The Electricity VAT Cut Now Has Legal Dates - and a Hard Stop
HMRC has published the policy paper and Revenue and Customs Brief 10 that implement the electricity VAT cut announced on 21 July. VAT on domestic electricity in England, Scotland and Wales falls from the reduced rate of 5% to 0% for supplies from 1 October 2026 to 31 March 2027, then returns to 5%. Gas stays at 5% everywhere, and Northern Ireland electricity stays at 5% too. HMRC says households need do nothing, because the reduction is automatic, "subject to the degree to which these businesses pass the VAT savings on".
The important detail is that the cut is on the price of electricity, not on the bill. A bill is price times usage, and the six months covered are the highest-usage months, so the pound saving is largest in December and January. Gas, the bigger winter fuel for most homes, is untouched. Ofgem's October cap of £1,723 for a typical dual-fuel household, up £60 or 4% on the current £1,663, already reflects the change, and Ofgem says the cap would have been about £45 higher without it. The zero rate has a hard stop on 31 March 2027, so April's bill carries 5% VAT again.
Source: GOV.UK - Temporary zero rate of VAT for domestic electricity in Great Britain | Related: Ofgem - energy price cap from October 2026
Self Assessment Sign-Up Gets Faster: a Tax Reference in 72 Hours
HMRC launched an improved online Self Assessment registration service on 9 September. People registering through their Personal Tax Account now receive their Unique Taxpayer Reference in the online account within 72 hours, instead of waiting up to 15 days for it to arrive by post. Anyone who must file for 2025/26 for the first time has to register by 5 October 2026 or risk a penalty, and the return and payment deadline is 31 January 2027.
Reasons to register include new self-employment with gross income over the £1,000 trading allowance, and untaxed income over £2,500. More than 640,000 people registered in the year to 31 March 2026. Around 300,000 customers will now see Child Benefit details pre-populated on the return, which matters for the High Income Child Benefit Charge. Anyone who no longer needs to file should tell HMRC, or a return is still expected and a penalty follows.
Source: GOV.UK - Improved Self Assessment registration service launched | Related: Self Assessment tax bill guide
Loan Charge Settlement Scheme: HMRC Has Started Sending Offers
On 7 September HMRC published how it will run the loan charge settlement scheme that came out of the independent review and Finance Act 2026. It has begun writing to eligible people with formal offers, prioritising those who have said they want to settle. Every offer carries at least 90 days to accept, and most people get longer. In HMRC's own words, "for nearly all customers it will be significantly cheaper to settle under the new settlement scheme, and for some there will be nothing to pay". Where an employer still exists, HMRC pursues the employer first. The audience is niche, mostly contractors caught by disguised remuneration schemes, but it is a first-order HMRC publication with a live clock on it.
Source: GOV.UK - How HMRC will implement the loan charge settlement scheme
Key Dates
17 September 2026 - the Bank of England interest rate decision (Bank Rate is 3.75%).
1 October 2026 - the new energy price cap period starts and the electricity VAT zero rate begins.
5 October 2026 - deadline to register for Self Assessment for first-time 2025/26 filers.
28 October 2026 - the Autumn Budget.