HMRC is moving towards a system that is more digital, automated and less forgiving of delays or errors. Good intentions matter less than robust systems.
Penalties are increasing
From April 2026, late filing penalties for corporation tax returns will double. Repeat late filings can lead to penalties of up to £2,000 per return.
Further reforms are expected, with tougher treatment for deliberate non-compliance.
Digital communication becomes standard
From spring 2026, HMRC will issue digital letters by default for users of its online services. Paper correspondence will still be available but only if you opt out.
Cryptoasset reporting expands
From 2026, UK-based cryptoasset service providers will report tax-relevant information about users to HMRC, aligning crypto reporting with traditional financial accounts.
PAYE, VAT and debt recovery
HMRC is exploring wider use of Direct Debit for PAYE and VAT, increasing debt recovery activity and expanding enforcement teams.
The overall direction is clear: faster reporting, quicker enforcement and less tolerance for late payment.
Reducing risk through preparation
The safest position for businesses and individuals is accurate record keeping, timely submissions and clean reconciliations.