We hope the summer has treated everyone well. It certainly has been a good one for many and has made a refreshing change. I’m sure that some clients are looking for some long overdue rain and the forecast would suggest that this is coming soon. Hopefully we can then get back to some nice weather to finish the summer off.
It has been some time since our last blog, so it felt right to send an update on a few issues as follows:
Chancellor’s Autumn Budget Statement
You may have seen the various press reports highlighting the budget deficit the Government is facing. They are focussing on spending pressures, low economic growth, higher inflation and higher than anticipated interest rates, which strongly suggests that the Chancellor’s Autumn statement will include more tax increases.
No date has yet been set for the Autumn Statement. Many are expecting it to be early November.
There are numerous, far-reaching rumours of what measures the Chancellor may take. We were going to cover some within this blog, but at this point we are 2 months away from the Statement and therefore much can change between now and November. We know that clients are worried about what could be ahead and rest assured we will bring you further news, analysis and advice when the time comes.
Making Tax Digital (MTD)
Back in March we circulated an article on MTD and the changes coming from April 2026. The article can be found here >.
HMRC are still pushing ahead with the timetable, and we are not anticipating any further delays. Pilots have been running this year, and feedback thus far, is that they have not been testing the full scope of MTD across multiple income streams. This is far from ideal given how close MTD is from going live across the board. We requested access to take part in the pilot many months ago, but are yet to be included.
As a reminder, from April 2026 the first tranche of MTD goes live and those with turnover of >£50,000 on their 2024/25 tax return from self-employment and rental income (combined), will be required to produce and submit quarterly MTD returns.
HMRC have announced the fines and penalty structure for MTD, and late submission of quarterly returns could result in fines of £200 per quarter. Furthermore, failure to keep records in line with MTD rules could result in a fine of up to £3,000.
We are already in contact with most clients affected in the first tranche of MTD. There will be others who exceed the £50,000 turnover threshold for the first time in 2024/25. We will discuss with you as they arise. If you are worried, then please contact your usual Smarter Accounting representative.
Companies House Identity Verification
Those who are involved with Limited Companies may well have received emails from Companies House regarding their identity verification. We will shortly be sending out a separate article on this specific subject.
Xero Price Increases
From 1 September 2025, Xero are increasing their prices again and therefore we will be increasing our bills for Xero from 1 September. Please note, this is not a price increase from us, we are simply passing the Xero price increase on. The table shows the new monthly costs.
Plan | Old Cost | New Cost |
Ignite | £16.00 | £16.00 |
Grow | £33.00 | £37.00 |
Comprehensive | £47.00 | £50.00 |
We have used Xero for many years now and we have found it to be the best package for all financial record keeping. Hopefully, many of you think the same. It is compliant with MTD and will continue to be for all other future HMRC changes. Therefore, it is still our preferred choice of software.
Smarter Recruiting Now!
We are always on the lookout for new members of staff for both offices, at all levels. We are particularly looking for anyone with practice experience. If you know anyone who may be interested, then please ask them to contact us!
We provide more regular updates via Facebook. Therefore, if you want the latest news, please like our Facebook page here >
Best wishes, take care,
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