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. TopicUp 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 UKCould trigger UK tax if the funds were untaxed FIGFor 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). Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 yearFlat TRF charge on designated “qualifying overseas capital”2025/26 or 2026/2712% 2027/2815% 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). Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 Rida Ahmed 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 areaWhat it meansAutomatic overseas testsThese can keep you non-resident if you meet strict day and work limitsAutomatic UK testsThese can make you resident automaticallySufficient ties testIf 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 assetWhy it mattersUK rental incomeUsually remains taxable in the UKUK workdaysUK tax for expats can apply to work performed hereUK property salesNon-residents must report all disposals of UK property or landUK pensions and other UK incomeTreaty 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 ObligationMain deadlineTell HMRC you need a returnBy 5 October after the relevant tax yearPaper Self Assessment returnBy 31 OctoberOnline Self Assessment returnBy 31 JanuarySelf Assessment tax paymentBy 31 JanuaryUK residential property CGT reportUsually 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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.
Understanding HMRC-Approved Tax-Free Mileage Rates: A Potential Lifesaver for UK Drivers Posted on 19 March 202619 March 2026 by Rida Ahmed 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 TypeFirst 10,000 Business MilesAbove 10,000 MilesCars & Vans45p per mile25p per mileMotorcycles24p per mile24p per mileBicycles20p per mile20p 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 202610 July 2026 by Rida Ahmed 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 202610 July 2026 by Rida Ahmed 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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.
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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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 Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation 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.
The Problems with the Mansion Tax: A Closer Look at Design Issues and Criticisms Posted on 27 January 202627 January 2026 by Rida Ahmed Britain’s forthcoming High‑Value Council Tax Surcharge, commonly called the mansion tax, will start in April 2028. It adds an annual levy to homes in England valued above £2 million as at 1 April 2026. The current band‑based system lets some mid‑range properties pay more council tax than mansions, so ministers hope to raise about £0.4 billion a year from high‑value homes. However, the problems with Mansion tax, such as its blunt design, could distort behaviour and create unintended winners and losers. Supporters argue that the new surcharge will correct an obvious unfairness and provide funds for public services. The charge sits on top of standard council tax and will be uprated with inflation, meaning bills could increase over time. Valuations are frozen for five‑year cycles to give homeowners certainty, but there is no official calculator yet, and guidance on reliefs is sparse, leaving many families unsure how much they will owe. Read: Analysing the Impact of Mansion Tax on the Prime Property Market in UK How it Works Valuation date: The Valuation Office Agency (VOA) will estimate each property’s market value on 1 April 2026 and revalue every five years. Improvements after that date do not affect the first cycle. Bands: Homes worth £2 m–£2.5 m pay £2,500; £2.5 m–£3.5 m pay £3,500; £3.5 m–£5 m pay £5,000; and those over £5 m pay £7,500. Scope: The surcharge applies to each property, including second homes and rentals. Landlords pay the levy, while tenants still pay ordinary council tax. There are currently no statutory exemptions, though the government hints at future reliefs. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Problems With Mansion Tax in UK People widely criticise the mansion tax not for taxing high-value property, but for its flawed structure. Key issues with mansion tax include: Cliff edges: Sharp bands mean a property just over £2 million pays the same levy as one far more expensive, while homes just under the threshold pay nothing. This encourages sellers to price just below the cut‑off. A proportional tax on value above £2m would avoid these distortions. Complex valuations: Around 200,000 homes must be valued. The HomeOwners Alliance doubts the VOA’s automated approach can capture the nuances of unique properties and predicts most owners will appeal, potentially overwhelming the agency. Regional and social inequity: More than 60% of £2 million-plus homes are in London and the South East, so the levy is a regional tax. Critics warn that many owners are asset‑rich but cash‑poor; for some pensioners, it could equal a year’s state pension and push them to move. Knock-on effects: Banded property taxes discourage improvements and are priced into house values. Prime buyers are already rethinking London purchases, and landlords are expected to pass the cost on to tenants. Read: Mansion Tax in UK to Affect 200,000 Homes Starting in 2028 How Apex Accountants Support Property Owners Facing the Problems with Mansion Tax Valuations and Appeals: We arrange independent surveys and assist with challenging VOA assessments, helping homeowners ensure their property is accurately valued. Tax and Portfolio Planning: We advise property owners on timing renovations or sales to stay below the £2 million threshold, and we model how the surcharge impacts rental yields and other strategies like downsizing. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Conclusion The mansion tax seeks to fix an inequity in council tax but may create more problems than it solves. Many of the mansion tax design issues, such as sharp bands, encourage price manipulation and discouraging improvements, while valuing unique homes, will be contentious, and appeals could overwhelm the VOA. Because most high-value properties sit in London and the South East, the burden lands on a narrow group, including pensioners who are wealthy on paper but not in cash. Landlords may pass costs to tenants, and rents could rise. A proportional levy on value above a high threshold, plus clear reliefs, would be simpler and fairer. Homeowners should prepare for valuations, gather evidence, and seek professional advice until the design improves.
