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Under Making Tax Digital for Income Tax (MTD for ITSA), for sole traders and landlords the traditional Self Assessment tax return is gradually being replaced with a new digital end-of-year process. Although quarterly updates are submitted throughout the year, taxpayers will still need to complete a final year-end submission to confirm their overall tax position. What is the end-of-year submission? This is effectively the final confirmation of income, expenses and tax calculations for the year.

Quarterly submissions are one of the biggest changes introduced by Making Tax Digital for Income Tax (MTD for ITSA). Instead of waiting until after the tax year to report income and expenses, sole trade businesses and landlords will now send updates to HMRC every quarter. For many taxpayers, this represents a major shift in how they manage bookkeeping and tax reporting. What are quarterly submissions? These are summary updates sent to HMRC using MTD-compatible software.

Making Tax Digital for Income Tax (MTD for ITSA) introduces a new penalty system for late submissions and late payments in respect of income tax. HMRC is moving away from the traditional fixed Self Assessment penalty structure towards a points-based approach. Understanding the new rules is essential for businesses and landlords preparing for MTD. What has changed?

It has only taken 15 years and a Middle East crisis for the Government to recognise the reality of today’s costs of running a car or van for business purposes. On the 21st May, Chancellor Rachel Reeves announced that the Approved Mileage Allowance Payment (AMAP) rate is to be increased from 45p per mile to 55p per mile and that this rate would be backdated to the start of this tax year on 6 April 2026. The increase will, however, only apply to the first 10,000 business miles covered in a tax year.

Recent legislative changes and further clarity on IR35 rules in the Courts have highlighted that working ‘outside IR35’ may not now be just for the few. A closer look at how things have changed and the current state of the temporary labour market may provide opportunities for contractors, agencies and clients alike. The background Tax changes introduced by the Off-Payroll Working (OPW) rules introduced in 2017 and 2021 saw a massive move away from limited company contractor engagements.

From April 2026, HMRC is increasing late filing penalties for Corporation Tax returns (CT600). For limited companies, this represents the first major change to the corporation tax penalty regime in almost three decades, and it will have a noticeable impact on businesses that miss deadlines. Why are CT600 penalties increasing? The key driver behind the changes is inflation. The current penalty levels were introduced in the late 1990s and have not been updated since.

The Government’s ‘Make Work Pay: Modernising the Agency Work Regulatory Framework’ consultation, is open for responses until 1 May 2026. It sets out proposals across key areas, including transparency, security, and worker choice, with a clear focus on improving worker protections while ensuring the framework remains proportionate and workable for businesses.

The Government’s Make Work Pay consultation on modernising the agency work regulatory framework was released in February, giving recruitment agencies, workers and industry stakeholders the opportunity to shape the future of the temporary labour market. The consultation is focused on strengthening protections for agency workers while ensuring businesses can continue to operate efficiently.

Once again, PayStream has made it on the UKs Best Workplaces™ Top 100 (Large Category) list, beating hundreds of organisations across the UK. We’ve moved up 32 places to achieve the 52nd spot this year. The UK’s Best Workplaces Awards are considered the ‘gold standard’ of employer awards.

Introducing our MTD for ITSA service We offer a full MTD for ITSA accounting service designed specifically for those impacted by the new requirements. For many, the time, stress, and risk of mistakes involved in managing this themselves can outweigh the cost of professional support. That’s why many people choose expert help to reduce pressure and avoid errors. Our service is suited to sole traders, including self-employed tradespeople, those working in CIS and landlords.