HMRC has warned millions of UK households over rules that a pilot has found many people are flouting A woman works on her tax return (Image: Getty)
HMRC has launched a crackdown on "personal expenditure" with a warning to millions of UK households. A new digital campaign is being introduced to ensure that income tax self-assessment (ITSA) taxpayers do not incorrectly claim tax relief on personal expenses when submitting their 2025/26 returns.
The government's tax authority launched a pilot scheme last year, generating more than £27 million in tax revenue and exposing instances where private spending was wrongly reported as business expenses. Building on this, HMRC is now preparing to carry out further investigations to ensure sole traders, business partners and landlords clai