects need early planning, not a year-end scramble

3) R&D relief: merged scheme rules became central through 2025

For tech firms, R&D remains one of the most important relief areas. HMRC guidance on the merged R&D scheme sets a clear headline point: the R&D expenditure credit rate is 20% under the merged scheme. 

What this meant for 2025 claims:

  • More firms moved onto a single merged framework
  • Claims needed cleaner technical narratives
  • Cost breakdowns needed stronger links to eligible work

Strong R&D claims still win. Weak claims create delays, enquiries, or disallowances. Systems and evidence win here.

4) Digital taxation: DST remained, with formal review published in Autumn 2025

Large digital groups kept a close eye on the Digital Services Tax (DST). A statutory review was published during the Autumn Budget 2025, examining how the tax has performed, how it is administered, and its wider impact.

For businesses, these tax changes for tech companies pointed to a clear direction of travel:

  • DST remained a live issue throughout 2025
  • Government focus stayed firmly on how value and profits link to UK activity
  • International alignment continued to shape future policy choices

This is not just a “big tech” issue. UK firms providing cross-border digital services often feel the knock-on effects of tax changes through higher platform fees, tighter contract terms, and increased compliance expectations across the supply chain.

What media and tech firms should prioritise going into 2026

These are the actions we advised clients to take during 2025. They remain critical going into 2026, especially with tighter HMRC scrutiny and credit-based reliefs now firmly in place.

1) Lock in tax relief eligibility before spending starts

Do not wait until year-end.

Before a project or development phase begins:

  • Confirm which relief applies (AVEC, VGEC, R&D, capital allowances)
  • Check the start date rules for eligibility
  • Identify which costs will qualify and which will not
  • Build relief assumptions into the project budget from day one

If eligibility is unclear at the outset, claims become weaker later.

2) Fix your chart of accounts for relief claims

Generic bookkeeping causes problems.

Your accounting system should:

  • Separate qualifying and non-qualifying costs
  • Split UK and non-UK expenditure
  • Distinguish staff costs, subcontractors, and consumables
  • Track costs by project, not just by department

This reduces errors, speeds up claims, and lowers enquiry risk.

3) Build evidence as you go, not after the fact

HMRC expects contemporaneous records.

Throughout the year, retain:

  • Signed contracts and statements of work
  • Invoices linked clearly to each project
  • Time logs or activity records for staff and contractors
  • Technical notes explaining what was produced and why

If evidence is created months later, it carries less weight.

4) Review group structure and IP ownership now

Many issues arise here.

Check:

  • Which company owns the IP
  • Where development or production actually takes place
  • How profits are allocated within the group
  • Whether royalty and licence agreements reflect reality

Misaligned structures weaken claims and attract HMRC attention.

5) Plan cashflow around claim timing, not just entitlement

Credits are helpful, but timing matters.

You should:

  • Forecast when claims can realistically be submitted
  • Understand when credits will be received or offset
  • Avoid relying on reliefs to plug short-term cash gaps
  • Factor in HMRC processing time and possible queries

Strong businesses treat credits as upside, not survival funding.

6) Assign ownership internally

Someone must be responsible.

Make sure there is:

  • A named person overseeing tax relief data
  • Clear responsibility for record-keeping
  • Regular internal reviews before year-end
  • Communication between finance, production, and technical teams

Relief fails when everyone assumes someone else is handling it.

How Apex Accountants Can Help You Deal With 2025 Tax Changes

We support media and tech companies with practical, claim-ready delivery:

  • AVEC support: qualifying checks, cost reviews, claim preparation, and enquiry defence.
  • VGEC support: transition planning, qualifying expenditure review, claim files 
  • R&D tax relief: eligibility review, technical write-ups, cost modelling, merged scheme claims.
  • Corporation Tax planning for studios, agencies, software firms, and digital platforms
  • Systems and reporting clean-up to support digital compliance and HMRC-ready records

FAQs

Does AVEC cover visual effects, or only core production?

HMRC guidance confirms separate treatment for VFX, including a 39% rate and removal from the 80% cap rules.

When can a game studio claim VGEC?

HMRC states VGEC can be claimed on qualifying expenditure incurred from 1 January 2024. 

