Tax Simplification, Administration and Reform
(2 days, 4 hours ago)
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The Exchequer Secretary to the Treasury (James Murray)
At the autumn Budget 2024 and the spring statement 2025, the Government committed to bringing forward a package of measures in spring 2025 aimed at simplifying the tax and customs system to help deliver the plan for change. Today, the Government deliver that commitment with a package of 26 measures.
In addition, the Government are setting out two further administrative measures designed to strengthen the integrity of the tax and customs system, as well as a package of 11 measures that reform the tax system, ensuring that it continues to be fit for the modern world.
This includes new plans to reduce bureaucracy and increase efficiency at His Majesty’s Revenue and Customs to deliver the Government’s ambition to become a more productive, agile and effective state.
Simplification
Measures announced today will support economic growth by reducing burdens on employers and small businesses, modernising HMRC systems and processes to simplify the experience for individuals and traders, and simplifying HMRC guidance and communications.
The Government have engaged widely with stakeholders, including representative bodies, business organisations, the border industry and small businesses, and are implementing five ideas submitted by the Administrative Burdens Advisory Board as their priorities for simplification.
The Government will continue to work with stakeholders to identify further measures and priorities for simplifying the tax and customs administration system.
These measures will collectively reduce administrative burdens so that businesses and individual taxpayers spend less time on tax and customs administration and more time adding value to the economy.
Measures being announced today that reduce burdens on businesses, employers, and employees include:
Capital goods scheme simplification: To support small businesses, secondary legislation will be laid at a later date to remove computers from the assets covered by the scheme, and increase the capital expenditure value of land, buildings and civil engineering work, currently set at £250,000—exclusive of VAT—to £600,000.
Spirit drinks verification scheme simplification: At the autumn Budget, the Government announced their commitment to support the UK spirits industry by, among other measures, investing up to £5 million into HMRC’s spirit drinks verification scheme. The Government have decided to use this funding to modernise HMRC’s IT system and introduce a simpler flat fee model, significantly reducing the fees paid by operators to £250 per facility.
Mandating the payrolling of benefits in kind: As recommended by the Administrative Burdens Advisory Board, the Institute of Chartered Accountants of England and Wales, and the Employment and Payroll Group, the Government have announced a delay to the introduction of mandatory reporting and paying of income tax and class 1A national insurance contributions (NICs) on benefits in kind via payroll software—“Mandatory Payrolling.”
Mandatory Payrolling will be introduced from April 2027 instead of April 2026, to reduce the burden on businesses by giving them more time to prepare for changes. HMRC will continue to engage on design and delivery issues to ensure minimum disruption to employers.
These steps to reduce burdens on employers build on the 28 January 2025 announcement that the Government will not be taking forward the draft Income Tax (Pay As You Earn) (Amendment) Regulations 2025, initiated by the previous Government. This means employers will no longer have to provide more detailed employee hours data to HMRC from April 2026.
Additionally, today the Government have set out further measures to modernise HMRC systems and processes to simplify the customer experience, including:
Cultural gift scheme: The Government are announcing their intention to introduce legislation at the next Finance Bill to reform the scheme by removing the restriction on jointly owned objects and allowing tax credits to be used more flexibly. This will simplify the scheme by making it more accessible and improve take-up and will come into effect from April 2026.
Income Tax Self-Assessment (ITSA) criteria review: the Government confirmed their intention to raise the ITSA reporting threshold for trading income and align it with new ITSA reporting thresholds for property and “other taxable” income, at £3,000 gross each. This will remove the requirement for up to 300,000 taxpayers to file a self-assessment return. These changes will be implemented within this Parliament.
Reviewing National Insurance Contributions (NICs) Annual Maximum refunds process: A review of the process for refunding national insurance contributions under the annual maximum rules, to make it easier and faster for customers to access the refunds they are entitled to.
Voluntary NICs: enhancing “Check Your State Pension” forecast service: The Government also intend to further enhance the “Check Your State Pension” forecast service, which supports people who want to pay voluntary national insurance contributions to fill gaps in their national insurance record.
These measures build on the Government’s announcement at the spring statement 2025 that, from summer 2025, employed individuals who become liable to the high-income child benefit charge will be able to opt to pay HICBC directly through PAYE, without the need to register for self-assessment.
Simplifying HMRC guidance and communications is crucial to helping taxpayers get their tax right first time and reducing the worry and stress of managing their tax affairs. Therefore, the Government are announcing five measures to improve HMRC guidance and communications, including:
Clarifying self-assessment registration obligations: As recommended by tax professionals, HMRC will simplify guidance on self-assessment registration obligations to ensure clarity on when individuals must register for self-assessment.
