If you run a small business, limited company, are self-employed or receive rental income, there are several important tax and compliance changes to be aware of this autumn.

Here is our September 2026 small business update, including the latest information on Making Tax Digital, Self Assessment, Companies House, payroll, employment law and upcoming tax deadlines.

Making Tax Digital for Income Tax in 2026

Making Tax Digital for Income Tax, often referred to as MTD ITSA, is now mandatory for some sole traders and landlords.

From September 2026, HMRC has started automatically signing up some individuals who should already be within the MTD rules but have not completed the registration themselves.

The current Making Tax Digital thresholds are:

• Gross self-employment and property income over £50,000 – MTD applies from 6 April 2026
• Gross income over £30,000 – MTD applies from 6 April 2027
• Gross income over £20,000 – MTD applies from 6 April 2028

The threshold is based on gross qualifying income before expenses.

PAYE employment income does not count towards the MTD threshold.

If HMRC contacts you to confirm that you have been enrolled into Making Tax Digital, it is important not to ignore the correspondence. You will need suitable accounting software and appropriate digital bookkeeping records.

Next Making Tax Digital Deadline

The next quarterly MTD Income Tax update deadline is:

7 November 2026

This is the second quarterly update for taxpayers already within the new MTD Income Tax regime.

Although HMRC has confirmed that penalties for late quarterly updates will not apply during the first mandatory year, 2026/27, businesses are still expected to maintain digital records and complete the required submissions.

If you are already within Making Tax Digital, now is a good time to make sure your bookkeeping, receipts and bank transactions are fully up to date.

UK Budget 2026 – 28 October

The next UK Budget will take place on:

Wednesday 28 October 2026

The weeks before a Budget often bring significant speculation about possible tax changes.

Business owners should be cautious about making major decisions based purely on newspaper headlines or rumours.

Once the Budget has taken place, we will review the announcements and explain which changes are likely to affect small businesses, company directors, landlords and sole traders.

Companies House Identity Verification

Companies House identity verification is now becoming part of normal company compliance.

Existing directors are required to provide their Companies House personal code when their company reaches the relevant Confirmation Statement filing point.

If you are both a company director and a Person with Significant Control, known as a PSC, separate verification requirements may also apply.

If we prepare your Confirmation Statement for you, we may ask you to provide your Companies House personal code before the filing can be completed.

Companies House Confirmation Statement Fee

The current Companies House digital filing fee for a Confirmation Statement is:

£50

Paper filings are more expensive.

If your accountant completes the Confirmation Statement on your behalf, their professional fee will normally be separate from the Companies House filing fee.

Employment Law Changes from October 2026

There are also important employment law changes coming into force in October.

From 1 October 2026, the normal time limit for employees to bring many Employment Tribunal claims will increase from three months to six months.

For employers, this means good HR record keeping is more important than ever.

Businesses should keep clear documentation relating to:

• sickness
• disciplinary procedures
• grievances
• dismissals
• performance concerns
• holiday disputes

Further changes relating to workplace harassment duties are also due from 30 October 2026.

Employers should consider reviewing their employment policies and procedures before the end of October.

Statutory Sick Pay Changes

Changes to Statutory Sick Pay have applied since April 2026.

SSP is now payable from the first full day of sickness, and the previous lower earnings threshold has been removed.

The current payment is generally the lower of:

• 80% of average weekly earnings
• £123.25 per week

Employers should ensure payroll systems are calculating Statutory Sick Pay correctly.

National Minimum Wage Rates 2026

The current National Minimum Wage rates from April 2026 are:

• Age 21 and over – £12.71 per hour
• Age 18 to 20 – £10.85 per hour
• Under 18 – £8.00 per hour
• Apprentice rate – £8.00 per hour

Employers should regularly check that employees are being paid at or above the correct legal minimum.

Dividend Tax Rates for 2026/27

Dividend tax rates increased for the 2026/27 tax year.

The current rates are:

• Basic rate taxpayers – 10.75%
• Higher rate taxpayers – 35.75%
• Additional rate taxpayers – 39.35%

The dividend allowance remains at £500.

For limited company directors who extract income through a combination of salary and dividends, tax planning is increasingly important.

Pension contributions and salary levels may also form part of a wider tax planning strategy.

Corporation Tax Rates

There has been no change to the main Corporation Tax structure.

The current rates are:

• 19% for company profits of £50,000 or less
• Marginal Relief between £50,000 and £250,000
• 25% for company profits above £250,000

These thresholds can be reduced where a company has associated companies.

Self Assessment Registration Deadline – 5 October 2026

A particularly important deadline is approaching for anyone who needs to complete a Self Assessment Tax Return for the first time.

You may need to notify HMRC by:

5 October 2026

This could apply if, during the 2025/26 tax year, you:

• became self-employed
• started receiving rental income
• received untaxed income
• became liable to Capital Gains Tax
• became a company director with additional taxable income

The deadline to submit the 2025/26 Self Assessment Tax Return online and pay any tax due is:

31 January 2027

If you are unsure whether you need to register, it is best to check before the October deadline rather than waiting until January.

Small Business Rates Relief

Businesses affected by the April 2026 business rates revaluation may be entitled to additional support.

Supporting Small Business Relief may help businesses that lost some or all of their Small Business Rate Relief following an increase in their rateable value.

Small Business Rate Relief continues to provide up to 100% relief for qualifying businesses with a rateable value of £12,000 or below, with tapered relief available for qualifying properties with a rateable value up to £15,000.

If your business rates have increased significantly, it may be worth checking whether you qualify for additional relief.

Important Small Business Tax Deadlines

Key dates to remember over the next few months include:

• 5 October 2026 – Self Assessment registration deadline
• 28 October 2026 – UK Budget
• 31 October 2026 – Paper Self Assessment filing deadline
• 7 November 2026 – Making Tax Digital quarterly update deadline
• 30 December 2026 – Deadline for eligible tax liabilities to be collected through PAYE coding
• 31 January 2027 – Online Self Assessment filing and payment deadline

Need Help With Your Business Tax or Accounts?

Tax and accounting rules are becoming increasingly digital and deadlines can easily be missed.

At Partridge Accountancy Services, we help small businesses, sole traders, landlords and limited companies stay on top of their accounting and tax responsibilities.

We can assist with:

• Making Tax Digital
• Self Assessment Tax Returns
• Limited company accounts
• Corporation Tax
• VAT returns
• Payroll
• Bookkeeping
• Companies House filings
• Tax planning

If you are unsure whether any of the September 2026 tax changes or upcoming deadlines affect you, please contact us.

Getting advice early can help avoid unnecessary penalties, last-minute stress and unexpected tax bills.

Partridge Accountancy Services
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