{"id":39297,"date":"2026-07-03T06:07:35","date_gmt":"2026-07-03T05:07:35","guid":{"rendered":"https:\/\/figsflow.com\/uk\/?p=39297"},"modified":"2026-07-03T06:08:02","modified_gmt":"2026-07-03T05:08:02","slug":"weekly-news-updates-for-uk-accountants-3-july-2026","status":"publish","type":"post","link":"https:\/\/figsflow.com\/uk\/weekly-news-updates-for-uk-accountants-3-july-2026\/","title":{"rendered":"Weekly News &amp; Updates for UK Accountants (29 June &#8211; 3 July 2026)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"39297\" class=\"elementor elementor-39297\" data-elementor-settings=\"{&quot;element_pack_global_tooltip_width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_padding&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b1a9f2b e-flex e-con-boxed e-con e-parent\" data-id=\"b1a9f2b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7da44a6 elementor-widget elementor-widget-text-editor\" data-id=\"7da44a6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Two consultations are open this summer. The Income Tax Self Assessment real time payment consultation closes on 4 August 2026 and could bring more taxpayers with smaller Self Assessment liabilities into earlier payment. The Direct Debit consultation closes on 16 August 2026 and could introduce penalties where VAT or PAYE is paid by another method, even if paid in full and on time.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The other two updates are planning points. MTD for Income Tax will fall to a \u00a320,000 threshold from April 2028, while the April 2027 ISA overhaul introduces a 22% charge on interest earned on cash held inside\u00a0non Cash\u00a0ISAs, including Stocks and Shares ISAs and Innovative Finance ISAs.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4d0838f e-flex e-con-boxed e-con e-parent\" data-id=\"4d0838f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c99a940 elementor-widget elementor-widget-heading\" data-id=\"c99a940\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">HMRC Proposes Real Time Income Tax &amp; Floats Lowering the \u00a31,000 Payment Threshold <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-455bd3e e-flex e-con-boxed e-con e-parent\" data-id=\"455bd3e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-859cc15 elementor-widget elementor-widget-text-editor\" data-id=\"859cc15\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The government wants to collect Income Tax closer to the point income is earned. For the\u00a0roughly 2.1\u00a0million Self-Assessment taxpayers who also have employment or pension income, HMRC is proposing to gather estimated tax across 12 monthly instalments through the PAYE code from April 2029, based on the prior year&#8217;s figures.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The detail that matters more for advisers sits underneath the headline. For taxpayers without a PAYE source, the government is exploring monthly or quarterly payments on account, and it is considering lowering the current \u00a31,000 threshold. That change alone would bring a large group of lower earners into a payment rhythm they have never faced.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">There is also a balancing payment to follow the PAYE instalments, and a transition risk worth noting. In 2029\/30, some clients could pay their 2028\/29 balancing payment while starting the new in-year instalments at the same time, a genuine cash-flow squeeze in a single year.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span style=\"text-decoration: underline;\"><b>Key\u00a0facts:<\/b>\u00a0<\/span><\/p><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Around 2.1 million ITSA taxpayers with PAYE income potentially collected via 12 monthly instalments from April 2029<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Proposal to lower the \u00a31,000 payments on account threshold, widening the net<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Consultation closes 4 August 2026<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">This is directional rather than final, but the response window is open now.\u00a0Identify\u00a0clients who would feel a monthly payment cycle most, the self-employed with lumpy income and those near the \u00a31,000\u00a0threshold, and\u00a0consider whether a consultation response is worth making before 4 August.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b336cf5 e-flex e-con-boxed e-con e-parent\" data-id=\"b336cf5\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-743796a elementor-widget elementor-widget-heading\" data-id=\"743796a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Direct Debit Set to Become Compulsory for VAT &amp; PAYE, With a Penalty for Paying Any Other Way <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d3352c1 e-flex e-con-boxed e-con e-parent\" data-id=\"d3352c1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5d31a65 elementor-widget elementor-widget-text-editor\" data-id=\"5d31a65\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">HMRC is consulting on making Direct Debit the compulsory payment method for most VAT and PAYE liabilities. Only 13% of registered businesses, around 330,000, use it today, so the shift would reach\u00a0roughly 2.4\u00a0million businesses and sole traders.