by Ariful | Mar 17, 2026 | US Updates
The Myth of the “Ocean Barrier”
The most dangerous assumption a UK seller can make is that being based in London, Manchester, or Birmingham protects them from the Internal Revenue Service (IRS) or state-level tax departments. Many believe that if they don’t have an office in New York or a shop in California, they don’t owe US taxes.
This is false.
In 2018, a landmark Supreme Court case (South Dakota v. Wayfair, Inc.) changed everything. It allowed states to tax remote sellers based on their economic activity alone. Today, your physical location is almost irrelevant. If you sell enough to customers in a specific state, that state expects its cut.
What is Nexus? Your Legal Connection Defined
“Nexus” is simply a fancy legal term for a “significant connection.” If you have nexus in a US state, you are legally required to register for a sales tax permit, collect tax from your customers, and remit that tax to the state government.
There are four primary ways a UK business triggers nexus:
1. Economic Nexus (The Most Common Trigger)
Economic nexus is triggered once you exceed a certain threshold of sales or transactions within a state. Most states have settled on a “100/200” rule:
- $100,000 in gross sales OR
- 200 separate transactions
If you hit either of these in a calendar year, you have nexus. However, be careful, some states like California and Texas have a much higher threshold of $500,000. Don’t worry about memorizing every state yet; the key is to monitor your data.
2. Physical Nexus (The Inventory Trap)
You might think you have no physical presence in the US, but if you use Amazon FBA or a third-party logistics (3PL) provider, you likely do. Storing inventory in a warehouse owned by someone else still counts as physical nexus in many states. If your goods are sitting in a warehouse in New Jersey, you have a physical connection to New Jersey.
3. Marketplace Nexus
If you sell exclusively through “Marketplace Facilitators” like Amazon, eBay, or Etsy, these platforms are often required to collect and remit sales tax for you. This is a huge relief, but it doesn’t always absolve you of the requirement to register or file “zero-tax” returns.
4. Click-Through and Affiliate Nexus
Do you pay a US-based influencer or an affiliate website to link to your products? If that affiliate is in a state with “click-through nexus” laws, their presence could be attributed to you, triggering tax obligations.
Why “Wait and See” is a Dangerous Strategy
We often hear UK sellers say, “I’ll wait until I’m bigger before I worry about US taxes.” This is a recipe for financial disaster.
State tax authorities are increasingly aggressive in pursuing overseas sellers. Unlike the UK’s VAT system, which has a unified national threshold, the US system is fragmented across 45 states (plus D.C.), each with its own rules. If you fail to register when you hit nexus, the state can come after you for back taxes, penalties, and interest.
Because sales tax is meant to be collected from the customer at the point of sale, if you don’t collect it, the state will still demand it, and it will come directly out of your profit margins. Doing this will save you time and protect your bottom line in the long run.
Managing Multi-State Compliance: A Checklist for UK Sellers
Navigating 45 different sets of rules is a full-time job. This is why systematic compliance processes are essential for businesses handling multi-state obligations.
Here is the step-by-step process to ensure you stay in the clear:
- Analyze Your Sales Data: Review your historical sales across all US states to identify where you have already hit thresholds.
- Register for Sales Tax Permits: You must register before you start collecting tax. Collecting tax without a permit is illegal.
- Update Your Website/Marketplace: Ensure your checkout process (Shopify, Magento, etc.) is configured to calculate the correct tax rate based on the customer’s zip code.
- Keep Exemption Certificates: If you are a B2B seller, you may not need to collect tax if your customer provides a valid resale certificate. Keep these on file!
- File Returns On Time: Each state has its own filing frequency (monthly, quarterly, or annually). Missing a deadline results in automatic fines.
US Sales Tax vs. UK VAT: Key Differences
To help you simplify these complex topics, here is a quick comparison:
| Feature |
UK VAT |
US Sales Tax |
| Authority |
National (HMRC) |
State & Local (e.g., California, NY) |
| Threshold |
£90,000 (usually) |
Varies (often $100,000 or 200 orders) |
| Tax Type |
Value-Added (Every stage) |
Consumption (Final sale only) |
| Pricing |
Usually included in price |
Usually added at checkout |
Key Takeaways for UK Sellers
Expanding to the US market is achievable, but it requires understanding the nexus rules that apply to your specific business model. The sooner you address US sales tax compliance, the sooner you can scale confidently without fear of state audits or back-tax liabilities. Remember, you are still required to declare your global profits to HMRC alongside any US tax obligations.
by Ariful | Mar 17, 2026 | Business
The Stage 3 Tax Cuts: More Money in Your Pocket (Finally)
The headline news for most Australians is the implementation of the revised Stage 3 tax cuts. From 1 July 2026, the ATO is simplifying income tax brackets to provide relief to a broader range of earners. This isn’t just a minor tweak; it is a fundamental shift in how PAYG (Pay As You Go) withholding is calculated.