A Guide to HMRC’s Advance Tax Certainty Service for UK Investment Projects Posted on 19 January 202619 January 2026 by Farazia Gillani In December 2025, HMRC released the much-anticipated draft guidance on Advance Tax Certainty Service (ATCS), a new process legislated under the Finance Bill 2025-2026. Scheduled to launch in July 2026, the ATCS aims to provide businesses with pre-emptive tax clearances, offering certainty on complex tax matters related to significant investment projects. This guidance introduces a streamlined process for gaining clarity on tax treatment for major UK projects, covering areas such as Corporation Tax, VAT, Stamp Duty Land Tax (SDLT), Income Tax, PAYE regulations, and the Construction Industry Scheme (CIS). What is the Advance Tax Certainty Service (ATCS)? The ATCS offers businesses an opportunity to receive binding tax clearances on major projects. By applying for clearance, companies can obtain certainty regarding their tax position, ensuring a smoother and more confident investment process. The service is primarily designed for substantial UK projects with tax uncertainties that could significantly impact a company’s financial planning. This includes projects that involve large-scale investments, such as those exceeding £1 billion in qualifying expenditure, which may encompass tangible and intangible assets like plant, machinery, and software. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Who Can Apply for ATCS? HMRC has specified that a “qualifying person” can apply for a clearance. This can include any person who incurs the relevant expenditure or a person with control over it, such as an investment entity managing a joint venture or consortium. Both UK-based and non-UK entities investing in the UK are eligible to apply for clearance. However, individuals involved in fraudulent activities, those who have received penalties for deliberate tax behaviour, and those whose previous clearance applications were declined are excluded from eligibility. Financial Threshold and Project Scope For a project to qualify for ATCS, it must involve at least £1 billion of new qualifying expenditure. This can include expenditure on assets such as plant, machinery, and software but excludes financing costs and equity investments, including mergers, acquisitions, and share buybacks. The £1 billion threshold applies to the entire life of the project or a group of similar projects with the same tax uncertainty. It is important to note that the expenditure must relate to a new initiative rather than ongoing business activity. This ensures that routine operational expenses do not fall under the scope of the ATCS. Key Steps in the HMRC’s Tax Clearance Process Expression of Interest (EOI) During the initial year of the ATCS, applicants will be required to submit an Expression of Interest (EOI). This will help HMRC manage capacity during the early stages of the service. Applicants must provide key project details such as scale, tax uncertainty areas, and deadlines. HMRC will prioritise projects with the highest levels of tax uncertainty and urgency. Early Engagement Meeting Once the EOI is reviewed, businesses are encouraged to request an early engagement meeting. This meeting allows companies to discuss the feasibility of the clearance process within their desired timeframes. HMRC aims for this meeting to take place within 10 working days of the initial contact. Formal Application Submission After the engagement meeting, businesses must submit a formal clearance application no later than 60 working days before the relevant filing date for the first tax return related to the project. The application must include: A detailed assessment of eligibility. An official business plan outlining project spend. A tax treatment analysis for the transaction. HMRC will review the application for completeness and may request additional factual evidence or clarification. Scoping and Planning Meeting Once the application is accepted, HMRC will arrange a scoping and planning meeting within 21 working days. This meeting will define the clearance scope and prioritise tax areas so HMRC can provide certainty within a realistic timeframe. HMRC Evaluation and Decision After the planning meeting, HMRC will evaluate the application and provide regular updates. A clearance decision will typically be issued within 31 working days of the scoping meeting or 49 working days from receipt of the full application. Post-Clearance Monitoring Once a clearance is granted, it is valid for a defined period, usually up to five years or until the project concludes. The applicant must monitor compliance throughout this period, submitting an annual review to ensure assumptions remain valid. Failure to inform HMRC of material changes could result in the revocation of the clearance and the imposition of penalties. Scope and Limitations of HMRC’s Tax Clearance Process The ATCS covers complex tax matters but excludes certain areas: Routine tax issues or purely factual matters. Asset valuations and main purpose tests in certain regimes. Situations where there is already a clearance process in place, such as Advance Pricing Agreements. Clearances issued under ATCS are binding for HMRC as long as the applicant adheres to the assumptions and conditions laid out. If the applicant deviates from the clearance, the tax authority may initiate an enquiry, and the clearance will no longer be valid. