The Tax Update UK 2026 was published by HMRC on 23 June 2026. It introduces a comprehensive package of tax and customs measures. As a result, the relationship between businesses and the British administration is set to change significantly. For Italian companies exporting to the UK, this is a strategic update. Payment timing, customs procedures, VAT obligations and rules for intermediaries are all evolving. Let’s take a closer look at what actually changes.
A more digital and predictable tax system
First of all, the government is pushing for fiscal simplification. The stated goal is to reduce administrative burdens. Moreover, HMRC wants to increase certainty for taxpayers and businesses.
From April 2029, ITSA taxpayers with PAYE income will pay a larger share of their liabilities in-year through PAYE. As a consequence, tax debt should decrease. In addition, unexpected year-end bills should become less frequent.
Meanwhile, by the end of 2026, VAT “option to tax” notifications will move to new digital channels. These channels will also support bulk uploads. This is a significant change for accountants. Real estate companies will benefit as well, since they still rely on paper-based procedures today.
New rules on ISAs and first-time buyers
On the savings side, the government has opened a consultation on a simpler ISA product. In particular, this product targets first-time buyers. Over time, it will progressively replace the Lifetime ISA.
In parallel, new rules will prevent circumvention of the lower Cash ISA limit. Specifically, a 22% charge on interest paid on cash holdings will apply to Stocks & Shares ISAs and Innovative Finance ISAs. Furthermore, transfers from non-Cash ISAs to Cash ISAs will be banned for the under 65s.
Digital customs: ATA Carnets and AI at the border
Secondly, customs modernisation takes a decisive step forward. Since 1 June 2026, the United Kingdom has adopted digital ATA Carnets. Notably, only the EU, Switzerland and Norway have done the same so far.
Digital carnets replace the paper-based system used for the temporary movement of goods across about 90 countries. Consequently, trade fairs, sample collections, professional equipment and the arts sector all benefit from the change.
At the same time, HMRC is testing new digital trusted trader credentials with US Customs and Border Protection. In addition, artificial intelligence is being piloted to support real-time documentary checks at the border.
Finally, on 3 June 2026, HMRC published a new quality standard for customs intermediaries. This is a first step towards a voluntary certification scheme. Later on, mandatory registration is also being considered. For businesses importing into the UK through freight forwarders and brokers, this is a central topic.
Fairness: e-commerce, marketplaces and e-invoicing
Thirdly, the update focuses on fairness. In particular, attention is paid to e-commerce, VAT and marketplaces.
For instance, the new customs regime for low value imports will be brought forward by six months to October 2028. As a result, the playing field between high street retail and online platforms should become more level.
On the marketplace front, a consultation aims to extend online marketplace VAT liability rules to UK-based businesses. Previously, these rules only applied to overseas businesses. Consequently, anyone selling on the UK market through Amazon or eBay will feel the impact.
Moreover, the government has confirmed Peppol as the core interoperability network for UK e-invoicing. The mandate is expected in 2029. At the same time, another consultation is exploring mandatory Direct Debit for VAT and PAYE liabilities, subject to defined exceptions.
What this means for Italian businesses in the UK
For Italian companies operating in the UK, the update calls for immediate action. Specifically, three fronts require attention.
On the customs compliance side, businesses should verify the quality of their intermediaries. In addition, they need to assess the adoption of digital ATA Carnets. Finally, monitoring the new low value rules is essential.
On the VAT and e-commerce side, companies should reassess their exposure on UK marketplaces. Moreover, preparation for the 2029 e-invoicing mandate cannot wait.
On the corporate structure and cash flow side, planning is key. In particular, businesses should anticipate the impact of more frequent ITSA payments. Likewise, the mandatory Direct Debit for VAT and PAYE requires early attention.
With over twenty-five years of presence in London, Kelmer Group London supports Italian businesses in reading UK fiscal scenarios. Furthermore, the group provides operational management of customs, VAT and corporate compliance.
Source: HMRC — Tax update 2026: simplification, modernisation and fairness summary, published on 23 June 2026.