UK Tax Updates July 2026 - What Businesses Need to Know

The latest UK tax updates include a number of Government consultations and policy announcements that could affect businesses over the coming years. While many of these proposals are still under consultation, they provide a clear indication of the direction of travel for the UK's tax system.

Below is a summary of the key developments we're keeping an eye on.

If you'd like to discuss how any of these announcements could affect your business, email our team at support@theuncommonpractice.co.uk or get in touch with your usual contact at The Uncommon Practice and we’d be happy to help.

Income Tax Self Assessment reforms

The Government is consulting on proposals to make Income Tax Self Assessment (ITSA) payments more timely.

One proposal would see taxpayers with both PAYE income and Self Assessment liabilities pay more of their tax through PAYE from April 2029. The consultation also explores reforms to Payments on Account, with the aim of spreading tax payments more evenly throughout the year.

If introduced, these changes could help reduce unexpected tax bills and improve cash flow planning for many taxpayers. Read more here.

Mandatory Direct Debit for VAT and PAYE?

Businesses may soon be required to pay VAT and PAYE liabilities by Direct Debit.

The Government has launched a consultation exploring whether Direct Debit should become the default payment method, alongside possible exemptions and enforcement arrangements.

While no decisions have been made, businesses should be aware that the way tax payments are made could change in the future. Read more here.

VAT reforms for online marketplaces

Businesses selling through online marketplaces should be aware of a new consultation considering an extension of VAT marketplace liability rules.

The proposals are designed to tackle VAT non-compliance and create a fairer competitive environment for compliant businesses. Read more here.

Land Remediation Relief update

Businesses involved in construction, development, or land remediation may wish to note that the Government has published its response to last year's consultation on Land Remediation Relief.

Although no immediate changes have been announced, the publication provides greater clarity on the Government's approach and confirms that further engagement with the sector is planned. Read more here.

Other developments we're monitoring

Alongside these consultations, the Government has also announced several longer-term initiatives, including:

• Further digitisation of VAT processes.

• Greater use of digital accounting data.

• Progress towards UK-wide e-invoicing.

• Corporation Tax changes affecting Quarterly Instalment Payments.

• Reviews of employee expense rates and other administrative processes.

  
  

We'll continue to monitor these UK tax updates and share practical guidance as further details become available. Read more here.

With a new Chancellor now in place, further tax announcements and policy changes are expected over the coming months.

While it's too early to know exactly what will be introduced, we'll be keeping a close eye on any developments that could affect our business clients and will continue to share practical updates as more information becomes available.

Need advice on UK tax updates?

Tax legislation continues to evolve, but understanding the changes early gives businesses the opportunity to plan ahead.

If you'd like to discuss how these proposed changes could affect your business or tax planning, please get in touch. Email our team at support@theuncommonpractice.co.uk or speak to your usual contact at The Uncommon Practice.