Compliance
Compliance Overhaul: What UK Businesses Must Do Now with New Tax Adviser and VAT Rules
With new mandatory registration for tax advisers and fresh VAT rules for electricity bills and low-value imports, UK businesses face compliance changes they can’t ignore.
By NomadicTax Research Team • 5-8 min read • August 5, 2026
## Overview of Recent Compliance Changes
Over the past month, the UK government has announced several tax compliance changes that come into force immediately or soon. These affect tax advisers, VAT on utility bills, import duties, and reliefs for land intended for social housing. ([gov.uk](https://www.gov.uk/government/news/new-pm-cuts-tax-on-household-electricity-bills-to-give-breathing-space-on-cost-of-living?utm_source=openai))
Key updates include:
- **Mandatory tax adviser registration (MMTAR)**: from 18 May 2026, HMRC introduced new rules that require anyone paid to interact with HMRC on behalf of someone else to register as a tax adviser. The first phase deadline for certain groups is 18 August 2026. ([gov.uk](https://www.gov.uk/government/news/tax-advisers-one-month-left-to-register-under-new-rules?utm_source=openai))
- **VAT removal on domestic electricity bills**: as of 1 October 2026, VAT will be removed from domestic electricity bills in England (and UK-wide where applicable) to reduce cost of living pressures. ([gov.uk](https://www.gov.uk/government/news/new-pm-cuts-tax-on-household-electricity-bills-to-give-breathing-space-on-cost-of-living?utm_source=openai))
- **Customs duties on low value imports (LVIs)**: the relief on imports valued at £135 or less is being removed; goods below this threshold will now face customs liabilities. ([gov.uk](https://www.gov.uk/government/news/government-backs-high-street-with-acceleration-of-cheap-import-reforms-and-crackdown-on-dodgy-online-sellers?utm_source=openai))
- **VAT zero-rating consultation for land intended for social housing**: new proposals to apply zero rate VAT to land for social housing have been launched, subject to consultation. ([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))
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## Practical Steps for Businesses
1. **Tax advisers:** If your firm or practice interacts with HMRC on behalf of clients, ensure you are registered under MMTAR before your phase’s deadline. Otherwise, you may lose ability to act or face sanctions. ([gov.uk](https://www.gov.uk/government/news/tax-advisers-one-month-left-to-register-under-new-rules?utm_source=openai))
2. **Energy providers and landlords:** Prepare systems and customer communications for October’s VAT removal on electricity bills, ensuring suppliers comply. Fixed tariffs must pass on the benefit. ([gov.uk](https://www.gov.uk/government/news/new-pm-cuts-tax-on-household-electricity-bills-to-give-breathing-space-on-cost-of-living?utm_source=openai))
3. **Retailers & online sellers:** For goods imports under £135, calculate new customs costs. Update listings, pricing, and supply chains accordingly. Adjust for any duty increases. ([gov.uk](https://www.gov.uk/government/news/government-backs-high-street-with-acceleration-of-cheap-import-reforms-and-crackdown-on-dodgy-online-sellers?utm_source=openai))
4. **Housing developers or non-profits:** Examine implications of the proposed zero-rating VAT on land for social housing—check eligibility, consultation deadlines, and expected effective dates. ([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))
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## Examples
- **Small accounting agency**, previously unregistered under agent services account, must register under MMTAR by 18 August or lose access to interacting with HMRC for clients.
- **Restaurant owner** sees VAT on electricity drop; must inform customers and adjust overhead cost models for winter.
- **E-commerce business** importing physical goods from outside UK under £100 price; soon must factor customs duties—affects margin or pricing strategy.
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**Key takeaway:** These compliance changes vary by sector but share one consistent thread: urgency. Whether you’re advising clients, supplying utilities, importing goods, or developing housing you need to act now—or be caught unprepared.