In this week’s Enews, there is a reminder for vaping businesses to prepare for the introduction of duties later this year. We also look at vital advice for those who missed the self assessment deadline and have the latest HMRC guidance for employers to update you on.
Vaping businesses urged to prepare for Vaping Products Duty registration
HMRC is urging manufacturers, importers, and warehousekeepers involved with vaping products to prepare for new duties.
Businesses involved in vaping products can register for Vaping Products Duty (VPD) and the Vaping Duty Stamps (VDS) Scheme from 1 April 2026.
From 1 October 2026, VPD will apply to all vaping liquids sold or supplied in the UK at a flat rate of £2.20 per 10ml, regardless of nicotine content.
At the same time, duty stamps must be affixed to the retail packaging of individual vaping products for the UK market.
A six‑month grace period will apply for older stock already in retail channels; from 1 April 2027 all UK vaping products outside duty suspension must carry a duty stamp.
Non‑compliance may result in civil or criminal sanctions.
Rachel Nixon, HMRC’s Director of Indirect Tax, said:
‘We are working closely with the vaping sector on this new excise duty ahead of its introduction.
‘From 1 April this year, manufacturers, importers and warehousekeepers must apply to HMRC for approval to continue supplying vaping products in the UK. This gives them six months to obtain our approval before the new duty and duty stamps go live.
‘GOV.UK guidance sets out everything businesses need to know. Searching ‘vaping duty’ is the best place to start. Early preparation is essential to ensure a smooth transition and to avoid disruption to operations.’
Internet link: HMRC press release
Get tax affairs back on track if self assessment deadline was missed
The Low Incomes Tax Reform Group (LITRG) is urging the estimated one million taxpayers who failed to file their tax return on time to get their tax affairs back on track.
HMRC says that around one million customers missed the cut-off date.
Failing to meet the self assessment deadline carries an automatic £100 late filing penalty, with further penalties at stake the longer the return remains outstanding.
The LITRG recommends four steps to get tax affairs back on track:
- Checking whether a return is even needed.
- Filing outstanding returns as soon as possible.
- Paying tax as soon as possible will prevent additional penalties for late payment.
- If taxpayers have a reasonable excuse for not meeting the deadline, they usually have 30 days to appeal any penalties charged.
Antonia Stokes, LITRG Senior Manager, said:
‘Missing the self assessment deadline can feel daunting or worrying, and some people might be unsure how to put things right.
‘But there are some practical steps people can take. This includes working out whether a return was even needed in the first place. If it was, then it is better to act now by filing the return and paying the tax, penalties and interest charges that are due. Payment plans are available to help people who might not be able to settle their tax bill in full.
‘If they have what is called a reasonable excuse, it might even be possible to appeal the penalty, but they will still need to file their tax return as soon as possible.’
Internet link: Chartered Institute of Taxation website
Latest guidance for employers
HMRC has published the latest issue of the Employer Bulletin. The February issue has information on various topics, including:
- Reporting expenses and benefits for the tax year ending 5 April 2026.
- End of year reporting.
- Upcoming State Pension age changes — impact on payroll operation.
- Implementation of the Employment Rights Act 2025.
- Statutory Sick Pay changes — what employers need to know.
- Tax code changes for winter payment recovery.
Internet link: GOV.UK
