September 2026 Tax & Business Update: What You Need to Know
September is a good time for business owners to take stock of their finances, check upcoming tax deadlines and make sure they are not missing opportunities to reduce unnecessary tax costs.
This month, we look at four areas that could have a real financial impact: reclaiming VAT on costs incurred before VAT registration, changes to Incorporation Relief, Stamp Duty Land Tax (SDLT) and the latest tax deadlines.
Whether you’re already a Bidwell Accountancy client or you’re looking for an accountant who can help you understand what the numbers actually mean for you and your business, our aim is simple: we make the complex simple.
Could you reclaim VAT from before you registered?
If your business has recently registered for VAT, don't assume that you can only reclaim VAT on purchases made after your registration date.
You may be able to go back and recover VAT on certain costs incurred before your business became VAT registered.
For a growing business, this can potentially result in a valuable VAT repayment.
How far back can you go?
VAT on goods can generally be reclaimed on eligible purchases made up to four years before VAT registration, provided the goods are still held by the business or were used to make other goods that are still held.
VAT on eligible services can generally be reclaimed for purchases made during the six months before registration.
The expenditure must relate to the business that has now registered for VAT and its taxable business activities.
For example, depending on the circumstances, this could include costs relating to:
equipment and business assets;
stock;
professional fees;
software and other business services; and
other qualifying expenditure incurred while establishing or growing the business.
You'll need appropriate VAT invoices and records to support the claim.
Pre-registration VAT will normally be reclaimed through the business's first VAT return.
Don't leave money behind
There are additional rules for businesses with exempt or non-business activities and for certain significant capital assets, so it isn't always as simple as adding up the VAT on your old invoices.
If you're approaching the VAT registration threshold, have recently registered, or think VAT may have been missed from your first return, speak to us before assuming the money has been lost.
At Bidwell Accountancy, we can review your records, identify potentially eligible expenditure and help ensure your VAT returns are completed correctly.
Moving from sole trader to limited company? A tax rule has changed
There can come a point when a sole trader or partnership starts considering whether operating through a limited company would be more appropriate.
But incorporating a business isn't simply a case of registering a company at Companies House.
There can be significant Capital Gains Tax (CGT) consequences.
When a business is transferred to a limited company, its assets may be treated as being transferred at market value. Where assets such as goodwill or property have increased substantially in value, this can potentially create a taxable capital gain.
One relief that may help is Incorporation Relief.
What is Incorporation Relief?
Broadly, Incorporation Relief can defer some or all of the capital gain when a business is transferred to a limited company as a going concern and the necessary conditions are satisfied.
Instead of paying CGT immediately, the qualifying gain is effectively rolled into the value of the shares received in the new company.
The tax isn't necessarily eliminated – it is generally deferred until a future disposal of those shares.
A major change from 6 April 2026
For qualifying business transfers taking place on or after 6 April 2026, Incorporation Relief must be claimed.
Previously, the relief could apply automatically where the relevant conditions were satisfied.
That makes planning and record-keeping even more important.
For a business transferred during the 2026/27 tax year, for example, the normal claim deadline would be 31 January 2029.
Failing to make a valid claim could potentially leave CGT payable when it might otherwise have been deferred.
Should you become a limited company?
Tax is only one part of the decision.
Before incorporating, you should consider the wider picture, including:
Corporation Tax;
salary and dividends;
National Insurance;
Capital Gains Tax;
VAT;
pensions;
extracting money from the company;
administrative responsibilities; and
your longer-term plans for the business.
The right structure five years ago may not necessarily be the right structure today.
If you're a sole trader or partnership considering becoming a limited company, talk to us before making the change rather than trying to fix the tax position afterwards.
Buying property? Don't forget about Stamp Duty Land Tax
The purchase price isn't always the true cost of buying a property.
If you're purchasing property or land in England or Northern Ireland, Stamp Duty Land Tax (SDLT) may need to be factored into your budget.
SDLT can apply when purchasing:
a freehold property;
a new or existing leasehold;
land;
a property through certain shared ownership arrangements; or
property or land transferred in exchange for payment.
For a standard residential property purchase, the current SDLT bands are:
0% – up to £125,000
2% – £125,001 to £250,000
5% – £250,001 to £925,000
10% – £925,001 to £1.5 million
12% – above £1.5 million
However, the final SDLT bill can depend heavily on the circumstances.
For example, different rules can apply to first-time buyers, landlords, second-home owners, companies and non-UK residents.
Purchasers of additional residential properties will generally face higher SDLT rates, with an additional 5% surcharge potentially applying.
This means the tax consequences should be considered before committing to a property transaction, particularly where property is being purchased as an investment or through a limited company.
Your solicitor or conveyancer will normally submit the SDLT return, and any tax due is generally payable within 14 days of completion.
Scotland and Wales operate separate property transaction taxes, so different rules apply there.
If you're considering purchasing an investment property or wondering whether to buy personally or through a limited company, we can help you look at the wider tax implications before you make your decision.
Autumn Budget 2026 – what could it mean for you?
The Autumn Budget is always an important date for business owners, company directors, landlords and individuals because changes to tax rates, allowances and government policy can affect both businesses and personal finances.
At Bidwell Accountancy, we'll be reviewing the announcements and, more importantly, looking at what the changes actually mean for our clients.
Tax announcements can generate plenty of headlines, but the important question is:
What does it mean for you?
We'll provide a straightforward summary following the Budget, focusing on the changes that could affect SMEs, company directors, sole traders, landlords and individuals.
Tax Diary – September and October 2026
Don't get caught out by an avoidable HMRC deadline.
September 2026
1 September
Corporation Tax payment deadline for companies with a year end of 30 November 2025.
19 September
PAYE and National Insurance deductions due for the month ended 5 September 2026. If paying electronically, the deadline is 22 September.
19 September
CIS monthly return filing deadline for the month ended 5 September 2026.
19 September
CIS deductions for the month ended 5 September 2026 are due for payment.
October 2026
1 October
Corporation Tax payment deadline for companies with a year end of 31 December 2025.
19 October
PAYE and National Insurance deductions due for the month ended 5 October 2026. If paying electronically, the deadline is 22 October.
19 October
CIS monthly return filing deadline for the month ended 5 October 2026.
19 October
CIS deductions for the month ended 5 October 2026 are due for payment.
31 October
Deadline for submitting a paper 2025/26 Self Assessment tax return.
Need help with your business finances or tax?
Good accountancy should be about more than submitting accounts and tax returns.
At Bidwell Accountancy, we work with businesses, sole traders, landlords and limited companies to help them understand their numbers, meet their tax obligations and make better-informed financial decisions.
From bookkeeping, VAT and payroll to annual accounts, Self Assessment, tax planning, management accounts and business forecasting, our UK-based team can support you as your business develops.
Already a Bidwell client? If anything in this month's update affects you or you're unsure whether it does, get in touch with the team.
Not currently a client? If you're looking for a proactive accountant who will explain things in plain English and help you look forward rather than simply report what happened last year, we'd be happy to have a conversation.
Bidwell Accountancy – Growing your business together.
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