If you run your own business, receive property income, or operate a limited company, 2026 brings extra compliance steps. The good news: a little preparation now prevents headaches later.
Snapshot Summary
Three things matter most in the final run-up to 31 January. First, HMRC has reported thousands of Self Assessment scams, so treat unexpected messages as suspicious until verified. Second, late payment interest can apply on top of penalties if the deadline is missed. Third, HMRC plans to move many outbound letters to digital delivery from Spring 2026, so you should ensure you can access your HMRC online account and don't miss any messages.
Making Tax Digital for Income Tax (MTD IT) from 6 April 2026
MTD for Income Tax applies to individuals in Self Assessment who receive income from self-employment and/or property and have qualifying income above the threshold. If you are in scope, you will need to use compatible software to keep digital records and submit updates during the year.
Who is most likely affected first
HMRC sets out phased mandation, including:
- From 6 April 2026 if qualifying income is over £50,000 (based on the 2024 to 2025 tax year)
- From 6 April 2027 if qualifying income is over £30,000 (based on the 2025 to 2026 tax year)
What “getting ready” really means in practice
- Software decision: choose compatible software that fits how you work
- Digital records: move from ad hoc spreadsheets or paper to a consistent workflow
- Process: decide who records transactions and how often
- Visibility: a simple monthly cadence reduces year-end pressure
HMRC also notes there are exemptions, including for digital exclusion in some cases, and it will communicate with taxpayers it identifies as in scope.
Our recommendation
If you might be near the threshold, start with a readiness review now. You do not want to be selecting software and changing processes in March 2026.
Companies House identity verification (IDV) rollout
Companies House is introducing identity verification as part of wider reform to reduce misuse of the register. Identity verification became a legal requirement from 18 November 2025 and is being phased in over 12 months.
Who needs to verify
- New and existing directors
- New and existing PSCs
- Members of LLPs
Once verified, individuals receive a Companies House personal code, which is used to confirm verification status for company roles.
What to do now
- Identify all directors and PSCs across your companies
- Make sure Companies House records are accurate and up to date
- Plan identity verification early, especially if you have multiple entities or overseas individuals involved
- Keep the personal codes secure and accessible for future filings
How can Oldfield help you?
If you would like us to help you with making tax digital or your wider accounting or tax needs, please get in touch.
Please note: This article is for general information purposes only and was correct as at the time of writing (29/01/26) and does not constitute financial advice. Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser, and where relevant, an FCA-authorised financial planner. Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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