As we settle into 2026, it’s worth looking back at the key tax, financial and Self Assessment developments introduced during 2025 and how they now affect individuals, landlords and small business owners.
One of the most talked-about changes last year was the government’s decision to simplify aspects of the Self Assessment system. The trading income reporting threshold was raised to £3,000 for 2029, meaning many people with small amounts of side income no longer need to complete a full tax return. While tax may still be payable, this has reduced administrative pressure for hundreds of thousands of taxpayers and clarified who needs to register with HMRC.
For those who remain within Self Assessment, deadlines and penalties continue to apply strictly. The online filing deadline for the 2024–25 tax year passed on 31 January 2026, and HMRC has continued its firm stance on late filing fines, even where no tax is owed. HMRC also reported increased scam activity during the filing season, making it more important than ever to be cautious with emails, texts and phone calls claiming to be from HMRC.
Another major focus during 2025 was ongoing preparation for Making Tax Digital (MTD) for Income Tax Self Assessment. With further phases beginning from April 2026, many sole traders and landlords are now required to keep digital records and submit quarterly updates. Early preparation has proved key to avoiding stress and unexpected compliance issues.
Meanwhile, income tax thresholds remained frozen throughout 2025, leading to higher effective tax bills for many as earnings increased — a process often referred to as fiscal drag. In addition, changes announced last year mean higher dividend and savings tax rates now apply from April 2026, affecting those with investment income or limited companies.
At GnC Accounting, our West London family firm continues to support clients with clear advice, practical tax planning and reliable compliance — helping you move forward with confidence in 2026 and beyond.