The government's 23 June 2026 announcement made clear that tackling tax non-compliance is firmly on the agenda. For legitimate businesses, this is largely good news - unfair competition from traders who don't pay what they owe has long been a frustration for those who do.

The government is taking three targeted steps to tackle non-compliance. While most require no immediate action from honest businesses, there are some developments worth being aware of:

1. Till Fraud and Sales Suppression Software
Some businesses use electronic point-of-sale (EPOS) systems to fraudulently under-report sales, known as "sales suppression." This is till fraud and it lets dishonest traders undercut competitors who pay their full tax bill.
The government is consulting on introducing software standards for EPOS and mobile payment systems to prevent this. If you use standard, legitimate payment software, you have nothing to worry about - but you may be asked to confirm your systems meet the new standards once they are introduced.

2. Recovering Unpaid Tax Debts
HMRC is consulting on new powers to recover lower-value tax debts directly from bank accounts in instalments - but only for customers who have ignored more than 10 contact attempts over 9 months. The government says over 750,000 such debts worth more than £2 billion go uncollected each year.
There will be safeguards built in, but the message is clear: if you have outstanding tax debts, engage with HMRC proactively - don't ignore correspondence.

3. Low Value Import Reforms (accelerated to October 2028)
Currently, goods imported at low values can benefit from customs duty exemptions - a loophole that overseas online retailers have used to undercut UK high street businesses. The government has brought forward reforms to close this, now targeting October 2028 (six months earlier than previously planned).
If you import goods or compete with overseas online sellers, this is good news - the playing field is being levelled. If your supply chain relies on low-value imports, start planning now for potential duty costs from late 2028.

A final note for business owners:

It's worth noting that several of these measures haven't been finalised yet. Consultations exist precisely so that business owners like you can flag practical concerns before rules are set in stone. If anything above affects how you operate, it's worth engaging with the consultations at gov.uk

_{This is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.}