As we kick off 2026, it’s the perfect time to get your business in shape for the year ahead. From understanding your numbers and planning for tax changes like Making Tax Digital, to staying on top of payroll, VAT and compliance, small proactive steps now can save time, reduce stress, and help your business thrive. In this issue, we share practical guidance, key updates, and expert support to help you make informed decisions and build solid foundations for the months ahead.

Just weeks to go until Making Tax Digital for Income Tax comes into effect …

From April 2026, sole traders and landlords with income over £50,000 will need to keep digital records and submit quarterly updates to HMRC using approved software, plus a final year-end declaration. Eligibility is based on your latest tax return, so now’s the time to check where you stand.

We’ve put together a simple guide below explaining what you need to do next. If you’re unsure how this affects you, just get in touch with the team.

Making Tax Digital (MTD) – Quick Guide

• What’s changing?
  From April 2026, Income Tax reporting is going digital for sole traders and landlords.
• Who’s affected (and when)?
  • April 2026 – Income over £50,000
  • April 2027 – Income over £30,000
  • April 2028 – Income over £20,000
• What you’ll need to do:
  • Keep digital records (using MTD-approved software like Xero)
  • Submit quarterly updates to HMRC
  • Send a year-end final declaration
  • Register before your start date
• What’s the main difference?
  No single annual tax return – reporting moves to quarterly updates instead.
• How we can help:
  We can set up your software, train you, manage submissions, or handle everything for you.

Discover more in our blog on Making Tax Digital

How to Get Ahead in 2026

As 2026 gets underway, many business owners are thinking about how to make this year stronger, steadier and more profitable.  The key isn’t doing more, it’s focusing on the right things and doing them well. That means understanding your numbers, planning ahead, and getting proactive advice before issues arise.  From cash flow forecasting and tax efficiency to payroll, VAT and Making Tax Digital, the businesses that will thrive in 2026 are those with solid foundations and a clear plan.

Read our latest blog How to Get Ahead in 2026: Top Tips for Your Business and find practical ways to focus your time and effort this year.

Employment Rights Act Update – Essential Information for Employers

The Employment Rights Bill has now been approved and represents the most significant upgrade to UK employment law in a generation. The new measures will be introduced in phases, meaning early preparation will be particularly important for small and growing businesses with no or limited HR support.

Key highlights include: 

– The proposed “day one” unfair dismissal right has been replaced with a reduced qualifying period of six months 

– A substantial increase in the number of employees eligible to bring employment tribunal claims 

– Day-one rights for statutory sick pay and certain family leave entitlements

Our partner at Brave HR, Stacey Lowrence, is hosting a series of events to help you understand how these changes will impact your business. Including a webinar on Thursday 5th March 2026 at 10:00 – 11:00am. Can’t attend? Don’t worry – the webinar will be recorded so simply get in touch with Stacey to request a copy at Stacey.lowrence@brave-people.com

Find out more and book your spot

Your One-Stop Shop for Legal, HR and Financial Support

We work closely with trusted partners in HR, Legal and Financial Planning so we can support every aspect of your business. Our legal partner can assist with shareholder agreements, supplier and client contracts, and probate matters; our HR partner helps with employment contracts, handbooks and workplace compliance; and our independent financial advisers provide guidance on pensions, succession planning and long-term financial security. Together, it means we’re a true one-stop shop for your business’s needs.  Click here to read more and contact us today so we can put you in touch with the right expert.

Companies House identity verification – have you done it yet?

Since 18 November 2025, directors, people with significant control (PSCs) and others involved in UK companies are legally required to verify their identity under new Companies House rules. These changes are designed to improve transparency, reduce fraud and protect UK businesses.

As an Authorised Corporate Service Provider (ACSP), Richard Riley & Associates can manage the entire verification process for you, keeping everything straightforward, secure and fully compliant.

Click here to read our blog to find out who needs to verify, what happens if you don’t, and how we can help you stay on the right side of the rules.

If you have any questions or would like to discuss your business’s finances, don’t hesitate to get in touch. We’re always here to help. Have a great month ahead.

Richard

Making Tax Digital (MTD) for Income Tax comes into effect from April 2026 so now is the time to check whether you’re affected and start putting the right systems in place.

If you’re a landlord or self-employed with qualifying income, preparation is key and the good news is, you don’t have to do it alone.

Step 1: Check & Prepare

Are you affected?

