Burnham gets started on easing pressure on households, and we give you reminders of upcoming tax deadline dates
Today we take a look at the new Prime Minister’s plans to ease financial burdens on households, and we remind you to pay the balance on your self-assessment tax by this Friday and first MTD quarterly update by next Friday.
Andy Burnham’s new government, a balancing act
Andy Burnham’s first days as Prime Minister have been marked by a flurry of announcements designed to show that his government intends to move quickly. Presenting himself as a leader focused on easing pressure on households and rebuilding trust in politics, Burnham has begun reshaping government while signalling the priorities that will define his administration.
His first major moves were aimed directly at the cost-of-living crisis, announcing a reduction in VAT on household energy bills, followed by a single bus fare policy across England that will be capped at £2 for a year from January 2027.
Mr Burnham described affordable public transport as an essential service and argued that no one should be excluded from opportunities because they cannot afford to travel.
The Prime Minister has also promised a 20% reduction in business rates for pubs, clubs and live music venues for 2027-28. This is in addition to the 15% relief for 2026-27 with bills being frozen in real terms for a further two years. The new 20% discount will not be available to the very largest live music venues. Further details will be set out at the Budget.
However, questions are already being raised about how these promises will be funded as the government plans to divert hundreds of millions of pounds from other budgets, including money previously earmarked for international climate finance projects.
The government has said that the business rates reduction will be paid by reviewing reliefs for businesses that are not considered to make a positive contribution to local communities, such as vape shops. Businesses that sell through online marketplaces but do not comply with their tax obligations will also be targeted. A consultation on how this may be achieved was published in June 2026.
Mr Burnham has also started to build his ministerial team, with the surprise announcement being the appointment of John Healey as Chancellor. The former defence secretary, who resigned from Sir Keir Starmer’s cabinet over spending plans, will be seen as an advocate for boosting defence spending. Companies such as BAE Systems and Babcock saw their share prices rise after his appointment.
Mr Healey is regarded as experienced and fiscally responsible.
The government insists that fiscal discipline remains a priority, but speculation continues about whether future spending plans will require higher taxes or additional borrowing.
Taken together, the first week of Burnham’s government paints a picture of an administration trying to balance competing priorities, wanting to reduce living costs while maintaining fiscal credibility.
Reminder for Self Assessment payments
For those sole traders and directors that have self-assessment tax commitments, the second payment on account is due by 31 July 2026.
It will be important to check what’s due and pay the bill online by the deadline. If there are problems with paying the full amount, there may be the option of using HMRC’s Time to Pay arrangement.
Payments on account are advance payments towards the next tax bill, typically 50% of the previous year’s tax bill, excluding Capital Gains Tax (CGT) and student loan repayments. These are usually due in two instalments on 31 January and 31 July.
If your income has fallen, there may be scope for reducing your payments on account to avoid overpaying.
If your tax bill was under £1,000 or more than 80% was collected at source, HMRC may not need to take payments on account.
If you need any help with payments on account, applying for a Time to Pay arrangement or applying to reduce payment on accounts correctly, please let us know as we’d be happy to help.
Deadline for first Making Tax Digital quarterly update fast approaching
Sole traders and landlords that are required to use Making Tax Digital (MTD) to report their earnings are due to send their first quarterly update by 7 August 2026.
The quarterly update involves sending income and expenses for the first three months of the tax year to HMRC.
After an update is made, it is possible to see an estimated tax bill based on the figures provided. How accurate the estimate is will depend on earnings for the rest of the tax year, but it may help with budgeting for payments.
Quarterly updates do not replace the need to complete a tax return at the end of the year, and there is no change to the dates when tax payments need to be made.
If you have any questions about MTD or need help filing your quarterly update, please get in touch. We’re here to help!
Self-drive start-up fishes for cash
Earlier this month, British autonomous vehicle company Wayve became the first large company to trade its shares on the London Stock Exchange Group’s new private markets platform.
So far, it was the largest deal under the new Private Intermittent Securities and Capital Exchange System (PISCES) legislated in Finance Bill 2025-26.
A PISCES platform, which requires FCA permission, can only operate as a secondary market for the trading of existing shares and not a way to raise capital through the issue of new shares (though participating companies may be more attractive to primary investors as a result of greater liquidity). It gives new investors easier access to growth companies pre-IPO and allows early-stage investors and other shareholders, including employees, to realise their investments.
The Cambridge company raised over $1.2 billion in a fundraising exercise in February from investors that included Mercedes-Benz, Stellantis and Nissan and a later $60 million from AMD, Arm and Qualcomm. Those investment rounds valued the company at $8.6 billion.
The idea creates a Private Securities Market (PSM) that is especially beneficial to employees or management.
Share options have been around for some time, especially for tech startups that find it difficult to pay Silicon Valley salaries in their early years. Recipients of the options will not get any cash until there is an Initial Public Offering, which may never happen.
So far this year, only seven companies have listed in London, outstripped by private takeovers of British companies, with the Financial Times reporting that the value of bids for London-listed companies has outstripped new entrants’ value by 27 to one.
Small companies should pay attention, too. The new market offers a way for existing company share schemes to benefit as well as helping the businesses grow.
Why companies should be aware
Joining the PISCES system comes with enhanced governance requirements and may mean updating a business’s Articles of Association and being aware of changes in tax circumstances for both employees and the company.
Under the Employment-Related Securities (ERS) regime, if, at the time of an acquisition of shares by an employee, arrangements exist for the shares to be traded on a PISCES platform, they will be viewed as Readily Convertible Assets (RCAs).
Provided that Enterprise Management Incentive (EMI) options are granted for commercial purposes to recruit and retain employees, it will be acceptable for a PISCES trading event to be a specified occasion, allowing employees to exercise their options.
Company Share Option Plans (CSOPs) are subject to the requirement to hold options for three years from grant, but a PISCES trading event can be a specified event to allow employees to exercise their options. Existing option agreements can be amended to include a sale on a PISCES platform as a specified exercise event.
Share buybacks will not be permitted at the outset because of the associated complexity.
Background
The first company to be listed on the new PISCES market for private companies was QPlay, a board game maker. JP Jenkins pipped the London Stock Exchange (LSE) to list the first company under the scheme. JP Jenkins is a British company that has long facilitated the trading of shares in unlisted companies through its regulated platform and attained its approved status for PISCES three months after the LSE.
The LSE had announced that shares in Oxford Science Enterprises, an early-stage Venture Capital fund best known for investing in quantum computing firm Oxford Ionics, would be the first to trade on its Private Securities Market (PSM), but it was pipped by QPlay.
HMRC launch Advance Tax Certainty Service for major investment projects
A first-of-its-kind service for the UK has been launched to provide tax certainty to businesses planning to invest in major projects.
HMRC have launched the Advance Tax Certainty Service to provide clarity on how UK tax rules will apply to major investment projects before project commitment. Businesses planning to invest £1 billion or more in qualifying UK expenditure over a project’s lifetime will now be eligible to apply for certainty on key tax issues.
The government hopes that this assurance will help companies to invest with confidence in the UK. The service covers the following UK taxes and schemes:
- Corporation Tax.
- VAT.
- Stamp Duty Land Tax.
- Income Tax.
- PAYE regulations.
- Construction Industry Scheme.