O N Florea Accountancy Ltd

17/02/2026

🚨 Making Tax Digital for Income Tax – Starts 6 April 2026 🚨

Big changes are coming for sole traders and landlords.

From 6 April 2026, HM Revenue & Customs (HMRC) will introduce Making Tax Digital (MTD) for Income Tax, moving affected taxpayers away from one annual tax return to quarterly digital reporting.

✅ Who is affected from April 2026?

You must comply if:

• You are a sole trader or landlord (or both), AND
• Your gross income (before expenses) from these sources exceeded £50,000 in the 2024–25 tax year.

📊 What will change?

Instead of one annual submission, you will need to:

✔ Keep digital records using compatible software
✔ Submit quarterly income & expense updates
✔ Submit a final declaration by 31 January after the tax year

Key Deadlines for the 2026–27 Tax Year

Quarter 1: 6 April – 5 July 2026
Deadline: 7 August 2026

Quarter 2: 6 July – 5 October 2026
Deadline: 7 November 2026

Quarter 3: 6 October 2026 – 5 January 2027
Deadline: 7 February 2027

Quarter 4: 6 January – 5 April 2027
Deadline: 7 May 2027

Final Declaration:
31 January 2028

⚠️ Penalties
There will be a 12-month “soft landing” period for quarterly submissions in 2026–27.
However, penalties will still apply for late final returns and late tax payments.

17/10/2025

13/08/2025

🚨 Directors & PSCs: You MUST Verify Your Identity (from 18 Nov 2025)
From 18 November 2025, Companies House will require all company directors and people with significant control (PSCs) to verify their identity. This is part of the Economic Crime & Corporate Transparency Act 2023. If you’re not verified, your company won’t be able to file key documents (like the confirmation statement). GOV.UKChanges to UK company law

✅ Who must verify?
All existing directors and PSCs of UK companies.

New directors/PSCs appointed on or after 18 Nov 2025 must verify at (or before) appointment. GOV.UKChanges to UK company law

PSCs have a 14-day window to provide their personal code and verification statement (timing depends on whether they were already a PSC on 18 Nov and whether they’re also a director). GOV.UKNorton Rose FulbrightMishcon de Reya LLP

⏰ Key dates & deadlines
Transition year starts 18 Nov 2025.
Existing directors must be verified before the next confirmation statement is filed.
Example: If your confirmation statement is due 31 Mar 2026, all directors must be verified by then, or the filing will be rejected. GOV.UK

🪪 What you’ll need (for online verification)
A GOV.UK One Login account.

Photo ID (e.g., biometric passport or UK photo driving licence), plus some basic details. GOV.UK

🧭 How to verify (2 routes)
1) Verify online with GOV.UK One Login
Go to “Verify your identity for Companies House” and follow the prompts.

When approved, you’ll receive a Companies House personal code (find it in your Companies House account’s Manage account section). GOV.UK.

2) Use an Authorised Corporate Service Provider (ACSP)
An accountant/solicitor registered as an ACSP can verify you.

They must be supervised for UK AML and keep records for 7 years; they may charge a fee.

If you verify via an ACSP, your personal code will be sent to you by email.

Do not post or email ID documents to Companies House directly. GOV.UKChanges to UK company law

🔗 Step 2 (from 18 Nov 2025): Link your roles
Verification is a two-step process:

Verify and receive your personal code.

From 18 Nov 2025, link your verified identity to each company role (director/PSC) by providing your personal code and a verification statement (you’ll do this on the confirmation statement and for any new appointments).

Directors of multiple companies: repeat step 2 for each company using the same personal code. GOV.UK

🔎 Check your details now
Make sure your date of birth and personal details on the Companies House register match your ID. If they don’t, you won’t be able to complete Step 2 (linking your role). Update company records first if needed. GOV.UK

🚫 What happens if you don’t verify?
You cannot file the company’s confirmation statement (and other filings may be blocked).

You cannot be appointed as a director or recorded as a PSC.

Non-compliance can lead to enforcement action and penalties. jacksonstephen.co.ukThe Times

🧾 Quick checklist (save & share)
☐ Create/sign in to GOV.UK One Login.

☐ Verify your identity (online or via an ACSP).

☐ Find and save your personal code.

☐ From 18 Nov 2025, link your verified identity to each company role (using your personal code + verification statement).

☐ Directors: be verified before your next confirmation statement due date.

11/08/2025

🔍 What You Need to Know About Upcoming Making Tax Digital (MTD) Changes for Income Tax Self Assessment

From April 2026 onwards, HMRC is expanding Making Tax Digital (MTD) for Income Tax to include more self-employed people and landlords who file Self Assessment tax returns. This change will happen gradually over a few years, based on how much income you earn.

Who needs to join MTD for Income Tax?

If you’re a sole trader or landlord registered for Self Assessment, and you earn over £50,000 (from self-employment or rental income combined) in the tax year ending 5 April 2025, you must join MTD from April 2026.

This threshold will lower to £30,000 for the tax year ending 5 April 2026, with MTD mandatory from April 2027.

The government plans to reduce this threshold further to £20,000 starting from the tax year ending 5 April 2027, subject to legislation.

What does MTD mean for you?

You’ll need to keep digital records of your income and expenses using HMRC-approved software like Xero, QuickBooks, Sage, FreeAgent, and others.

Instead of filing a full tax return every three months, you will send quarterly updates summarising your income and expenses. This helps you and HMRC track your tax position throughout the year.

At the end of the tax year, you’ll submit one annual declaration that finalises your tax return based on the quarterly information you provided.

What if you don’t submit quarterly updates?

Failing to send quarterly updates on time can lead to penalties, interest charges, and HMRC estimating your tax bill (which could be higher than it should be). Staying compliant avoids surprises and helps you manage your cash flow better.

What should you do now?

Check your qualifying income (gross income from self-employment and rental properties).

Start using digital accounting software if you haven’t already.

Keep accurate digital records throughout the year.

Contact us for help choosing software and preparing for these changes.

Who is exempt?

If your qualifying income is below £50,000 (for tax year ending 2025), or below the upcoming thresholds in future years, you do not need to join MTD for Income Tax yet.

You may also be exempt if you meet certain criteria or have received HMRC approval for an exemption.

If exempt, you must continue filing your tax return the traditional way.

23/12/2024

🎄✨ Season's Greetings from O N Florea Accountancy! ✨🎄

Dear Valued Clients,

As the holiday season draws near, we want to take a moment to express our heartfelt thanks for your continued support and trust. It's been a pleasure working with you this year, and we look forward to another successful year together.

🎁 Wishing You:

A Merry Christmas filled with joy, laughter, and all the things that make this time of year magical

A New Year full of health, happiness, and prosperity

Thank you for being part of our journey. Happy Holidays! 🎅✨

Warmest wishes, O N Florea Accountancy

05/12/2024

Happy follow-versary to my awesome followers. Thanks for all of your support! Cristiana Cobuz