April 2026 Newsletter
HMRC investigations doubles additional tax from large businesses
HMRC's large business directorate has doubled the amount of tax revenue it collects, according to the National Audit Office (NAO).
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A hands-on approach to tax compliance for large businesses yielded £15.8 billion during 2024/25. That is double what the unit collected in 2021/22.
The large business directorate has a return on investment of £95 for every £1 spent on staff pay, which is four times higher than HMRC achieves across all taxpayers.
The tax gap for large businesses has steadily decreased over the long term, from £7.5 billion in 2005/06 to £5.8 billion in 2023/24.
Since 2006, HMRC has put 70 large businesses through its High Risk Corporates Programme, designed to tackle its most complex or riskiest cases. This has brought in more than £32 billion in extra tax.
The NAO recommended that HMRC expands the hands-on approach with other businesses as well as improving its IT systems.
Gareth Davies, Head of the NAO, said:
'Through its large business directorate, HMRC has developed an efficient and effective approach to ensuring large businesses remain tax compliant. This has made a significant contribution to reducing the tax gap.
HMRC should continue to explore whether this approach could usefully be extended to other complex and high-risk businesses.'
Source: NAO Website
HMRC takes £137 million in late payment interest
HMRC has taken in over £137 million from late payment interest so far for 2023/24, a freedom of information request from investment platform AJ Bell shows.
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The tax authority has charged 1.3 million taxpayers late payment interest for the last tax year with the average interest payment standing at just over £100.
The figures only count taxpayers once the interest accrued or late filing penalty has been paid, meaning the figures for the 2023/24 tax year will likely be significantly higher than they are now.
This can be evidenced by looking back to 2022/23, where the total amount paid has jumped by over 30% in the last year to just over £200 million.
The sums have risen since HMRC hiked late payment interest rate to 4% above the Bank of England base rate from 6 April 2025.
Charlene Young, senior pensions and savings expert at AJ Bell, said:
'These latest figures suggest that taxpayers still face difficulty navigating the UK's complex tax system and HMRC are cashing in as a result.
Millions have paid late payment interest in recent tax years, despite moves to relax the rules on who must file a self-assessment return.
Taxpayers can become unstuck if they find the systems and deadlines difficult to navigate, and others potentially face higher interest and penalties when it comes to mistakes and not paying on time.'
Hundreds of employers handed penalties for illegally underpaying workers
Almost 400 employers from across the UK have been named for failing to pay the minimum wage to tens of thousands of workers, says the government.
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Around 60,000 workers were found to have been underpaid, collectively missing out on £7.3 million in pay.
The findings come alongside enforcement action against businesses failing to pay their staff the legal National Minimum Wage.
In addition to repaying the underpaid £7.3 million penalties totalling £12.6 million have now been issued to businesses that failed to pay staff correctly.
The Department for Trade and Industry says this makes it clear that 'workers won't be made to pay for the mistakes or negligence of those they work for, regardless of how big or well-known they are'.
The announcement also comes ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay boost of £900 for those working full time.
Business Secretary Peter Kyle said:
'The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It's not fair on them when others are able to get ahead by not paying the wages their workers are owed.
A good employer doesn't build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don't apply to them.'
Source: GOV.UK Website
Grant boost for installing EV chargers for households and businesses
Renters, flat owners, homeowners without driveways and businesses will be able to save up to £500 when installing electric vehicle (EV) charge points, the government has announced.
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The 40% uplift in the chargepoint grant will cover almost half the cost of a typical charge point installation until March 2027, says the government.
It says this will help drivers access cheaper domestic electricity rates at home or work to power their car for as little as 2p per mile.
The latest government figures show EV drivers can save up to £1,400 on running costs versus a comparable petrol car when accessing cheaper domestic rates.
The move comes as the government aims to tackle two of the biggest barriers to driving electric - upfront costs and worries about finding somewhere to charge.
Keir Mather. Aviation, Maritime and Decarbonisation Minister, said:
'We're taking action to make EV ownership the affordable choice for everyone - not just those with driveways. Bigger grants mean families, flat owners, renters and small businesses can now install a charger for almost half the usual cost, with home charging costing as little as 2p a mile.