What this means for your take-home pay
If you are an individual taxpayer, you can expect to see an extra tax cut of up to $268 in the 2026–27 tax year. By the following year, that figure could double to $536. While these numbers might seem small on a weekly basis, they represent a significant easing of “bracket creep” for the middle class.
For business owners, this change means you must update your payroll systems immediately. Incorrect withholding can lead to reconciliation nightmares at the end of the year. If you are managing an international team, you might want to review how tax works for a foreign director to see how these Australian domestic changes might intersect with your global obligations.
The High-Balance Superannuation “Tax Hike”
While the general public gets a tax cut, the ATO is tightening the screws on high-wealth individuals. If your total superannuation balance exceeds $3 million, the honeymoon period of low-concessional tax is coming to an end.
The $3 Million Threshold
Starting from the 2026–27 income year, earnings on superannuation balances above $3 million will face a significantly higher tax rate.
- Balances up to $3 million: Continue to enjoy the 15% concessional rate.
- Balances between $3 million and $10 million: Taxed at up to 30%.
- Balances above $10 million: Taxed at up to 40%.
This is a massive shift for self-funded retirees and those using Self-Managed Super Funds (SMSFs). It is no longer enough to “set and forget” your retirement strategy. You need to ensure your compliance reporting is pinpoint accurate to avoid overpaying on unrealized gains, a controversial aspect of this new rule.
Payday Super: A Revolution in Employer Compliance
Perhaps the biggest operational change for Australian businesses is the introduction of Payday Super, scheduled for 1 July 2026.
For decades, employers have been able to pay Superannuation Guarantee (SG) contributions on a quarterly basis. The new rules change the game: employers must now pay super at the same time they pay wages.
Why the ATO is doing this
- Transparency: Employees can track their super in real-time.
- Compliance: It reduces the “unpaid super” gap that costs workers billions.
- Efficiency: It aligns superannuation with the Single Touch Payroll (STP) cycle.
This change places a heavy administrative burden on small to medium businesses. If your cash flow isn’t tightly managed, paying super every week or fortnight instead of every three months can cause a liquidity crunch. Integration of bookkeeping and payroll into a single, seamless flow ensures that when payday hits, the super calculation is already done, filed, and ready for payment.
Stricter Scrutiny on Business Deductions
The ATO’s “Digital First” strategy is now in full swing. With advanced data-matching technology, the ATO can now cross-reference your bank statements, vehicle logs, and even social media activity against your tax returns.
The “Big Three” Audit Triggers
The ATO has explicitly stated they are watching three areas with a magnifying glass:
- Motor Vehicle Expenses: No more “estimating” your logbook. The ATO expects digital records that match your actual business travel.
- Home Office Deductions: Since the shift to hybrid work, the ATO has tightened the “fixed rate” vs. “actual cost” methods. You must have contemporary records (receipts and diaries) created at the time the expense was incurred.
- Travel and Entertainment: If you’re claiming a business trip to the Gold Coast, you better have a meeting agenda and minutes to prove it wasn’t just a holiday.
Waiting until an audit notice arrives is often too late to address documentation gaps.
Digital Compliance and the Overhaul of Trust Reporting
Trusts have long been a favorite structure for Australian small businesses and families. However, the ATO is increasing transparency requirements for trustees. Starting from the 2026 income year, trustees must report the Tax File Numbers (TFNs) of all beneficiaries when lodging trust tax returns.
This move is designed to close the gap in data-matching. By knowing exactly who is receiving a distribution from a trust, the ATO can ensure that individuals are declaring that income on their personal returns.
Single Touch Payroll (STP) Phase 3
We are also seeing the continued expansion of STP. The ATO now receives pre-filled data for share transactions and investment property sales. This means the days of “forgetting” to report a capital gain are over. The ATO likely already knows about the sale before you even start your return.