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation What Businesses Need to Know To make the most of ATCS, businesses must maintain strong internal governance, ensure swift engagement with HMRC, and keep communication transparent. As the service progresses, HMRC will likely refine its process based on feedback and capacity constraints. In the first year of operation, businesses will be encouraged to submit an EOI to manage demand. As the service matures, HMRC may lower the financial threshold or expand the scope to include additional tax issues. Key Takeaways: The ATCS offers certainty on complex tax issues for major UK investment projects. Eligible applicants must demonstrate significant investment, with a minimum threshold of £1 billion in qualifying expenditure. The process involves multiple steps, including EOIs, early engagement meetings, formal applications, and ongoing monitoring. Post-clearance, businesses must remain diligent in ensuring continued compliance with the terms of the clearance. At Apex Accountants, we offer expert advice and guidance on the advance tax certainty service process, ensuring your business complies with all requirements. Our team can help assess your eligibility, guide you through the application process, and assist in post-clearance monitoring. Contact us today for tailored tax planning and advisory services for your business’s investment projects.
HMRC has launched a £40 million enforcement campaign targeting sellers on Vinted and eBay. Posted on 19 January 202630 July 2026 by Farazia Gillani As more UK residents turn to platforms like Vinted, eBay, and Etsy to declutter their homes and earn extra cash, HMRC has issued a stern warning regarding the tax implications of online selling. HMRC has launched a £40 million enforcement campaign on Vinted and eBay sellers aimed at ensuring compliance with UK tax laws. This initiative involves more data-sharing between online marketplaces and HMRC, focusing on sellers who may be failing to report income from their online activities. What’s The New £40 Million Enforcement Campaign on Vinted and eBay Sellers Starting in January 2024, HMRC began receiving transaction data from platforms like Vinted, eBay, and Etsy. The reporting sellers’ data to HMRC requirement applies to anyone completing more than 30 transactions a year, regardless of whether they make a profit. This data-sharing effort is set to be fully effective by 2025, continuing into 2026. Specifically for Vinted sellers, if you exceed 30 sales or £1,700 in gross revenue in a year, platforms are required to share your transaction details with HMRC. This HMRC tax crackdown on online sellers applies to both new and existing sellers, making it crucial for anyone regularly selling online to stay informed. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation When Do You Need to Declare Your Income? Many sellers mistakenly believe they are exempt from taxes when selling unwanted personal items online. In most cases, selling personal goods at a loss is not considered trading and doesn’t need to be declared. However, the rules change if: You make a profit from items bought specifically to sell at a higher price (e.g., dropshipping). You manufacture new items for resale. You engage in regular, commercial trading on platforms. If your total sales exceed the £1,000 annual trading allowance, you must declare the income through the Self Assessment tax return. It doesn’t matter whether or not you make a profit — failing to report earnings over this threshold could lead to significant penalties. Read our complete tax guide for online sellers in the UK to avoid common tax mistakes. It shows how to manage income, VAT, and HMRC reporting across major platforms. How HMRC Will Be Monitoring Sellers HMRC is now receiving detailed data from online platforms about sellers who exceed the 30-transaction threshold. This helps HMRC cross-check against tax returns. Key points about the new rules for reporting sellers’ data to HMRC include: Platform reporting: Platforms like Vinted and eBay must report your sales details if you exceed 30 transactions or £1,700 in gross revenue in a year. £1,000 trading allowance: If you exceed this threshold, you must declare the income to HMRC. Data-sharing: The data sharing