Ahead of the 2024/25 online self-assessment (SA) filing and payment deadline of Saturday 31 January 2026, key information and reminders are set out below. Members are also advised to contact the Institute by email if they experience any issues in the coming weeks which prevent the filing of 2024/25 SA returns before the deadline so that we can discuss with HMRC. To the extent unforeseen events arise, we may be able to engage directly with HMRC to seek appropriate accommodations (in a similar manner as last year when various storms affected members). Ahead of this year’s filing deadline, more than 4,600 festive filers escaped the turkey and tinsel on Christmas Day to file their returns with 1-1.59pm being the busiest time; maybe the brussel sprouts were on to boil? Almost 10,500 then boxed clever to file on Boxing Day. However, as at 5 January 2026, almost 5.65 million returns were still due to be filed. By way of reminder, in November HMRC published its top SA filing tips for agents in Agent Update 137. Taxpayers should also be aware of the actions they may need to take due to the in-year changes from 30 October 2024 to the rates of capital gains tax (CGT). Due to this mid-year change, HMRC's online SA filing software does not automatically calculate gains at the correct rates if a taxpayer has gains both before and after the changes. This software has not been updated and defaults to the lower pre-30 October 2024 CGT rates for all gains.  If a taxpayer made disposals of non-residential property assets on or after 30 October 2024, the following actions need to be taken: Calculate the CGT adjustment amount: the taxpayer will need to calculate the difference between the CGT due at the new (higher) rate(s) and the amount calculated by the HMRC software. Use the HMRC calculator to work out the CGT adjustment amount: HMRC has provided an online calculator to help individuals work out the CGT adjustment amount. Enter the CGT adjustment amount on the 2024/25 SA return: the resulting CGT adjustment figure needs to be manually entered into box 51 (adjustments to Capital Gains Tax) on page CG4 of the Capital Gains summary pages (SA108) of the SA return, and Attach the online calculator calculation: it is also recommended that taxpayers save the results page from the online calculator and submit this as an attachment with their SA return.  Key messages for the SA deadline and materials can be found on HMRC’s Frontify platform. As this year’s filing deadline falls on a Saturday, HMRC has also sent the below message setting out details of their support arrangements on that day. This essentially means that there will be no support via telephone on 31 January, except for a call-back service for vulnerable taxpayers. HMRC has also explained below why it is taking this approach. “What we will offer on Saturday 31 January: Significantly enhanced webchat capacity – approximately 200 advisers, compared to our usual Saturday staffing of around 20. This represents a ten-fold increase in capacity. Broader service coverage – webchat will be available across Self Assessment, the Agent Dedicated Line, Extra Support Team, Bereavement, and the Online Services Helpdesk. This is a wider range of services than we could viably staff via phone lines on a Saturday. A callback process for vulnerable customers needing Extra Support or Complex Case team assistance. 24/7 digital resources – our digital assistant and comprehensive GOV.UK guidance will remain available throughout. Why we have taken this approach: We have concluded that the best way to support customers is to prioritise adviser availability in the days running up to the deadline, while providing a comprehensive webchat service on the Saturday itself. This ensures we maintain full capacity during the critical weekdays when demand is highest, while still offering real-time support on the deadline day. Importantly, all remaining Self Assessment customers will be filing digitally, as the paper filing deadline passed on 31 October. Our communications approach: We will be clear and upfront with customers from early January, giving them time to plan ahead. From the week commencing 5 January, we will begin daily social media posts encouraging early contact and digital use, alongside clear messaging that phone lines close on Friday 30 January and reopen on Monday 2 February. On 12 January, we will include details of Saturday's webchat service in our Self Assessment payment reminder press notice, update GOV.UK contact pages, and share information through the Agent Update. From 23 January, IVR messaging will be updated to confirm no phone lines on Saturday, and on 30 January we will issue a final reminder that it is the last day for phone support. This approach gives customers who prefer phone contact time to reach us during the week before the deadline, when we have maximum staffing in place.” Ahead of the filing deadline, the Institute has also been made aware that delays are being experienced in client authorisations being processed and the client appearing on the agent’s client list. We have been advised that HMRC is aware of the issue and a fix has been deployed  for new authorisations. All older authorisations should now be appearing on client lists. Any further issues experienced should be reported to HMRC’s online services helpdesk in the first instance with recourse to the Institute by email if these continue to hamper efforts to file by the deadline.