Key Compliance Areas to Address
The complexity of these rules requires a structured approach. Successful management of Australian tax compliance involves several critical elements:
- Bookkeeping & Payroll: Managing the transition to Payday Super, ensuring your SG contributions are calculated correctly and filed via STP.
- Tax Calculations: Handling the complex math behind the new Stage 3 brackets and high-balance super taxes.
- Year-End Accounts: Preparing and filing your Australian entity’s accounts, ensuring every deduction is backed by the required digital evidence.
- Documentation Systems: Implementing digital record-keeping that meets ATO standards for motor vehicle expenses, home office deductions, and travel claims.
- Trust Reporting: Ensuring all beneficiary TFNs are accurately reported and distributions are properly documented.
Preparing for 1 July 2026
To stay ahead of the ATO, follow this structured approach:
- Audit your current payroll system to ensure it can handle weekly or fortnightly super payments.
- Review your superannuation balance if it exceeds $3 million and model the impact of the new tax rates.
- Digitize your expense records for motor vehicle, home office, and entertainment claims with contemporary documentation.
- If you operate through a trust, compile a complete list of all beneficiaries and their TFNs.
- Update your tax return templates to reflect the new Stage 3 tax brackets.
- Review your investment portfolio for any unreported capital gains that may be flagged by the ATO’s data-matching.
- Ensure your Single Touch Payroll reporting is up to date and compliant with all current requirements.
The 2026–27 financial year represents a watershed moment for Australian tax compliance. The rules are clearer, the technology is smarter, and the ATO’s enforcement capability has never been stronger. But with proper planning and the right support systems in place, navigating these changes is entirely manageable.
by Ariful | Mar 17, 2026 | UK Updates
The Big Shift: MTD for Income Tax (ITSA)
The most significant change arriving this year is the mandatory rollout of Making Tax Digital for Income Tax Self Assessment (ITSA). While MTD for VAT has been active for some time, the expansion into Income Tax changes the fundamental way business owners interact with HMRC.
Starting April 6, 2026, if your qualifying gross income (turnover) is over £50,000, you are legally required to comply with MTD rules. It is vital to note that HMRC looks at your gross income, not your profit. If your Amazon store turns over £55,000 but your profit is only £10,000 after COGS and advertising, you still fall into the mandatory compliance bracket.
The Mandatory Timeline
HMRC is introducing these changes in stages:
- April 2026: Mandatory for those with gross income over £50,000.
- April 2027: The threshold drops to £30,000.
- April 2028: The threshold is expected to drop further to £20,000.
If you fall into the first wave, your first quarterly update will be due by August 7, 2026. Waiting until the end of the tax year to “sort out the books” is no longer an option.
Digital Record Keeping: Paper is Officially Out
Under the 2026 rules, “keeping the books” means something very specific. HMRC no longer accepts paper ledgers or manually typed spreadsheets that aren’t “digitally linked” to filing software. To remain compliant, you must use HMRC-compatible software to record every transaction.
For ecommerce sellers, this can be complex. You aren’t just dealing with one bank account; you have Amazon settlements, Shopify payouts, PayPal balances, and Stripe fees. Digital record-keeping requires these data points to flow seamlessly into your accounting system without manual intervention.
At Sterlinx Global, we specialize in this technical bridge. Whether you need a full-suite accounting service or just standalone bookkeeping to satisfy MTD requirements, we ensure your data moves from your marketplace to HMRC accurately and on time. You provide the data access; we complete the compliance.
The “Nudge Letters” and Marketplace Data Sharing
If you have received a letter from HMRC recently regarding “undeclared income,” you are not alone. HMRC is currently in full swing with its Digital Platform Reporting rules. Marketplaces are now required to share seller data directly with tax authorities.
HMRC’s AI systems compare this marketplace data against your reported tax returns. If there is a discrepancy, they send “nudge letters” to encourage disclosure. This is why reconciliation is the most important part of your monthly routine. You must ensure that what Amazon says you made matches what you are telling HMRC.
Don’t worry if your records feel messy. We can step in to perform historical reconciliations, ensuring that when HMRC looks at your data, everything aligns perfectly.
Quarterly Updates: The End of the “Once a Year” Tax Return
The era of the “January Panic” is ending. Under MTD, the traditional annual Self Assessment is being replaced by a more frequent reporting cycle. You will now be required to:
- Maintain Digital Records: Use software for all business transactions.
