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Making Tax Digital Key Dates for 2026/27

From 6 April 2026, self-employed individuals and landlords with profits over £50,000 must comply with Making Tax Digital (MTD) for Income Tax.

Quarterly update deadlines:

Quarter 1 (6 Apr – 5 Jul 2026): submit by 7 August 2026
Quarter 2 (6 Jul – 5 Oct 2026): submit by 7 November 2026
Quarter 3 (6 Oct – 5 Jan 2027): submit by 7 February 2027
Quarter 4 (6 Jan – 5 Apr 2027): submit by 7 May 2027

End-of-year Self Assessment submission: 31 January 2028

Keeping digital records throughout the year and submitting quarterly updates on time will make the transition smooth and help avoid last-minute stress.

Working in construction? CIS matters more than you think.

If you’re a contractor or subcontractor in the construction industry, the Construction Industry Scheme (CIS) affects how you’re paid and how tax is reported to HMRC.

Under CIS:

-Contractors must verify subcontractors and submit monthly returns

-Subcontractors may have 20% or 30% deducted from their payments

- Deductions count towards tax and National Insurance

Keeping CIS records accurate is essential to:

- Avoid penalties

- Reclaim overpaid tax

- Ensure your Self Assessment is correct

From April, over 840,000 self-employed individuals and landlords with profits above £50,000 will be brought into Making Tax Digital for Income Tax. This means keeping digital records and submitting regular updates in addition to the annual return.
Preparing early can help reduce disruption and avoid last minute stress. If you’re unsure whether this applies to you or need guidance on getting ready, support is available.

Buying or selling cryptocurrency? HMRC is paying close attention.

HMRC now receives data directly from cryptocurrency exchanges, including details of transactions, holdings, and disposals.

If you’ve bought, sold, swapped, or cashed out crypto, you may have a Capital Gains Tax (CGT) liability, even if you didn’t withdraw the money to your bank.

Getting your CGT position in order means reviewing transactions, calculating gains and losses correctly, and reporting accurately to HMRC.

Do you sell second-hand goods? The VAT Margin Scheme may apply.

If your business buys and sells second-hand items, antiques, art, collectibles or used cars, the VAT Margin Scheme could reduce the VAT you pay.
Instead of paying VAT on the full selling price, VAT is calculated on the profit margin — but only if the scheme is used correctly.

Key points to be aware of:

- Not all goods or purchases qualify

- Detailed records must be kept

- VAT invoices are handled differently under the scheme

Using the Margin Scheme incorrectly can lead to HMRC queries and unexpected VAT bills, so it’s important to get it right from the start.

If you’re unsure whether the VAT Margin Scheme applies to your business, get in touch for advice and support.

Every year, many self-employed clients leave filing their Self Assessment until the January deadline.
This year, take a smarter approach:

Get your records organised and ready to submit immediately after the tax year ends on 5 April
File the Self Assessment early and enjoy peace of mind.

A bit of preparation now makes the whole tax process much smoother.

If you earned interest on savings (ISAs excluded), it may need to be declared on your Self Assessment tax return.

You can earn some interest tax-free, depending on your tax band:

• Basic rate taxpayers – up to £1,000 tax-free
• Higher rate taxpayers – up to £500 tax-free
• Additional rate taxpayers – no tax-free allowance

Responsibility for maintaining and retaining business records rests with the individual taxpayer or, for limited companies, the directors. Records must be kept for at least 5 years for self-employed individuals and 6 years for limited companies. VAT and Making Tax Digital records must be kept digitally. Delegating work to an accountant does not transfer this responsibility.

Self-Employed Drivers: Mileage Allowance vs. Expenses – It’s Not Always Clear Cut!

Many self-employed drivers assume claiming the HMRC mileage allowance is always the best route—but that’s not always the case.

Mileage allowance: HMRC lets you claim 45p per mile for the first 10,000 miles (and 25p after that). It’s quick, simple, and requires less record-keeping.

Expenses method: Claiming the actual running costs, fuel, insurance, servicing, even parking, can sometimes save you more, especially if you drive a fuel-inefficient car or have high running costs.

Key takeaway: There’s no one-size-fits-all. The best option depends on your vehicle, mileage, and expenses. Some drivers benefit more from mileage allowance, others from actual costs.

If you’re unsure which method works best for you, we can run the numbers and make sure you keep more of your hard-earned money.

Message us today for a quick check on your vehicle claims.

Making Tax Digital (MTD) system uses a points-based approach for late submissions, which is designed to be fair and focus on repeated delays rather than one-off mistakes.

Each late submission adds a penalty point. The points threshold depends on how often you are required to submit returns:

Quarterly submissions (most VAT and MTD for Income Tax): 4 points
Annual submissions: 2 points
Monthly submissions: 5 points

Only once this threshold is reached does HMRC issue a £200 penalty. If submissions continue to be late after that point, further £200 penalties may apply.

Points stay on your record for up to two years but can be cleared by submitting on time for a set compliance period.

With the right support and good record-keeping, these penalties are entirely avoidable. If you’re unsure about your deadlines or MTD obligations, we’re here to help, please get in touch before it becomes an issue.