Business & Tax News and Developments September 2026

Share This Post in Social media

First-Time Buyers Could Soon Buy With Just a 2.5% Deposit

The UK Government has announced Your First Home, a proposed equity-loan scheme for first-time buyers in England. Under the plans announced so far, eligible buyers could purchase a qualifying new-build home with just a 2.5% deposit, supported by a 20% government-backed equity loan. The equity loan will also come with an initial interest-free period, although the length of that period has not yet been confirmed.

The scheme is expected to include household income limits, local property price caps and participation by registered developers, who will also contribute towards the scheme’s cost. Full details — including the exact income thresholds, property limits, interest-free period, costs and implementation timetable — are expected to be confirmed at the Budget on 28 October 2026. For first-time buyers struggling to build a large deposit, this could significantly reduce the upfront barrier to home ownership, but the final eligibility rules will determine who can benefit.

Plan 2 Graduates Could Lose 51p of Every Extra £1 by 2035

Intergenerational Foundation research warns that fiscal drag could push around half of employed Plan 2 graduates into higher-rate tax by 2035/36. Above the £50,270 threshold, their marginal rate could reach 51%: 40% income tax, 9% student-loan repayments and 2% National Insurance. At £30,000, a Plan 2 graduate faces a 37% marginal rate, compared with 20% for an over-66 non-graduate, who pays no employee National Insurance or student-loan repayments.

The report estimates that average combined income tax, National Insurance and student-loan repayments over the first 25 years after graduation rise from £167,000 under Plan 1 to £240,000 under Plan 5—an increase of £73,000, or 43%. It puts the effective rate up from 18% to 23%, equivalent to raising the basic income-tax rate from 20% to around 30%. The Treasury Committee has called for the Plan 2 repayment-threshold freeze to be reversed; the government has promised clearer guidance but rejected proposals on RPI interest and FCA Consumer Duty rules.

Mansion Tax Checks: HMRC Says Property Visits Will Be Rare

Reports that HMRC plans to visit 165,000 homes for mansion tax checks are misleading. HMRC says property visits will not be routine: in most cases, valuers expect to use sales data, property details and government records. If a visit is needed, it would be in limited circumstances, arranged by prior agreement and carried out under the government’s code of practice. HMRC says it has no plans to introduce new powers allowing officials to enter homes. Owners will be able to correct factual inaccuracies in their property information.

The proposed annual surcharge would apply to residential properties valued above £2 million from April 2028. The OBR estimates 165,000 homes will be affected, with around 20% of owners expected to appeal; the Treasury forecasts £430 million in revenue by 2028–29. From January 2024 to April 2026, London recorded 6,057 sales above £2 million, compared with 1,585 in the South East, accounting for 67% of such sales in England. HMRC is still finalising the administration rules following its eight-week consultation in May–July 2026, and the policy remains subject to legislation.

Companies House Logins Are Changing: Shared Accounts Could Lock Your Team Out

GOV.UK One Login is becoming the main sign-in option for Companies House’s “Find and update company information” service. New users need One Login; existing users can continue using their current details for now, although that option appears further down the sign-in page. Companies House says all users will eventually have to move, but has not announced a compulsory switch date. This change is about signing in only; it is not an identity verification request.

Each One Login must belong to an individual and use their own email address and phone number. Companies that share a Companies House login should prepare separate accounts for everyone who needs access: continuing to share an account after it is linked to One Login could trigger security controls and lock team members out.

£30 for a 30-Minute HMRC Wait? Reform Unveils Its Tax Proposals

Reform UK’s Robert Jenrick has proposed a £30 tax credit for taxpayers kept on hold by HMRC for more than 30 minutes, capped at two claims per tax year. He also wants senior HMRC officials’ pay linked to customer service targets, with daily waiting-time figures sent to him as chancellor. Other proposals include scrapping income tax on overtime, which he says could be worth £700 a year to workers, and raising the VAT registration threshold from £90,000 to £150,000. No funding plan for the proposals was set out in his speech.

Treasury minister Dan Tomlinson countered that average HMRC phone waits had fallen from 24 minutes around the election to about 10 minutes in recent months, following service reforms. The proposals follow a January 2025 Public Accounts Committee report criticising HMRC’s service. The first Budget under Chancellor John Healey is scheduled for 28 October.

£1.38bn in Crypto Gains Reported—but How Much Tax Was Paid?

HMRC’s first cryptoasset figures show 17,600 individuals reported £1.38bn in gains during 2024–25, from £13.8bn of disposals. The reported average gain was about £78,000. The £1.38bn is gains—not tax collected—and HMRC has not disclosed the tax paid on them.

Gains were concentrated among a small group: 240 people reported more than £1m each, together accounting for £717m, or over half the total. Men reported £1.28bn (93% of gains), while taxpayers aged 35–54 accounted for almost £800m (58%). HMRC says its crypto compliance and education work generated a further £168m in Capital Gains Tax, and it sent about 65,000 warning letters over suspected underpayments.