The Chancellor has asked the Office for Budget Responsibility to prepare an economic and fiscal forecast for publication on 3 March 2026, which is being referred to as the Spring Forecast. This will be followed in Parliament with a statement by the Chancellor, known as the Spring Statement. The Institute will report on this in full when it is announced. Following on from the Autumn Budget, the House of Commons Library has published a further research briefing on the Autumn Budget and the Finance (No. 2) Bill, in addition to a research briefing on the National Insurance Contributions (Employer Pensions Contributions) Bill. Last month the Treasury Committee held an evidence session with the Chancellor to discuss the Budget.

On 23 December 2025 the Government announced that the £1 million allowance for 100 percent agricultural property relief (APR) and business property relief (BPR) for inheritance tax (IHT) will now be increased to £2.5 million from 6 April 2026. Relief will remain limited to 50 percent on the amount of qualifying assets valued above this threshold resulting in an effective IHT charge of 20 percent (i.e., half the standard 40 percent IHT rate). Details of the announcement were made in a news release published by HM Treasury on 23 December 2025. Having lobbied heavily on this issue since the 2024 Budget and throughout 2025, the Institute issued a Press Release on 23 December reacting to the announcement noting this welcome mitigation including the confirmation of transferability of the allowance between spouses. A timeline of all formal lobbying and Press Releases on this issue by the Institute since it was announced in 2024 is set out below. When combined with the transferability of any unused amount of the allowance between spouses and civil partners, another Institute recommendation that was announced at the Autumn Budget in November 2025, this effectively means that a couple will have a combined allowance of £5 million before any unused amount of their transferable nil rate band is taken into account. This would potentially increase the overall 100 percent amount on which no IHT will be payable to £5.65 million should their full £325,000 nil rate band be unused. As a result, many farms and family owned businesses in Northern Ireland will continue to receive 100 percent APR and BPR and not have any IHT liability, protecting the succession plans of these businesses for the next generation. HMRC has published an updated policy paper on this issue which also confirms that if the first spouse or civil partner’s death was before 6 April 2026, it will be assumed that the entirety of their £2.5 million allowance is unused and thus will be available for transfer to the surviving spouse or civil partner. HMRC has also published an explanatory note on the Government’s tabled amendment for this change. Clause 62 and Schedule 12 of Finance (No. 2) Bill have since been amended and the full amendment papers have been published. Finance (No. 2) Bill has now had its second reading in the House of Commons; the next stage is Committee of the whole House which is scheduled to take place today, 12 January 2026. We also understand that during an exchange in Parliament between the Exchequer Secretary (XST) Dan Tomlinson and Robin Swann MLA, it has been suggested that the ability to transfer individual allowances to a spouse/civil partner may potentially also apply to intergenerational farms owned by other family members. The Hansard exchange discussing this has also been published. At present, this is not fully clear and requires Government clarification which we will monitor. The Hansard exchange also confirms that the Government now expects to raise around £300 million from this change. The expected tax take by 2029/30 from the original policy announced in the 2024 Autumn Budget was £520 million. It remains unclear if the Chancellor intends to announce new tax increases in the Spring Forecast to cover this new deficit. However this may not be needed given the £22 billion fiscal headroom provided by the most recent Budget. The full timeline of formal Institute representations and Press Releases on this issue since the Autumn Budget in 2024 is as follows: November 2024: meeting with HMRC on Autumn Budget 2024, December 2024: press release on APR and BPR, April 2025: letter to XST on APR and BPR, April 2025: response to consultation on APR and BPR, July 2025: press release on APR and BPR, September 2025: meeting with local Government on APR and BPR, October 2025: submission to House of Lords Finance Bill Sub-Committee on APR and BPR, October 2025: Autumn Budget 2025 pre-Budget submission, October 2025: evidence session by Leontia Doran to House of Lords Finance Bill Sub-Committee, November 2025: Autumn Budget Press Release, and December 2025: meeting with HMRC on Autumn Budget 2025.  

