Planning Ahead: How to Get Your Family Business Tax-Ready for 2026

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.