Challenging times for HMRC and agents

In this episode, we rate the Budget against ICAEW’s ten tenets for a better tax system, focusing on the government’s decision to freeze the personal allowance and tax thresholds for an additional three years, the new tax on electric vehicles and changes to the NIC treatment of salary sacrificed pension contributions. Budget: Freeze on personal allowance extended - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-freeze-on-personal-allowance-extendedBudget: New levies include charge on electric vehicles - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-new-levies-include-charge-on-electric-vehiclesBudget: NIC saving on salary sacrifice pension contributions capped - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-nic-saving-on-salary-sacrifice-pension-contributions-cappedBudget: Taxes on property, savings and dividends increased - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-taxes-on-property-savings-and-dividends-increasedBudget: Changes made to VAT rules and processes - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-changes-made-to-vat-rules-and-processesBudget: Government will not regulate tax advisers - https://www.icaew.com/insights/tax-news/2025/nov-2025/budget-government-will-not-regulate-tax-advisersTax Faculty Budget update 2025 - https://www.icaew.com/technical/tax/tax-faculty/webinars-and-recordings/tax-webinars/2025/28-11-2025-budget-updateHow to fix VAT - https://www.icaew.com/technical/tax/vat/how-to-fix-vatHostStephen Relf, Technical Manager, Tax, ICAEWGuestsLindsey Wicks, Senior Technical Manager, Tax Policy, ICAEWEd Saltmarsh, Technical Manager, Tax, ICAEWProducerEd AdamsEpisode published 1 December 2025Episode recorded 28 November 2025

From April 2026, an estimated 864,000 sole traders and landlords will need to comply with Making Tax Digital (MTD) for income tax. In this episode, we look at recent developments, including HMRC’s plans to contact taxpayers, and we draw on the experience of special guest Rebecca Benneyworth to explain what you can do to prepare for the challenges ahead.Making Tax Digital - https://www.icaew.com/technical/tax/making-tax-digitalTAXguide 01/25: MTD income tax - https://www.icaew.com/technical/tax/tax-faculty/taxguides/2025/taxguide-01-25Digitally excluded can now apply for MTD exemption -  https://www.icaew.com/insights/tax-news/2025/sep-2025/digitally-excluded-can-now-apply-for-mtd-exemptionHow to avoid errors when signing up clients to MTD income tax - https://www.icaew.com/insights/tax-news/2025/oct-2025/how-to-avoid-errors-when-signing-up-clients-to-mtd-income-taxHMRC offers agents support with MTD for income tax - https://www.icaew.com/insights/tax-news/2025/aug-2025/hmrc-offers-agents-support-with-mtd-for-income-taxUp to 3 million individuals may need to comply with MTD - https://www.icaew.com/insights/tax-news/2025/aug-2025/up-to-3-million-individuals-may-need-to-comply-with-mtdHow to keep HMRC agent account details safe - https://www.icaew.com/insights/tax-news/2025/sep-2025/how-to-keep-hmrc-agent-account-details-safeHow to complete your tax return - https://www.icaew.com/technical/tax/personal-tax/how-to-complete-your-tax-returnHostStephen Relf, Technical Manager, Tax, ICAEWGuestsLindsey Wicks, Senior Technical Manager, Tax Policy, ICAEWRebecca Benneyworth, sole practitioner and a board member of ICAEW’s Tax FacultyProducerEd AdamsEpisode published 31 October 2025Episode recorded 24 October 2025

In this episode of The Tax Track, we look ahead to the 2024/25 tax return season, highlighting areas to watch out for, and explain our concerns with draft legislation for Finance Bill 2025/26 that promises to make significant changes to the tax system, particularly for agents.  Links ICAEW has major concerns about draft Finance Bill legislation - https://www.icaew.com/insights/tax-news/2025/sep-2025/icaew-has-major-concerns-about-draft-finance-bill-legislationGovernment’s plans for agents may harm the tax system - https://www.icaew.com/insights/tax-news/2025/sep-2025/governments-plans-for-agents-may-harm-the-tax-systemTaxpayers encouraged to ensure returns are correct and complete -  https://www.icaew.com/insights/tax-news/2025/sep-2025/taxpayers-encouraged-to-ensure-returns-are-correct-and-completeIn-year CGT rate changes cause tax return errors - https://www.icaew.com/insights/tax-news/2025/aug-2025/in-year-cgt-rate-changes-cause-tax-return-errorsHMRC targets personal expenditure - https://www.icaew.com/insights/tax-news/2025/aug-2025/hmrc-targets-personal-expenditureGet ahead with 2024/25 tax returns - https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2025/get-ahead-with-2024-25-tax-returnsHostStephen Relf, Technical Manager, Tax, ICAEWGuestsLindsey Wicks, Senior Technical Manager, Tax Policy, ICAEWKatherine Ford, Tax Manager, ICAEWProducerEd AdamsEpisode recorded: 23 September 2025Episode published: 1 October 2025

