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Join a growing community of business owners. Get the latest business guidance and economic news via WhatsApp, email, or RSS.
25 February 2026
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11 min
In this episode of The Coffee Podcast, Liz Barclay and ACCA-registered accountant Eriona discuss the new 'Making Tax Digital' initiative by the UK government. This significant shift in how small and micro businesses report their income is set to replace the traditional annual income declaration with five yearly submissions. Businesses will now need to make a quarterly submission every three months, summarising their income for that period, and a final 'end of period' statement at the end of the year, which provides an opportunity to correct any errors from previous submissions. Importantly, these submissions must be made using digital software compatible with the 'Making Tax Digital' initiative. Arianna clarifies that businesses already registered for VAT have been using this system since around 2018. However, the new changes will also apply to sole traders who are VAT registered, as well as other businesses. The initiative will be phased in, with businesses earning above $50,000 required to comply from April 2026, and those earning above $30,000 from April 2027. It's important to note that these thresholds refer to income, not profit. Businesses will need to review their income collation and submission processes to ensure they are compliant with these new requirements.
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