After months of intense discussion following the announcement by the US Administration that it would be withdrawing from its previous commitments under the OECD’s global minimum tax rules under Pillar Two, the OECD has now published details of a compromise agreement which paves the way for US cooperation with the project. The new package contains details of the new Side-by-Side Safe Harbour which will see countries that operate a minimum tax system with similar policy objectives and overlapping scope as Pillar Two being granted ‘Side-by-Side’ status. The Inflation Reduction Act (IRA) in the US introduced a new corporate alternative minimum tax (CAMT) of 15 percent effective for tax years beginning after 2022. As such, the same minimum tax rate that applies to US and Irish headquartered entities. This is naturally key to ensuring that the compromise agreement does not immediately provide a competitive advantage to companies headquartered in the US over similar entities headquartered in Europe and other jurisdictions implementing Pillar Two.  From an Irish perspective, the report notes, for companies applying the Side-by-Side Safe Harbour, a qualified domestic minimum top-up taxes (QDMTTs) aligned with the Pillar Two rules will continue to apply in Ireland. Therefore, Irish subsidiaries of US-headquartered companies should continue to pay QDMTTs in Ireland with an even playing field being maintained as a result. Overall, the package includes five key components: A series of simplifications to reduce the compliance burden on both in-scope entities and tax authorities. Rules to enhance alignment of tax incentives through a targeted substance-based tax incentive safe harbour. A new Side-by-Side (SbS) Safe Harbour for companies within a group whose ultimate parent entity is located in a jurisdiction that has not implemented Pillar Two and where that jurisdiction operates a minimum tax system with similar policy objectives and overlapping scope as Pillar Two.   A commitment to taking an evidence-based stocktake to ensure that a level playing field is maintained across the jurisdictions participating in the Pillar Two project. A commitment that the qualified domestic minimum top-up tax mechanism will be the primary mechanism for ensuring that local tax bases are protected through this process. The OECD will host a dedicated webinar to support implementation of the package on 13 January 2026. 

The OECD has published a report to support jurisdictions in the design and operation of digital continuous transactional reporting (DCTR) regimes for value added tax (VAT). The report promotes greater international consistency in the development of DCTR to assist in preventing complex compliance challenges for businesses.

This week the OECD published the details of the Pillar Two Side-by-Side Package, which paves the way for US cooperation with the Pillar Two initiative. The agreement exempts US headquartered multinationals from most of the Pillar Two rules (implemented in Ireland under the EU Minimum Taxation Directive). The compromise reached will see countries that operate a minimum tax system with similar policy objectives and overlapping scope as Pillar Two granted ‘Side-by-Side’ status (SbS).   Importantly from an Irish perspective, the report notes that qualified domestic minimum top-up taxes (QDMTTs) aligned with the Pillar Two rules will continue to apply to Irish subsidiaries of US-headquartered companies. As such, QDMTTs should continue to be collected in Ireland and an even playing field should be maintained as a result.  The Inflation Reduction Act in the US introduced a new corporate alternative minimum tax (CAMT) of 15 percent effective for tax years beginning after 2022. As such, the same minimum tax rate that applies to US and Irish headquartered entities. This is naturally key to ensuring that the compromise agreement does not immediately provide a competitive advantage to companies headquartered in the US over similar entities headquartered in Europe and other jurisdictions implementing Pillar Two.  In addition to the SbS Safe Harbour, the package also brings broader simplifications, including a simplified effective tax rate safe harbour, the extension of the transitional country-by-country reporting (CbCR) safe harbour, as well as a substance-based tax incentive safe harbour. 