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The proposal has a sting that is easy to miss. HMRC is considering a penalty for\u00a0failing to pay\u00a0by Direct Debit even where the tax is paid in full and on time by another electronic method. Paying correctly would no longer be enough on its own.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">There is also an unresolved problem for businesses without a UK bank account, including many overseas entities. They cannot use the scheme as drafted and would need to continue with existing electronic arrangements, leaving a gap the consultation has yet to close.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span style=\"text-decoration: underline;\"><b>Key facts:<\/b>\u00a0<\/span><\/p><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Mandate would affect around 2.4 million businesses, up from the 330,000 using Direct Debit now<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Payments above \u00a320 million exempt due to BACS system limits<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Consultation closes 16 August 2026<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">Check which clients currently pay VAT or PAYE by bank transfer or card rather than Direct Debit, as they are the ones exposed to the proposed penalty. Flag any overseas clients without a UK bank account\u00a0early, since\u00a0the scheme as drafted does not accommodate them.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de51b6a elementor-widget elementor-widget-heading\" data-id=\"de51b6a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">MTD for Income Tax Confirmed to Drop to \u00a320,000 From April 2028 <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7347916 e-flex e-con-boxed e-con e-parent\" data-id=\"7347916\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-930a2dc elementor-widget elementor-widget-text-editor\" data-id=\"930a2dc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">This one is confirmed, not consultation. From April 2028, the Making Tax Digital for Income Tax threshold falls to \u00a320,000, bringing an estimated 970,000 more sole traders and landlords into quarterly digital reporting and an end-of-year return.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The character of this cohort is the part worth planning around. HMRC&#8217;s own reading is that taxpayers earning between \u00a320,000 and \u00a330,000 have lower software adoption and lean less on professional agents than higher earners.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">That combination cuts two ways. It is a compliance burden for the taxpayers, who are expected to need more targeted support to make the move, and a client-acquisition opportunity for firms ready to meet it.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span style=\"text-decoration: underline;\"><b>Key facts:<\/b>\u00a0<\/span><\/p><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">\u00a320,000 threshold effective from April 2028, drawing in around 970,000 more taxpayers<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Estimated \u00a3380 million in transitional costs for the \u00a320k to \u00a330k group, plus \u00a3101 million a year in ongoing compliance costs<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Digital records and quarterly summaries\u00a0required, alongside an end-of-year return<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">The firms that win here will be the ones that make onboarding simple for people who have never used accounting software. There is time to build that offer before April 2028, and the practices that start now will be positioned when the deadline arrives.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-abcaeee e-flex e-con-boxed e-con e-parent\" data-id=\"abcaeee\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e7558f5 elementor-widget elementor-widget-heading\" data-id=\"e7558f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The ISA Overhaul Brings a 22% Charge on Cash Interest From April 2027<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-dbcf3c4 e-flex e-con-boxed e-con e-parent\" data-id=\"dbcf3c4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ff06b5f elementor-widget elementor-widget-text-editor\" data-id=\"ff06b5f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The government is redrawing the ISA regime to push savers towards investing rather than holding cash. From 6 April 2027, the annual Cash ISA allowance falls from \u00a320,000 to \u00a312,000 for most savers, while the \u00a320,000 allowance for Stocks and Shares and Innovative Finance ISAs stays put.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Savers aged 65 and over keep the full \u00a320,000 cash allowance from their 65th birthday. The change that will surprise clients, though, sits inside investment accounts rather than in the allowance cut itself.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">To stop savers sidestepping the lower cash limit, interest and alternative finance returns on cash held within non-cash ISAs will attract a flat 22% tax charge. Money market funds are treated as non-qualifying where they make up 100% of a Stocks and Shares portfolio, and the over 65s are caught by both the 22% charge and the ban on\u00a0wholly cash-like\u00a0holdings despite their higher allowance.