- Submit Quarterly Updates: Send a summary of your income and expenses to HMRC every three months.
- File an End of Period Statement (EOPS): Finalize the business income for the year.
- Submit a Final Declaration: Replace the standard Self Assessment tax return.
This move to quarterly reporting is designed to give you a clearer view of your tax liability throughout the year, but it significantly increases the administrative burden. For a busy ecommerce founder, filing four times a year plus a final declaration is a massive time sink. This is where a dedicated compliance partner becomes essential.
VAT Considerations for 2026
While MTD for Income Tax is the headline news, VAT compliance for UK Limited Companies remains as stringent as ever. Many sellers are still not fully utilizing Postponed VAT Accounting (PVA).
If you are importing goods into the UK to sell on marketplaces, PVA allows you to declare and recover import VAT on the same VAT return, rather than paying it upfront and claiming it back months later. This is a massive boost for your business cash flow.
However, HMRC is increasing audits on PVA statements. You must ensure that your Monthly Import VAT Statements (MPIVS) are downloaded and reconciled monthly. If you miss a month, those statements disappear from the HMRC portal after six months, making an audit a nightmare.
If you find VAT management overwhelming, Sterlinx Global offers modular VAT services. We can handle your UK VAT registrations and filings as a standalone service, even if you have another provider handling your year-end accounts. Talk to an expert to get VAT filing support set up properly.
Checklist: Are You Ready for the 2026 Requirements?
To help you prepare, here is a quick checklist of what you should be doing this month:
- Review your turnover: Calculate your gross income from April 2025 to April 2026. Is it over £50,000? If so, you are in the first MTD wave.
- Check your software: Are you using HMRC-compatible software? If you are still using basic spreadsheets, it is time to migrate.
- Reconcile marketplace data: Run a report on your Amazon/Shopify sales and compare it to your bank deposits. Account for fees and refunds.
- Assess your VAT status: Are you reaching the £90,000 VAT registration threshold? Remember, this is a rolling 12-month look-back, not a calendar year.
- Download your PVA statements: Ensure your import records are backed up outside of the HMRC portal.
How Sterlinx Global Supports Your Growth
At Sterlinx Global Ltd, we don’t just offer advice; we deliver compliance. We understand that as an ecommerce seller, your focus should be on sourcing products and driving sales, not deciphering HMRC technical manuals.
We offer a flexible, modular service matrix tailored to your needs:
- Full Compliance Suite: We handle everything: daily bookkeeping, quarterly MTD updates, VAT filings, and year-end statutory accounts for your UK Limited Company.
- Modular VAT Services: If you just need help with VAT registrations and monthly/quarterly filings, we can provide this as a standalone service.
- Global Expansion: Thinking of selling in the US, Canada, or Australia? We provide full-suite compliance in those regions too. For the EU, we handle all your VAT registration and filing.
by Ariful | Mar 17, 2026 | Canada Updates
The $30,000 Rolling Threshold: Still the Golden Rule
In 2026, the core registration requirement remains consistent but often misunderstood. The CRA defines a “small supplier” as a person (or business) whose total taxable supplies of property and services do not exceed $30,000 CAD.
However, the “trap” many sellers fall into is the timeline. This is not based on your fiscal year or the calendar year. It is a rolling four-quarter period.
How to Monitor Your Threshold
- Check your trailing 12 months: Every month, look back at the previous 11 months plus the current one.
- Include global sales (sometimes): While the threshold generally applies to Canadian sales, the way the CRA views “taxable supplies” can include sales made through agents or worldwide in specific corporate structures.
- Act immediately: Once you cross that $30,000 mark, you are no longer a small supplier. You effectively have 29 days to register. Failing to do so doesn’t mean you don’t owe the tax; it just means you’ll be paying it out of your own pocket instead of collecting it from your customers.
Digital Economy Rules: The February 2026 Tighter Grip
A significant update that every cross-border digital seller must watch is the tightening of rules regarding electronic services. As of February 10, 2026, the CRA has enhanced its oversight of non-resident vendors. If you provide “specifiedized digital services” which includes everything from streaming media and software-as-a-service (SaaS) to online marketplaces, and your revenue from Canadian consumers exceeds $30,000 CAD, compliance is mandatory.
This update effectively closes the gap that some international sellers used to navigate. The CRA now utilizes advanced data-sharing agreements with international payment processors and marketplaces to identify high-volume sellers who haven’t registered for GST/HST.
