Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you’re self-employed or a landlord earning over £50,000, get ready for quarterly updates, digital record keeping, and a new penalty system.

Initially, MTD for IT will apply to businesses, self-employed individuals, and landlords with an annual income exceeding £50,000. From 6 April 2027, the rules will extend to those with an income between £30,000 and £50,000. A new system of penalties for late filing and late payment of tax will also be introduced.

In the Spring Statement 2025, the government confirmed that MTD for IT will apply to sole traders and landlords with income over £20,000 starting in April 2028. The government will also explore how to treat those with income below the £20,000 threshold.

Starting in April 2025, HMRC will begin writing to taxpayers whose 2023-24 self-assessment returns show that their total income from self-employment and property is approaching or exceeds £50,000. These letters will notify them of their obligation to use MTD for IT starting in April 2026.

Although MTD for IT becomes mandatory in 2026, you can opt to sign up voluntarily before then. This allows you to help HMRC test and refine the system while also familiarising yourself with the new rules. While signing up is currently voluntary, there are specific eligibility requirements, and not all taxpayers will qualify. If you are eligible, you can sign up on GOV.UK.

If you volunteer to participate in testing the MTD for IT service, the new penalties for late submissions and late payments will apply. This will replace the existing penalties for the relevant tax years. No penalties will apply for the quarterly updates for volunteers in 2024-25 or 2025-26.

1 April 2025 – Due date for corporation tax due for the year ended 30 June 2024.

19 April 2025 – PAYE and NIC deductions due for month ended 5 April 2025. (If you pay your tax electronically the due date is 22 April 2025).

19 April 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2025.

19 April 2025 – CIS tax deducted for the month ended 5 April 2025 is payable by today.

30 April 2025 – 2023-24 tax returns filed after this date will be subject to an additional £10 per day late filing penalty for a maximum of 90 days.

1 May 2025 – Due date for corporation tax due for the year ended 30 July 2024.

19 May 2025 – PAYE and NIC deductions due for month ended 5 May 2025. (If you pay your tax electronically the due date is 22 May 2025).

19 May 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2025.

19 May 2025 – CIS tax deducted for the month ended 5 May 2025 is payable by today.

31 May 2025 – Ensure all employees have been given their P60s for the 2024/25 tax year.

If you’re a company director, person with significant control (PSC), or someone who files on behalf of companies, there’s a major change on the horizon. Companies House is tightening up its rules under the Economic Crime and Corporate Transparency Act, and one of the big shifts is the introduction of identity verification.

This isn’t just for new appointments – existing company officers and PSCs will also need to confirm their identity in the coming months. So, whether you’re setting up your first limited company or have been running one for years, now’s the time to understand what’s coming and get ready.

Why is this happening?

The changes are part of a broader government push to clamp down on economic crime, fraud, and misuse of the UK’s company registration system. For too long, it’s been relatively easy to submit inaccurate or false information to Companies House. These new rules aim to increase transparency and ensure that only real, identifiable people are involved in running UK companies.

Who needs to verify?

You’ll need to complete identity verification if you’re:

• A company director
• A person with significant control (usually a major shareholder or someone with real influence over the company)
• A person filing documents on behalf of a company (such as an agent or accountant)

This will also apply to new roles going forward. No one will be able to register a new company or update details unless the relevant individuals have verified their identity.

How will it work?

Verification can be done directly through Companies House or via an Authorised Corporate Service Provider (like your accountant if they’re registered). The process will likely involve uploading a photo ID and a selfie-style video – similar to online banking or digital passport applications.

Companies House hasn’t published an exact launch date yet, but the legislation is in place and implementation is expected later this year.

What should you do now?

Start by checking that your company’s records are up to date. Make sure all directors and PSCs are correctly listed. If you work with a filing agent, have a conversation with them about how they’ll handle verification. And keep an eye on Companies House announcements so you’re not caught off guard when the new system goes live.

Rachel Reeves delivered her much-anticipated Spring Statement on 26 March 2025, setting out plans to balance the books while tackling sluggish growth and rising fiscal pressures. As expected, the reaction has been swift and divided, reflecting the challenge of navigating economic responsibility in an election year.

The statement outlined a bleak economic outlook, with the UK’s growth forecast for 2025 halved from 2% to just 1%. In response, Reeves announced £14 billion in spending cuts, targeting welfare budgets and government departments. She framed these cuts as a necessary correction to secure a projected budget surplus by 2029-30. Simultaneously, she pledged a significant increase in defence spending, citing growing global instability.

Critics from across the political spectrum didn’t hold back. The opposition branded the revised forecasts and spending cuts as a broken promise, accusing the government of leaving the country “weaker and poorer.” Even some within Reeves’s own party raised eyebrows, particularly over the welfare cuts, which are expected to hit over three million households and push around 250,000 people into poverty. Detractors questioned the wisdom of cutting support at a time when many are still feeling the effects of the cost-of-living crisis.

Think tanks and economists added their own critiques. Some argued that Reeves’s plan was fiscally responsible but came at a high social cost. Others pointed out that the “headroom” in public finances is based on optimistic assumptions, and that tax rises may still be on the table come the autumn Budget. Meanwhile, concerns were raised that pushing through rapid welfare changes might have unintended consequences for the lowest income families.

The business community also expressed concern, particularly about the lack of support as firms face higher national insurance contributions and a rise in the national living wage from April. Business leaders warned that these pressures could lead to higher prices, reduced hiring, and stalled investment.

Among the public, reactions have been predictably varied. Some see the statement as a necessary dose of reality, while others feel let down by the prioritisation of defence spending over essential services and household support.

With a general election looming, the Spring Statement has set the stage for further debate. Reeves is banking on her tough choices being seen as prudent. Whether the public agrees remains to be seen.