TJB Accountants
TJB Client Newsletter
July 2026
Tax & Business Update
Important deadlines and business updates
This month brings an important Self Assessment payment deadline, the first quarterly filing deadline under Making Tax Digital for Income Tax and further changes affecting company directors.
Personal Tax
Self Assessment payment due by 31 July
If you make payments on account towards your Self Assessment bill, your second payment for the 2025/26 tax year is due by midnight on 31 July 2026.
If your income or profits have fallen, it may be possible to reduce the payment. This should be calculated carefully because HMRC can charge interest where a payment is reduced too far.
Sole Traders & Landlords
First MTD quarterly deadline approaching
Making Tax Digital for Income Tax became mandatory from April 2026 for qualifying sole traders and landlords with combined annual gross income exceeding £50,000.
For most taxpayers within the new system, the first quarterly period ended on 5 July. The update must be submitted through compatible software by 7 August 2026.
Quarterly updates do not replace the annual tax return. HMRC has confirmed that penalty points will not be issued for late quarterly updates during the first year, although records should still be brought fully up to date.
Limited Companies
Companies House identity verification
Identity verification is now a legal requirement for new company directors and people with significant control.
Existing directors generally need to provide their Companies House personal code when the company files its next confirmation statement during the transition period. Existing PSCs must comply during the applicable verification window shown on the Companies House register.
Please keep your personal code secure. If we file your confirmation statement, we may need the code before it can be submitted.
Company Accounts
Future changes to accounts filing
Companies House has confirmed that significant accounts-filing reforms will take effect from April 2028.
- All companies will file accounts using commercial software.
- Small companies and micro-entities will file profit and loss accounts, with an option for eligible businesses not to publish them publicly.
- Abridged accounts will be removed.
- Audit exemption statements will be strengthened.
HMRC Letters
Watch out for Simple Assessment letters
HMRC is issuing around 1.8 million Simple Assessment letters for 2025/26. You might receive one if tax is due on savings interest, dividends, pension income or another source that has not been collected automatically.
The PA302 calculation should be checked against your records. Most amounts will be payable by 31 January 2027 unless the letter gives a different date. Please send us a copy if you would like us to review it.
Additional Income
Do you earn money from a side hustle?
If your combined gross trading income from side activities exceeds £1,000 during a tax year, you may need to register for Self Assessment. New entrants who need to report income for 2025/26 should normally register by 5 October 2026.
Selling unwanted personal belongings does not normally count as trading, but regularly buying or making items to sell for a profit can do.
Need help?
We can help you understand how these changes affect you, check upcoming liabilities and ensure the appropriate filings are completed.
