UK September 2026 Update: Corporate Reporting Reform, MTD Registration and Housing Market Signals
September has brought several important developments for UK businesses, sole traders, landlords and property investors. The government is consulting on simplifying corporate reporting, HMRC is beginning to register people who should already be using Making Tax Digital (MTD) for Income Tax, and the latest housing data suggests modest price growth alongside weaker mortgage approvals.
This briefing explains what has changed, what is still only a proposal and what action may be appropriate now. Information is correct as at 11 September 2026.
1. Corporate reporting reform: possible simplification, but no immediate change to audit requirements
On 7 September 2026, the government opened a consultation on modernising corporate reporting. The proposals are intended to make reporting more proportionate and useful, especially for small and medium-sized businesses.
Areas under consideration include:
updating company-size thresholds and related exemptions;
allowing some medium-sized companies to qualify for audit exemption;
simplifying strategic, directors' and remuneration reporting; and
making digital communication and reporting the default in more situations.
The consultation closes on 30 November 2026. These measures are proposals, not current law. A company that is presently required to have an audit should therefore continue to plan on that basis unless and until legislation changes and the company meets the final eligibility conditions.
Businesses may nevertheless wish to review their reporting processes now. If the proposals proceed, the practical benefit is likely to depend on company size, group structure, lender or investor requirements, and whether an audit is useful even when it is not legally required.
A separate confirmed change from April 2028
Companies House has separately confirmed that, from 1 April 2028, all UK companies will need to file annual accounts using commercial software. Web and paper filing for accounts will close from that date.
Small companies and micro-entities will also be required to file profit and loss accounts with Companies House, although they will be able to opt out of making that information public. Companies House, HMRC and law-enforcement bodies will still be able to access the filed information. Detailed opt-out arrangements are expected later.
Companies that still prepare or submit accounts manually should use the lead time to review compatible software, responsibilities and internal record-keeping.
2. Making Tax Digital for Income Tax: HMRC registration activity is increasing
MTD for Income Tax became mandatory on 6 April 2026 for eligible sole traders and landlords whose combined qualifying gross income from self-employment and property exceeded £50,000.
HMRC reported in August that more than 570,000 people had signed up and more than 436,000 had submitted their first quarterly update. For people following the standard quarterly periods, the first period ran from 6 April to 5 July 2026 and the submission deadline was 7 August 2026.
From September, HMRC is starting to sign up customers who appear to be required to use MTD for the 2026/27 tax year but have not registered. Eligibility is generally assessed using information from the 2024/25 Self Assessment return. Some people may be exempt or able to apply for an exemption, so an HMRC registration notice should be checked against the individual's circumstances rather than ignored.
To comply, affected taxpayers generally need to:
keep digital records using compatible software;
submit quarterly summaries of income and expenses; and
complete their year-end tax obligations through the MTD process.
Quarterly updates are summaries, not four separate tax returns. The usual 31 January deadline for the final Self Assessment position remains. HMRC has also said that late quarterly updates will not attract penalty points during the 2026/27 tax year, but taxpayers should still establish a reliable process as early as possible.
The qualifying-income threshold is due to fall to more than £30,000 from April 2027, bringing more sole traders and landlords into scope.
3. Housing market: prices edged higher, but lending demand remains subdued
Nationwide's August 2026 house-price index recorded a 0.2% monthly increase. The average UK house price was £275,465, with annual growth of 1.6%, up from 1.4% in July.
This is a modest improvement rather than evidence of a broad housing boom. Bank of England data showed that net mortgage approvals for house purchase fell to 56,100 in July from 58,200 in June. The figures suggest that affordability, borrowing costs and buyer confidence are still constraining activity.
The Bank of England maintained Bank Rate at 3.75% in July. Its next Monetary Policy Committee decision is due on 17 September 2026. Borrowers and investors should avoid basing decisions on a single rate forecast and should test affordability under a range of interest-rate and vacancy assumptions.
For buy-to-let investors, the tax position can be as important as the purchase price. Ownership structure, finance costs, Stamp Duty Land Tax, rental-profit taxation and future capital gains should be considered together before a transaction is completed.
Practical next steps
Business owners should distinguish between confirmed rules and proposals. The April 2028 software-filing timetable is confirmed, while the wider corporate-reporting consultation may change before any legislation is introduced.
Sole traders and landlords who may be within MTD should check their qualifying income, confirm whether HMRC has registered them and ensure that their software and records are ready. Property investors should model tax and financing costs using cautious assumptions rather than relying on headline price movements alone.
TB Accountants can help with company reporting, MTD readiness, landlord tax and cross-border tax matters.
Official sources
This article provides general information only and does not constitute accounting, tax, legal, investment or mortgage advice. Rules and individual circumstances vary. Obtain professional advice before taking action.
