Sept 2026
HMRC set to sign taxpayers up for MTD for Income Tax (Sept 2026)
From September 2026, HMRC intends to write to taxpayers who need to use the Making Tax Digital for Income Tax (MTD for IT) service but who have not registered to let them know HMRC has signed them up on their behalf.
HMRC will send letters confirming who needs to register for and use MTD for IT in the 2026/27 tax year.
Letters will arrive by post or can be viewed in HMRC online services depending on taxpayer preferences. The letters will be sent out in stages over the coming months and individuals will be contacted after HMRC has signed them up.
HMRC will also remind taxpayers that they need to use MTD compatible software to create and store digital records for their MTD sources of income; send quarterly updates to HMRC; and submit an end-of-year tax return.
Under the new late submission penalties, a penalty point is awarded where a quarterly update or tax return deadline is missed. Once a four-point threshold is reached, a financial penalty will be issued.
Internet link: Government
Prime Minister urged to reverse IHT changes at Autumn Budget (Sept 2026)
Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.
Farmers from around the UK have called on Mr Burnham to honour his pre-election pledge to ‘look again’ at the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
Prior to the Makerfield by-election, Mr Burnham acknowledged worries regarding IHT changes and pledged to revisit the matter if he became Prime Minister.
From 6 April 2026, the government implemented a £2.5 million cap per person on 100% relief for APR and BPR. Originally, the reforms were proposed with a £1 million threshold, but this was increased to £2.5 million following pressure from the farming community and business groups.
The Ulster Farmers’ Union (UFU) stated that the government ‘has more work to do’ to rebuild trust with the farming community.
Crackdown on zero hours contracts could cost businesses (Sept 2026)
An analysis carried out by the government has revealed that a crackdown on zero hours contracts could cost businesses £2.9 billion a year.
Employment reforms carried out by Labour will cut the number of hours employees can work before they must be offered guaranteed time.
An analysis published recently showed that the reforms could cost employers between £350 million and £2.9 billion based on the eventual threshold of hours the policy impacts.
Additionally, companies could face more administrative costs and less flexibility.
Around £1.2 billion in costs would come from businesses being forced to pay employees compensation for cancelled shifts.
However, government officials said the reforms could provide a boost of £10 billion to the UK economy as a result of better productivity and employee wellbeing.
Commenting on the matter, a spokesperson for the Trades Union Congress (TUC) said: ‘The aim of this legislation is to stop this practice and give variable hours workers security and stability – so good employers have nothing to fear.’
Internet link: Government
Business group sets recommendations to help small firms recruit (Sept 2026)
The Federation of Small Businesses (FSB) has outlined recommendations to help small firms recruit talent.
According to the business group, small firms are being ‘left behind by the skills system’, despite their ‘crucial role’ in providing opportunities for young people.
Rising employment costs put pressure on businesses to do more with less, the FSB warned. Training is increasingly one of the areas being cut, which, in turn, holds back economic growth.
The FSB has set out an action plan for England to create a national network to help employers find the best training providers and courses. It also outlined recommendations for developing a career matchmaking service and to make the apprenticeship system more accessible for small businesses.
Tina McKenzie, Interim National Chair at the FSB, said: ‘Small businesses already do a great job of taking on this fresh talent, but there needs to be a renewed focus by the government on backing small firms and making the process easier for employers.
‘It’s good to see the new government’s focus on technical education, but the skills system must reflect the needs of small businesses. Initiatives like creating a new partnership to link up employers with young people and help them provide work experience, helping find the right courses, and creating a more small business friendly apprenticeship system would be invaluable.’
Internet link: Federation of Small Businesses
Business confidence 'remains subdued', report says (Sept 2026)
A report carried out by the Institute of Directors (IoD) has revealed that business confidence remains ‘subdued’ as cost pressures on firms intensify.
The business group’s Economic Confidence Index, which measures optimism amongst business leaders in regard to prospects for the UK economy, fell to -63 in July 2026 from -61 in June.
Business leader confidence in their own firm also fell to -2 in July from +7 in June.
Revenue expectations fell to +9 from +11 – the lowest reading in 2026.
Commenting on the data, Anna Leach, Chief Economist at the IoD, said: ‘Our latest data signals a further modest deterioration in sentiment and trading conditions in July.
‘Overall confidence in the economy has drifted down a little further amongst business leaders, continuing its trend of weakness and volatility since the 2024 Budget.
‘Meanwhile revenue expectations have dropped to their weakest level in 2026, and alongside elevated costs, means the squeeze on margins has intensified.’
Internet link: IOD
Figures show job vacancies have fallen to lowest level in five years (Sept 2026)
Data published by the Office for National Statistics (ONS) has revealed that the number of job vacancies has fallen to its lowest level in over five years.
The UK unemployment rate remained at 4.9% but vacancy numbers dipped over the May to July period, totalling 707,000.
The ONS found that smaller businesses are cutting back on recruitment as labour and operating costs rise.
Growth in regular earnings rose, but private sector wages grew at their slowest pace in six years.
Responding to the data, Patrick Milnes, Head of Policy for People and Work at the British Chambers of Commerce (BCC), said: ‘Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedevilling the UK’s job market.
‘Business confidence is at a post-Pandemic low and the squeeze on firms’ finances shows no signs of easing.
‘With last week’s announcement that changes to zero hours contracts could cost businesses almost £3 billion, many will be reassessing their recruitment plans.’
Internet link: ONS
Business group outlines three-point plan for new government (Sept 2026)
The British Chambers of Commerce (BCC) has set out a three-point plan for the new government.
According to the BCC, Prime Minister Andy Burnham must focus on trade, investment and productivity to support businesses and help the UK economy thrive.
Ensuring that firms have the confidence to invest is essential if they are to expand, create more jobs and adopt new technologies, the BCC said. However, too many businesses face barriers that hold back long-term investment decisions.
The business group has urged the government to create the conditions that encourage investment.
It also called for a full commitment to a fully funded, multi-year workforce plan for the UK planning service to enable increased development, more jobs and stronger local economies.
The BCC called for an acceleration in infrastructure delivery and improved access to supply chains in order to maximise the economic returns from investment, and for the government to reduce unnecessary burdens that increase costs.
Internet link: BCC
Prime Minister pledges to ease cost of living for UK households (Sept 2026)
Prime Minister Andy Burnham has pledged to help ease the cost-of-living crisis for households in the UK.
Mr Burnham stated he will ‘pull every single lever’ to help reduce the cost of living and improve local high streets.
The government said that the Prime Minister will focus on ‘everyday fixes’ to ease financial pressure on UK households. Under new plans, subscriptions will be easier to cancel, and companies will be mandated to make it clearer when subscriptions will auto-renew at a higher price.
Mr Burnham has also vowed to stop retailers’ use of ‘pretend prices’, which will prevent shops from using ‘was’ prices, made-up discounts or misleading recommended retail prices to promote deals.
He said: ‘I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life.
‘I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives.’
Consumer group Which? said that it has attempted to expose businesses ripping off customers with deals that aren’t what they seem.
The government intends to launch a consultation on the new measures in the autumn.
Internet link: Government
Archive News
