August: Key Finance News

Although August can be a quieter month, there are still a few important business updates to digest. Here are your monthly news updates and what they could mean for your business.

Budget 2026: Date announced

The Autumn Budget 2026 has now been confirmed for 28^th October 2026.

With the Budget approaching, there is already plenty of speculation around possible changes to areas such as Capital Gains Tax, property taxes and business taxation. However, many of the changes being discussed have not been confirmed.

What does this mean for your business?

If you’re considering selling a property, selling your business, transferring shares or making another major financial decision, now is a good time to review your plans.

Keep an eye out for further updates from us as we get closer to the Budget.

Inflation rises: What does it mean for your business?

The latest figures from the Office for National Statistics show that UK inflation rose to 2.9% in July, up from 2.6% in June. This was the first increase in the annual inflation rate since March.

Rising prices can have a direct impact on businesses through higher costs, wages and supplier prices. It could be a good time to review:

Small increases in costs can quickly add up, so keeping an eye on your numbers can help you spot where action may be needed.

Every business will feel the impact differently, so understanding what the wider economic picture means for your own business is what matters most.

If you’re unsure what your numbers are telling you, click here to chat with us.

We’ve also spoken about the latest inflation figures over on our Instagram – view it here.

Making Tax Digital: Are you ready for the next update?

The first Making Tax Digital (MTD) quarterly update for affected sole traders and landlords was due on 7^th August 2026.

If you’re using MTD, it’s important to keep your income and expenses up to date throughout the year so you’re ready for each quarterly deadline.

What does this mean for your business?

Regular bookkeeping can help you:

If you’re unsure whether MTD applies to you or need help keeping on top of it, please get in touch with us here.

HMRC’s latest Tax Update: More changes on the horizon

HMRC has announced several proposals aimed at making the tax system more digital and changing how some taxes are reported and paid.

One of the biggest areas to watch is electronic invoicing, with the government working towards mandatory e-invoicing from 2029.

There are also proposals to make some taxpayers pay their tax more frequently throughout the year.

What does this mean for your business?

There’s nothing you need to change just yet, but it’s a good time to make sure your bookkeeping and invoicing systems are up to date.

If you already use cloud accounting software, you may find it easier to adapt when these changes come into effect.

Do you have a side hustle?

HMRC is reminding people that income from side hustles may need to be reported for tax purposes.

The £1,000 trading allowance is the key figure to remember. If your total trading income goes over £1,000 in a tax year, you may need to register for Self-Assessment.

This could apply to people making and selling products, providing services, freelancing, creating online content and more.

What does this mean for you?

If you have a side hustle:

*Selling unwanted personal items is generally different and does not automatically mean you have taxable income. *

If you’re unsure, we’re happy to help! Tap here to contact us.

Employers: Unfair dismissal rules are changing

There are important employment law changes coming for employers.

From 1^st January 2027, the qualifying period for protection against unfair dismissal will reduce from two years to six months.

What does this mean for your business?

Now is a good time to review your:

Getting your processes in order now will help you prepare for the changes.

Could VAT and PAYE payments become mandatory by Direct Debit?

The government is consulting on proposals that could mean most VAT-registered businesses and employers must pay their VAT and PAYE by Direct Debit.

The aim is to make payments easier and reduce missed deadlines, but the proposals are not yet law.

What does this mean for your business?

There’s nothing you need to do now, but if you pay VAT or PAYE, it’s worth keeping an eye on this proposal.

If the rules change, we’ll keep you informed.

Are you increasing sales but not your profits?

More sales don’t always mean more profit.

A 12-month profit improvement plan can help you look at where your money is really being made and identify areas where you could improve your bottom line.

This could include reviewing:

What does this mean for your business?

Instead of only asking “How can we increase sales?”, ask:

“How can we make more profit from the business we already have?”

Small changes to pricing, margins or costs can sometimes make a big difference.

If you’d like help creating a profit improvement plan, please get in touch.

With the Budget coming up and more tax changes being discussed, there’s plenty to keep an eye on.

For now, the best approach is to stay informed, keep your records up to date and avoid making decisions based on speculation.

MAIN TAX EVENTS HAPPENING IN SEPTEMBER: GET AHEAD

DATE

WHAT’S DUE

1 September

Corporation Tax for year to 30/11/2025, unless quarterly instalments apply

19 September

PAYE & NIC deductions, and CIS return and tax, for month to 05/09/2026 (due 22 September if you pay electronically)

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