📰 Jenners Monthly Newsletter – May 2026
In the News – What Business Owners Need to Know
1. Making Tax Digital April 2026 is one of the biggest changes affecting business owners this year…
From April 2026, HM Revenue & Customs has officially rolled out Making Tax Digital (MTD) for Income Tax for sole traders and landlords earning over £50,000.
- Quarterly reporting is now required
- Digital records are mandatory
- Software is no longer optional
💡 Jenners Tip:
If you’re still using spreadsheets or paper… now is the moment. Getting set up early avoids stress (and penalties) later. We will not be taking on any clients half way through the MTD Year, so please get in touch today.
2. MTD – what happens if your income drops or stops?
There’s still confusion around what happens if your income changes under MTD.
- If your income drops below the threshold, you may still need to continue reporting for up to 3 more years
- If your income completely stops, reporting obligations end but you must notify HMRC
💡 Jenners Tip:
Don’t assume you’re “out” of MTD just because income dips. The rules are not as simple as they first appear.
3. HMRC gets tough on CIS compliance
Big change for construction businesses…
From April 2026:
- CIS nil returns are back
- You must file a return every month even if no payments are made
- Full penalty regime has been reinstated
Penalties now include:
- £100 initial fine
- £200 after two months
- Up to £300 or 5% after six months
💡 Jenners Tip:
If you’re in construction, this is a big one. Even doing nothing now requires action missing a nil return will cost you. Get in touch with Jenner’s today.
4. Free childcare – a hidden opportunity for directors
This one surprises a lot of business owners…
To qualify for 30 hours free childcare, you must:
- Earn at least £10,159 per year
- Be paid via salary (not dividends)
Dividends do NOT count towards eligibility.
💡 Jenners Tip:
If you’re only taking dividends, you could be missing out. A small salary adjustment could unlock significant childcare savings. Arrange a meeting with us to discuss.
5. Many businesses still not ready for MTD
Despite the changes going live, many businesses are still behind:
- Around 1 in 5 have not prepared
- Confusion around software and reporting remains
💡 Jenners Tip:
The earlier you get systems in place, the easier this becomes. Leaving it late = stress every quarter. We will not be helping you after Quarter 2, if you are not registered with us, so get in touch today.
6. HMRC penalties still catching people out
Following January’s deadline, many taxpayers are now facing:
- £100 initial fines
- Daily penalties
- Escalating charges over time
💡 Jenners Tip:
If something has been missed, act quickly penalties increase the longer it’s left.
📅 Important Tax Dates – May 2026
| Date | What’s Due |
|---|---|
| 1 May | Corporation Tax due for companies with July year-end |
| 7 May | VAT return & payment due (month/quarter ending March) |
| 19 May | PAYE, NIC & CIS (postal payments) |
| 22 May | PAYE, NIC & CIS (electronic payments) |
| 31 May | Issue P60s to employees |
| 31 May | Corporation Tax returns due for May year-end companies |
💡 Jenners Tip:
CIS and PAYE deadlines are now even more important with tighter compliance rules don’t let these slip.
❓ This Month’s Q&A
Q1: Do I need to use software for MTD now?
If your income is over £50,000 (self-employed or property), yes you must use compatible software.
Q2: What if I don’t pay subcontractors in a month?
You still need to file a CIS nil return or notify HMRC of inactivity.
Q3: Can I qualify for free childcare if I only take dividends?
No—only salary counts. You may need to adjust your remuneration strategy.
Q4: What happens if my business income stops under MTD?
Your reporting obligations end, but you must notify HMRC within the required timeframe.
📞 Need Help?
If any of this applies to you and you’re unsure what to do next, just get in touch.
Keeping on top of your accounts doesn’t have to be stressful with the right support, it becomes a powerful tool for growth.
📞 01432 379988
🌐 www.jennersacc.co.uk