Welcome to the first edition of The GLAM Briefing — our monthly round-up of the tax and business regulatory changes that matter to you. We’ll be publishing this each month to help you stay on top of what HMRC, Companies House, and other bodies are doing.
HMRC has issued a number of changes and reminders this month that could affect sole traders, landlords, employees, and business owners. Here is a plain-English summary of the most important updates, and what — if anything — you need to do.
1. Mileage Rates Have Increased — Backdated to 6 April 2026
The Approved Mileage Allowance Payment (AMAP) rate — the tax-free amount you can be reimbursed (or claim) for using your own vehicle for business travel — has increased for the first time in over a decade.
The new rates, which apply from 6 April 2026, are:
- 55p per mile for the first 10,000 business miles in the tax year (up from 45p)
- 25p per mile for every mile above 10,000 (unchanged)
If you are employed and your employer reimburses you at less than 55p per mile, you are entitled to claim tax relief on the shortfall through your Self Assessment return or by contacting HMRC directly.
If you are self-employed and use the simplified mileage method, you can use the new 55p rate in your 2026/27 tax return. If you are unsure how this affects your situation, get in touch with us.
2. Making Tax Digital for Income Tax Is Now Live — First Deadline 7 August 2026
Making Tax Digital (MTD) for Income Tax officially launched in April 2026 for the first wave of taxpayers. If your gross income from self-employment and/or property exceeded £50,000 on your 2024/25 tax return, you are now legally required to keep digital records and submit quarterly updates to HMRC.
The quarterly deadlines for 2026/27 are:
- Quarter 1 (6 April – 5 July): due 7 August 2026
- Quarter 2 (6 July – 5 October): due 7 November 2026
- Quarter 3 (6 October – 5 January): due 7 February 2027
- Quarter 4 (6 January – 5 April): due 7 May 2027
If you have not yet signed up for MTD or chosen your software, the first deadline is approaching fast. Contact us immediately and we can get you set up before 7 August.
3. MTD Is Expanding in April 2027 — Are You in the Next Wave?
From April 2027, MTD for Income Tax will extend to sole traders and landlords with gross income from self-employment and/or property of between £30,000 and £50,000.
- The threshold is based on gross income — before any expenses are deducted
- Your liability will be assessed based on your 2025/26 tax return
- You will need MTD-compatible software in place before April 2027
- You will need to file four quarterly updates plus a final declaration each year
There is no need to act immediately — but now is a sensible time to review your record-keeping. We will be contacting all affected clients well ahead of the April 2027 deadline.
4. Voluntary NI Contributions Abroad — Rules Have Changed
From 6 April 2026, the option to pay voluntary Class 2 NI contributions for periods spent abroad has been removed. New applications to pay voluntary Class 3 contributions for periods abroad now require either 10 years of continuous UK residency or at least 10 years of paid NI contributions.
If you currently pay voluntary NI contributions from abroad via Direct Debit, do not cancel it. HMRC will collect the final payment for 2025/26 on 10 July 2026 and will write to you directly if your arrangement is affected.
5. Capital Gains Tax on Employee Ownership Trust Sales Has Changed
The CGT relief on qualifying EOT disposals was reduced from 100% to 50% for sales made on or after 26 November 2025. Previously, qualifying sellers paid no CGT on a sale to an EOT. Now, 50% of the gain is chargeable at the time of disposal.
EOT structures can still be highly tax-efficient, but careful planning is more important than ever. If you are exploring this route or have already completed a sale, take specialist advice to ensure your tax position is correctly reported.
Need advice?
At Glam Accountancy we keep our clients ahead of tax and regulatory changes. If any of the above affects you, we would love to help.
This article is for general information purposes only and does not constitute tax or financial advice. Please contact us directly if you have specific questions about your circumstances.