Whether it’s performance or policy, there’s rarely an episode of The Tax Track that doesn’t mention HMRC. In this special episode we talk to one of the senior leaders at HMRC, Jonathan Athow, Director General for Customer Strategy and Tax Design.The government’s stated priorities for HMRC are to modernise and reform the tax system, improve customer service and close the tax gap; Athow explains how HMRC intends to deliver on those priorities, and crucially, what this means for ICAEW members.Links Tax software article (Sept Taxline)HMRC promises new digital solutions for taxpayers and agents | ICAEWhttps://www.icaew.com/insights/tax-news/2025/jul-2025/hmrc-promises-new-digital-solutions-for-taxpayers-and-agentsUp to 3 million individuals may need to comply with MTD | ICAEWhttps://www.icaew.com/insights/tax-news/2025/aug-2025/up-to-3-million-individuals-may-need-to-comply-with-mtdHave your say on draft Finance Bill legislation | ICAEWhttps://www.icaew.com/insights/tax-news/2025/jul-2025/have-your-say-on-draft-finance-bill-legislationHMRC is taking longer to respond to post | ICAEWhttps://www.icaew.com/insights/tax-news/2025/aug-2025/hmrc-is-taking-longer-to-respond-to-postHostStephen Relf, Technical Manager, Tax, ICAEWGuestJonathan Athow, Director General, Customer Strategy and Tax Design, HMRCProducerNatalie ChisholmEpisode recorded 21 August 2025Episode published 3 September 2025 

July was a busy month for HMRC as it published its annual accounts and report for 2024/25, along with its transformation roadmap and draft legislation for Finance Bill 2025/26. In this episode of The Tax Track we look at the challenges HMRC faces, from improving its services to taxpayers and agents to closing the tax gap; its plans for new and improved digital services; and the possible implications of the proposed changes for agents in particular as MTD and agent registration begin to take effect.LinksHMRC continues to miss performance targets https://www.icaew.com/insights/tax-news/2025/jul-2025/hmrc-continues-to-miss-performance-targetsTax gap falls slightly as a percentage of tax liabilities https://www.icaew.com/insights/tax-news/2025/jun-2025/tax-gap-falls-slightly-as-a-percentage-of-tax-liabilities HMRC promises new digital solutions for taxpayers and agents https://www.icaew.com/insights/tax-news/2025/jul-2025/hmrc-promises-new-digital-solutions-for-taxpayers-and-agents  Have your say on draft Finance Bill legislation https://www.icaew.com/insights/tax-news/2025/jul-2025/have-your-say-on-draft-finance-bill-legislationICAEW reiterates concerns about MTD threshold reductionhttps://www.icaew.com/insights/tax-news/2025/jul-2025/icaew-reiterates-concerns-about-mtd-threshold-reductionPanellistsStephen Relf, Technical Manager, Tax, ICAEWFrank Haskew, Head of Taxation Strategy, ICAEWLindsey Wicks, Senior Technical Manager, Tax Policy, ICAEWProducer: Ed AdamsEpisode recorded 24 July 2025Episode published 1 August 2025

Simple assessment and real-time reporting for capital gains tax (CGT) are two ways for HMRC and taxpayers to sidestep self assessment for income and gains.HMRC sent out a record number of simple assessments for 2023/24. We explain what they are and explore some of the problem areas. We also explain how the often overlooked real-time reporting for CGT works and look at current issues with CGT reporting more generally.LinksTAXguide 09/18: simple assessment - https://www.icaew.com/technical/tax/tax-faculty/taxguides/2018/taxguide-0918-simple-assessment Simple Assessment guide for pensioners - https://www.gov.uk/government/publications/pensioners-and-tax-communications-materials/simple-assessment-guide-for-pensioners Agent Update: issue 131 - https://www.gov.uk/government/publications/agent-update-issue-131/issue-131-of-agent-update#simple Consider using the real-time CGT service to report gains - https://www.icaew.com/insights/tax-news/2024/apr-2024/consider-using-the-real-time-cgt-service-to-report-gains TAXguide 15/20: Capital gains tax UK property disposal reporting - https://www.icaew.com/technical/tax/tax-faculty/taxguides/2020/taxguide-1520-capital-gains-tax-uk-property-disposal-reporting PanellistsStephen Relf, Technical Manager, Tax, ICAEWCaroline Miskin, Senior Technical Manager, Digital Tax, ICAEW Katherine Ford, Technical Manager, Personal Taxes, ICAEWProducerEd AdamsEpisode first published: 2 July 2025Podcast recorded: 24 June 2025