Today’s announcement by the UK Government of significant changes to its proposed inheritance tax reforms is a significant step in safeguarding rural communities and supporting succession planning for future generations according to Chartered Accountants Ireland. Following strong lobbying efforts in 2025, including from Chartered Accountants Ireland, the threshold for 100% relief on agricultural and business property combined will increase from £1 million to £2.5 million from 6 April 2026. Beyond this threshold, a 50% relief rate will apply, meaning couples can pass on up to £5 million of agricultural or business assets between them, in addition to existing allowances such as the nil-rate band. According to the Government, these changes mean only a small number of estates with agricultural and business assets will pay additional inheritance tax. Leontia Doran, UK Tax Manager, Chartered Accountants Ireland said "Chartered Accountants Ireland has consistently highlighted that the original proposals would have disproportionately impacted farmers in Northern Ireland. We strongly advocated for changes to ensure that genuine farming activity and family-owned businesses were not unfairly penalised. Today’s announcement is a significant step in safeguarding rural communities and supporting succession planning for future generations not just in Northern Ireland but across the UK." ENDS

In Irish news, Revenue has extended the deadline for completing the VAT modernisation and eInvoicing survey and the Institute has its say on the Finance (Tax Appeals and Fiscal Responsibility) Bill 2024. In UK news, we present the concluding part of our in-depth Autumn Budget 2025 coverage, focusing on measures aimed at closing the tax gap alongside various other announcements. We also remind readers that the deadline for submitting 2024/25 online self-assessment returns is 30 December 2025 to enable collection of tax under £3,000 via PAYE. In International news this week, the European Commission publishes a report on tax gaps in the EU.  Ireland 1. Revenue has extended the timeline for completion of the VAT modernisation and eInvoicing survey to 16 January 2026. 2. Read the Institute’s submission to the Joint Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation outlining concerns on proposals included in the Finance (Tax Appeals and Fiscal Responsibility) Bill 2024. UK 3. The final part of our detailed Autumn Budget coverage highlights measures aimed at closing the tax gap and investment in HMRC together with updates on other miscellaneous measures. 4. The deadline for filing the 2024/25 self-assessment returns online to allow tax collection via the PAYE tax code is 30 December 2025.  International 5. Read about the report published by the European Commission assessing the tax gaps in the EU. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s Cross-border developments and trading corner here.  

As Ireland prepares to take on the rotating Presidency of the Council of the EU for the 8th time from July, we advocate a solutions-driven approach, advancing competitiveness, regulatory simplification, coherence, consistency and long-term economic resilience. By fostering open dialogue, communicating the benefits of EU membership, and involving our members and networks, on behalf of our 40,000 members, we will support a Presidency that advances policy but also builds ownership and delivers meaningful outcomes for people, businesses, and communities.   Read the Consultation response

