We hope you and your team are managing to stay cool in this very warm weather we are having!

Well, here it is, another Newsletter.

We are hoping we can make this a monthly thing so keep an eye out for more from us!

Please also, (if you are reading this in August of 2026) ensure you scroll to the bottom of this email for an important update from Carla!

 

 

Since the beginning of the new tax year, several important changes have taken effect for sole traders, landlords, limited companies and employers. Here is our straightforward summary of what has changed, what is coming next and what you may need to do.

 

 

Making Tax Digital for Income Tax has begun

Making Tax Digital for Income Tax became compulsory from 6 April 2026 for sole traders and landlords whose combined qualifying income from self-employment and property was more than £50,000 during the 2024/25 tax year.

The £50,000 threshold is based on gross income before expenses, rather than taxable profit.

Those affected must:

• maintain digital accounting records;
• use MTD-compatible software; and
• send quarterly updates to HMRC.

The deadline for the first quarterly update is 7 August 2026, followed by further deadlines on 7 November 2026, 7 February 2027 and 7 May 2027.

HMRC has confirmed that it will not apply penalty points for late quarterly updates during the first year of MTD. However, penalties can still apply where a tax return or tax payment is late.

PAS reminder: Even where HMRC has not written to you, it remains your responsibility to establish whether MTD applies. Please contact us if your combined self-employment and property income exceeded £50,000 and you have not yet made arrangements. 

Additionally, If you, as a current PAS client, know somebody who is still unsure about MTD and think they may benefit from working with us at PAS, give them our contact details and ask them to let us know who referred them; If they go on to sign up with us for MTD services we will reward you for every individual converted recommendation with a £25 Amazon gift Voucher!

 

Self Assessment payment deadline: 31 July

The second Self Assessment payment on account for 2025/26 is due by 31 July 2026.

Payments on account are normally two advance payments towards the following year’s tax liability, with one due in January and the second in July.

You may be able to reduce your payments on account where your profits or other taxable income have fallen. However, the reduction must be reasonable because HMRC can charge interest if the payments are reduced too far.

Please do not assume that nothing is payable simply because you have not received a reminder from HMRC.

PAS reminder: Please check your HMRC account or contact us before the deadline if you are unsure how much you need to pay. 

 

Minimum wage and mileage rates have increased

The following hourly minimum wage rates have applied since 1 April 2026:

• Age 21 and over: £12.71
• Age 18 to 20: £10.85
• Under age 18: £8.00
• Apprentice rate: £8.00

Mileage rates have also increased from 1 April 2026 from 0.45p per mile to 0.55p per mile.

PAS reminder: Employers should check more than just the hourly rate shown on a payslip. Unpaid working time, deductions from wages and additional time spent opening, closing, travelling or completing training can sometimes cause the effective hourly rate to fall below the legal minimum. For further advice, or to discuss a package that includes payroll services, give us a call - we are here to help.

 

Statutory Sick Pay has changed

From 6 April 2026, Statutory Sick Pay (SSP) became available from the first full qualifying day of sickness. The previous three waiting days have been removed.

The lower earnings threshold has also been removed, meaning more lower-paid employees may now qualify.

The weekly SSP rate is the lower of:

• £123.25 per week; or
• 80% of the employee’s average weekly earnings.

Employers cannot reclaim Statutory Sick Pay from HMRC.

PAS recommendation: Sickness policies, employment contracts and payroll procedures should be reviewed to make sure they reflect the new rules.

 

New day-one family leave rights

Employees can now give notice to take Paternity Leave and Unpaid Parental Leave from their first day of employment.

The service and earnings conditions for receiving Statutory Paternity Pay have not been removed, so an employee may qualify for the leave without necessarily qualifying for statutory pay.

PAS Recommendation: Employers should ensure that managers and payroll teams understand the difference between an employee’s entitlement to leave and their entitlement to statutory pay.

 

Companies House identity verification

Companies House identity verification is now a legal requirement for directors and people with significant control, known as PSCs.

Existing directors will generally need to provide their personal Companies House code when the company files its next confirmation statement. PSCs may also have a separate 14-day period in which to provide their verification details.

Identity verification can be completed directly through GOV.UK One Login or through an Authorised Corporate Service Provider, such as a registered accountant.

PAS recommendation: Please do not leave verification until the day your confirmation statement is due. Where a company has several directors or shareholders, each relevant individual may need to complete their own verification. Need further clarification? Give us a call!

 

The joint company accounts and tax return service has closed

If you are already signed up as a Client with PAS, you are already compliant.

However, the old joint HMRC and Companies House online filing service closed on 31 March 2026.

Companies filing their own Corporation Tax returns must now use suitable commercial software to submit the Company Tax Return to HMRC.

For the moment, some companies can still file their annual accounts separately through Companies House WebFiling or on paper. However, further changes are on the way.

From 1 April 2028, all UK companies will be required to file their accounts using commercial software. Small companies and micro-entities will also need to submit a profit and loss account, although they will be able to apply for this information not to be displayed publicly. Abridged accounts will no longer be available.

PAS reminder: If you, as a PAS client, know somebody who is still managing their own accounts (or are considering changing Accountant) that you think may benefit from working with us at PAS, give them our contact details and ask them to quote your name. If they sign up with us we will reward each and every converted recommendation with a £25 Amazon gift Voucher!

 

Further employment changes are coming in October

Several additional employment-law changes are planned from 1 October 2026. These include:

• extending the normal time limit for most Employment Tribunal claims from three months to six months;
• strengthening employers’ responsibilities to prevent sexual harassment; and
• introducing stronger consultation requirements for businesses that distribute tips and service charges.

Hospitality businesses will need to consult workers when preparing or changing their written tipping policies.

PAS recommendation: Employment contracts, staff handbooks, harassment policies and tipping arrangements should be carefully reviewed before October.

 

Business-rates support for pubs and music venues

Eligible pubs and live music venues in England can receive a 15% reduction in their business-rates bill for the 2026/27 financial year.

On 23 July 2026, the government also announced a further 20% business-rates reduction for eligible pubs, clubs and live music venues from April 2027.

PAS recommendation: Restaurants, cafés, hotels and nightclubs are not automatically included within the existing pubs and live music venues relief, so businesses should check their individual position with their local authority.

 

 Looking ahead

With a new government now in place, further tax and business announcements are likely over the coming months.

Partridge Accountancy Services will continue monitoring developments from HMRC, Companies House and the government. We will keep our clients informed of any changes we come across that may affect their businesses, employees or personal tax positions via email and/or via our website at www.partridgeaccountancy.co.uk .

 

Finally!

A summer holiday note from Carla

Carla will be visiting family and working from Brazil from 2 to 28 August 2026.

Partridge Accountancy Services will remain open during this period and calls can be made as usual into the office landline number and will be transferred to Carla via a VoIP Connection at no additional charge to you, and of course, there is always webcam and WhatsApp if you need a face-to-face chat.

You may receive emails from Carla at unusual times because of the time difference and responses may not be as quick as usual (Brazil is 4hrs behind UK time - Calls are best placed to Carla after 12 noon UK time). We apologise for any inconvenience caused.

We will have a house sitter while we are away, but the home office will be unavailable for visits during August as Clare will be working from home

 

 

Partridge Accountancy Services
Helping businesses stay informed, compliant and prepared.

Simple.

 

We wish all our clients a wonderful summer and, as always, thank you for your continued support.