2026 brings major tax changes—MTD and stricter penalties. Learn how your family business can prepare now.
2026 is shaping up to be a big year for tax changes, and family businesses need to act now to avoid stress and financial risk.
What’s Changing?
– Making Tax Digital (MTD):
- Over £50,000 income → MTD from April 2026
- Over £30,000 → April 2027
- Over £20,000 → April 2028 (planned, pending legislation)
– Stricter HMRC Penalties (from April 2025):
- Daily late penalties increase to £20 per day
- 6-month penalty rises to 6% of tax owed or £400
- 12-month penalty rises to 8% or £500
How to Prepare Your Family Business
1. Review your accounting software—ensure it’s MTD-compatible.
2. Plan cashflow—save for tax throughout the year, not just at deadline.
3. Optimise salary/dividends—minimise personal tax liability.
4. Protect your legacy—put family succession planning in place now.
Final Word
Getting ahead now means less stress later. Be proactive, not reactive.
Get tax-ready for 2026—book your free consultation with RMC Accountants today.