HMRC Starts Signing People Up for Making Tax Digital Itself
From September 2026 HMRC begins signing up sole traders and landlords who must use Making Tax Digital (MTD) for Income Tax for 2026/27 but have not signed up themselves. This applies where qualifying income - self-employment plus property, before expenses - is over £50,000, and it happens in stages over the coming months. The catch is that when HMRC signs you up it uses only the information it already holds, so anything that has changed since your last return, such as a ceased trade or a new rental property, will not be reflected.
More than 570,000 people have signed up so far and over 436,000 have sent a first quarterly update. There are no penalty points for late quarterly updates in this first year, though late final returns and late payment are still penalised. From April 2027 the threshold drops to £30,000 and points-based penalties start, with a £200 fixed penalty once you reach four points. Note too that the sign-up service is offline from 11 to 15 September for maintenance.
Source: GOV.UK - Sign up for Making Tax Digital for Income Tax | Related: Making Tax Digital for Income Tax guide, Self-employed tax calculator
Inheritance Tax on Pensions: HMRC Sets Out the Mechanics
HMRC has published a second technical note on the 6 April 2027 change that brings most unused pension funds and death benefits into the value of an estate for inheritance tax. It is not draft guidance. It sets out how the process will work: a pension scheme must answer a personal representative's request for information within 28 days; a personal representative can serve a notice that holds back up to 50% of a beneficiary's entitlement for up to 15 months after the end of the month of death; and a beneficiary can ask the scheme to pay the inheritance tax straight to HMRC through the pensions direct payment scheme, where the amount is at least £1,000. Secondary legislation and further guidance follow before April 2027.
Source: GOV.UK - Inheritance Tax on pensions, technical note 2 | Related: Inheritance tax and the pension raid guide, Inheritance tax planner
Scottish Income Tax Came in Below Forecast: £720 Million Off the Budget
A joint HM Treasury and Scottish Government reconciliation for 2024/25 confirms Scottish income tax receipts came in £209 million below the forecast used for that year's Scottish Budget, while the rest-of-UK comparator that offsets it came in higher than forecast, reducing the block grant by a further £512 million. Together that is £720 million less funding for the Scottish Government in 2027/28, the year the reconciliation lands. This is the fiscal framework working as designed rather than a fresh cut, but it is the backdrop to any Scottish tax decision in the next two Scottish Budgets.
Source: GOV.UK - Scottish income tax outturn reconciliation for 2024-25 | Related: Scottish Budget 2026/27
New Advisory Fuel Rates from 1 September
HMRC's advisory fuel rates, the pence-per-mile figures for company-car business mileage, changed on 1 September. Petrol is now 14p a mile up to 1400cc, 17p from 1401cc to 2000cc, and 27p above that. Diesel is 15p up to 1600cc, 16p to 2000cc, and 22p above. LPG is 11p, 13p and 20p across the same bands. The electric rate is 7p a mile for home charging and 15p for public charging. Hybrids count as petrol or diesel, and a higher rate can be used where the actual cost per mile is shown to be higher.
Source: GOV.UK - Advisory fuel rates
Key Dates
11 to 15 September 2026 - the MTD for Income Tax sign-up service is offline (5pm Friday to 1pm Tuesday).
17 September 2026 - the Bank of England interest rate decision.
5 October 2026 - deadline to register for Self Assessment for 2025/26 untaxed income.
28 October 2026 - the Autumn Budget.