Further investment in HMRC’s debt management capabilities and a range of measures to close the tax gap featured as part of the Autumn Budget’s announcements. The Budget also announced some minor reforms to simplify reporting requirements and announced that further reforms to “streamline processes and improve the taxpayer experience” will be announced by HMRC at an event in Spring 2026. These reforms aim to build on HMRC’s Transformation Roadmap. The news also broke that as part of HMRC’s plans to achieve 90 percent digital interactions by 2029/30, from March 2026 HMRC will stop sending outbound letters which will instead be replaced by digital notifications. More informaticaon is available in the policy paper ‘Modernising digital outbound communications.’ Anyone who still wishes to receive paper communications will need to opt-out of digital communications in order to do so. HMRC debt management £64 million is to be invested over the next five years in HMRC’s existing partnerships with private sector debt collection agencies to collect more tax debt, with £89 million to be invested over the next five years to fund additional staff to increase HMRC’s capacity to collect more tax debt. An updated tax debt strategy was also published at the Budget which outlines HMRC’s approach to reducing tax debt as a percentage of receipts, and to improving debt management and taxpayer support. Construction Industry Scheme (CIS) HMRC’s powers to tackle fraud within the CIS are to be strengthened following the announcement that regulations for technical consultation will be published which aim to simplify and improve the administration of the scheme. The changes will take effect from 6 April 2026 and are being legislated for in Finance Bill 2025/26. Rewards for informants of high-value tax fraud The rewards paid to informants who provide HMRC with high-value information increased with immediate effect from Budget Day. For cases where tax over £1.5 million is recovered, HMRC will now pay rewards up to 30 percent of the additional tax collected that would otherwise have gone unpaid. Promoters of marketed tax avoidance New powers to close in on promoters of marketed tax avoidance are being legislated for in Finance Bill 2025/26. A consultation on further measures to tackle promoters is also to be launched in early 2026. Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance Earlier this year the Government consulted on the introduction of enhanced powers and sanctions to tackle tax advisers who facilitate non-compliance. Chartered Accountants Ireland responded to this technical consultation in September. The draft legislation for these powers is included in Finance Bill 2025/26 and will take effect from 1 April 2026. Non-compliance on the high street A new dedicated small business evasion and enforcement team is to be established to tackle non-compliance on the high street. The team will also deploy 350 HMRC criminal investigators to carry out more targeted criminal interventions to take on the most serious fraud and evasion by small businesses. Electronic sales suppression A call for evidence will be published in early 2026 which will set out the software standards for the Electronic and Mobile Point of Sale Sector that will also explore how best to embed standards across the latest products and innovations. Non-derecognition liabilities The government introduced a new anti-avoidance provision relating to certain arrangements where there is a non-derecognition liability from 26 November 2025 which is being legislated for in Finance Bill 2025/26. Recklessness offence for direct tax A consultation will launch in early 2026 on the introduction of a new ‘recklessness’ criminal offence for fraudulently evading direct taxes in order to align this with existing indirect tax offences. Hidden economy: expanding tax conditionality to new sectors The Government published a summary of responses to the ‘Tackling the hidden economy by expanding tax conditionality to new sectors’ consultation at the Budget and at the same time confirmed plans to extend tax conditionality to the waste and animal welfare sectors and additional transport licences. Draft legislation will be published for technical consultation in 2026. Publication of deliberate defaulters The framework for how HMRC publishes the details of deliberate defaulters is to be reformed in order to ‘bring forward changes next year.’ Making better use of third-party data The Government will acquire third-party data more frequently for interest income and card sales from April 2028. This is being legislated for in Finance Bill 2025/26. Cryptoasset Reporting Framework UK reporting Cryptoasset Service Providers will be required to report on their UK tax resident customers under the Cryptoasset Reporting Framework. Information for first reports to HMRC will be collected from 1 January 2026 and reported to HMRC in 2027. Enhancing tax transparency on real estate The UK is participating in a new international agreement underpinned by the OECD which will tackle tax evasion by providing for the automatic exchange of readily available information on real estate. Business systems integration To enable the automatic transfer of sales and purchase data into businesses’ accounting software, a Call for Evidence will be published in early 2026 to develop options to increase the uptake of business systems integration. Uncertain tax treatments A consultation will be launched in early 2026 on proposals to enhance the existing notification regime for uncertain tax treatments. Offshore anti-avoidance The Government set out its commitment ‘to ambitious reform and substantial simplification of the Personal Tax Offshore Anti-Avoidance Legislation.’ As a result, next steps for the Personal Tax Offshore Anti-Avoidance Call for Evidence were published.

