Accounting News – Autumn 2025
Accounting News – Winter 2025
Budget Outcomes, Self-Assessment Season & Preparing for MTD
As we move into the final quarter of 2025, we are entering a decisive period for both individuals and businesses. The Autumn Budget has now set the direction for the year ahead, HMRC has reaffirmed its focus on compliance, and Self-Assessment season is upon us. Add in the next stage of Making Tax Digital (MTD), and it becomes clear that preparation is far more effective than reaction.
At A4 Accounting, our role is to help you stay ahead of these changes so you can make informed, confident decisions — without the pressure of interpreting every announcement yourself.
Key Budget Outcomes Affecting Small Businesses & Landlords
1. Personal Tax & Allowances
Core thresholds remain tight, but HMRC’s emphasis on accurate reporting is stronger than ever. For rental property owners in particular, clarity on allowable expenses and proper recordkeeping will be essential as digital reporting requirements expand.
2. Business Rates & Reliefs
The Autumn Budget continues the movement towards modernising the business-rates system. While major structural reforms will take effect from April 2026, transitional support and targeted reliefs remain in place.
If you operate from a shop, workshop, office or studio, now is the time to review your rateable value and forecast your next year’s liability.
3. Compliance, Filing Penalties & HMRC Enforcement
Late submissions, VAT discrepancies, and inaccurate classifications are receiving increased scrutiny. Penalties and interest continue to rise, meaning that timely, consistent bookkeeping is now a fundamental part of financial protection.
Self-Assessment Season: What You Should Be Doing Now
With the 31 January deadline approaching, it is important to make sure your records are complete and accurate. Ask yourself:
- Is all income recorded, including rental income and benefits?
- Are expenses fully captured with supporting documentation?
- Do you understand your likely tax liability?
- Are your bank statements reconciled and up to date?
Accurate records now mean fewer surprises in January — and less time spent searching for missing information under pressure.
MTD for Income Tax: The Next Stage Begins
Although full implementation begins in April 2026, the transition to MTD starts long before that date. For most sole traders and landlords, this will require:
- Digital recordkeeping
- Compliant software for quarterly updates
- A consistent workflow for submissions
- A clear overview of business and rental income throughout the year
Those who prepare early will experience the smoothest transition. Those who wait until the deadline will face avoidable stress and higher risk of non-compliance.
If you are unsure whether your current system is MTD-ready, we can assess this and outline a clear next step.
Practical Actions to Take This Quarter
1. Finalise Your Records
Bring bookkeeping up to date, including rental income, payroll journals, mileage, and recurring costs.
2. Plan for Next Year’s Budget Changes
Review business rates, overheads and expected tax liabilities in light of the Autumn Budget announcements.
3. Begin Setting Up MTD-Compliant Processes
This is the ideal quarter to transition to digital accounting systems if you haven’t already done so.
4. Track All Filing Deadlines
VAT, corporation tax and payroll dates should be clearly scheduled with reminders in place.
Need Support?
There is a lot happening in the accounting landscape, but none of it needs to feel overwhelming when you have the right structure in place. A4 Accounting can help you:
- Bring your bookkeeping up to date
- Prepare Self-Assessment tax returns
- Establish MTD-compatible systems
- Produce management accounts to support decision-making
- Ensure compliance across VAT, rental income, and year-end tax reporting
If you would like help getting ready for the year ahead, simply get in touch and we’ll guide you through the process.
