The UK Government has unveiled a landmark plan to reduce electricity network charges for the country’s most energy intensive industries, such as steel, ceramics, glass and chemicals, slashing costs by up to 90% from 2026.

What is changing?

The current 60% rebate under the Network Charging Compensation (NCC) scheme will rise to 90%, delivering savings of approximately £7 per megawatt hour for around 500 qualifying firms. Annual savings are projected at up to £420 million once fully in effect, bringing energy costs more closely into line with European competitors.

Context and strategy

This initiative forms part of the Government’s broader Modern Industrial Strategy and British Industry Supercharger package, introduced to strengthen competitiveness and support domestic manufacturing. A four week public consultation has been launched on the uplift and related reforms, including a proposal to double the NCC application window from one to two months.

Why this matters

By reducing energy overheads, the plan aims to boost investment, protect jobs, and help UK heavy industry stay globally competitive. Government estimates indicate that UK manufacturing has now recovered to pre pandemic levels, supported by approximately 12,000 new jobs in the year to March 2024.

Complementary measures

The announcement follows recent confirmation of the British Industrial Competitiveness Scheme, due to launch in 2027. This scheme will cut broader electricity bills by up to 25% for over 7,000 manufacturers, primarily by exempting them from green levies. A new Connections Accelerator Service will also streamline grid connections by the end of 2025, while upcoming legislation will grant powers to reserve grid capacity for strategic infrastructure.

Industry response

Business groups, including representatives from the steel sector, have welcomed the changes as a timely and necessary move to secure a competitive future for UK manufacturing.

New UK transfer pricing rules could mean more reporting and fewer exemptions for mid-sized businesses. The government is consulting on proposals to tighten compliance and align with global standards. One key change would remove the transfer pricing exemption for medium-sized enterprises, keeping it only for small businesses. Another would introduce a new reporting requirement, the International Controlled Transactions Schedule (ICTS), to give HMRC more visibility over cross-border related-party transactions. These reforms aim to curb profit shifting, protect the UK tax base and simplify the rules for those who follow them.

Transfer pricing refers to how prices are set for transactions between companies that are part of the same group, especially when these transactions cross international borders. These prices must follow the “arm’s length principle,” meaning they should reflect what unrelated companies would charge under similar circumstances. This helps ensure that profits are taxed fairly where economic activity actually takes place.

The UK government is seeking feedback on two proposed changes to its transfer pricing rules. These proposals aim to protect the UK’s tax base from multinational enterprises (MNEs) shifting profits overseas, and to bring the UK in line with global best practices.

The first proposal suggests changing the current exemption from transfer pricing rules for small and medium-sized businesses (SMEs). In particular, it proposes removing the exemption for medium-sized enterprises but keeping it for small ones. The government also wants to update definitions and thresholds to make the rules clearer and easier to follow.

The second proposal would introduce a new reporting requirement called the International Controlled Transactions Schedule (ICTS). This would require MNEs to report cross-border related-party transactions to HMRC. The information would help HMRC better assess risk, reduce audit times, and support fairer, more efficient tax compliance whilst at the same time limiting extra burdens on businesses.

Making Tax Digital for Income Tax will become mandatory in phases from April 2026. If you are self-employed or a landlord earning over £50,000 you need to start preparing to submit quarterly updates, keeping digital records and a new penalty system will apply.

Initially, MTD for IT will apply to businesses, self-employed individuals, and landlords with an annual income exceeding £50,000. From 6 April 2027, the rules will extend to those with an income between £30,000 and £50,000. A new system of penalties for late filing and late payment of tax will also be introduced.

From April 2028, sole traders and landlords with income over £20,000 will need to follow MTD rules. The government is also exploring ways to bring those earning under £20,000 within the MTD framework at a future date.

To help ensure taxpayers pay on time, HMRC increased the late payment penalties with effect from 1 April 2025. This applies to VAT-registered businesses as well as early adopters of Making Tax Digital for Income Tax.

The updated penalty rates are as follows:

• 15 days late: increased from 2% to 3%
• 30 days late: increased from 2% to 3%
• From day 31 onwards: a 10% annual penalty now applies, up from 4%, with daily interest added from this point

Taxpayers that remain with self-assessment face a separate set of penalty rules.

Need to help a relative or friend with tax? HMRC’s Trusted Helper service makes it quick and easy to support someone online. Whether it is checking Income Tax, updating their personal details or reviewing taxable benefits like company cars or medical insurance, you can do it all with their permission. After registering as a trusted helper, your friend or family member simply needs to approve your access. You can help up to five people, but remember, they remain responsible for their own tax affairs.

This online option allows you to support someone, such as a friend or relative with key tax tasks, such as checking their Income Tax, updating their personal tax account or reviewing their taxable benefits (limited to company cars and medical insurance).

To get started, you must register online as a trusted helper. Once you have signed up, the person you are helping will need to log in and approve your request. If they cannot go online, you can call HMRC on their behalf, but they must be physically present with you during the call. HMRC will confirm their identity and their consent before proceeding. You will also need their National Insurance or tax reference number.

You can help up to five people using this service. While you can assist with their tax matters the person you are helping remains legally responsible for their own tax affairs. You must sign in using your Government Gateway details, and you may be asked to verify your identity using photo ID such as a passport or driving licence.

HMRC also offers this service in Welsh and provides additional support for those with disabilities or non-English speakers.

Working or claiming benefits in the UK? You may need to apply for a National Insurance number first. If you do not already have one, your NI number is essential for tracking tax, National Insurance contributions and accessing certain government services. While most UK residents receive their number at age 16, newcomers or those starting work later in life may need to apply. It takes around four weeks to process after proving your identity, but you can still start work or claim some benefits while you wait.

According to HMRC guidance, you can apply for a National Insurance number if you:

• live in the UK,
• have the legal right to work in the UK, and
• are working, looking for work, or have a job offer.

You can still start work without an NI number, as long as you can prove your right to work in the UK. Similarly, you can apply for benefits or a student loan without an NI number, though you may be asked to provide one later if required.

Most teenagers living in the UK receive a letter shortly before their 16th birthday confirming their NI number. This letter is important and should be kept safe. Your NI number is unique and stays the same for life, even if your name, address or nationality changes. If you lose your NI number, you can find it on official documents like payslips, P60s or via your personal tax account.