You’ll be required to join MTD for Income Tax if your combined annual income from property and/or self-employment exceeds £50,000. This includes income from multiple rental properties and any additional self-employed activities.

If you’re close to the threshold, it’s still worth preparing early so there are no last-minute surprises.

Get your records in order

MTD is all about digital record keeping. From your MTD start date:

• All income sources must be identified (including jointly owned properties and side businesses)
• Records must be kept digitally, paper records alone will no longer be compliant

This is a good opportunity to review how your records are currently kept and tidy up any gaps.

Access HMRC online services

To get started, you’ll need:

• A Government Gateway user ID and password
• Access to your HMRC online tax account

Without this, you won’t be able to register for MTD or connect your software.

Step 2: Choose the Right Software

Use HMRC-approved software

MTD requires you to use software that can connect directly to HMRC. Popular options include Xero, QuickBooks and FreeAgent, though the right choice depends on how your rental business is structured.

We’re happy to help you choose a system that suits your needs and avoids paying for features you don’t need.

Set up digital record keeping

Your software must be set up to:

• Record income and expenses digitally
• Maintain accurate, up-to-date records throughout the year

Once configured properly, this can actually save time and reduce errors.

Prefer spreadsheets?

You can continue using spreadsheets but with one important caveat. You’ll need bridging software to digitally link your spreadsheet to HMRC. Manual copying and pasting is not permitted under MTD rules.

Step 3: Register for MTD with HMRC

Sign up via GOV.UK

Once your records and software are ready, you’ll need to register for MTD:

• Log in using your Government Gateway details
• Provide key information such as your National Insurance number, business details and accounting period

HMRC confirmation

HMRC will usually confirm your registration within 72 hours, after which you can begin using MTD-compliant systems.

Step 4: Connect Your Software to HMRC

Grant authority

Your chosen software must be authorised to communicate directly with HMRC. This is often referred to as “granting authority” and allows submissions to be made securely on your behalf.

Security check

HMRC also requires Two-Step Verification to be enabled on your Government Gateway account, adding an extra layer of protection.

Step 5: Ongoing MTD Reporting

Keep digital records up to date

Under MTD, records should be kept as transactions happen, rather than being left until year-end. This makes reporting far more straightforward.

Quarterly submissions

Instead of one annual tax return, you’ll submit quarterly summaries of income and expenses to HMRC through your software.

Year-end declaration

At the end of the tax year, a final declaration is submitted via your software, replacing the traditional Self Assessment tax return.

How we can help

MTD is a significant change but it doesn’t have to be a headache.

We can oversee the entire process for you, from checking eligibility and choosing the right software to registration, setup and ongoing submissions. Most importantly, we’ll make sure everything is in place and compliant by April, if you’re eligible.

01865 817170
admin@richardrileyassociates.co.uk

Get in touch today and let us take the stress out of Making Tax Digital.

Big employment law changes are on the way and we want to ensure your business is ready. In partnership with our trusted HR partner, Brave HR, we’re offering your business access to a free webinar, HR surgeries and free policy reviews to help you stay compliant, confident and fully prepared for 2026.

Employment Rights Act 2025 — What Employers Need to Know!

The Employment Rights Bill has now been approved and represents the most significant upgrade to UK employment law in a generation. The new measures will be introduced in phases, meaning early preparation will be particularly important for small and growing businesses with no or limited HR support.

Key highlights include:

• The proposed “day one” unfair dismissal right has been replaced with a reduced qualifying period of six months
• A substantial increase in the number of employees eligible to bring employment tribunal claims
• Day-one rights for statutory sick pay and certain family leave entitlements

Employment Rights Act  – Client Webinar

A dedicated webinar on the Employment Rights Bill will take place on Thursday 5th March 2026 at 10:00 – 11:00am

To receive your joining link, please email: Stacey.lowrence@brave-people.com

If you can’t attend at this time then don’t worry, we will be recording the event and can send you a copy to avoid at your leisure. Simply email Stacey on the details above to register your interest.

Free HR Surgeries – confidential, no-obligation conversations

Our HR Consultant, Stacey Lowrence, will be hosting a series of free HR surgeries for business owners and managers. Whether you’re planning to grow your team, reviewing your people strategy or dealing with a current employment matter, this is an opportunity to discuss your questions in confidence and without obligation.

