UPDATES

Latest Updates for Self Assessment & Limited Companies (2026)

The UK tax landscape is shifting again in 2026, with important changes affecting Self Assessment taxpayers and Limited Companies. From digital reporting requirements to updated penalties and investment incentives, here’s what individuals and business owners need to know right now.

Self Assessment: Key Changes for 2026

Making Tax Digital for Income Tax begins April 2026

HMRC’s long‑awaited rollout of Making Tax Digital for Income Tax Self Assessment (MTD ITSA) starts on 6 April 2026.

This first phase applies to:

• Sole traders earning over £50,000

• Landlords with property income over £50,000

These taxpayers must:

• Keep digital records

• Submit quarterly updates

• File a final declaration after the tax year ends

This marks the biggest change to Self Assessment in nearly 30 years and will require many individuals to upgrade their bookkeeping systems.

Limited Companies: What’s Changing This Year (2026)

Corporation Tax rates remain stable

For the 2026/27 tax year, Corporation Tax continues at:

• 19% for profits up to £50,000

• 25% for profits above £250,000

• Marginal relief remains between £50,000 and £250,000

To encourage timely submissions, HMRC has increased penalties for late Company Tax Returns:

• Standard late filing penalty: £200 (previously £100)

• 3+ months late: £400

• Repeated failures: up to £2,000

This change reflects HMRC’s push for stronger compliance across the corporate sector.

Whether you’re a sole trader, landlord, or company director, 2026 brings a renewed focus on:

• Digital compliance

• Timely submissions

• Accurate record‑keeping

• Strategic tax planning

Businesses and individuals who prepare early will benefit from smoother transitions and fewer penalties.

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