January Newsletter | 2026
Your 2026 Business Update: Key HMRC Changes, Tax Updates, Digital Tools & AML Deadlines
2026 is already off to a busy start, and looks to be shaping up to be a significant year for UK businesses. With major HMRC reforms, digital tax requirements, and evolving expectations around compliance and onboarding. To help you stay ahead, this blog brings together the most important updates, plus practical tips for using Dext and Xero more effectively.
A crucial reminder before we dive in: ALL biometric ID checks, onboarding forms, and subsequent AML verifications, must be completed by the end of March to align with HMRC’s updated compliance expectations. Staying ahead of this deadline ensures smooth onboarding, uninterrupted service, and full regulatory compliance.
1. Making Tax Digital (MTD) for Income Tax goes live in April 2026
HMRC has confirmed that sole traders and landlords earning over £50,000 will be required to use Making Tax Digital for Income Tax from 6 April 2026. This means:
Digital record‑keeping becomes mandatory
Quarterly updates replace annual-only submissions
Approved software (like Xero) must be used to maintain and submit records
Future phases already scheduled:
April 2027 – for those earning over £30,000
April 2028 – for those earning over £20,000
HMRC has also published upcoming changes to several tax rates, including increases to dividend and savings rates from 2026 onwards.
2. What’s New & Handy Tips
Dext:
Capture receipts instantly using the mobile app
Set supplier rules to automate coding
Keep your “For Review” inbox clear to avoid MTD backlogs
Xero:
Use bank rules to speed up reconciliation
Review your chart of accounts before the new tax year
Enable tracking categories for clearer reporting
Ensure your software is MTD‑ready
3. AML Reminder: March Deadline for All Clients
To remain compliant with HMRC’s anti‑money laundering regulations, all clients must have completed the following by 31 March:
Biometric ID verification - submit your ID document, proof of address and a selfie, so we can verify your identity
Onboarding forms - return your completed onboarding form, so we can ensure our records are up to date
AML checks - upon the submission of your documents, we can run an anti money laundering check, and ensure your business is compliant
If you haven’t yet submitted your documents, please do so as soon as possible.
4. Thinking About Adding More Support This Year?
If the new year is already off to a busy start and your to do list is growing faster than your available time, this might be the perfect moment to consider expanding the support you receive. Many clients begin the year reviewing their workload and quickly realise that outsourcing a little more can free up a lot of headspace.
Whether you’re juggling payroll deadlines, VAT returns, CIS submissions, or day to day bookkeeping, DS Business Support can step in and lighten the load. Our team handles the detail so you can focus on running and growing your business, not getting buried in admin.
From fully managed payroll to streamlined bookkeeping, digital record keeping and VAT support, we offer flexible services that scale with your needs. If you’re ready to reclaim your time and start the year with more clarity and less stress, we’re here to help.
Book your free consultation by calling or emailing us today.
If you’d like help preparing for these changes or want to streamline your systems before the March deadline, we’re only a message away.