Compliance
Compliance Essentials: Staying Ahead with HMRC & IRS Policy Changes in 2026
Key compliance updates from the U.S. and UK tax authorities that affect businesses, high-wealth individuals, and global workers alike—what changed and what you must do.
By NomadicTax Research Team • 5-8 min read • July 14, 2026
## Major IRS Compliance Policies to Know in Mid-2026
- **Remittance Transfer Tax (One, Big, Beautiful Bill Act)**: A 1% excise tax now applies to remittances sent from the U.S. when using certain payment instruments. Providers must collect the tax and remit via **Form 720**, with defined penalty relief for early 2026 for those who mis-deposit. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
- **Section 892 Proposed Regulations**: Foreign governments and sovereign wealth funds get **grandfathering protection** and transitional relief under proposed rules clarifying when foreign governments engage in commercial activity and may lose tax exempt status. Taxpayers should review whether existing investments fall under the proposed regulations. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-section-892-proposed-regulations-to-provide-grandfathering-protection-and-transitional-relief-to-sovereign-investors?utm_source=openai))
- **Additional First Year Depreciation Deduction (§168(k))**: As amended by the One, Big, Beautiful Bill, taxpayers can now generally claim a **100% additional first year deduction** for eligible depreciable property acquired after January 19, 2025. Interim guidance released, and proposed regulations are forthcoming. ([irs.gov](https://www.irs.gov/irb/2026-06_IRB?utm_source=openai))
## HMRC / UK Compliance Updates You Should Know
- The UK government is consulting on a **criminal offence for reckless untrue declarations in direct taxes**, aiming to standardize standards of liability with indirect tax frameworks. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
- **Online marketplace VAT liability reforms**: expanding marketplace liability for VAT to ensure both UK and overseas businesses comply. This increases risk for marketplaces that don’t ensure collection. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
- Formalizing **National Insurance Contributions (NICs) easements** for non-resident directors in countries without social security agreements. This gives clarity for globally mobile individuals by reducing uncertainty in NICs exposure. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
## Actionable Compliance Steps
1. **Audit remittance practices**: If you send remittances, determine whether 1% excise applies, and whether your provider is collecting and filing properly—review Form 720. Any remittances in early 2026 may benefit from limited penalty relief period. ([irs.gov](https://www.irs.gov/instructions/i720?utm_source=openai))
2. **Depreciable assets acquisition planning**: Acquire eligible property after Jan 19, 2025, to maximize 100% instant deduction, rather than depreciating over multiple years. If you already own property, check if it's eligible under interim rules. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-the-additional-first-year-depreciation-deduction-amended-as-part-of-the-one-big-beautiful-bill?utm_source=openai))
3. **Review investment structures abroad**: If investing via foreign governments or reverse hybrids (e.g., U.S. LLCs), stay up-to-date on UK’s proposals for hybrid mismatch and Section 892 issues. Structure future investments with new rules in mind. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-section-892-proposed-regulations-to-provide-grandfathering-protection-and-transitional-relief-to-sovereign-investors?utm_source=openai))
4. **Ensure public statements, filings, declarations are accurate**: With UK considering criminal liability for reckless untrue declarations in direct tax, ensure your reporting meets truth and accuracy standards. Implement internal review procedures. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
## Examples to Illustrate
- A U.S.-based startup buys manufacturing equipment in March 2026: eligible for **100% first year depreciation** under OBBB Act, expensing fully instead of doing straight-line depreciation over 5-7 years.
- A UK digital agency using non-UK LLC contractors: reviews double taxation risk from reverse hybrid rules under consultation, considering whether restructuring to UK limited applies better.
- A UK non-resident director serving on board remotely from another country without social security agreement: may leverage new easement once formalized without incurring additional NICs liabilities.