HMRC has updated VAT Notice 700/65 on business entertainment, clarifying input tax recovery rules. The update cancels the 2011 version and provides refreshed technical guidance, which may affect how companies treat VAT on entertainment expenses for UK and overseas business contacts.
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HMRC has issued a new VAT Notice (701/47) replacing the 2003 version, clarifying conditions for VAT exemption on admission charges to cultural events and exhibitions. It also introduces a temporary reduced VAT rate for children's tickets and family attractions from June to September 2026.
The UK Payments Initiative (UKPI) scheme launches to advance open banking and commercial variable recurring payments. The government will consult on a long-term regulatory framework by end of 2026 and has published a roadmap for open finance, expanding data-sharing beyond open banking.
The UK FCA has issued a warning to football clubs, especially in the Premier League, about sponsorship deals with unauthorised financial firms, including crypto businesses. Clubs must conduct due diligence to avoid legal liability, money laundering risks, and reputational damage.
The UK government has proposed its seventh carbon budget, targeting an 87% reduction in economy-wide emissions by 2040 (from 1990 levels). This legally binding cap will require significant shifts in energy, buildings, transport, and agriculture, with a delivery plan to follow parliamentary approval.
HMRC has published guidance requiring UK cryptoasset service providers to collect and report user and transaction data under the OECD's Cryptoasset Reporting Framework. The first report covering 2026 data is due between 1 January and 31 May 2027, with penalties up to £300 per user for non-compliance.
The Lobbying Transparency (In-house Lobbyists) Bill [HL] proposes to amend the 2014 Act to require in-house lobbyists to register and disclose their activities, closing a transparency loophole. Organizations with in-house government affairs teams will need to prepare for new registration and reporting obligations.
The UK Nature's Rights Bill proposes recognizing Nature as a legal subject, establishing a duty of care for public bodies, businesses, and individuals. It creates enforcement mechanisms including a Nature's Rights Tribunal, impacting environmental compliance and ESG obligations.
From October 2026, UK employers must take 'all reasonable steps' to prevent workplace sexual harassment and third-party harassment under the Employment Rights Act 2025. This proactive duty expands liability and requires updated risk assessments, policies, and training.
The UK has introduced a civil penalty regime for breaches of free zone requirements under the Free Zones (Customs, Excise and VAT) Regulations 2021. Contraventions carry a fixed penalty of £2,500 per occurrence, covering unauthorized activities, failure to notify HMRC, and non-compliance with restrictions on goods and activities.
HMRC has updated Statement of Practice 1 (2001) effective 1 January 2026, clarifying conditions under which investment managers are not treated as trading in the UK on behalf of non-resident clients. This affects UK tax compliance for investment managers and their overseas clients under Income Tax and Corporation Tax.
From 6 April 2027, most unused pension funds and death benefits will be included in the deceased's estate for Inheritance Tax purposes. Personal representatives and pension scheme administrators face new reporting and payment obligations, with HMRC using withholding notices and a direct payment scheme.
HMRC updated guidance on Disclosure of Tax Avoidance Schemes (DOTAS), including new penalties under Section 21A effective May 2026, expanded hallmarks for inheritance tax and apprenticeship levy, and clarified tribunal decisions. Promoters and users must ensure compliance to avoid penalties.
HMRC published Edition 3 of the Making Tax Digital for Income Tax software developer newsletter, providing updates on changes, service performance, and developer actions needed for compliance. The next edition is expected in June 2026.
The UK Home Office reversed the March/April 2026 requirement for sponsors to conduct Right to Work checks on all directly engaged workers. Now, checks are only required for sponsored workers and unsponsored employees. The eVisa becomes the sole proof of immigration status from May 20, 2026, and record-keeping duties are expanded.
The UK Data (Use and Access) Act 2025 introduces a new right for individuals to complain directly to their employer about data protection breaches. Employers must provide a complaints form, acknowledge receipt within 30 days, and respond without undue delay, with potential future reporting to the ICO.
The UK government plans to issue guidance for Local Government Pension Scheme (LGPS) pools on managing diverging responsible investment (RI) strategies, addressing political fragmentation and varying local authority preferences. This guidance will affect how pension funds handle exclusions, divestments, and other RI approaches within the pooling framework.
UK HMRC issued guidance classifying liquid sourdough starter under CN code 2106 90 98, based on EU Regulation 2026/360 effective March 2026. Importers and exporters must update customs classifications for compliance.
HMRC's May 2026 newsletter announces withdrawal of the pension scheme online service, updates on Inheritance Tax implications for pensions, and changes to relief at source arrangements. Pension scheme administrators must prepare for these administrative changes.
HMRC has updated the IHT100c form for reporting exit charges on trust assets, with changes to reliefs from 6 April 2026 and new guidance on excluded property and non-UK resident transferors. Trustees and advisors must use the latest version to ensure compliance.