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span style=\"text-decoration: underline;\"><b>Key facts:<\/b>\u00a0<\/span><\/p><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Cash ISA allowance cut from \u00a320,000 to \u00a312,000 from 6 April 2027, with the full \u00a320,000\u00a0retained\u00a0for those aged 65 and over<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Flat 22% tax on cash interest earned within non-cash ISAs<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Transfers from investment ISAs back to cash ISAs prohibited for the under 65s; draft legislation expected Autumn 2026<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">The transfer ban is the detail with a timing edge. Because the under 65s will lose the ability to move investments back into cash, some clients may feel pushed to de-risk prematurely before the drawbridge rules take effect. A preliminary factsheet landed on 23 June, with draft legislation due in Autumn 2026, so flag affected clients now and hold firm advice until the detail is confirmed.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8252ac3 elementor-widget elementor-widget-text-editor\" data-id=\"8252ac3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><span class=\"TextRun SCXW94805863 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW94805863 BCX8\" data-ccp-parastyle=\"heading 2\">Also<\/span><span class=\"NormalTextRun SCXW94805863 BCX8\" data-ccp-parastyle=\"heading 2\">\u00a0In\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW94805863 BCX8\" data-ccp-parastyle=\"heading 2\">The<\/span><span class=\"NormalTextRun SCXW94805863 BCX8\" data-ccp-parastyle=\"heading 2\">\u00a0News<\/span><\/span><\/h2><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/weekly-news-updates-for-uk-accountants-26-june-2026\/#ftoc-lifetime-isa-scrapped-in-favour-of-a-first-time-buyer-isa\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Last week\u2019s round-up covering the stories that shaped the week for UK\u00a0practioners<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/mtd-software-handles-aml-onboarding-and-compliance\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">FigsFlow &amp; RentalBux &#8211; Save 190+ Hours on MTD Compliance<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/law-firm-accounting-breaches\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Law Firm Accounting Breaches and SRA Closures | FigsFlow<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/how-to-price-mtd-itsa-services-a-comprehensive-guide-for-accountants-tax-advisers\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Charge Your Worth: Guide to Pricing MTD ITSA Services<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f495bf3 elementor-widget elementor-widget-heading\" data-id=\"f495bf3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0fcc554 elementor-widget elementor-widget-text-editor\" data-id=\"0fcc554\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The pattern this week is HMRC pulling tax forward and steering behaviour. Real-time ITSA, compulsory Direct Debit, and the widening MTD net all push towards sooner payment and less discretion over method, while the ISA overhaul uses a 22% charge and a transfer ban to nudge savers out of cash. The through-line is the same: more of what taxpayers do is being shaped by the collection system rather than left to them.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The immediate work is narrow. Respond to the two consultations if they affect your client base, 4 August for real-time ITSA and 16 August for Direct Debit. MTD to \u00a320,000 and the ISA changes are planning rather than panic, but the ISA transfer ban is worth raising with clients now, before the Autumn draft legislation firms up the detail.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Two consultations are open this summer. The Income Tax Self Assessment real time payment consultation closes on 4 August 2026 and could [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":39309,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_tocer_settings":[],"footnotes":""},"categories":[67,78,69],"tags":[11,20],"class_list":["post-39297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accountants","category-news","category-tax-advisers","tag-compliance","tag-tax-advisers"],"acf":[],"_links":{"self":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/comments?post=39297"}],"version-history":[{"count":10,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39297\/revisions"}],"predecessor-version":[{"id":39308,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39297\/revisions\/39308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/media\/39309"}],"wp:attachment":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/media?parent=39297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/categories?post=39297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/tags?post=39297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}