Available dates:

• February – Thursday 19th February at 9:30am – 11:30am 
• March – Wednesday 11th March at 9:00am – 11:00am 
• April – Tuesday 14th April at 10:00am – 12:00pm 

A short conversation now can prevent issues becoming expensive or time consuming later.

To book a slot, please contact: Stacey.lowrence@brave-people.com

April 2026 – Free Contract & Policy Review for SMEs

To support your business in preparing for the upcoming legislation, Brave HR is offering a free review of your contracts and up to three policies to ensure your documents are current, legally compliant and aligned with future requirements.

To arrange your review, contact:  Stacey.lowrence@brave-people.com

 If you have any HR-related queries or if there is a topic you would like us to cover in a future update, please do not hesitate to get in touch with Stacey at Brave HR on the above email address.

We hope you find this information helpful and look forward to supporting you.

As 2026 gets underway, many business owners are asking the same question: how can I make this year stronger, steadier and more profitable than the last?

The answer isn’t about doing everything at once. The businesses that will thrive in 2026 are the ones that focus on strong foundations including clear financial visibility, proactive planning and the right advice at the right time.

Here are our top, practical tips to help you get ahead in 2026 and stay there.

Treat Your Accountant as a Strategic Partner

Your accountant should be more than someone who files returns once a year. When you work closely together, they become a valuable strategic partner who can help you make better decisions throughout the year.

A good starting point is to ask for support with:

• Reviewing cash flow patterns
  
• Identifying new or underused revenue streams
  
• Highlighting unnecessary or creeping costs
  
• Prioritising debts and understanding liabilities
  

One particularly powerful exercise is a 12-month cash flow forecast. This doesn’t need to be complicated, but it should map out:

• Expected monthly sales
  
• When money is actually received
  
• Regular outgoings such as wages, rent and stock
  
• Loan repayments and tax liabilities
  

If the numbers feel uncomfortable, don’t ignore them. Facing issues early can prevent far bigger problems later, including cash shortages or insolvency. This is just as important for freelancers and sole traders, where income can fluctuate throughout the year.

Make Sure You’re Claiming What You’re Entitled To

One of the simplest ways to improve profitability is to ensure you’re not paying more tax than necessary.

Depending on your business, this may include:

• Claiming all genuine allowable business expenses
  
• Making use of capital allowances and timing investments carefully
  
• Checking eligibility for reliefs such as Small Business Rate Relief
  
• Making charitable donations where appropriate
  

HMRC rules can be complex, and what’s allowable isn’t always obvious. Speaking to your accountant can quickly clarify what you can and can’t claim, helping you stay compliant while reducing tax where possible.

Use Tax-Efficient Investments Strategically

With tax thresholds remaining tight and Corporation Tax still up to 25% for many companies (HMRC), careful planning matters more than ever.

Tax-efficient options may include:

• Employer pension contributions, which are tax-deductible for companies and grow tax-efficiently
  
• Investment schemes such as EIS, SEIS and VCTs, which can offer income tax relief and Capital Gains Tax advantages on qualifying investments
  
• Investing in plant, machinery or technology, which may qualify for full expensing
  

These areas require professional advice, but when used appropriately, they can significantly improve long-term outcomes.

Pay Attention to Timing and Cash Flow

Timing can make a real difference to tax and cash flow.

Bringing forward essential expenses, delaying non-urgent income, or planning investment dates carefully can help manage taxable profits. Regular cash flow monitoring also ensures you’re prepared for:

• Payments on account
  
• VAT liabilities
  
• Quarterly reporting requirements
  

Staying ahead of these avoids last-minute pressure and unpleasant surprises.

Review Payroll, Benefits and VAT Schemes

Payroll decisions affect both personal and business tax. Reviewing the balance between salary and dividends for directors can improve efficiency while remaining compliant with HMRC rules.

Offering tax-efficient benefits such as electric company cars, cycle-to-work schemes or enhanced pension contributions can also reduce employer National Insurance and support staff retention.

On the VAT side, choosing the right scheme (Flat Rate, Cash Accounting or Standard) and regularly reviewing VAT recovery, can prevent costly mistakes. HMRC continues to identify VAT errors as a common compliance issue for UK businesses.

Reassess Your Market Fit

Many businesses are built on passion and that’s a good thing. But passion alone doesn’t guarantee demand.

