The 2026 tax year introduces major updates that affect payroll, CIS compliance, and digital tax reporting. Businesses that fail to prepare risk penalties and operational disruption. Here’s what’s changing and how Jerroms can help.

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1. Making Tax Digital (MTD)

From April 2026, MTD for Income Tax Self-Assessment (ITSA) becomes mandatory for individuals with business or property income over £50,000. This means:

• Quarterly digital updates to HMRC.
• A final declaration at year-end.
• Real-Time Reporting of Benefits in Kind - most employee benefits must be reported through payroll in real time. This ensures accurate tax collection and reduces year-end reconciliations.

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2. Payroll & CIS Updates

Changes to PAYE (Pay as You Earn) and CIS (Construction Industry Scheme) reporting mean stricter timelines and increased scrutiny.

Here’s what it means in plain terms:

• Stricter timelines: Employers and contractors now have less time to submit payroll and CIS information to HMRC. Deadlines are tighter, so late submissions could lead to penalties.
• Increased scrutiny: HMRC is paying closer attention to the accuracy and timeliness of these reports. Mistakes or delays may trigger compliance checks or fines.

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3. VAT & Corporation Tax Compliance

HMRC is tightening penalties for late VAT and Corporation Tax submissions. Digital record-keeping is now compulsory.

Our support:

• Automated VAT filing through cloud systems.
• Deadline reminders and compliance checks.
• Expert advice on reducing errors and avoiding penalties.

Why Partner with Jerroms?

HMRC’s 2026 changes demand accuracy, speed, and digital readiness. Jerroms provides expert guidance, software solutions, and compliance support, so you can focus on growth while we handle the complexity.