August 2026 Business Update

There is rarely one major change that transforms the way a business operates. More often, it is the accumulation of smaller changes — a new reporting requirement, a payroll change, another deadline or piece of legislation to prepare for.

This summer is a good example.

The first quarterly deadline under Making Tax Digital for Income Tax has now passed, bringing many sole traders and landlords into a fundamentally different way of keeping records and reporting to HMRC. For businesses using the standard quarterly periods, the next update is due on 7 November 2026.

Employers in Great Britain also have significant changes to prepare for. From January 2027, the qualifying period for most ordinary unfair dismissal claims will fall from two years to six months. The limit on compensatory awards will also be removed. Recruitment, probation, performance management and record-keeping therefore deserve attention now.

Meanwhile, HMRC has confirmed a phased move towards the mandatory payrolling of benefits in kind, beginning in April 2027 with company cars, fuel, vans and employer-provided medical benefits.

In this month’s HALKIN Update, we look at:

• Making Tax Digital: what follows the first quarterly deadline

• Employment law: why January 2027 should already be on employers’ radar

• Benefits in kind: preparing payroll systems for real-time reporting

• Companies House: what the new accounts-filing requirements will mean

• Student loans: why frozen Plan 2 thresholds may increasingly affect take-home pay

• Financial housekeeping: six areas worth reviewing before autumn

DOWNLOAD THE AUGUST BUSINESS UPDATE

Good financial management is increasingly about preparation rather than reaction. If you would like us to review your MTD readiness, payroll arrangements or 12-month cashflow position, please contact your usual HALKIN adviser.

Best wishes,
The HALKIN team