CPI Falls to 2.8% — Rate-Cut Case Strengthens Ahead of June MPC
The ONS published April CPI data on 21 May. Annual inflation fell to 2.8%, down from 3.3% in March and below the 3% to 3.5% range the Bank of England had pencilled in for Q2. CPIH — the broader measure including owner-occupier housing costs — dropped to 3.0% from 3.4%.
The largest downward pull came from housing and household services, where electricity prices fell 8.4% month-on-month. The MPC voted 8–1 to hold Bank Rate at 3.75% at its April meeting; this print makes the June decision more interesting. For mortgage borrowers, fixed rates are driven by swap pricing rather than Bank Rate alone — a cut would help sentiment but does not automatically translate into cheaper deals.
Source: ONS — Consumer Price Inflation, UK: April 2026 | Related: Real Cost of Living Calculator
New Self Assessment Boxes for Close Company Directors — 900,000 Affected
Directors of close companies filing 2025/26 Self Assessment returns will encounter new mandatory disclosure boxes for the first time. HMRC now requires the company name, Companies House registration number, the amount of dividend income received from that company during the year, and the director's percentage shareholding (highest figure if it changed during the year).
The changes were introduced by regulations made in January 2025 and take effect from the 2025/26 return onwards. HMRC estimates the measure affects approximately 900,000 directors. The new data gives HMRC a direct line of sight into the salary-versus-dividend split that most owner-managed companies use to minimise their overall tax bill. Nothing changes about the rules on dividend extraction — but the reporting is now granular enough to flag outliers automatically.
Source: ICAEW — New Tax Return Requirements for Directors Cause Uncertainty | Related: Director Salary and Dividend Strategy
UK CBAM Consultation Closes — Carbon Border Tax Starts 1 January 2027
HMRC's second consultation on the UK Carbon Border Adjustment Mechanism closed on 21 May. The draft secondary legislation covers how importers of aluminium, steel, cement, fertilisers and hydrogen will calculate embedded emissions and verify data. The regime takes effect on 1 January 2027.
CBAM is a levy on the carbon content of imported goods from countries without equivalent carbon pricing, mirroring the EU's own mechanism. For UK manufacturers already paying the UK Emissions Trading Scheme charge, it levels the playing field. For importers, it adds a compliance layer requiring upstream emissions data from overseas suppliers — something many supply chains are not yet equipped to provide.
Source: GOV.UK — Draft Regulations: Carbon Border Adjustment Mechanism (CBAM) | Related: VAT Registration: When You Must Register
HMRC's Overlap Relief Online Tool Closes 31 May
HMRC's online service for retrieving your overlap relief figure shuts permanently on 31 May 2026. The tool was set up to help sole traders and partners affected by basis period reform — the shift from accounting-period to tax-year basis that completed in 2023/24. If you had overlap profits from the old rules and have not yet retrieved the figure, you have nine days.
After 1 June, HMRC says you should check your own records or use their calculator. You can also write to HMRC directly, but response times on written queries are running at several weeks. Getting the figure from the tool now is materially easier than chasing it later.
Source: GOV.UK — Get Your Overlap Relief Figure | Related: Making Tax Digital for Income Tax
Key Dates
31 May 2026 — P60 deadline for 2025/26. Employers must issue P60s to every employee on the payroll at 5 April. Also the last day to use HMRC's online overlap relief tool.
18 June 2026 (Thursday) — Next Bank of England MPC decision. Bank Rate currently 3.75%.
6 July 2026 — P11D deadline for 2025/26 benefits-in-kind, for employers not signed up to payroll BIKs.
31 July 2026 — Second payment on account for 2025/26 Self Assessment. Also the deadline for any balancing payment on the 2024/25 return if you filed late.