Combined with our Electric Car Grant which has saved over 55,000 drivers thousands off the price of a new EV whilst boosting sales for carmakers, and record funding for our national public charging network, we're backing the EV revolution for drivers, businesses, and industry.'
Source: GOV.UK Website
Government unveils package of youth employment initiatives
The government has unveiled a youth employment drive that aims to create 200,000 jobs for young people and reform apprenticeships.
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The government has unveiled a youth employment drive that aims to create 200,000 jobs for young people and reform apprenticeships.
It comes as apprenticeship starts amongst young people are down 40% in the last decade and almost one million young people are not earning or learning.
There is also a new Youth Jobs Grant, through which businesses will receive £3,000 for every young person they hire who is aged 18-24 and has been on Universal Credit and looking for work for six months.
It is also expanding the Jobs Guarantee to a wider age range, from 18-21 to 18-24, which it says will create more than 35,000 extra subsidised jobs.
In addition, there is an Apprenticeship Incentive of £2,000 for each new employee aged 16-24 taken on by an SME.
Lizzie Crowley, Skills Adviser for the Chartered Institute of Personnel Development (CIPD), said:
'We welcome the Government's focus on tackling youth unemployment and supporting more young people into work, particularly through new incentives to help employers create entry-level jobs and apprenticeships.
Many of these measures reflect changes we have been calling for, including stronger support for employers to create high-quality opportunities and more flexible routes into work for young people.
With the number of young people not in education, employment, or training rising significantly in recent years, rebuilding clear pathways into work must be a priority.
However, different incentive schemes have been tried in the past with varying degrees of success. It is important that meaningful jobs are created which also support skills development, and that the process for claiming the incentives are simple and clearly communicated.'
Source: GOV.UK Website, CIPD Website
New tax year brings contentious changes
The start of the new tax year on 6 April 2026 brings contentious changes with it, warns the Chartered Institute of Taxation (CIOT).
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The most controversial change is the taxation of dividends and employee benefits as well as the introduction of Inheritance Tax (IHT) on family businesses and farms.
The government's Making Tax Digital for Income Tax programme requires most sole traders and landlords with income of more than £50,000 a year to keep digital records and make quarterly submissions to HMRC.
Over the next three tax years HMRC plans to bring 2.9 million self-assessment taxpayers into the programme, requiring them to use compatible software to keep digital records and submit quarterly updates and an annual return.
Most of the changes took effect on Monday 6 April, the start of the new tax year, though a few changes were in place from Wednesday 1 April.
Ellen Milner, CIOT Director of Public Policy, said:
'Spring is a time of fresh starts, and for taxpayers it also marks the arrival of a new tax year and new tax rules.
The most contentious change being made this April is bringing business and agricultural assets into the scope of IHT, albeit with an additional allowance and being taxed at a lower rate. This will mean many more valuations of estates will be?required. Farmers and business owners potentially in scope will need to pay careful attention to their tax planning.'
Source: CIOT Website
HMRC website seeks to close tax knowledge gaps
HMRC has launched a new 'Tax Confident' website which it says will help people fill their tax knowledge gaps.
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The tax authority says the site is designed around real-life situations, helping people to find information that is relevant to their circumstances. These include 'tax in retirement', 'small businesses' and 'working life'.
The website also features 'tax basics', to help people understand the essentials and includes information about the free HMRC app and how to get further support.
HMRC says that with simple explanations, videos, and examples, Tax Confident makes it easier for people to understand tax. It also has links to GOV.UK guidance for when people are ready for more detail.
As well as the basics, current resources are aimed at pensioners, and people establishing new small businesses, who sometimes feel unsure about tax and are more likely to look for help.
Myrtle Lloyd, HMRC Chief Customer Officer and Customer Services Director General, said:
'We know that tax can feel confusing at times, especially when you are not sure where to start. HMRC's Tax Confident website is here to help people get to grips with the basics, covering everything from the tax essentials for new businesses to the need to knows for retirement.
Tax Confident is designed to help you feel informed, capable and in control when it comes to managing your tax.'
Source: HMRC Website
