August 2026
Welcome
Welcome to our August Business & Tax Update.
For many businesses, August provides a welcome opportunity to pause, reflect and prepare for a busy autumn. It’s also an important month for many self-employed individuals and landlords as the first Making Tax Digital quarterly submission deadline arrives.
This month we’re looking at the latest tax developments, practical cash flow advice and simple ways to put your business in the strongest position for the final quarter of the year.
Have You Made Your Second Payment on Account?
Did You Make Your Self Assessment Payment on Account?
The deadline for the second Self Assessment Payment on Account was 31 July 2026.
If you were due to make a payment, it should now have been received by HMRC. If you’ve already paid, you can tick this one off your list!
If you haven’t yet made your payment, don’t ignore it. HMRC will begin charging interest on any outstanding balance, so it’s important to make the payment as soon as possible.
The amount you need to pay, your payment reference and the available payment methods can all be found in the covering letter that accompanied your most recent Self Assessment tax return.
If you’re unsure whether you’ve paid the correct amount, believe your income has reduced and your Payments on Account should be reviewed, or you’re concerned about making the payment, please get in touch. We’re here to help and can advise on the best course of action.
Jenners Tip 💡
Missed the deadline? The sooner you act, the lower the interest charges are likely to be. If you’re worried about paying, speak to us before the situation escalates we may be able to help you explore your options.
First Making Tax Digital Deadline Arrives
For many sole traders and landlords, 7 August 2026 marks an important milestone.
Those earning more than £50,000 from self-employment and/or property income are now required to submit their first quarterly Making Tax Digital (MTD) update to HMRC using compatible software. Importantly, this quarterly update is not a tax return. Instead, it’s a summary of your income and expenses for the first quarter of the tax year. The annual tax return is still required, and there are no penalty points for late quarterly updates during the first year of MTD, although businesses should still aim to file on time.
Jenners Tip 💡
Don’t wait until the week of the deadline to find out your software isn’t set up correctly. If you’re unsure whether MTD applies to you, speak to us now we can help you get everything in place before the filing deadline.
Is Your Business Ready for a Strong Final Quarter?
September often feels like the “real” start of the business year after the summer holidays. Businesses that take time during August to review their finances are usually much better placed for a successful autumn.
Ask yourself:
- Are sales on target?
- Is cash flow healthy?
- Have your costs increased more than expected?
- Are customers paying on time?
- Are you putting enough aside for tax?
A simple financial review now can highlight opportunities before they become problems.
Jenners Tip 💡
Treat August as your business MOT. One hour spent reviewing your figures now could save weeks of stress later in the year.
Cash Flow Still Matters More Than Profit
A profitable business can still experience financial pressure if cash isn’t arriving quickly enough.
Late payments continue to be one of the biggest challenges facing small businesses. Consider:
- sending invoices immediately
- reviewing payment terms
- using automated reminders
- chasing overdue invoices promptly and professionally
Improving cash flow often doesn’t require increasing sales—it simply means getting paid sooner.
Jenners Tip 💡
Review your five oldest unpaid invoices this week. They’re often where the quickest cash improvements can be found.
Side Hustle? Don’t Forget the Tax
Whether you’re selling crafts, offering consultancy, providing wedding services or earning additional income online, it’s important to understand your tax responsibilities.
Many people start small businesses alongside full-time employment without realising when they may need to register for Self Assessment or declare additional income. HMRC has recently reminded people turning hobbies into businesses to check their obligations early rather than waiting until January.
Jenners Tip 💡
Keeping separate business records—even for a small side business—makes tax time much simpler and gives you a clearer picture of whether your venture is making money.
Jenner’s Insight
Busy Isn’t the Same as Successful
Many business owners wear being “busy” as a badge of honour.
But being busy doesn’t always mean you’re making more profit.
The most successful businesses regularly step back and ask:
- Which customers generate the most profit?
- Which work takes the most time?
- Where are we wasting effort?
- What could we stop doing?
Sometimes the biggest improvement comes from doing less—but doing it better.
Ask Jenners Q & A
Q1. I’m a sole trader – does Making Tax Digital apply to me?
If your combined income from self-employment and/or property exceeds the current threshold for Making Tax Digital (MTD), you may now be required to keep digital records and submit quarterly updates to HMRC using compatible software. If you’re unsure whether the rules apply to you, it’s worth checking now rather than waiting until the deadline approaches.
Q2. Can I claim for working from home if I’m a company director?
Yes, in many cases you can. There are several ways a limited company director may be able to recover some of the costs of working from home, but the most tax-efficient option depends on your circumstances. We can advise on the approach that works best for you while ensuring everything is claimed correctly.
Q3. Should I buy new equipment before my year end to save tax?
Not necessarily. While tax relief is available on many business purchases, buying something purely for the tax saving isn’t always the best financial decision. It’s important to consider whether the purchase will genuinely benefit your business as well as the tax implications. Good planning is always better than rushed spending.
Q4. My business is busy, but there’s never much money left in the bank. Why?
Being busy doesn’t always mean being profitable. Rising costs, low profit margins, late-paying customers and poor cash flow can all impact the money available in your business. Regular financial reviews can help identify where profits are being lost and what changes could improve your cash position.
Important Tax Dates
7 August 2026
Making Tax Digital quarterly update deadline for many sole traders and landlords within scope of MTD for Income Tax.
19 August 2026
PAYE, NIC and CIS postal payment deadline.
22 August 2026
Electronic PAYE, NIC and CIS payment deadline.
Need Some Advice?
Whether you’re preparing for Making Tax Digital, reviewing your business performance or planning for the months ahead, we’re here to help.
At Jenners Tax and Business Advisors, we don’t just help you stay compliant we help you make confident business decisions.
Get in touch with our friendly team today to see how we can support your business.
Check out all of services pages today.
Call us on 01432 379988 or use the contact us page.
📞 01432 379988
🌐 www.jennersacc.co.uk