On 23 June 2026, HMRC published the Tax Update 2026: Simplification, Modernisation and Fairness, a package of 40 measures, several of which directly impact VAT, e-invoicing, customs and indirect tax compliance.
Summary
- HMRC proposes mandatory registration of customs intermediaries (freight forwarders, customs brokers, indirect representatives, parcel operators) acting on behalf of UK importers and exporters, comparable to the EU AEO + indirect-representative regime.
- The reform is positioned as a quality-assurance and tax-loss measure, given that broker errors are a leading driver of incorrect duty classifications, incorrect import-VAT amounts, and PVA postings that later fail HMRC audits.
- Closes 21 September 2026; for multinationals it raises practical questions on contractual indemnities, broker SLAs, indirect-representation liability for VAT and duty, and whether ERP-side controls (e.g. import-VAT reconciliations) should be tightened to reduce dependence on broker accuracy.
Article The measure would create a formal HMRC register for customs intermediaries acting on behalf of UK importers/exporters. The proposal is positioned as a compliance and quality-assurance reform — but for traders it implies the need to revisit their broker/representative contracts and indemnities, particularly around import VAT recovery and PVA postings.
Primary Sources
- GOV.UK – Tax Update 2026 summary (HMRC policy paper) [gov.uk]
- GOV.UK – Tax Update 2026 collection (all consultations & documents) [gov.uk]
- Written Ministerial Statement HCWS141 – 23 June 2026 [questions-…liament.uk]
- Deloitte – Weekly VAT News, 29 June 2026 [taxscape.d…loitte.com]
- KPMG UK – Tax Update 2026 commentary [kpmg.com]
- Deeks VAT Consultancy – Tax Update 2026 for VAT, indirect tax and customs [deeksvat.co.uk]
- Kreston Reeves – Tax Update June 2026 [krestonreeves.com]
- Chartered Institute of Taxation (CIOT) – HMRC Tax Update June 2026 [tax.org.uk]