Why Digital Sellers Need Standalone GST Services
For many digital businesses, full-scale Canadian bookkeeping isn’t necessary, but GST compliance is. This is why Sterlinx Global offers standalone GST services. We focus on the filing and calculation, ensuring your digital footprint remains compliant without over-complicating your global accounting structure.
Understanding the GST/HST Provincial Patchwork
One of the most confusing aspects of selling in Canada is that “sales tax” isn’t a single number. Depending on where your customer is located, you will collect either just the 5% GST or a combined Harmonized Sales Tax (HST).
In 2026, the rates remain varied across the provinces:
- Ontario: 13% HST
- New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island: 15% HST
- British Columbia, Alberta, Saskatchewan, Manitoba, and the Territories: 5% GST (Note: In provinces like BC, Saskatchewan, and Manitoba, you may also have an obligation to register for Provincial Sales Tax (PST) separately).
The “Place of Supply” Rule
Determining which rate to charge depends on the “place of supply.” Generally, for physical goods, it is where the goods are delivered. For digital services, it is often based on the billing address or IP address of the consumer. Getting this wrong can lead to significant under-collections, which the CRA will expect you to rectify during an audit.
Duty and Customs for Cross-Border Physical Goods
If you are a cross-border seller shipping physical products into Canada, GST/HST is only half the battle. You must also account for duties. In 2026, Canada continues to enforce strict valuation rules.
- De Minimis Threshold: The “Low Value Express Delivery” threshold allows for duty-free entry for goods worth up to $20 CAD (or $40 CAD for certain shipments from the US/Mexico under CUSMA).
- GST at the Border: Even if you aren’t registered for GST, the tax is often collected at the point of import by the courier or customs broker.
If you are registered for GST, you can often claim an Input Tax Credit (ITC) for the GST paid at the border, effectively washing out the cost. If you aren’t registered, that 5% GST paid at import becomes a pure cost to your business. This is a primary reason why many sellers choose to register voluntarily even before hitting the $30,000 threshold.
The Cost of Non-Compliance: Don’t Wait for the Audit
The CRA is known for being efficient and persistent. With the implementation of more AI-driven auditing tools in 2026, discrepancies between your reported marketplace sales (from platforms like Amazon or Shopify) and your tax filings are flagged faster than ever.
Common Penalties Include:
- Failure to Register: Heavy fines and the requirement to pay all back-dated tax that should have been collected.
- Late Filing: A penalty of 1% of the unpaid tax plus an additional 0.25% for each complete month the return is late (up to 12 months).
- Interest: The CRA’s prescribed interest rates have remained high, making “borrowing” from the government via unpaid taxes an expensive mistake.
Managing these risks requires a structured approach. At Sterlinx Global, we act as your Global Tax Compliance Suite. We don’t just advise; we execute. You provide the data, and we ensure the filings are accurate and on time.
Your 2026 Canada Compliance Checklist
To ensure your business remains in the CRA’s good books this year, follow this streamlined checklist:
- Monitor Monthly Revenue: Track your Canadian sales specifically. Once you hit $2,500/month consistently, you are on track to hit the threshold.
- Determine Your Supply Type: Are you selling tangible goods, digital services, or both? This dictates your registration path.
- Review Provincial Limits: Remember that some provinces (like BC and Quebec) have their own separate registration thresholds for PST/QST.
- Organize Your Documentation: Keep records of import documents (B3 forms) to support your Input Tax Credit claims.
- Partner with Professionals: Don’t try to DIY Canadian tax law. It’s a complex environment that rewards precision.
by Ariful | Mar 17, 2026 | UK Updates
Making Tax Digital (MTD): The 6 April 2026 Deadline
The biggest headline for 2026 is undoubtedly the mandatory rollout of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). Starting 6 April 2026, if you are self-employed or a landlord with a total qualifying income of over £50,000, the old way of filing a single yearly tax return is gone.
Instead, you will be required to:
- Maintain digital records of all business transactions.
- Use HMRC-compatible software to send quarterly updates of your income and expenses.
- Submit an “End of Period” statement and a final declaration.
Why this matters for e-commerce sellers: If you operate as a sole trader or have significant property income alongside your business, your first quarterly update deadline will be 7 August 2026. Missing this window isn’t just a minor slip-up; HMRC is tightening its penalty regime to punish late filings more aggressively.