What is the R&D merged scheme rate?

HMRC guidance sets the merged scheme R&D expenditure credit rate at 20%. 

Is DST still relevant after the Autumn Budget 2025?

A formal DST review was published in Autumn 2025, so it remained active and under evaluation through late 2025.

Conclusion

The 2025 tax agenda did not rewrite the rulebook overnight. Instead, it reshaped how incentives work, moved reliefs into credit-based systems, raised the bar on evidence, and increased expectations around transparency for digital activity.

Media and tech firms that built tax planning into day-to-day operations adapted smoothly. Those that treated it as a year-end exercise faced delays, queries, and avoidable pressure.

As we move into 2026, early tax planning matters more than ever. The right structure, clean records, and timely advice can protect cashflow and strengthen claims.

If you want practical tax support tailored to your media or tech business, contact Apex Accountants today. We help you plan early, claim confidently, and stay compliant—without unnecessary risk.

How Tax Advice for Waste Management Companies Can Help You Navigate the 2026 Reforms

Posted on by Farazia Gillani

As the UK moves towards a sustainable, net-zero economy, tax policy is adapting to support greener business practices. Waste management companies are central to this transition. With the right tax advice for waste management companies, businesses can take full advantage of new corporation tax incentives and manage environmental taxes like landfill tax more effectively. Understanding these changes early can help save money and improve competitiveness.

2026 Green Incentive Reforms – What’s Changing

From April 2026, the UK government will implement a number of measures that affect waste management firms directly or indirectly:

1. Landfill Tax Increases

Landfill Tax rates for 2026–27 will rise again. The standard rate increases in line with inflation, and the lower rate for inert materials will also jump, strengthening the financial incentives to reduce landfill use. This change supports sustainable waste alternatives such as recycling, composting and recovery operations.

2. Extended Producer Responsibility (EPR) and Eco‑modulated Fees

Under the evolving Extended Producer Responsibility regime, producers and some waste handlers will face eco‑modulated fees based on the recyclability of packaging. Waste management companies should incorporate this into their cost models and service pricing, even though it primarily targets producers.

3. Green Investment and Capital Allowances

Green investment incentives are available through UK tax law. These include full expensing of qualifying capital expenditures, favourable allowances for electric vehicles and renewable technology, and R&D credits for environmental innovation. Waste companies that invest in greener fleets, recycling technology, or digital systems can benefit.

4. Broader Net Zero Strategy Impacts

Although not a direct corporation tax reform, the UK’s Net Zero Growth Plan influences the regulatory and investment landscape. This shapes grants, incentives and expectations around sustainability performances across sectors, including waste management.

Corporation Tax Planning For Waste Management Companies

1. Use Capital Allowances to Reduce Taxable Profits

Under current rules, companies can claim full expensing, a 100% deduction, on qualifying plant and machinery in the year of purchase. This means large investments in recycling equipment, low‑emission vehicles or energy‑efficient technology can significantly reduce corporation tax liabilities. 

Waste management firms should itemise and document all green investments thoroughly to ensure eligibility. Early planning pays dividends because timing matters for relief claims.

2. Factor Environmental Taxes into Pricing and Cashflow

Rising landfill tax rates mean waste disposal costs will increase. Firms should model these costs carefully and consider shifting focus to higher-value recycling contracts and services. This also helps clients see the sustainability value in diverting waste from landfill.

3. Plan for EPR and Reporting Compliance

Although Extended Producer Responsibility targets producers initially, waste firms will need robust data systems. Accurate reporting helps clients manage EPR fees and enhances your ability to justify tax positions, particularly where EPR influences your contracts or pricing structure. 

4. Leverage R&D Tax Reliefs for Innovation

Investments in technologies that improve waste segregation, contaminant reduction or recycling throughput could qualify for R&D tax relief under the merged R&D scheme. Keeping detailed technical records helps substantiate these claims. 

Case Study: Navigating Green Tax Reforms in 2025

In late 2025, a leading UK waste management company approached Apex Accountants for advice on managing tax obligations amid rising landfill taxes and green reforms.