Simpler communication and AI solutions: HMRC is working with external stakeholders to simplify HMRC guidance and communications by:
Working with the Administrative Burdens Advisory Board and others to simplify the language used in HMRC letters, making them more accessible and easier to read.
Collaborating with third parties and the Government Digital Service to investigate how businesses could leverage HMRC’s gov.uk guidance in their own AI-powered products and services. This could make it easier for taxpayers to get the information they need with the help of the latest AI solutions, reducing the need to contact HMRC, and access a more personalised experience to meet their needs.
The Government are also announcing a package of measures that simplify customs processes, reduce burdens and improve customer experience, while ensuring that we place targeted and appropriate control on movements. This includes:
Improvements to temporary admission: A package of simplifications and improvements to temporary admission, which relieves import duties on temporary imports.
Customs digitalisation: Announcing the details of Government pilots progressing trade and customs digitalisation, including a technical pilot with US Customs and Border Protection to test methods to speed up processes for trade for UK and US businesses.
Transit improvements: An informal stakeholder engagement exercise on potential improvements to modernise the transit process.
Authorisation by Declaration: Increasing how often AbD—authorisation by declaration—can be used from three times to 10 times per 12 months. AbD allows importers to use certain special procedures to suspend or relieve duties without getting an authorisation from HMRC beforehand.
Post and parcel exports consultation: A summary of responses to the customs treatment of post and parcel exports consultation. This includes a new authorisation scheme for ETOE—extraterritorial office of exchange—operators and sites to ensure that they operate with appropriate security standards. It also announces plans to conduct a further review of the export and transhipment memoranda of understanding, with the aim of clarifying existing rules and ensuring consistency and alignment with other comparable facilitations.
These measures are part of our ambition to embed innovation in customs processes and systems to support digitalised trade and supply chains. The Government are committed to continuing to work closely with industry to deliver on our ambitions and further improve our customs system.
Tax Administration
The Government are introducing administrative measures as part of this package of tax and customs policies.
This includes legislative amendments to ensure that all border locations are responsible for funding and operating their own customs infrastructure.
Reform
The Government have announced a package of measures that help to reform the tax system, ensuring that it continues to be fit for the modern world.
New proposals are being published for consultation, including on a single remote gambling duty, as committed to at the autumn Budget 2024, and on the VAT treatment of business donations of goods to charity. The Government are also consulting on proposals to reform the soft drinks industry levy in order to strengthen incentives to reduce sugar in soft drinks, proposals to reform landfill tax, and are exploring the merits of reform to online marketplace liability for VAT.
In addition, the Government will outline next steps on reform work already under way, including on the modernisation of the stamp taxes on shares framework and the response to the technical consultation on vaping duty.
The Government are committed to modernising HMRC to become a digital-first organisation. The Government are announcing today that HMRC will reduce paper post sent, saving £50 million per year by 2028-29, while maintaining paper post provision for critical correspondence and for the digitally excluded. The Government will do this by investing in digital services to send and receive taxpayer information and will bring forward legislation to support a digital-first approach.
The Government are committed to improving value for money in the system of tax administration, and so will be reducing the HMRC estate in central London by 25%. HMRC is already a national organisation and by 2030, 85% of HMRC staff will be based outside of London. Moving roles out of London, in line with the Government’s wider “Places for Growth” initiative will ensure that the civil service is closer to the communities it serves.
Ahead of their review of all arm’s length bodies, the Government are confirming that they will bring the functions of the Valuation Office Agency, an executive agency of HMRC, within HMRC by the end of this financial year. Moving the VOA’s functions into HMRC will strengthen direct accountability to Ministers, helping to improve the experience of taxpayers and businesses and support the delivery of the Government’s commitments to reform business rates and modernise the tax system. This move will support the Government to deliver change more quickly and effectively, by combining the expertise and experience of both organisations in policy, valuations and programme delivery. It will also drive efficiencies in the administration of the tax system, resulting in between 5% and 10% in additional savings in VOA administrative costs by 2028-29.
The full list of publications and announcements can be found at: https://www.gov.uk/government/collections/tax-update-spring-2025-simplification-administration-and-reform
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King’s Gurkha Artillery
(2 days, 4 hours ago)
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The Minister for Veterans and People (Al Carns)
I am pleased to announce the creation of the King’s Gurkha Artillery, within the Royal Regiment of Artillery. The King’s Gurkha Artillery will be based in Larkhill garrison, the Royal Artillery’s regimental headquarters.
Creating this new employment opportunity in the Royal Artillery gives existing and new Gurkhas more choice on where they serve and greater opportunities for career development. The formation of the 400-strong King’s Gurkha Artillery will be completed over the next four years, with the first transfers of existing Gurkhas taking place this spring.
