Fuel Rates: What You’ll Pay (Effective since March 1)
If you use a company car or reimburse employees for business mileage, the Advisory Fuel Rates (AFR) have shifted effective since March 1, 2026. While petrol and diesel rates remain relatively stable, there is a notable change for those moving toward a greener fleet.
- Electric Vehicles (EVs): If you are charging at public chargers, the rate has risen from 14p to 15p per mile. Home charging remains at 7p. This reflects the rising costs of public infrastructure.
- LPG: Rates are falling across all engine sizes. If you are still running LPG vehicles, your reimbursement costs just got a little cheaper.
- Petrol & Diesel: No significant changes this quarter, but it is essential to update your accounting software today to ensure your March mileage claims are accurate.
The End of Free Corporation Tax Filing: March 31 Deadline
This is a significant operational shift for UK Limited Companies. For years, smaller companies could use HMRC’s free online web forms to file their CT600 Corporation Tax returns.
As of April 1, 2026, the free service is closing permanently.
If your accounting period ends on or after April 1, you must use HMRC-recognised commercial software to file your returns. There will be no free web form option provided by the government, except in very rare “reasonable excuse” cases.
How to Prepare:
- Don’t wait until April: If you usually file your own accounts manually, you need to transition to a digital system now.
- Audit your software: Ensure your current provider is HMRC-compatible for 2026 standards.
- Outsource the headache: Consider moving to a Full Compliance Suite where your bookkeeping and year-end accounts are handled automatically.
Making Tax Digital (MTD) for Income Tax: The £50k Threshold
The road to a fully digital tax system is accelerating. From April 2026, if you are a sole trader or a landlord with a total qualifying income of over £50,000, you are legally required to:
- Keep digital records of all your transactions.
- Submit quarterly updates to HMRC using compatible software.
- Submit a final declaration at the end of the tax year.
This is a significant shift from the traditional once-a-year Self Assessment. It requires a disciplined approach to bookkeeping. If you are scaling a business as a sole trader, this is the time to consider transitioning to a Limited Company structure to manage these complexities.
Crypto, Digital Wallets, and the Expanded AEOI Rules
HMRC is closing the net on digital assets. Under the updated Automatic Exchange of Information (AEOI) approach, the scope now clearly covers:
- Crypto-asset activity (including platforms handling trades, custody, and transfers)
- E-money institutions and digital wallet providers (including services like Wise and Payoneer-style accounts used for business collections and payouts)
What this means in plain English:
- Assume more of your financial rails are reportable, not just your bank account and not just crypto exchanges.
- Expect full transparency across digital wallets, especially if you collect cross-border revenue and park funds in multi-currency accounts.
- Keep your reporting clean so you don’t get caught out later when data matches don’t line up.
If your business holds crypto as an investment, accepts it as payment, or runs meaningful cashflow through e-money wallets, your cross-border currency management needs to be airtight.
HMRC Digital-by-Default Communication: Don’t Miss a Letter You Never Receive
From March 2026, HMRC is moving toward digital-only communication and stopping automatic postal letters for many tax documents and reminders.
If you’re a non-UK director or you travel frequently, this is significant. Do this now:
- Log in and check your HMRC contact details (especially your email)
- Update your director/agent records so the right person gets the notifications
- Create a simple internal rule: any HMRC email gets actioned within 24–48 hours (to avoid missed deadlines and penalty letters)
Changes to National Insurance and PAYE Recovery
If you have employees or you are a UK expat working abroad, two specific changes coming in April 2026 deserve your attention:
- Voluntary National Insurance (NICs): The option to pay voluntary Class 2 NICs for periods spent working abroad is being removed. Additionally, new applications for Class 3 contributions will now require 10 years of continuous UK residency. This is a significant change for international founders and remote teams.
- PAYE Tax Recovery: HMRC is getting more aggressive with debt collection. From April 2026, they will begin automatically collecting outstanding tax payments by adjusting individual tax codes. This means if you owe tax, your take-home pay (or your employees’ pay) will decrease automatically without the need for a separate payment plan.
Free Customs Data Access: Audit Your Import/Export History Without Paying for Reports
From March 2026, HMRC is providing free, self-service access to customs declaration data. If you import stock into the UK or export goods (common for ecommerce and product-led businesses), this helps you spot issues before they become expensive.
Use it to:
- Audit your import VAT and duty history (and reconcile to your bookkeeping)
- Spot wrong commodity codes/values that can cause overpaid duty or compliance risk
- Validate which entity/EORI declarations were filed under (critical if you’ve changed partners or freight agents)