Dividend Tax and the “Fiscal Drag” Trap
For many business owners, paying yourself through dividends has traditionally been the most tax-efficient route. However, the 2026 updates bring a 2% rise in Dividend Tax rates across all bands.
When you pair this with the fact that the Personal Allowance remains frozen at £12,570, you encounter “fiscal drag.” As your business grows and your income rises, a larger percentage of your profit is pulled into higher tax brackets because the thresholds aren’t moving.
It is essential to review your withdrawal strategy now. If you are a non-UK resident managing a UK entity, understanding how tax works for a foreign director is vital to ensure you aren’t overpaying in multiple jurisdictions.
Capital Gains and Business Asset Relief Changes
Thinking of exiting your e-commerce brand or selling a portion of your business in 2026? You need to act with precision. Capital Gains Tax (CGT) for those claiming Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) is increasing from 14% to 18%.
While 4% might sound small on paper, it represents a significant chunk of your hard-earned equity. If you are in the middle of a merger or acquisition, ensuring your UK company accounting is spotless is the first step toward a successful (and tax-compliant) exit.
New Allowances for Plant and Machinery
In a bit of good news for businesses with physical infrastructure, HMRC has introduced a new 40% first-year allowance for plant and machinery. However, this comes as the standard writing-down allowance drops from 18% to 14%.
If you are an e-commerce business investing in new warehouse tech, packaging machinery, or office equipment, timing your purchases is key. By leveraging the 40% allowance in the first year, you can significantly reduce your taxable profit, giving you more cash flow to reinvest in inventory or marketing.
The Compliance Crackdown: Whistleblowers and Penalties
HMRC is no longer just waiting for you to make a mistake; they are actively incentivizing people to report non-compliance. A new whistleblower scheme now offers rewards of 15% to 30% of the tax collected if the amount exceeds £1.5 million.
Furthermore, the late filing penalty system has been overhauled. It now operates on a “points-based” system. Every time you miss a deadline, whether it’s VAT or the new MTD quarterly updates, you receive a point. Once you hit a certain threshold, a financial penalty is automatically triggered.
This is why end-to-end compliance delivery is essential. You provide the data; the calculations and filings are handled professionally. The goal is to keep your “points” at zero.
2026 Tax Update Checklist for Business Owners
To stay ahead of these changes, use this checklist to audit your current setup:
- Check your income threshold: Are you over the £50,000 MTD limit? If so, you must have compatible software by April 2026.
- Review your Dividend strategy: With the 2% rate increase, does your current salary-vs-dividend split still make sense?
- Audit your digital records: Are you still using spreadsheets? HMRC requires “digital links” between software; manual copy-pasting will soon be a compliance risk.
- Evaluate your business model: Whether you are navigating B2B vs B2C business models, your VAT and tax obligations change based on who your customer is and where they are located.
- Plan for 2027: The MTD threshold is scheduled to drop to £30,000 in April 2027. Even if you aren’t affected this year, you will be soon.
How Professional Services Support Your Growth
Navigating HMRC updates shouldn’t take time away from growing your brand. A structured, ongoing compliance model provides support across multiple jurisdictions. Rather than just offering advice, execution-focused services handle bookkeeping and VAT filings through year-end accounts and international tax management, ensuring your business remains compliant across the UK, USA, Canada, and Australia.
If you are a non-UK resident looking to enter the market, company formation services for non-UK residents combined with full-suite accounting ensures you are set up correctly from day one.
FAQ: HMRC 2026 Tax Updates
What is the deadline for MTD for Income Tax?
The mandatory start date is 6 April 2026 for those with qualifying income over £50,000. The first quarterly update must be submitted by 7 August 2026.
How much is Dividend Tax increasing in 2026?
Dividend tax rates are increasing by 2% across the basic, higher, and additional rate bands.
Does MTD apply to Limited Companies in 2026?
Currently, the April 2026 mandate applies to self-employed individuals and landlords. MTD for Corporation Tax is expected in the future but has not been mandated for this specific date. However, most UK Limited Companies are already using MTD for VAT.
What is the new whistleblower reward?
HMRC may pay between 15% and 30% of the tax, interest, and penalties collected as a result of a report, specifically for cases where the tax involved exceeds £1.5 million.
Are business rates changing?
Yes, business rates are being revalued in 2026. There will be lower multipliers for retail and hospitality properties valued under £500,000, while larger properties may see an increase.
