Plan for tax changes ahead with confidence

The tax landscape is growing more complex – and businesses across Lancashire, regardless of size or sector, need to stay alert to what’s ahead.

A range of legislative and regulatory changes are on the horizon, many of which will reshape how and when tax is reported and paid.

These changes won’t just affect finance teams – they will influence broader decisions about investment, structure, and long-term strategy.

From 2026, Making Tax Digital for Income Tax will require many sole traders and landlords to keep digital records and submit quarterly updates. This marks a significant shift in the way smaller businesses engage with HMRC and increases the need for accurate, real-time data.

At the same time, ongoing reforms to tax reliefs and allowances, a tougher HMRC compliance regime, and potential changes to profit timing rules will all have implications for business planning.

To stay ahead, businesses should focus on three practical areas:

• Systems and data – Review whether your accounting software, tax systems and record-keeping processes are ready for more frequent and digital-first reporting.
  Reliable, well-organised data will be key to meeting new obligations efficiently and avoiding penalties.
• Structure and extraction – Take the opportunity to revisit how your business is structured and how profits are drawn. As legislation evolves, some existing arrangements may become less tax-efficient or carry greater risk.
• Investment and reliefs – Re-examine your eligibility for reliefs such as R&D tax
  credits, capital allowances and other incentives.

Regular reviews help ensure opportunities aren’t missed.