The article provides a detailed checklist for UK VAT‑registered businesses to comply with the Making Tax Digital (MTD) programme, outlining digital record‑keeping, API submission, exemption criteria, and the penalty regime. It also highlights upcoming MTD requirements for Income Tax and offers guidance on software selection and consolidation.
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The Independent · about 1 hour ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
BBC · about 6 hours ago
UK VAT will be cut from household electricity bills from 1 October, reducing the rate from 5% to zero and saving households about £45 a year. The cut is funded by savings from scrapping the digital ID programme and will apply to England, Scotland and Wales, with equivalent funding for Northern Ireland.
The Independent · about 6 hours ago
UK households will see 5% VAT removed from electricity bills from 1 October 2026, a move announced by Prime Minister Andy Burnham. The change is expected to save about £45 on a typical annual bill, though a projected 3.1% rise in the price cap may offset the benefit.
Yahoo News Canada · about 10 hours ago
The United Kingdom will see VAT on household electricity removed from 5% to 0% on 1 October, saving typical homes around £45 a year.
Law360 · about 10 hours ago
UK court rules that Staffing Co cannot recover input VAT because its director knew or should have known its supply chain was compromised by fraud. The decision underscores the importance of due diligence in supply chain management for VAT recovery.
UK HMRC · 1 day ago
UK HMRC provides guidance on how VAT claims are calculated and applied to insolvent businesses, including details on relevant dates, amended claims, and penalty interest. The handbook outlines procedures for proof of debt, statutory interest, and the impact of recent changes such as the cessation of tax clearance in MVL cases from 6 December 2023.
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Key Takeaways
Businesses must keep a digital record of each transaction, sales and purchases, in a digital format; paper invoices do not meet the requirement.
VAT returns must be submitted directly to HMRC via an API connection using MTD‑compatible software; manual entry into the old HMRC portal is not allowed.
Primary source
Read the full article at VatITThis summary was published on VATfaqs.com on 9 June 2026. It relates to VAT developments in United Kingdom. The original source is VatIT.
