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July: Key Finance News
We hope you’re enjoying the sunshine and making the most of this heatwave! While summer might be in full swing, there are still a few important business updates to keep on your radar. We’ve pulled together the key things you need to know this month, along with what they could mean for your business.
Making Tax Digital: your first quarterly update is approaching
If you are a sole trader or landlord who is now required to use Making Tax Digital (MTD), your first quarterly update deadline is fast approaching.
The first update must be submitted to HMRC by 7th August 2026 and will cover your income and expenses for the first three months of the tax year.
After submitting an update, HMRC will provide an estimated tax calculation based on the information provided. However, this does not replace your Self-Assessment tax return, and your usual tax payment deadlines remain unchanged.
What does this mean for your business?
If MTD applies to you, now is the time to make sure:
- You are using compatible accounting software
- Your income and expenses are being recorded accurately
- Your bookkeeping is up to date
- You understand what information needs to be submitted each quarter
The move to quarterly reporting is a big change for many small businesses, so getting into good habits now will make future updates much easier.
If you need help getting ready for MTD, please get in touch here, we’re more than happy to support you.
HMRC mileage rates increase
HMRC has increased the approved mileage rate for business travel, increasing the rate from 45p to 55p per mile for the first 10,000 business miles each tax year.
The change is backdated to 6th April 2026, meaning it applies from the start of the current tax year.
What does this mean for your business?
The increase could help businesses that reimburse employees for business travel by:
- Allowing more tax-efficient mileage payments
- Helping offset rising travel costs
- Giving employees better support when using their own vehicles for work
If your business regularly pays mileage expenses, it is worth reviewing your current policies and payroll processes to make sure they reflect the new rates.
We’ve summarised this update in a short reel – click here to watch.
Companies House filing changes delayed… but preparation is still important
Businesses have been given more time to prepare for upcoming Companies House filing changes, with the changes now expected to begin in 2028 rather than 2027.
The changes are part of a wider move towards more digital reporting and increased transparency.
Future changes will include:
- Accounts being filed using software only
- More information being required from some small companies
- Some simpler filing options being removed
What does this mean for your business?
Although the deadline has moved, the direction of travel has not changed.
Now is a good time to review:
- How you keep your financial records
- Whether your bookkeeping systems are suitable for the future
- Whether your accounts processes could be made more efficient
Preparing early can help avoid unnecessary pressure when the changes come into effect.
AI and cybersecurity: using technology safely in your business
Artificial Intelligence (AI) continues to change how businesses operate, with new research suggesting that companies using AI effectively are seeing improvements in productivity and growth.
The biggest benefits are often seen when businesses use AI to support their teams, rather than simply replace existing roles.
What does this mean for your business?
AI can help with everyday tasks such as:
- Reducing time spent on admin
- Improving customer communication
- Supporting planning and research
- Automating repetitive processes
However, as businesses become more reliant on technology, cybersecurity is becoming increasingly important.
Small businesses remain a common target for cyber-attacks, and simple steps can make a big difference.
Consider reviewing:
- Password security
- Access to business systems
- Software updates
- Data backups
If you have any questions about the updates in this month’s edition or would like to discuss how they could affect your business, we’d be happy to help. Get in touch with our team here.
MAIN TAX EVENTS HAPPENING IN AUGUST: GET AHEAD
DATE
WHAT’S DUE
1 August
Corporation Tax for year to 31/10/2025, unless quarterly instalments apply
19 August
PAYE & NIC deductions, and CIS return and tax, for month to 05/08/2026 (due 22 August if you pay electronically)
What we've been up to this month:
July has been an exciting month, with plenty of opportunities to connect, learn, and meet other businesses.
We were delighted to attend Xerocon 2026 over two days in London. From an inspiring line-up of speakers, including Louis Theroux and Prue Leith, to exploring interactive exhibits, it was a fantastic opportunity to see how our profession continues to evolve. We’re incredibly proud to be part of an industry that’s always looking ahead and finding new ways to better support our clients.
As proud members of the Suffolk Chamber of Commerce, we were delighted to sponsor their Safari Networking Event at Africa Alive. It was a brilliant afternoon meeting so many local businesses, sharing a little about who we are, and handing out our branded goodie bags. We loved being part of such a unique event and supporting the local business community.
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