August 2026 Tax & Business Update

TJB Accountants – August 2026 Tax and Business Update

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August 2026
Tax & Business Update

August tax and business developments

August brought the first Making Tax Digital quarterly deadline, a Companies House sign-in change and several HMRC updates affecting employers, families, estates and property businesses.

Sole traders & landlords

MTD moves into its next phase

More than 436,000 sole traders and landlords submitted their first Making Tax Digital for Income Tax quarterly update by August. The first deadline was 7 August 2026.

If an update was missed, it should still be filed as soon as possible. HMRC has confirmed that no penalty points will be issued for late quarterly updates during 2026/27, although normal penalties still apply to late tax returns and payments.

From September, HMRC will begin signing up customers who should be within MTD but have not yet registered. It is better to act first so the software, income sources and accounting periods can be checked.

Read the MTD update

Companies House

GOV.UK One Login becomes the main sign-in

Companies House changed the sign-in screen for its Find and update company information service in late August. GOV.UK One Login is now the main option and is required for new users.

Existing users can continue using their current details for now, but all users will eventually move across. Each GOV.UK One Login belongs to one individual and uses multi-factor authentication.

Businesses using shared accounts should plan individual access for each team member. This is a sign-in change and is separate from Companies House identity verification.

Check the sign-in changes

Personal tax

Child Benefit data added to online tax returns

HMRC has started pre-populating Child Benefit information in online Self Assessment returns using information it already holds.

The change is intended to help calculate and report the High Income Child Benefit Charge correctly and on time.

Pre-populated information should still be checked carefully, particularly where family circumstances, the claimant or income changed during the year. Please tell us about any Child Benefit received when providing your tax return records.

Read HMRC’s Agent Update

Employers

Consultation on National Insurance debt rules

HMRC launched a consultation on aligning the time limits and processes for recovering National Insurance contribution debts with those applying to Income Tax.

The proposals include removing NIC debts from the Limitation Act 1980 framework and aligning the recovery and repayment time limits with tax.

No rule has changed yet. The consultation closes on 12 October 2026 and may be relevant to employers or individuals dealing with older PAYE and NIC liabilities.

Read the Employer Bulletin

Inheritance Tax

HMRC highlights errors with excepted estates

HMRC is writing to some agents after identifying misunderstandings about when an estate qualifies as an excepted estate and does not need a full IHT400 account.

In particular, the residence nil-rate band and transferable allowances are not taken into account when deciding whether an estate is excepted. Some allowances also need to be formally claimed on an IHT400.

Estate values and allowance claims should be well supported. Incorrect treatment can lead to delayed claims, unexpected tax and penalties.

Read the estates update

Property & investment

Tax treatment of predevelopment costs under review

The government is consulting on how businesses obtain tax relief for costs incurred before an investment project begins.

These costs can include feasibility work, regulatory approvals and other preparatory activity. The consultation is examining whether the current rules create uncertainty or affect investment decisions.

This is a consultation, not a change in law. Property developers and other businesses planning substantial projects should continue recording these costs separately and retaining supporting evidence.

Read the consultation summary