16 October 2026
Budget to be held on 28 October 2026
A reminder that the Chancellor of the Exchequer, John Healey MP, will present his Budget on Wednesday 28 October 2026. This will be accompanied by an update from the Office for Budget Responsibility (OBR) on the latest state of the country’s finances. The Budget will provide an early indication of how the government intends to translate its growth and regional development priorities into fiscal and tax policy. For insights on the Budget announcements, visit our Budget 2026 page. There will be an EMEA Dbriefs webcast on Thursday 29 October 2026 at 12.00 GMT/13.00 CET, hosted by Amanda Tickel, Deloitte’s Global Leader of Tax and Trade Policy, during which our panel of specialists will provide an update on the previous day’s announcements and their implications for businesses and individuals.
HMRC publish corporation tax statistics
HMRC have released the latest edition of their annual national statistics publication, Corporation Tax Statistics. The publication provides details and breakdowns of UK corporate tax amounts (which for these purposes also include bank surcharge, bank levy, residential property developer tax, energy profits levy, and electricity generator levy amounts) covering receipts received up to the 2025-26 tax year, and tax liabilities up to the 2024-25 tax year. Total receipts from all corporate taxes increased by 4% in 2025-26 to £100.4 billion, which HMRC attribute largely to a strong post-pandemic recovery, the increase in the main rate of corporation tax to 25% in April 2023, and the introduction of new corporate taxes and levies. A breakdown of corporation tax receipts by sector shows that the financial and insurance sector remained the single largest contributing sector.
Mandatory payrolling of benefits in kind: excluding globally mobile employees
HMRC have updated their draft interim guidance on mandatory payrolling of benefits in kind and expenses to confirm that employers will be able to voluntarily exclude ‘globally mobile employees’ from the mandatory reporting requirements that will apply from 6 April 2027 through a new service that will be available from November 2026. Employers should continue with existing year-end reporting arrangements for these employees using forms P11D and P11D(b)
Upper Tribunal dismisses HMRC’s appeal in cabin crew accommodation case
The Upper Tribunal (UT) has dismissed HMRC’s appeal in the employment taxes case HMRC v British Airways PLC. The case concerns the treatment of accommodation provided for cabin crew at Heathrow for the purposes of income tax and National Insurance contributions (NICs). The cabin crew were engaged on a particular flight rotation known as a back-to-back and were provided with accommodation at Heathrow in the middle of the rotation (the Accommodation). HMRC’s view was that this Accommodation was a taxable benefit that did not fall within the rules for deductions in sections 336 to 338 ITEPA 2003, because the crew members were not performing their duties whilst they were resting in the Accommodation and it was not necessary for the Accommodation to be provided at the employees’ home base (being Heathrow).
In 2025, the First-tier Tribunal (FTT) allowed British Airways’ appeal on the basis that the expenditure was deductible under section 337, or in the alternative section 338 or 336. The UT has upheld the FTT’s decision that section 337 applies. In light of the contractual and regulatory requirement for the crew members to stay in the Accommodation, the UT agreed that it was necessary for the crew members to stay in the Accommodation and that they did so in the performance of their duties. Furthermore, the Accommodation was “necessarily incurred” on travelling in the performance of the duties of the employment. As a result, the employees were entitled to deduct the cost of the Accommodation for income tax and NICs purposes
Updated version of OECD model tax treaty released
The OECD has published an updated version of the OECD Model Tax Convention on Income and on Capital (‘OECD model tax treaty’). The new version, the 2025 version, updates the previous 2017 version of the OECD model tax treaty to incorporate the changes previously agreed and published by the OECD in November 2025. These updates notably include the additions to the commentary to Article 5 on the definition of a ‘fixed place of business’ permanent establishment in situations of cross-border remote working. The document published is the ‘full version’ of the OECD model tax treaty. A corresponding ‘condensed version’ is expected to be published in due course. Read more on Deloitte tax@hand.
EMEA Dbriefs webcasts
We have six Dbriefs tax webcasts over the next month: From Innovation to Value: Managing IP Across the Supply Chain (20 October 2026), Pay Transparency: From regulation to practice for Japanese clients (22 October 2026), UK Budget 2026 (29 October 2026), Cross-border workforce mobility across Germany and the Benelux: key rules, risks and emerging trends (3 November 2026), The future of employment tax: taking action on global trends for reward & HR (4 November, 2026), and UK Tax update – November (11 November 2026). Please visit our Dbriefs website for more information, and to view any other recent webcasts on demand.