Tax Year 2025/26: What You Need to Know And Why This Year Is Different
As we approach 5th April 2026, many business owners and individuals are looking toward end of year tax planning. However, the 2025/26 tax year is not just another yearly tax deadline. Significant changes under Making Tax Digital (MTD) mean this year stands apart from previous years.
At our award winning accountancy firm - Cheylesmore Chartered Accountants, we are already working closely with our clients to ensure they are ready; for the structural changes, tax implications and HMRC guidelines coming into effect and currently in play.
Why the 2025/26 Tax Year Is Different
For many years, self-employed individuals and landlords have been used to filing one Self-Assessment tax return per year. That system is now changing.
From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will begin to apply to sole traders and landlords with annual self-employed or property income over £50,000. Those with total qualifying income over £30,000 are expected to follow from April 2027.
This means the 2025/26 is the last year operating under the traditional Self Assessment system, as quarterly MTD reporting begins from April 2026.
For simplicity, for many individuals this will become the last traditional tax year before digital quarterly submissions come into effect.
What Is Changing Under Making Tax Digital?
Under the new MTD rules, affected individuals will be required to:
Keep digital accounting records
Submit quarterly income and expense updates to HMRC
Complete a final end-of-period statement
Submit a final declaration confirming total income
Instead of one annual submission, there will be quarterly reporting points.
This represents a significant change in how tax compliance works. It moves the system towards real-time reporting and away from annual filings.
We are regarded as the most forward thinking accountants in Coventry, so it comes as no surprise that we are helping all of our Coventry clients transition smoothly to compliant digital systems well before the rules become mandatory.
What This Means for Sole Traders and Landlords
If your turnover is approaching or exceeds £50,000, this tax year should be treated as a preparation year.
Key questions to consider now:
Are your records fully up to date?
Are you still using spreadsheets or paper records?
Is your current bookkeeping system MTD-compatible?
Do you understand how quarterly reporting will affect your cash flow?
The move to quarterly submissions will require more discipline and better organisation. Leaving bookkeeping until January each year will no longer be workable.
Working with us at Cheylesmore Accountants ensures you are not caught off guard when April 2026 arrives.
Year-End Planning Opportunities Before 5 April 2026
While MTD is a major focus, traditional year-end tax planning remains just as important.
Before 5th April 2026, you should review:
Pension contributions
ISA allowances
Capital Gains Tax planning
Dividend strategies
Timing of income and expenditure
Use of annual allowances and reliefs
This is particularly important because once quarterly reporting begins, visibility over profits will be much clearer throughout the tax year. Planning early becomes even more valuable.
At Cheylesmore Chartered Accountants, we review both compliance and strategy — ensuring our clients do not simply meet deadlines but are making informed financial decisions.
Why Professional Guidance Matters More Than Ever
Making Tax Digital increases administrative responsibility. Errors, missed submissions or non-compliant software could lead to penalties under the new points-based penalty system.
Choosing experienced experienced accountants means:
Clear guidance on whether MTD applies to you
Support selecting appropriate software
Assistance setting up digital record-keeping
Ongoing quarterly submission management
Continued year-end tax planning
Preparing Now Prevents Pressure Later
January tax return deadlines already create pressure for many taxpayers. With quarterly reporting on the horizon, organisation throughout the year becomes essential.
The 2025/26 tax year should be used to:
Strengthen bookkeeping processes
Move to cloud-based accounting software if necessary
Schedule regular financial reviews
Understand your tax position earlier
By preparing now, you avoid rushing into digital compliance at the last minute.
Why Choose Cheylesmore Chartered Accountants?
We work closely with sole traders, landlords and limited companies across the UK to ensure they remain compliant while planning confidently for the future.
The end of the 2025/26 tax year is more than just another filing date — it marks the transition into new reporting.
If you are unsure how Making Tax Digital will affect you, or you would like to review your year-end tax position, our team is ready to assist.
Contact us today to speak with experienced Coventry accountants who will guide you through the changes and help you prepare properly for the year ahead.
