Happy New Year to all our readers from Matt, Sally and The Team at Clear Vision!
Hello and welcome to January! As a new year begins, it’s the perfect moment to pause, reset and refocus. At Clear Vision we see January as a time to create momentum – reviewing what’s working, learning from what hasn’t and setting clear intentions for the months ahead.
Running a business rarely follows a straight line. Markets shift, priorities change and new challenges can appear without warning. But with the right support and insight, those moments can become powerful turning points, rather than setbacks.
That’s where we come in. Our role is to give you clarity and confidence; helping you understand your numbers, make informed decisions and feel supported no matter what stage your business is at. Sometimes that means strategic advice and other times it simply means having someone to talk things through with.
As we step into the year ahead, please remember that you’re not doing this alone. Whatever your goals, plans or uncertainties, the Clear Vision team is here to support you every step of the way. Here’s to a focused, confident and successful year ahead!
Important Deadline Reminder
2024/25 self-assessment tax returns must be submitted to HMRC by 31 January 2026.
If you still haven’t signed off your personal tax return, please do so as soon as possible, as the deadline is fast approaching. We pride ourselves on submitting all of our clients’ tax returns on time but can only do so with your support.
Please remember that tax returns filed after the deadline will automatically incur a late filing penalty of £100.
Making Tax Digital for Income Tax Self-Assessment – Penalty Changes Explained
The government has announced several important changes to penalties under MTD for ITSA. Below is a clear summary of what this means and who it affects:
Soft Landing for Early MTD Adopters – April 2026
- Taxpayers who are required to join MTD for ITSA from April 2026 will not receive penalty points for late submissions of their first four quarterly updates
- This “soft landing” will only apply to this first group of taxpayers
- It will not apply to those mandated to join MTD for ITSA in April 2027 or April 2028
Important Points to be Aware Of
- Even though penalty points are waived, quarterly updates must still be submitted before you can submit your finalisation statement (MTD tax return)
- The penalty easement does not apply to the finalisation statement/MTD tax return for 2026/27, which is due by 31 January 2028
- This means that a penalty point will still be issued if the 2026/27 MTD tax return is submitted late
Late Payment Penalty
- Taxpayers will receive an additional 15 day grace period before a late payment penalty is applied in their first year under the new penalty system
- This means there will be a total of 30 days to settle any outstanding tax before a late payment penalty is charged
- The government will introduce the new penalty regime from 6 April 2027 for late submission and late payment relating to self-assessment tax returns that are not already within MTD
- This change removes concerns about a two-tier penalty system operating simultaneously for taxpayers inside and outside MTD
- However, from 1 April 2027 the government will increase late payment penalties for income tax (both under self-assessment and MTD for income tax) and VAT
- Full details of the increased penalty rates have not yet been published
Business Owners – Are Your Goals Truly Clear?
Have you clearly defined your short-term and long-term goals for both yourself and your business? Do your personal ambitions genuinely align with the direction your business is heading?
And most importantly… are those goals truly SMART?
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
How often do you step back to review your progress? Who holds you accountable for staying focused and moving forward?
At Clear Vision, we believe strong leadership is the foundation of every successful business. Our Leadership Support Programme is designed to help business owners:
- Navigate challenges with confidence
- Strengthen and refine leadership skills
- Break through growth-limiting barriers
- Inspire, motivate and empower their teams
- Achieve sustainable, long-term success
Through innovative strategies and a collaborative, supportive approach, we help you lead with clarity, unlock your full potential and drive meaningful results.
Ready to take the next step? Discover how our Leadership Support Package can transform your business – visit our website today!
Vantage Tax Fee Protection Cover
You should have received your annual renewal or new client invitation letters. These were sent out by email, directly from Vantage, the service provider.
If you’ve not yet completed your order form, or you didn’t receive the invitation email, please contact jo.lewendon@cvag.co.uk as soon as possible. Please note that the renewal start date is 1 January 2026.
The Vantage Tax Fee Protection Service provides peace of mind by covering the professional fees incurred when responding to HMRC enquiries on your behalf. Tax investigations can be lengthy and complex, often lasting months or even years and the associated costs are not included within our standard annual fees.
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 get in touch.
At Clear Vision, we’re a team of dedicated professionals, each with our own unique skills. We love supporting our clients and are always here to provide the guidance you need.
How ever 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:
“You are never too old to set another goal or to dream a new dream.”
CS Lewis