If sales aren’t where you expected them to be, or customers aren’t behaving as predicted, it may be time to step back and reassess:

• Who truly needs what you offer?
  
• Are there customer groups you haven’t reached yet?
  
• How are customer priorities changing in 2026?
  
• Can your product or service be repositioned or adapted?
  

Changing direction doesn’t mean failure. In fact, adaptability is one of the biggest strengths a small business can have, particularly in a market shaped by rising costs and cautious consumers.

Proactive Planning Is the Real Advantage in 2026

The biggest difference between struggling businesses and growing ones is rarely effort, it’s planning.

Monitoring performance throughout the year allows you to:

• Spot issues early
  
• Take advantage of reliefs and allowances
  
• Prepare for legislative changes
  
• Reduce HMRC scrutiny
  

This is especially important as Making Tax Digital continues to expand and Companies House introduces tighter identity verification and transparency requirements (GOV.UK).

What Makes Growth Different in 2026?

Business growth in 2026 is shaped by a few unavoidable realities:

• Higher compliance expectations from HMRC and Companies House
  
• Ongoing pressure on cash flow after recent inflationary years
  
• MTD operations becoming the norm, not the exception
  
• Smarter tax planning being essential, not optional
  

The businesses that succeed won’t necessarily be the biggest or loudest, they’ll be the ones with clean records, clear systems and a plan they actually understand.

Our Final Thought

You don’t need to overhaul your entire business to get ahead in 2026. Focus on:

• Knowing your numbers
  
• Planning proactively
  
• Getting the right advice early
  

If you’d like help reviewing your finances, planning for the year ahead or making sure you’re compliant and confident, get in touch with Richard Riley & Associates. We’d love to help you get 2026 off to a great start.

Happy New Year! 

We hope 2026 is your business’s best year yet! As we kick off the year, now’s the perfect time to get organised, take control and look after yourself and your business. In this edition, we’ve got tips on starting a business journal to track growth and spark ideas, practical advice for landlords navigating MTD, guidance to manage stress at work and a reminder that the Self Assessment deadline is just around the corner. 

Have You Tried Business Journaling?

Keeping a business journal isn’t just for creatives, it’s a simple but powerful way to track growth, spot opportunities and reflect on challenges.

It can help you:
• Gain clarity – capture ideas, goals and strategies in one place
• Stay accountable – record progress and milestones
• Solve problems – reflect on hurdles to find smarter solutions
• Spark inspiration – review past successes to generate fresh ideas

Make journaling a habit in 2026 and see how it transforms the way you think about your business. What’s your biggest lesson from last year?

Helping Landlords Navigate MTD with Ease

Paul, a landlord with four rental properties, was finding the move to Making Tax Digital overwhelming. After attending our landlord seminar and receiving a tailored Xero demonstration, he now feels fully in control of his property accounts and confident about ongoing reporting. Importantly, he no longer feels pressure to sell his investments and is planning ahead with clarity.

“Richard and Clare were on the ball and a pleasure to talk to… I now feel confident managing my properties under the new rules.” – Paul

Looking to simplify your property accounting? Get in touch today and let us help you take control with confidence.

Managing Stress at Work: Simple Tips and Practical Support

Feeling the pressure at work? You’re not alone! Work-related stress, anxiety and depression account for nearly half of all workplace ill health, so looking after your wellbeing – and that of your team – is more important than ever.

Simple habits can help you manage stress day-to-day:
• Take a walk or get moving
• Try mindfulness or meditation
• Do something creative or enjoyable
• Write down what’s on your mind
• Listen to your favourite music

Even just five minutes can make a difference.

Employers also have a responsibility to manage stress in the workplace. Start by talking to your team, spotting stress signs, acting on risks and checking in regularly. Campaigns like Working Minds provide practical tools to help you support wellbeing at work.

How do you support your team’s mental health? Share your top tips and help create a healthier, happier workplace.

Read more and get support here:Working Minds

Self Assessment Deadline Is Approaching!

The 31st January deadline is coming fast – don’t risk fines by leaving it to the last minute!

Whether you need guidance or a helping hand to make the process stress-free, the team at Richard Riley & Associates is here to support you.

Check out our Complete Guide to Self Assessment and get in touch today to make sure everything’s filed on time.

If you have any questions or would like to discuss your business’s finances, don’t hesitate to get in touch. We’re always here to help. Wishing you a fantastic start to 2026!

Richard