From the tax treatment of State pension income above the frozen personal allowance threshold to company car and van tax, a range of measures featured in the Budget Red Book. The State pension The basic and new State pension will each increase by 4.8 percent from April 2026. The Pension Credit Standard Minimum Guarantee will also be uprated by the same amount from the same date. Pensioners whose sole income is the basic or new State pension (without any increments) have been told they will not have to pay small amounts of tax via Simple Assessment from 2027/28 if the new or basic State pension exceeds the personal allowance from that point. How this will work operationally is currently being explored with more detail expected next year. Company car and van tax The van benefit charge and the car and van fuel benefit charges will increase by Consumer Price Index inflation from 6 April 2026. A temporary benefit in kind tax easement for plugin hybrid electric vehicles will be included in the benefit in kind (BIK) system to prevent their tax charge increasing significantly due to new emissions standards. This easement will apply from 1 January 2025 to 5 April 2028. At Autumn Budget 2024, the Government announced that it would bring employee car ownership schemes into the scope of the BIK rules from 6 April 2026. To allow more time for the sector to prepare for and adapt to this change, implementation is being delayed to 6 April 2030, with transitional arrangements to apply until April 2031. Oil and gas price mechanism The temporary Energy Profits Levy (EPL) will be replaced by the permanent Oil and Gas Profits Mechanism (OGPM). This will be a revenue-based mechanism which only operates in times of high prices and will replace the EPL when it ends in 2030, or earlier if the EPL price floor is triggered. The rate will be 35 percent with thresholds of $90/barrel (oil) and 90p/therm (gas). Share Incentive Plan (SIP) A summary of responses to the 2023 Call for Evidence on the SIP and Save As You Earn were published alongside the Budget which sets out the next steps. Infected Blood Compensation Payments Updated legislation will confirm that payments made under the Blood Interim Compensation Payment Scheme are relieved from inheritance tax (IHT) in cases where the original infected or affected person eligible for compensation died before the compensation is paid. First living recipients of compensation payments will also have two years in which to gift some or all of the compensation payment without an IHT charge. This is being legislated for in Finance Bill 2025/26 and will apply to compensation payments made before or after 26 November 2025 and to gifts made on or after 4 December 2025. Charity compliance Finance Bill 2025/26 contains legislation which aims to strengthen the charity tax rules on tainted donations, approved investments, and non-charitable expenditure. These changes will take effect from 6 April 2026. Tax offer for high-talent new arrivals The Government will explore how to further develop its tax offer for high-talent new arrivals, to build on the success of the existing regime and bolster the ambition for the UK to remain a competitive destination for growth-driving global talent and support internationally mobile individuals to establish themselves and their businesses in the UK. The Government will seek views in due course to inform the design and scope of any potential enhanced offer. Climate change levy (CCL) The main rates of the CCL for gas, electricity and solid fuels will be uprated in line with RPI inflation from 1 April 2027. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates will remain at an unchanged fixed percentage of the main rates. Following a consultation at Spring Statement 2025, both electricity used in electrolysis to produce hydrogen and natural gas used as a source of CO2 in the production of sodium bicarbonate will be exempt from the CCL. Subject to parliamentary approval, these amendments will be in force by Spring 2026. Carbon price support Carbon price support rates in Great Britain have been frozen at a level equivalent to £18 per tonne of CO2 in 2027/28. Winter fuel payments The £35,000 threshold will be maintained for this Parliament. Visitor levy The Government will give Mayors in England powers to raise a visitor levy on overnight accommodation and explore the option for this power to be extended to the leaders of other strategic authorities. A consultation has therefore been launched on the design of the levy. Cryptoasset loans and liquidity pools A summary of responses to the ‘Taxation of decentralised finance (DeFi) involving the lending and staking of cryptoassets’ consultation has been published. Annual tax on enveloped dwellings (ATED) The ATED legislation will be updated to reflect the policy intent that relief from the ATED is available to companies holding property for qualifying commercial purposes. This includes relief claims within late ATED returns. Stamp Duty Land Tax (SDLT) The Government will amend SDLT rules so that property transferred within Local Government Pension Schemes are subject to a SDLT relief. This will be legislated in Finance Bill 2026/27. Capital allowances The 100 percent first year allowance (FYA) for qualifying expenditure on zero emission cars and on plant or machinery for electric vehicle charge points is extended a further year. The FYA will now be in place until 31 March 2027 for corporation tax purposes, and 5 April 2027 for income tax purposes.

Ahead of the 2024/25 normal online self-assessment (SA) filing deadline of 31 January 2026, we remind you that 30 December 2025 is the deadline to file 2024/25 SA returns online to ensure that a taxpayer can have their SA bill collected through their PAYE tax code when certain conditions are met. Any taxpayer who has received a simple assessment letter to pay tax outstanding for 2024/25 must do so dependent on the date the letter was received. If you get a 2024/25 simple assessment letter: before 31 October 2025, you must pay what you owe by 31 January 2026, or on or after 31 October 2025, you must pay what you owe within 3 months of the date of the letter.