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I’m Dan, a freelance small business journalist and event/podcast host with 20+ years of experience. If you’re looking for small business-focused content or an engaging event host, I’d love to help. Get in touch.
Government scraps Making Tax Digital for corporation tax
The Making Tax Digital (MTD) system will not be extended to corporation tax (CT), HM Revenue & Customs (HMRC) has confirmed.
In its new transformation roadmap, HMRC said the requirement for businesses to submit quarterly tax updates will not be expanded to cover corporation tax. MTD currently applies to VAT and will apply to income tax for landlords and sole traders with income above £50,000 from April 2026.
The roadmap says:
“HMRC do not intend to introduce MTD for CT but are developing an approach to the future administration of CT that is suited to the varying needs of the diverse CT population.
“HMRC recognises that this population includes a very wide range of entities and situations, from small businesses to multinationals, from charities and property management companies to unincorporated associations.
“HMRC will work with stakeholders to identify changes that will provide the best outcomes for taxpayers and government and is committed to consulting and providing early clarity and assurance on both the design and timing of changes.”
HMRC’s transformation roadmap sets out plans for it to become “a digital first organisation” by 2030, with 90% of customer interactions taking place digitally.
Other changes confirmed in the roadmap include:
- the income tax self assessment trading income reporting threshold will be increased from £1,000 to £3,000 which the government says means up to 300,000 taxpayers will not need to file a tax return. People with taxable income below the new threshold, such as those running side hustles, will be able to report their income through a new digital reporting service.
- to reduce errors and improve accuracy, HMRC will increase pre-population of data in tax returns. This includes pre-populating self assessment tax returns with child benefit data from April 2026 for those not reporting payments through their tax code.
- people will be automatically registered for self assessment to make it easier for them to meet their tax obligations.
- HMRC will deliver targeted nudges to help people submit their self assessment and corporation tax returns.
- tax education support packages focused on small businesses and pensioners will be introduced in 2025/26. HMRC will also launch a tax module aimed at students in higher education “to support the UK’s entrepreneurs of the future”.
- a new online service for all PAYE taxpayers (around 35 million) will be introduced in 2025/26.
- the SMS confirmation service will be extended to self assessment appeals, complaint cases and some PAYE services in 2025/26.
- the rollout of the voice biometrics pilot to make customer verification easier when calling HMRC’s helplines will be extended in 2025/26.
- HMRC will expand the use of e-invoicing to help reduce error and lower small business tax administration.
- individuals can add their National Insurance number to their Google and Apple Wallet, something that has so far been done by more than 1.5m people.
- HMRC will enable more taxpayers to receive tax refunds directly into their bank accounts.
- the inheritance tax service will be digitised from 2027/28 onwards.
- new legislation will come into effect from April 2026 to tackle tax avoidance and fraud by umbrella companies.
- HMRC will launch a new service to allow agents to digitally submit information which may impact their client’s tax code.
- an electronic trade documentation pilot will be carried out to see how it could improve customs operations.
Over three million self-employed people are not saving into a pension
More than three million self-employed individuals are not saving into a pension, the government has revealed.
The figure was shared as the Department for Work and Pensions announced it is reviving the Pensions Commission, a policy review set up by Tony Blair and Gordon Brown in 2006 which led to the roll-out of automatic enrolment into pension saving.
The government said the new commission will come up with solutions aimed at tackling what has been described as the UK’s pension crisis.
New analysis shows that retirees in 2050 will have £800 or 8% less private pension income than those retiring today, and four in 10 (around 15m people) are undersaving for retirement.
It also revealed a 48% gender pensions gap in private pension wealth between women and men, with a typical woman currently approaching retirement expecting a private pension income worth over £5,000 less than that of a typical man.
Work and pensions secretary Liz Kendall said:
“People deserve to know that they will have a decent income in retirement – with all the security, dignity and freedom that brings. But the truth is, that is not the reality facing many people, especially if you’re low paid, or self-employed.
“The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place.”
Improving self-employed saving
A report released earlier this year by Nest Insight argued that with only 18% of self-employed people saving for retirement, despite three quarters saying they want ‘autosave’, a default retirement savings approach, could “significantly increase financial security for people who miss out on automatic enrolment because they don’t have an employer to set up a pension for them”.
The report said:
“In an opt-out approach, the self-employed worker is automatically signed up to a long-term or retirement savings vehicle. They can choose to opt out at any time, but if they do not, then some proportion of their income will be diverted into the savings vehicle on a regular basis.
“Learnings from the rollout of workplace pensions, and a large body of behavioural science, strongly suggest that an opt-out savings approach would significantly increase participation rates if it could be introduced into a context that self-employed people transact with regularly.”
Applications open for new funding to support tech start-ups
Organisations that support technology focused businesses in their local area are being encouraged to apply for government funding.
The Department for Science, Innovation and Technology last week announced the £1m Regional Tech Booster programme aimed at growing technology clusters and early-stage digital start-ups in regions outside of London.
Groups can now apply to run ‘catalyst pilot projects’ which will test new approaches to business support and generate learning that can be shared across the UK tech ecosystem.
Projects must begin in September 2025, last a maximum of six months, support at least 30 businesses and have a budget of up to £40,000.
UK Tech Cluster Group, which is managing the scheme, will fund at least 10 locally led pilot projects that provide intensive support to at least 300 tech businesses.
The deadline to express an interest is 12pm on 22 August. An information webinar takes place at 9am on 29 July.
Read full details here.
Ramsgate wins small business support prize in Visa awards scheme
Ramsgate in Kent has been recognised for how it supports small businesses in a scheme that showcases the role of UK towns in driving local economic growth and supporting community-led initiatives.
The town won the prize as part of the Visa Let’s Celebrate Towns awards, in partnership with the British Retail Consortium. It was rewarded with £20,000 for a new or ongoing community project.
Ramsgate was recognised for the work of Ramsgate Space CIC, which aims to transform local high streets by putting empty shops back into meaningful use. The community interest company’s HQ offers business advice drop-ins, affordable space hire and talks from successful entrepreneurs.
Louise Brooks, co-founder of Ramsgate Space CIC, told Isle of Thanet News:
“Ramsgate is a town of both opportunity and urgency. We’re proud to be helping unlock potential through grassroots action, and grateful to Visa and the British Retail Consortium for recognising that the future of our high streets depends on the people building them.”
A £20,000 prize was also awarded to:
- Future Skills: Gosport
- Connectivity: Morecambe
- Powering Change: Swanley
- Circularity: Malton & Norton
- High Street Transformation: Wallsend
Mandy Lamb, managing director, UK & Ireland, Visa, said:
“We believe that when our towns thrive, the UK as a whole flourishes. Many people live and work in these vibrant communities, making it essential to invest in their growth and development. We are proud to highlight the resilience and innovation that define these towns, reinforcing our support for nurturing prosperity and economic opportunity across the UK.”
Helen Dickinson, CEO, British Retail Consortium, added:
“Our collaboration with Visa highlights the dynamic role of retail in fostering thriving high streets and vibrant local economies. It is encouraging to see many of these towns embracing retail as a key pillar of their economic success. The achievements of these winning towns serve as inspiring examples of best practice.”
I’m Dan, a freelance small business journalist and event host with 20+ years of experience. If you’re looking for small business-focused content or an engaging event host, I’d love to help. Get in touch.
Dan Martin 