HMRC

For many business owners, just hearing the words “HMRC investigation” can be enough to cause anxiety. The reality, however, is that investigations aren’t random, and they are rarely about businesses deliberately doing something wrong. Instead, HMRC is usually responding to specific red flags. With the right knowledge and preparation, most businesses can avoid ever finding themselves in the spotlight.

Well, folks… where do we even start?

The current economic outlook is, in short, pretty grim. Growth is flatlining, inflation is creeping back up (just in time for your energy bill to go sky-high again), and businesses across the country are pressing pause on investment. Honestly, you can’t blame them.

We’re all just trying to get through it – clients, small business owners, the bloke running your local café. And yet, somehow, HMRC and the government still seem to think now is a great time to squeeze everyone a little harder. Deep breaths…

Yes, we know, just when you thought you’d mastered the joy that is P11D reporting, HMRC has decided to shake things up. Again.

A Quick Refresher (Because Who Doesn’t Love a Bit of Tax History?)

In the hustle and bustle of running a business, it’s easy to delay tasks that don’t seem urgent. However, completing your company accounts early can provide a range of significant benefits that not only streamline your business operations but also enhance your financial planning and decision-making processes.

1. Enhanced Financial Planning

HMRC's Making Tax Digital: Sole Traders Now Filing Four Returns a Year by 2026

HMRC’s Making Tax Digital (MTD) is changing the game for sole traders, and here’s what you need to know. Starting in April 2026, if you earn over £50,000, you'll need to submit four returns a year—that's right, quarterly self-assessments. Sole traders earning between £30,000 and £50,000 will follow suit in 2027.