Tax warning for small businesses

Small business owners have been warned they could face a series of fines if they fail to comply with changes to the tax regime which are coming into force next year.

Telford-based Turas Accountants says new Making Tax Digital rules which will be rolled out from April 2026 come with significant penalties for those who do not follow them.

Turas owner Helen Columb said it was essential small businesses started getting ready for the changes, which represented the biggest shake-up in decades to the self-assessment system.

From next April, all self-employed people and landlords with a turnover of more than £50,000 will be required to join the Making Tax Digital for Income Tax Self-Assessment scheme. It will then be extended to include those with a turnover of between £30,000 and £50,000 from April 2027 and those between £20,000 and £30,000 in April 2028.

Under the programme, income and expenses details must be submitted quarterly to the taxman using compatible digital software, although there will be no change to when tax is collected.

Helen said: “It really is time for both small businesses and landlords to start getting themselves organised for this change to make sure they have everything in place for when they will need to switch over to digital reporting.

“If your turnover is over £50,000, then from next April there are five key filing dates you will need to meet. These are August 7 2026 for your Quarter One details, November 7 2026 for Q2, February 7 2027 for the third quarter and May 7 2027 for your final quarter update. In addition, you will need to have your final tax declaration with HMRC by January 31 2028.

“HMRC is introducing a points-based fines system for businesses and landlords who miss deadlines, which could lead to some costly bills.

“Every time a quarterly submission is late the business will earn one penalty point, with a £200 fine once it reaches a total of four points. Points only expire after two years, so once you’ve reached that level continuing to miss deadlines could soon become very costly.

“If you haven’t started planning for this change yet, then it’s certainly a good idea to start trying out a digital platform and ensuring you are keeping your books up to date. That way you should be ready for the quarterly reporting.

“And if you don’t have an accountant, now is a good time to think about talking to one to help take some of the stress away. The old days of thinking you can pull everything together at the last minute have gone, and failure to act could end up being a very expensive mistake.”  

Turas, which is based in Hall Court in Telford Town Centre, started trading in 2013 as Columb & Gosling Accountants.  It changed its name to Turas Accountants five years ago under Helen’s leadership.

It now works with clients across the country covering VAT, company accounts, bookkeeping and payroll. It specialises in e-commerce, helping clients who have online businesses using marketplaces such as Amazon, eBay and Etsy.

Pictured: Helen Columb of Turas Accountants