23 June 2026
The Government has released a summary of tax update 2026 today including a summary of consultations, calls for evidence (CfE) announcements and other documents as part of continuous administration and maintenance of the tax system.
The aim is to make it easier for individuals and businesses to get their tax correct, whilst also putting into place steps to tackle those who try and bypass the rules and strengthen the tax system.
Here are some of the key areas pay professionals should know:
Review and uprating of Benchmark Scale Rates (BSR) and Overseas Scale Rates (OSR)
BSR and OSR are optional flat rates employers can use to repay employees for work travel without checking every receipt. BSR covers meals and travel within the UK, while OSR covers accommodation and meals abroad. The Government plans to review both, to update BSR in line with current costs and to see if OSR can be simplified and better aligned with BSR. More information on this will be available as soon as we receive any updates.
More Timely Payments for Income Tax Self Assessment (ITSA)
The Government is seeking views on making Income Tax Self Assessment (ITSA) payments more timely. This includes plans for people with PAYE income to pay more of their expected tax during the year through PAYE from April 2029. It is also considering changes to Payments on Account for other taxpayers. The aim is to spread tax payments into smaller, regular amounts to reduce debt and avoid large, unexpected bills. This consultation is open until 4 August 2026.
Call for evidence on PAYE Settlement Agreements (PSAs)
The Government is gathering evidence on PAYE Settlement Agreements (PSAs) to better understand how they work in practice, including how employers interpret the rules and where there may be confusion. This will help decide if changes are needed to clarify the rules, improve consistency, and reduce administrative burdens for employers and advisers. This CfE is open until 15 September 2026. More information on this can be found here.
Call for evidence on voluntary National Insurance contributions
The Government is also gathering evidence on voluntary National Insurance contributions to understand how the system works in practice and where it could be improved. This will help inform future decisions on potential administrative and policy changes. This CfE is open until 15 September 2026.
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