The Royal Artillery are a major part of the Army’s offer to NATO, and the King’s Gurkha Artillery will play a part in supporting key modernisation programmes as part of this offer.
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Energy Security Summit
(2 days, 4 hours ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
On 24 and 25 April 2025, at Lancaster House, the UK Government partnered with the International Energy Agency to convene the first global summit on the future of energy security.
The Prime Minister and the President of the European Commission addressed the summit, delivering the message that energy security is national security and depends on co-operation with others, acting together to seize the opportunity of the clean energy transition. The summit was represented by almost 60 countries, more than 50 global businesses as well as non-governmental organisations and civil society groups from around the world.
Our starting point for this summit is that in an unstable and uncertain world, there can be no national or international security without energy security. In the years since Russia’s invasion of Ukraine, we have been reminded in the UK, and indeed across Europe and the world, of a simple truth: that as long as energy can be weaponised against us, our countries and our citizens are vulnerable and exposed.
This summit marked an important moment for countries to come together and discuss what the shifting global landscape means for how we deliver energy security in this era. Many participants emphasised the importance of the energy transition and how this can enable a more secure and affordable system, noting our vulnerability to price shocks from fossil fuel markets.
Political and industry leaders from around the world discussed the diverse energy security challenges faced by different countries, and how energy in all its forms is the basis of human and economic development. Achieving secure, affordable, and sustainable energy for all remains a fundamental priority in the years to come. Many stressed that multilateral co-operation between countries, as well as with international organisations, industry and civil society, is key to tackling shared challenges and ensuring a secure energy system.
The Prime Minister announced an initial £300 million investment, ahead of the spending review, through Great British Energy, in order to win global offshore wind investment in the UK and create thousands of jobs, and a major carbon capture and storage network is ready for construction—boosting energy security and the Government’s plan for change.
At the summit, the Government also established a new mission focused on strengthening global supply chains through the UK-led global clean power alliance. The GCPA will bring together the global north and south, and will draw on and share the UK’s world-leading experience of pursuing clean power by 2030 to speed up the global clean energy transition.
Our decision to co-host this summit reflects the UK’s determination to go the extra mile as a convenor on the world stage—because it is in our national interest. Clean energy is the economic opportunity of the 21st century, and the leadership we are showing is about seizing the jobs and growth for Britain, and making the UK a clean energy superpower.
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Sustainable Aviation Fuel Revenue Certainty Mechanism
(2 days, 4 hours ago)
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The Secretary of State for Transport (Heidi Alexander)
Sustainable aviation fuel is integral to reaching net zero aviation by 2050. It reduces greenhouse gas emissions by around 70% on average over the lifecycle of its production and use when replacing fossil kerosene. It is also an enabler of growth, and can provide good, skilled jobs across the UK.
That is why this Government has taken rapid action to support SAF. Just weeks into office, we reiterated our commitment to the SAF mandate. In November, we signed it into law, and it has been in place since January.
The SAF mandate is the UK’s key policy mechanism to secure demand for SAF. It delivers GHG emission savings by encouraging the use of SAF within the aviation industry. It does this by setting a legal obligation on fuel suppliers in the UK to supply an increasing proportion of SAF over time. Suppliers receive certificates for the SAF they supply. Certificates are issued in proportion to the level of GHG emission reductions that the fuel delivers—that is, the greater the savings, the greater the number of certificates they receive. The SAF mandate started at 2% of total UK jet fuel demand in 2025 and increases linearly to 10% in 2030 and then to 22% in 2040. It could deliver up to 6.3 million tonnes of carbon savings per year by 2040.
We are also committed to developing the UK SAF industry to secure a UK supply of SAF, attract investment and create good green jobs across the UK.
In January, we announced an additional £63 million of funding for the advanced fuels fund, our grant funding programme for UK SAF production, extending the programme for another year.
We are also introducing a revenue certainty mechanism to help attract investment into UK SAF production. Under the SAF revenue certainty mechanism, SAF producers will enter into a private law contract with a Government-backed counterparty. These contracts will set a strike price for SAF. If producers sell their SAF for below the strike price, the counterparty makes payments of the difference; if the SAF is sold for above the strike price, the producer makes payments of the difference to the counterparty. This addresses the most significant constraint on investment in SAF production and sends a clear signal to investors: that this is a serious UK investment opportunity.
This Government have made significant progress towards delivering the revenue certainty mechanism. We announced in the King’s speech that we will be introducing a revenue certainty mechanism Bill in the first Session of this Parliament and will have the legislation in place by the end of 2026 at the very latest.
In 2050, up to 15,000 jobs and £5 billion gross value added in the UK could be supported with future low-carbon fuel production for the domestic and international markets. The revenue certainty mechanism, along with the Government’s modern industrial strategy, will provide a launchpad for this sector to drive growth and investment.
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