June 2026 Accountancy Update: What UK Businesses and Taxpayers Need to Know

As we move further into the 2026/27 tax year, June is a good time to pause, review, and make sure everything is on track. Several important changes are now live, particularly around Making Tax Digital, payroll, and director tax planning.

Below is a straightforward summary of what matters most to you and what (if anything) you should be doing now.

June Update

Making Tax Digital for Income Tax: Now Live for Some Clients

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) became mandatory from 6 April 2026 for:

• Sole traders and

• Landlords

  
  

  with gross income over £50,000.

If this applies to you, you’ll now need to:

• Keep your records digitally

• Submit quarterly updates of income and expenses using HMRC‑approved software

• Continue to submit a final annual declaration after the tax year end

Your first quarterly update will be due by 7 August 2026.

The good news is that HMRC has confirmed a 12‑month penalty‑free period for late quarterly updates while people get used to the system – as long as reasonable efforts are made to comply.

What you should do now

• Make sure you are signed up for MTD

• Ensure you are using suitable accounting software

• Start keeping records digitally rather than leaving things until year end.

  
  

If you’re unsure whether MTD applies to you, please contact us.

Payroll File

Payroll Changes: What Employers Need to Know

If you run a payroll, there are a few important updates now in effect.

Statutory Sick Pay (SSP)

From April 2026:

• SSP is now payable from day one of sickness

• It is calculated as 80% of average weekly earnings, capped at £123.25 per week

• The previous minimum earnings threshold has been removed. This change means more employees qualify for SSP and payroll calculations are more complex, especially where sickness started before April.

Employer National Insurance

• Employer National Insurance remains at 15%

• The lower threshold is £5,000, meaning more wages are subject to employer NI

What you should do now

• Ensure your payroll system is fully updated

• Be extra careful with SSP calculations

• Get in touch if you’d like us to review your payroll setup

  
  
  
  

Directors and Company Owners: Dividends and HMRC Focus

Dividend tax

• The dividend allowance remains low at £500

• Dividend tax rates increased in April, making dividends more expensive than in previous years

This means reviewing the salary/dividend mix is more important than ever.

Director loan accounts

HMRC is increasing its focus on director loan accounts and payments to shareholders. A consultation closing in June suggests more detailed reporting may be required in future.

What you should do now

• Avoid overdrawn director loan accounts

• Ensure dividends are properly declared and documented

• Speak to us before taking money from the company if you’re unsure of the tax impact.

Buying Equipment? Timing Matters

If your business is investing in equipment or machinery:

• Capital allowance rules have changed

• A 40% first‑year allowance is available for certain new assets

This can create worthwhile tax savings if expenditure is

timed correctly.

Calendar and Time

Key Dates to Keep in Mind

• June 2026 –

  Good time to review payroll, director finances, and MTD readiness

  
  

• 10 June 2026 –

  HMRC consultation deadline on director/shareholder payments

  
  

• 7 August 2026 –

  First MTD quarterly update due (for affected clients)

Final Thoughts

June is about settling into the new tax year rules and making sure systems are working as they should. Dealing with these changes early helps avoid stress, errors, and unexpected tax bills later on.

If any of the above applies to you and you’d like reassurance or advice, please get in touch. We’re here to make sure you stay compliant and tax‑efficient.