HMRC tax collection Archives - WRLO Accountants

HMRC updates guidance on reduced VAT rate for summer holidays

WRLO Accountants — Mon, 17 Aug 2026 16:50:29 +0000

HMRC has updated its guidance on the temporary reduced rate of VAT applicable to children’s meals, family attractions and tickets. Between 25 June and 1 September 2026, the rate of VAT on children’s meals and specific attractions is reduced from 20% to 5%. The new guidance, issued on 27 July, includes additional details on party packages, prepayments and mixed supplies. The latest guidance also confirms that users of the flat rate scheme should continue to apply their current percentage to calculate their VAT liability, and that the temporary reduced rate doesn’t apply to margin scheme supplies under the tour operator’s margin scheme. Ed Saltmarsh, Tax Technical Manager at the Institute of Chartered Accountants in England and Wales (ICAEW), said: ‘We highlighted the challenges facing businesses in dealing with the temporary VAT cut, from having to update materials, processes and systems at short notice to dealing with boundary issues, when it was first announced. ‘The fact that HMRC has had to update its guidance one month after the policy took effect highlights the complexity of this measure.’ Press release: ICAEW HMRC guidance: Revenue and Customs Brief 5

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ICAEW encourages taxpayers to sign up to Making Tax Digital

WRLO Accountants — Sun, 17 May 2026 07:23:41 +0000

Taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from April 2026 should sign up now if they haven’t done so already, says the Institute of Chartered Accountants in England and Wales (ICAEW). Taxpayers who had combined gross income from sole trades and property businesses of more than £50,000 for 2024/25 must use MTD for Income Tax from April 2026. More taxpayers will be required to use MTD from April 2027 and April 2028. Taxpayers who are not required to use MTD income tax can volunteer to do so. HMRC estimates that approximately 864,000 taxpayers are required to use MTD for Income Tax from April 2026. The ICAEW says that approximately only 280,000 taxpayers have signed up so far, with 30,000 taxpayers having done so voluntarily. The Institute said: ‘ICAEW is encouraging taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.’ Internet link: ICAEW website

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HMRC cuts late payment interest rate to 8%

WRLO Accountants — Mon, 25 Aug 2025 16:13:34 +0000

HMRC will reduce late payment and repayment interest rates from 27 August following the 0.25% cut in the base rate earlier in the month. The Bank of England cut the base rate to 4% on 7 August, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 27 August, the late payment interest rate will be cut to 8.0% from 8.25%. The repayment interest rate will be cut to 3% from 3.25% from 27 August. HMRC late payment interest is set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Following the cut to the base rate, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: ‘The small business community will now look to lenders to reflect this rapidly across their offering, cutting the cost of finance. They will also want to see the Bank of England set out a clear path for the rest of the year, with a further easing in the base rate badly needed to reduce the financial strain they are under. ‘There will be no growth in the economy overall […]

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