On 6 April 2025, the longstanding rules for UK-resident, non-UK domiciled individuals – non-doms – were abolished and replaced with a new regime for foreign income and gains (FIG) that is based on residence. The abolition of domicile as a concept is one of the biggest changes in taxation for many years. In this episode of The Tax Track, we’ll get behind the headlines and consider the pros and cons of the new rules.LinksEconomy explainers: what is the non-dom regime? (valid up to 5/4/25) https://www.icaew.com/insights/tax-news/2024/sep-2024/non-dom-regime-explainedResidence and FIG Regime Manual https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual PanellistsStephen Relf, Technical Manager, Tax, ICAEWKatherine Ford, Technical Manager, Tax, ICAEWAdelle Greenwood, Technical Manager, Tax, ICAEWProducer Ed AdamsEpisode first published: 30 May 2025Podcast recorded: 19 May 2025

What do marshmallows and hair transplants have in common? Yes, they’ve both been subject to recent court cases regarding VAT treatment. And yes, this episode of The Tax Track is all about VAT.As well as examining issues with VAT borderlines, we talk about the prospects for reform, look forward to the Institute’s forthcoming VAT conference and discuss the pros and cons of e-invoicing.LinksHow to fix VAT https://www.icaew.com/technical/tax/vat/how-to-fix-vat Progressive VAT: is now the time? https://www.icaew.com/insights/tax-news/2024/oct-2024/progressive-vat-is-now-the-timeE-invoicing to be mandatory for EU VAT by 2030https://www.icaew.com/insights/tax-news/2024/nov-2024/e-invoicing-to-be-mandatory-for-eu-vat-by-2030How to fix VAT Conference ttps://www.icaew.com/learning-and-development/events/vat-conferencePanellistsStephen Relf, Technical Manager, Tax, ICAEWEd Saltmarsh, Technical Manager, VAT and Customs, ICAEWStephen Dale, Chair, ICAEW VAT and Duties CommitteeProducer Ed AdamsEpisode first published: 30 April 2025Podcast recorded: 22 April 2025

Ownership of cryptoassets may be on the rise, but many myths persist when it comes to how they taxed. This episode looks at how accountants can help clients to meet their tax obligations.We look at the tax treatment of cryptoassets and discuss what HMRC is doing to improve compliance and raise awareness, from adding a new box in the tax return to implementing the cryptoasset reporting framework.LinksThe basics of taxing cryptoassets https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/the-basics-of-taxing-cryptoassets VAT on cryptoassets https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/vat-on-cryptoassetsCryptoassets: international tax issueshttps://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2024/cryptoassets-international-tax-issuesWhat’s CARF got to do with it?https://www.icaew.com/technical/tax/tax-faculty/taxline/articles/2025/whats-carf-got-to-do-with-it TAXguide 01/2024: Taxation of cryptoassets for individualshttps://www.icaew.com/technical/tax/tax-faculty/taxguides/2024/taxguide-01-24   TAXguide 01/2024: Taxation of cryptoassets for businesseshttps://www.icaew.com/technical/tax/tax-faculty/taxguides/2024/taxguide-02-24 PanellistsStephen Relf, Technical Manager, Tax, ICAEWRichard Jones, Senior Technical Manager, Business Taxation, ICAEWDion Seymour, Crypto and Digital Asset Technical Director, Andersen Producer Ed AdamsEpisode first published: 1 April 2025Podcast recorded: 24 March 2025

Maintaining high professional standards is essential, both for individual accountants and for the profession as a whole. This episode of The Tax Track looks at the importance of protecting your professional reputation and, importantly, what members can do to ensure they get things right in the first place.Tax is complicated – and constantly changing – so CPD is important, as well as being an integral part of your ICAEW membership. Meanwhile, Professional Conduct in Relation to Taxation (PCRT), prepared jointly by seven professional bodies and associations (including ICAEW) and endorsed by HMRC, sets out the fundamental principles and standards for tax planning that all members, affiliates and students who practise in tax must follow.LinksWhat is Professional Conduct in Relation to Taxation? https://www.icaew.com/insights/tax-news/2025/feb-2025/what-is-professional-conduct-in-relation-to-taxationProfessional Conduct in Relation to Taxation: a tax perspective on ethics https://www.icaew.com/regulation/regulatory-news/regulatory-news-nov-2024/professional-conduct-in-relation-to-taxationICAEW Regulatory and Conduct Annual Report https://www.icaew.com/regulation/icaew-regulatory-and-conduct-annual-reportPanelistsLindsey Wicks, Senior Technical Manager, Tax Policy, ICAEWSophie Wales, Director of Regulatory Policy, ICAEWKatherine Ford, Technical Manager, Business Taxation, ICAEWProducerEd AdamsEpisode first published: 11 February 2025Podcast recorded: 25 February 2025