Challenges:

  • Increased operational costs due to rising landfill taxes
  • Need to integrate Extended Producer Responsibility (EPR) fees into contracts
  • Limited knowledge of available green tax incentives for new technologies

Apex Accountants’ Approach:

  • Capital Allowances & Full Expensing: Our tax experts identified eligible green investments, helping the company offset these against taxable profits, reducing corporation tax liability.
  • Landfill Tax Impact: We restructured pricing models to account for higher landfill tax, incorporating sustainability charges for clients.
  • EPR Compliance: We set up a tracking system to manage packaging waste and prepare for upcoming eco‑modulated fees.

Results:

  • Successfully claimed over £100,000 in green tax incentives.
  • Improved client relationships through EPR compliance and sustainability initiatives.
  • Covered increased landfill tax costs without sacrificing profitability.

If your business faces similar challenges, Apex Accountants can help align tax planning for waste management companies with green reforms, ensuring compliance and tax efficiency.

How Our Tax Advice For Waste Management Companies Can Help

Apex Accountants support UK waste management companies with strategic tax planning tailored to the evolving regulatory environment. We help you:

  • Identify and claim all corporation tax reliefs linked to green investment.
  • Forecast future tax liabilities, including landfill tax impacts.
  • Integrate sustainability performance into your financial planning.
  • Stay compliant with HMRC requirements and environmental reporting obligations.

Our expert team keeps up with policy shifts so you can focus on business growth and environmental leadership.

Conclusion

As UK waste management companies prepare for the upcoming green tax reforms in 2026, understanding the new regulations and incorporating them into strategic tax planning is essential. These tax changes for waste management companies bring both challenges and opportunities. By taking advantage of green tax benefits like full expensing for eco-friendly investments, adjusting pricing to include changes in landfill tax, and following new environmental rules, businesses can lower their taxes and improve their reputation for being environmentally friendly.

We understand that navigating these changes can be complex. Our dedicated team of tax experts is here to guide you through the new tax changes for waste management companies, offering tailored advice and practical solutions to help you optimise your tax position while aligning with the UK’s sustainability goals.

FAQs

1. Are there specific tax incentives for waste management investments?

Yes. Qualifying capital expenditure on plant and machinery, including low‑emission vehicles and recycling equipment, can benefit from full expensing, reducing taxable profits. 

2. How will landfill tax changes affect waste management margins?

Increases to landfill tax rates encourage diversion from landfill. Firms may face higher disposal costs but can also win business for recycling and reuse services as clients adjust to the pricing signals. 

3. What documentation is needed for green tax reliefs?

Detailed quotes, environmental specifications, installation dates and certifications help substantiate tax relief claims. Accurate recordkeeping is key to HMRC compliance. 

4. Do Extended Producer Responsibility fees apply to waste companies?

EPR fees primarily affect producers, but waste firms should understand the rules because fees and reporting obligations influence client contracts and cost structures. 

5. Can R&D tax relief apply to sustainability innovation in waste management?

Yes. New technologies and processes that improve environmental outcomes can qualify under the merged UK R&D tax regime. 

6. How should waste firms price services in light of 2026 reforms?

Consider environmental tax impacts, client sustainability goals, and long-term cash flows. Pricing models that reflect true disposal costs and resource recovery value will be more competitive.

The Complete Tax Guide for Online Sellers in the UK – Amazon, Vinted, eBay, and Etsy

Posted on by Nida Umair

Selling online through platforms like Amazon, eBay, Vinted, and Etsy has become a popular way for individuals to make money in the UK, whether as a side hustle, a full-time business, or a way to declutter. However, as online selling grows, so does the complexity of understanding your tax obligations. From income tax and VAT to National Insurance contributions and reporting requirements, the tax obligations for online sellers are constantly evolving.

This comprehensive guide will walk you through the key tax considerations every UK seller needs to be aware of, whether you’re selling occasionally or running a more established online business. 

We will cover the trading allowance, explain how income from selling on platforms like Amazon and eBay is taxed, and explore important aspects such as VAT registration, self-assessment, and National Insurance contributions. You’ll also learn about the implications of recent reporting changes, such as the new data-sharing rules from platforms like eBay and Vinted, and what this means for your business.

Book a Free Consultation