In this week’s Enews, we look at HMRC’s pledge to double funding for taxpayers who need extra support. There are also concerns being raised over the expansion of ‘uncertain tax treatment’ and an increase to HMRC’s mileage rates to update you on.
News - 19 June 2026
HMRC boosts funding for taxpayers needing extra support
More than £11 million in funding has been made available to taxpayers struggling with their tax affairs.
The doubling of funding comes as part of HMRC’s Voluntary and Community Sector Grant Funding Scheme. The funds will be available for organisations to help customers with their tax affairs.
From 8 June, organisations can submit bids for the funding, which is available for voluntary and community sector organisations to provide specialist advice and support to HMRC customers who may need extra help with their tax affairs, interacting with its digital services or claiming entitlements.
Dan Tomlinson, Exchequer Secretary to the Treasury, said:
‘I’m delighted to build on our commitment to customers who need the most support and make this latest round of funding available for our partners in the voluntary sector who provide invaluable assistance to them.
‘This funding means customers, who may be struggling with their tax affairs, are able to get the help they need to make a real difference to their situation.’
Internet link: GOV.UK
Expansion of ‘uncertain tax treatment’ rules cause for concern
Government plans to extend the rules requiring some taxpayers to declare ‘uncertain’ tax positions risk creating more uncertainty, compliance burdens and tax disputes according to the Chartered Institute of Taxation (CIOT).
The uncertain tax treatment regime currently requires large businesses to flag uncertain interpretations of tax law to HMRC upfront if significant amounts of money are at stake.
The government is proposing to turn it into a much wider transparency regime, reaching beyond large businesses into individuals and trusts, expanding to cover additional taxes and potentially introducing a new, much broader trigger for notification.
The CIOT is warning that the proposed third trigger - where there is more than one ‘credible’ interpretation and HMRC’s view is not known - is too subjective to work effectively in practice.
Lauren Fletcher, CIOT Tax Technical Senior Manager, said:
‘These proposals would expand the uncertain tax treatment rules to more taxpayers, more taxes and a broader set of uncertainties - a potentially significant compliance expansion. But they are unworkable in their current form and need further development before any legislation is brought forward.
‘The government is right to want to reduce the ‘legal interpretation’ tax gap and give taxpayers more certainty. But these proposals risk doing the opposite regarding certainty. A notification regime should provide clarity, not create a fresh layer of uncertainty around whether a taxpayer is required to notify in the first place.’
Internet link: CIOT website
HMRC mileage rate increased to 55p
The headline approved mileage rate has increased to 55p per business mile for the first 10,000 miles, with effect from 6 April 2026. For each business mile over 10,000 miles, the approved mileage rate remains at 25p per business mile.
This is part of a government package of measures intended to address rising fuel prices.
Approved mileage rates may provide relief from Income Tax where an employee or a self-employed individual makes business journeys in their own vehicle. Similar rules apply for the purposes of national insurance contributions (NIC).
Separate rates apply for motorcycles and bicycles, and there is also a rate for passenger payments.
No changes have been announced to these rates. However, the government has committed to a review of all rates and has indicated that this will be set out at a future Budget.
In a statement to parliament, Dan Tomlinson, the Exchequer Secretary to the Treasury, said:
‘In March, the government announced a review of mileage rates for employees using their own vehicle for work and the self-employed who use the simplified expenses rates.
In recognition of the pressures facing drivers as a result of the effects of the Iran war, the government is today announcing the first uprating of mileage rates in 15 years, back dated to April, to provide immediate support to both groups.
‘Mileage rates will increase for 2026/27 from 45p to 55p for the first 10,000 miles, and 25p thereafter, with effect from 6 April 2026.
‘This will represent the largest ever increase to these mileage rates, benefitting around two million employees and one million self-employed individuals, saving over £120 a year for a worker doing 6,000 business miles.’
Internet link: Parliament website
