Staying ahead of tax changes and key deadlines
As we move through the early months of the year, now is an ideal time to stay ahead of upcoming tax deadlines and prepare for important changes on the horizon. February and March bring several key compliance dates, while new rules and reforms over the coming years will affect many individuals and businesses.
In this update, we:
Highlight important tax diary deadlines
Explain what Making Tax Digital for Income Tax means in practice
Outline recent changes to Agricultural and Business Property Relief
Cover Capital Gains Tax considerations when selling property
Summarise new Construction Industry Scheme (CIS) anti-fraud measures
If you’d like tailored advice on how any of these changes affect you or your business, our team at Bidwell Accountancy is always happy to help.
Are you ready for Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax (MTD for IT) represents a major change to how self-employed individuals and landlords report their income to HMRC. The new system will be introduced in stages from April 2026, and early preparation is essential.
Under MTD for IT, affected taxpayers will need to:
Keep digital records
Submit quarterly updates to HMRC
Use MTD-compatible accounting software
Comply with a new points-based penalty regime
When does MTD for IT apply?
Your start date depends on your qualifying income, which is your total income from self-employment and property before expenses:
From 6 April 2026 – qualifying income over £50,000 (2024–25 tax year)
From 6 April 2027 – qualifying income over £30,000 (2025–26 tax year)
From April 2028 – qualifying income over £20,000 (2026–27 tax year)
Exemptions
You may be exempt if:
Your qualifying income is £20,000 or less
You meet automatic exemption criteria (age, disability, or location)
You successfully apply to HMRC due to digital exclusion
If MTD for IT does not apply to you, you must continue reporting income through Self Assessment where required.
Bidwell Accountancy can help you assess your start date, select suitable software, and ensure you’re fully prepared well before MTD becomes mandatory.
Changes to Agricultural and Business Property Relief
The government has announced revisions to the planned reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR), effective from 6 April 2026.
Key changes include:
The threshold for 100% relief increasing from £1 million to £2.5 million
Relief reduced to 50% on qualifying assets above £2.5 million
Married couples and civil partners able to pass on up to £5 million of qualifying assets free from inheritance tax, in addition to existing nil-rate bands
The transferable allowance will also apply to surviving spouses or civil partners widowed before the policy announcement.
These revisions significantly reduce the impact on small farms and family-owned businesses. The government estimates that around 85% of estates claiming APR in 2026–27 will pay no additional inheritance tax.
Shares traded on AIM and other “not listed” markets will attract BPR at 50%, reduced from 100%, from April 2026.
Selling a second property? Don’t overlook Capital Gains Tax
Capital Gains Tax (CGT) often applies when selling property that is not your main residence, and strict reporting deadlines apply.
CGT is commonly payable on:
Buy-to-let properties
Second or holiday homes
Business premises
Land
Inherited property (based on post-inheritance growth)
The annual CGT exemption is £3,000, with most residential property gains taxed at 24%. Some gains may be taxed at 18% where income remains within the basic rate band.
The 60-day rule
Any CGT due on the sale of UK residential property must usually be:
Reported via a UK Property CGT return
Paid within 60 days of completion
Missing this deadline can result in penalties and interest. Early advice can help you calculate liabilities accurately and avoid unnecessary costs.
Construction Industry Scheme: tougher action on fraud
New measures aimed at tackling fraud within the Construction Industry Scheme (CIS) will take effect from 6 April 2026.
Where HMRC believes a business knew, or should have known, a payment was connected to fraud, it will be able to:
Withdraw Gross Payment Status (GPS) immediately
Assess the business for tax losses
Impose penalties of up to 30%
Businesses that lose GPS due to fraud or serious non-compliance will be barred from reapplying for five years, up from the current one-year restriction.
Additional planned CIS changes include:
Exempting payments to local authorities and certain public bodies
Reintroducing the requirement for contractors to submit nil returns
These changes are intended to strengthen compliance while simplifying administration for legitimate businesses.
📅Tax Diary: February & March 2026
Keep on top of your tax obligations with these key dates:
1 January 2026
Corporation Tax due for year ended 31 March 2025
19 January 2026
PAYE & NIC due (22 January if paid electronically)
CIS300 return and CIS tax due for month ended 5 January 2026
31 January 2026
Final day to file 2024/25 self-assessment tax returns
Payment of 2024/25 tax balance and first payment on account for 2025/26
1 February 2026
Corporation Tax due for year ended 30 April 2025
19 February 2026
PAYE & NIC due (22 February if paid electronically)
CIS300 return and CIS tax due for month ended 5 February 2026
If you would like Bidwell Accountancy to handle upcoming deadlines or take over your payroll, CIS, or Corporation Tax submissions, we are here to help.
How Bidwell Accountancy Ltd Can Help
If you’d like help planning ahead, staying compliant, or understanding how these changes affect you, Bidwell Accountancy is here to support you every step of the way.
📞 01908 380391
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