will assist HMRC in identifying potential non-compliance with tax obligations. What Happens If You Don’t Comply? Ignoring HMRC’s communications or failing to declare income can lead to hefty fines, penalties, and even criminal investigations. Penalties can sometimes exceed the amount of unpaid tax, especially if you fail to respond to HMRC’s nudge letters, which are warnings about unreported income. To avoid penalties, it’s important to maintain accurate records of all transactions, including receipts for postage, packaging, and any other associated costs. These expenses can often be deducted from your total taxable income, reducing your overall tax liability. Key Risks of Non-Compliance Fines: Non-compliance can result in fines, often 30% or more of the unpaid tax. Criminal investigations: Serious tax evasion could lead to formal investigations. HMRC probes: Ignoring reminders and failing to provide information when requested increases the risk of a probe. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Tax Tips for Online Sellers To ensure compliance with tax laws and avoid penalties, here are practical steps you can take: Keep detailed records of all transactions: Document every sale, including the price you sold the item for, the cost of postage, packaging, and any other expenses. Use online tax calculators: These tools help you determine if you need to register as a sole trader or a limited company. Declare all income over £1,000: If your total online sales exceed £1,000 in a year, be sure to include this income in your Self Assessment tax return. Claim allowable expenses: Keep receipts for postage, packaging, and any fees related to selling online. These can be deducted from your taxable income. How We Help Online Selling Sellers At Apex Accountants, we can guide you through the complexities of online selling and tax compliance. Whether you’re a casual seller or running a more commercial operation, our team offers: Self-assessment tax return preparation: Ensure your income is declared properly, and avoid penalties. Tax planning: We’ll help you plan your taxes and minimise your liabilities by claiming allowable expenses. Business advisery: If you’re unsure about whether you should be registered as a sole trader or a limited company, we can provide strategic advice tailored to your business. Contact us today for help with your online selling tax obligations, or book a consultation to learn how to stay compliant and minimise your tax liability. FAQs Related to the HMRC Tax Crackdown on Online Sellers 1. Is HMRC going after eBay sellers? HMRC isn’t targeting casual sellers selling unwanted personal items. However, data‑sharing rules introduced from January 2024 require platforms like eBay to report seller details if you exceed 30 sales or around £1,700 in gross revenue. HMRC can then match this to Self Assessment returns and may issue a “nudge” letter if nothing is declared, especially where trading income exceeds £1,000. 2. What are the new rules for sellers on eBay in 2025? Platforms like eBay continue to share sales and user data with HMRC if thresholds are met. There are no new tax obligations for selling unwanted items, but HMRC can better monitor activity and match data to tax returns. Sellers exceeding the £1,000 trading allowance must declare income via Self Assessment. 3. What is the HMRC limit on Vinted? There isn’t a strict “HMRC limit” for tax on Vinted sales. Vinted and other platforms report seller data if you make 30+ sales or £1,700+ gross revenue in a year. If your total trading income during a tax year surpasses the £1,000 trading allowance, you are required to declare your income. 4. Do I have to pay tax if I sell my clothes on Vinted or eBay? Generally no—selling personal belongings at a loss (e.g., clothes you no longer wear) is not taxable. You only need to tell HMRC if you’re trading with intent to make a profit and your total income from online selling exceeds £1,000 in a tax year. 5. What counts as “trading” for HMRC? Trading is when you sell goods you bought to sell at a profit, make items to sell, or regularly sell online. The occasional sale of personal items doesn’t usually count. 6. Will HMRC automatically tax me if I sell 30 items? No—reporting triggers only data sharing. Your tax liability depends on whether you are trading and if your income exceeds the £1,000 trading allowance. 7. How do I tell HMRC about my online selling income? If required, you register for Self Assessment and include your online trading income on your tax return. 8. Can I deduct expenses like postage? Yes—allowable expenses like postage, packaging and marketplace fees can reduce taxable profit when you submit your Self Assessment. 9. What happens if I ignore an HMRC letter? Ignoring it risks penalties, estimated assessments up to 100% of unpaid tax, and further compliance action.
