Autumn 2026 Tax Round-up for Scarborough Businesses

Oct 15, 2026
Tax paperwork and calculator on a desk for autumn tax planning

The summer season is over, the seafront is quieter and, for many of our clients, the takings are in. That makes autumn a good time to get your tax sorted before January. Here's what Scarborough sole traders, landlords, holiday let owners and small companies need to know.

Self assessment for 2025/26: the dates that matter

The 2025/26 tax year ran from 6 April 2025 to 5 April 2026. The key dates for that return are:

  • 31 October 2026: HMRC must receive a paper tax return by 11:59pm.
  • 30 December 2026: if you file online and want tax you owe collected through your PAYE tax code, submit your return by 11:59pm. This only works if you already pay tax through PAYE (for example as an employee or pensioner) and owe less than £3,000.
  • 31 January 2027: the deadline to file your online return and pay the tax you owe, by 11:59pm. Miss either and you'll get a penalty.

You can file any time now. If your income is seasonal and most of it came in between Easter and September, filing early tells you what you owe while there's still time to plan for it.

Payments on account: don't forget July

Payments on account are advance payments towards your next tax bill, including Class 4 National Insurance if you're self-employed. Each one is usually half of last year's bill, due by 31 January and 31 July.

You normally have to make them unless last year's bill was under £1,000, or more than 80% of your tax was already collected outside self assessment (for example through your tax code).

So on 31 January 2027, many people will pay both any balancing payment for 2025/26 and their first payment on account for 2026/27. This often catches first-time filers out. If you expect lower income this year, you can ask HMRC to reduce your payments on account. If you reduce them too far, HMRC charges interest on the difference.

Missed the 5 October registration date?

If you need to file for 2025/26 and are new to self assessment (or didn't file for 2024/25), you should have registered with HMRC by 5 October 2026. If you've just started letting a flat or doing self-employed work, register now, because telling HMRC late can mean a penalty. HMRC will give you a filing deadline three months from its letter or email, but the tax is still due by 31 January 2027.

Making Tax Digital for Income Tax is here

Making Tax Digital (MTD) for Income Tax applies to sole traders and landlords registered for self assessment, based on their "qualifying income" from self-employment and property:

  • Over £50,000 in 2024/25: you should have started using MTD from 6 April 2026.
  • Over £30,000 in 2025/26: you'll need to use it from 6 April 2027.
  • Over £20,000 in 2026/27: you'll need to use it from 6 April 2028.

Under MTD you keep digital records and send quarterly updates from compatible software. For 2026/27, using standard update periods, the deadlines are:

Update periodDeadline
6 April to 5 July 20267 August 2026
6 April to 5 October 20267 November 2026
6 April 2026 to 5 January 20277 February 2027
6 April 2026 to 5 April 20277 May 2027

For 2026/27, HMRC won't apply penalty points for late quarterly updates. You still have to send them all before you can file your return, though, and late returns still get penalty points.

If your qualifying income from self-employment and property together came to more than £30,000 in 2025/26, HMRC will use the return you file by January to check whether you need MTD from April 2027. Now is a good time to choose software. Some people, such as those who are digitally excluded, can apply to HMRC for an exemption.

Holiday lets: the rules have changed

The furnished holiday lettings tax regime was abolished on 6 April 2025. From 2025/26, holiday let income is taxed under the usual residential landlord rules, and the old FHL reliefs no longer apply. For many local cottage and holiday flat owners, January's return will be the first under the new rules.

A mandatory national registration scheme for short-term lets in England is also on the way. It's expected to begin in March 2027.

Key rates and thresholds for 2026/27

  • Personal allowance: £12,570. It drops by £1 for every £2 of adjusted net income over £100,000, so it's gone completely at £125,140.
  • Dividend allowance: £500. Above that, dividends are taxed at 10.75%, 35.75% or 39.35%, depending on your tax band.
  • VAT registration threshold: £90,000 of taxable turnover over any rolling 12 months, or expected in the next 30 days. Busy summers can push seasonal businesses over. If you only go over temporarily, you can apply for an exception.
  • Corporation tax: 19% on profits up to £50,000, 25% above £250,000, and marginal relief in between.

The Budget on 28 October 2026

The Chancellor has confirmed the Budget will be on Wednesday 28 October 2026. Rates and rules may change, and we'll post an update afterwards. If you're planning a big decision, such as selling a property or incorporating, it may be worth talking it through with us first.

Talk to us

If any of this applies to you, book a free consultation. It's an initial meeting to work out how we can help. Office visits to Europa House, 20 Esplanade, Scarborough YO11 2AQ are by appointment.

Call us on 01723 256624, email [email protected] or get in touch through our contact page.

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This article is general information based on GOV.UK guidance as at 15 October 2026. It isn't advice for your individual circumstances.

Sources