We hope you’re enjoying the longer days and finding time to make the most of the summer. Perhaps you’ve been keeping up with the football World Cup too? While many businesses are looking forward to a well-earned break and a slightly slower pace, July is also an ideal time to stay on top of key tax deadlines and make sure everything is running smoothly before the busy autumn period.
In this month’s update, we’ve rounded up the latest tax and business news and highlighted important filing dates to help you stay compliant and plan ahead. As always, if any of the topics raise questions or you’d like tailored advice, we’re only a phone call or email away.
Making Tax Digital for Income Tax – First Quarterly Deadline
If you’re now using Making Tax Digital (MTD) for Income Tax, your first quarterly deadline is approaching.
Individuals with a combined gross income of more than £50,000 from self-employment and/or UK property entered the MTD regime on 6 April 2026. Instead of submitting one annual self-assessment tax return, you are now required to keep digital records and send quarterly updates to HMRC using compatible software.
Your first quarterly reporting period covered 6 April to 5 July 2026. The deadline to submit this update to HMRC is 7 August 2026.
To help avoid errors or delays, make sure you have:
- Recorded all business and property income received during the quarter
- Entered all allowable business expenses
- Reviewed your transactions to ensure they have been allocated to the correct categories
- Confirmed that your MTD-compatible software is linked to your HMRC account and ready to file
Looking ahead, the scope of MTD for Income Tax will widen. From April 2027, the entry threshold falls to £30,000 and from April 2028 it reduces again to £20,000, meaning many more self-employed individuals and landlords will be required to comply with the digital reporting rules.
Employers – Class 1A National Insurance on Benefits
If you provided employees or directors with taxable benefits during the 2025/26 tax year, you’ll need to ensure the associated Class 1A National Insurance is paid this month. Payment deadlines are:
- 19 July 2026 – if paying by post or other non-electronic methods
- 22 July 2026 – if paying electronically (funds must have cleared by this date)
The employer contribution is charged at 15% of the taxable value of benefits. This liability applies whether the benefits were reported on P11Ds or processed through payroll.
If you’ve already submitted your P11Ds but later identify an omission or mistake, don’t ignore it. Corrections can be made and dealing with them promptly can help minimise any penalties or interest that may arise.
Self-Assessment – Second Payment on Account
For many self-employed individuals and landlords, the next self-assessment payment on account falls due on 31 July 2026.
These payments are based on your previous year’s tax bill, rather than your current year’s income. As a result, the amount due may not reflect your present financial position.
If you expect your taxable income for 2025/26 to be lower than it was last year, you may be able to reduce this payment. However, any claim should be made before the 31 July 2026 deadline. Reducing the payment too far could result in interest being charged if your final tax bill is higher than expected.
If you’re unsure whether the amount due is appropriate, we’re happy to review your circumstances and advise whether a reduction is worthwhile.
Leadership – Matt
‘Tis the Time to Unwind
As we approach the end of another school year, the summer holidays are fast approaching.
For many of us, there’s plenty to organise. Activities to book, journeys to plan, long queues to navigate and perhaps, cramped travel conditions to endure. Sometimes, even thinking about a holiday can feel exhausting.
When I talk to clients about mental rest and their plans for time off, their faces often drop. Many tell me they return from holiday feeling more tired than when they left.
Perhaps the break you really need doesn’t require a passport. Sometimes, the best way to recharge is much closer to home.
I encourage my clients to think about what they really want from their free time. Are you craving adventure and somewhere new to explore? Or do you simply need the space to switch off and step away from the daily grind?
As I head into my own holiday, my approach is:
- Keep it simple: Don’t try to pack too much in; we’ve all been there before
- Allow yourself to be bored: Build in unplanned time. When the mind has space to wander, that’s often when the best ideas emerge
So, what’s on your list this summer? How will you make sure you come back feeling genuinely refreshed?
If you’re looking for a safe, supportive space to talk about your business, leadership challenges, or simply gain clarity as a business owner, our transformational Leadership Support Programme could be just what you need. Please feel free to contact me for an initial conversation. See here for further info.
How We Can Help
If you have any questions about the topics covered in this month’s newsletter and how they might affect you or your business, please don’t hesitate to reach out.
We are committed to keeping our clients ahead of regulatory changes, so you can focus on running your business with confidence.
At Clear Vision, we’re more than a team of professionals; we’re a group of people who genuinely enjoy supporting our clients. We’re here to help you.
However you need us to support you through your journey as a business owner, we’re here for you!
This month’s Clear Vision positive thought:
“Champions keep playing until they get it right.”
Billie Jean King