HMRC Cancelled 48,189 Tax Penalties—65% of Challenged Fines Were Overturned

HMRC cancelled 48,189 penalties in 2025–26, up 4% from 46,266 the previous year and the highest number in six years. The figures mainly relate to automated late-filing and late-payment fines, including the £100 Self Assessment late-filing penalty. HMRC cancelled 65% of the penalties taxpayers challenged. The 2020–21 figure was 5,499.

HMRC also cancelled or amended 926 substantive decisions after statutory reviews in 2025–26, up 35% from 688 the year before; the share of reviews that upheld HMRC’s original decision fell from 73% to 67%. In Howarth v HMRC (2025), a tribunal overturned £1,600 in automated late-filing penalties after the taxpayer was led to believe her online filing was complete and follow-up emails went to her junk folder.

61% of Millionaire Investors Have Considered Leaving the UK—But Just 16% Are Actively Weighing It

A survey of more than 300 Wealth Club clients, with average wealth of £4.5m, found that 61% had considered becoming non-UK tax resident because of the tax burden. However, 45% said they were unlikely to move, and 36% had never considered leaving. Tax rises are widely expected: 97% think taxes will probably or definitely increase in the next 12 months, while 53% say rises are inevitable.

Inheritance tax was the leading specific concern (22%), followed by wealth taxes (21%) and capital gains tax (18%); 47% called higher taxes the biggest threat to their wealth. Most respondents said they built their wealth through employment (40%) or investments (33%), while 2% cited inheritance. The survey comes amid reports that billionaire Chris Rokos may move his tax residence to Greece, where a non-dom regime offers a €100,000 annual charge for up to 15 years, subject to a €500,000 investment and other eligibility conditions.

Offered Money to Become a Company Director? You Could Be Taking the Blame for Someone Else’s Crimes

Companies House warns that scammers are using social media, WhatsApp, texts and emails to offer people money to become directors of companies they do not know. They may use your identity to hide who controls a business, pressure you to sign documents quickly or ask you to move money through your bank account. Accepting a director appointment brings legal responsibilities and can expose you to allegations of money laundering, tax evasion or fraudulent trading, company debts if the business becomes insolvent, fines and legal action, and director disqualification for up to 15 years.

Already accepted an appointment? Companies House advises resigning as soon as possible. You may need to file form TM01; keep records of attempts to step down, contact Companies House and seek independent legal advice. Do not share personal details or sign anything for a suspicious offer. Report it to Report Fraud online or call 0300 123 2040. The wider crackdown has removed 151,000 suspicious or misleading addresses since March 2024, and a July operation struck off 11,500 companies.

Selling Cakes from a Garden Shed? HMRC’s £1,000 Threshold Matters

Some cake-shed bakers reportedly earn up to £600 a week. Cake sales can count as trading income: if your gross trading income was more than £1,000 in 2025–26 and you need to file a tax return, you must notify HMRC by 5 October 2026. The £1,000 trading allowance is based on gross income, not profit.

HMRC may compare information from councils with tax records to identify undeclared income. If a failure to notify is deliberate but not concealed, penalties can range from 20% to 70% of the tax due for an unprompted disclosure, or 35% to 70% if HMRC has prompted it; late tax can also attract interest.

Could the Mansion Tax Threshold Fall to £1.5m? 130,000 More Homes Could Be Affected

The planned High Value Council Tax Surcharge would apply from April 2028 to homes in England valued at £2m or more, with annual charges of £2,500 to £7,500. Current estimates suggest 165,000 properties would be affected. Budget reports say the Treasury is discussing lowering the threshold by 25% to £1.5m, potentially bringing another 130,000 homes—mainly in London and the South East—into scope. This remains speculation, not confirmed policy. thetimes.com

The existing plan is forecast to raise around £430m a year from 2028–29; lowering the threshold could nearly double that amount. The proposed surcharge is based on 2026 property valuations, while current council tax bands still rely on 1991 valuations. The Chancellor is due to set out tax decisions at the Budget on 28 October. GOV.UK

Almost 3 Million Still to Go: Companies House ID Checks Are Approaching Their Deadline

By June 2026, just under 4 million of the more than 7 million directors and people with significant control (PSCs) required to verify had signed up—around 60%. The 12-month transition period runs to November 2026, but deadlines vary: directors provide their personal code with the company’s next confirmation statement, while PSCs have an individual 14-day window based on their role and circumstances.

Companies House is stepping up enforcement: in the first six months of 2026, 23 directors were disqualified for a combined 70 years and fined £17,810; hundreds more were prosecuted for filing offences. With only 43% of UK directors surveyed by Vistra confident they had correctly identified their PSCs, businesses should map their entities, check director and PSC records, confirm each person’s verification status and deadline, and assign clear responsibility. Non-compliance can lead to fines, prosecution, disqualification and blocked filings.