June 2026 Tax, Property and Business Briefing
Practical updates for landlords, contractors, directors and small business owners
In this month’s briefing, we look at the most important tax, property and business updates from June 2026.
This month’s main themes are clear: Making Tax Digital is now urgent, construction businesses need tighter CIS processes, employers need to prepare for payroll changes, landlords need stronger compliance records, and small businesses need to protect cashflow.
This issue covers:
- Over 110,000 taxpayers still to register for Making Tax Digital
- CIS contractors reminded to file monthly returns, including nil returns
- Mandatory payrolling of benefits will be phased in from April 2027
- Late payment reforms could help small businesses and construction subcontractors
- Landlords should check Renters’ Rights Act paperwork
- Mileage rate rises to 55p for cars and vans
- Companies House identity verification and accounts filing changes
Over 110,000 taxpayers still to register for Making Tax Digital
More than 110,000 unrepresented taxpayers who may need to use Making Tax Digital from April 2026 have still not registered, according to the Low Incomes Tax Reform Group.
LITRG’s estimate is based on HMRC figures for unrepresented taxpayers expected to be within the first phase of Making Tax Digital, combined with public comments about current registration rates.
From April 2026, taxpayers with gross income of more than £50,000 from self-employment and/or rental income in the 2024/25 tax year are legally required to use Making Tax Digital, unless they are exempt.
The threshold then falls to:
- £30,000 from April 2027
- £20,000 from April 2028
The first quarterly update deadline for those in the first phase is 7 August 2026.
Source: LITRG article on taxpayers still to register for Making Tax Digital
Why this matters before the first deadline
This is especially important if you are a landlord, sole trader, consultant, subcontractor or self-employed tradesperson.
Making Tax Digital is not just a new online form. It changes how records need to be kept throughout the year. Instead of pulling figures together once a year, affected taxpayers need digital records that are ready for quarterly updates.
The real risk is not just missing a deadline. It is reaching August with records that are not clean enough to submit.
If you are in scope, leaving it late could mean trying to choose software, tidy records, separate business and personal spending, and understand quarterly submissions all at the same time.
Get your records ready early
- Check your 2024/25 Self Assessment return and confirm whether your property and/or self-employed income was over £50,000.
- If you are close to the threshold, do not assume you are outside the rules. Check properly.
- If you use spreadsheets, paper records or last-minute bank statement reviews, start moving to a cleaner digital system now.
- Landlords should organise rent, mortgage interest, repairs, insurance, agent fees and property costs by property.
- Sole traders should make sure income, materials, travel, tools, subcontractor costs and business expenses are recorded consistently.
If you are unsure whether Making Tax Digital applies to you, please contact us. It is much easier to set up the right system now than to fix incomplete records after a deadline.
CIS contractors reminded to file monthly returns, including nil returns
HMRC used its June Employer Bulletin to remind Construction Industry Scheme contractors that they must file monthly CIS returns or risk late-filing penalties.
From April 2026, CIS contractors are legally required to file a CIS return every month, including nil returns in months where they have not used subcontractors.
HMRC says contractors should either:
- file a return showing payments,
- file a nil return where they have not used subcontractors, or
- submit an inactivity request, which lasts six months.
Source: HMRC Employer Bulletin June 2026
A quiet month can still need action
This is a practical risk for construction businesses, builders, property developers and trade businesses that use subcontractors.
A quiet month does not automatically mean there is nothing to do.
If your business is registered as a CIS contractor, “we did not pay anyone this month” does not always mean “nothing needs filing”.
The mistake many contractors make is treating CIS as something that only matters when subcontractors are actively being paid. HMRC’s reminder makes clear that monthly discipline is needed.
Build a monthly CIS check
- Decide who is responsible for checking CIS every month.
- Make sure subcontractors are verified before payment.
- Match subcontractor invoices, bank payments and CIS deductions.
- File nil returns where no subcontractors were used.
- Use inactivity requests where subcontractor work has stopped for a longer period.
If you have missed CIS returns, have old penalties or are unsure whether nil returns are needed, speak to us before the issue grows.
Mandatory payrolling of benefits will be phased in from April 2027
HMRC has confirmed that mandatory payrolling of benefits in kind will be introduced in phases.
From 6 April 2027 to 5 April 2028, mandatory payrolling will apply only to:
- company cars,
- car fuel,
- vans,
- van fuel, and
- medical benefits.
Mandatory payrolling for most other benefits will then be introduced from April 2028.
The Association of Taxation Technicians welcomed the phased rollout, saying it gives employers and payroll software providers more time to prepare for the change.
Sources: ATT article on phased payrolling of employee benefits and HMRC Employer Bulletin June 2026
Payroll will need better information earlier
Benefits in kind are non-cash benefits provided to employees or directors. Common examples include company cars, fuel benefits, vans and private medical insurance.
At the moment, many employers report these once a year using P11D forms. Under payrolling, the taxable value of benefits is processed through payroll in real time, so tax is collected through pay during the year.
Payrolling benefits should reduce year-end surprises for employees, but it also means employers need accurate benefit records during the year, not after it ends.
This means payroll systems, benefit records and internal processes need to be ready before April 2027.
Start with cars, vans and medical benefits
- Review what benefits you provide to employees and directors.
- Identify whether you provide company cars, fuel, vans or private medical insurance.
- Check whether your payroll software can handle payrolled benefits.
- Make sure benefit values are recorded accurately and updated when they change.
- Do not ignore the current P11D deadlines.
HMRC’s June Employer Bulletin says P11D and P11D(b) returns for 2025/26 are due by 6 July 2026, with Class 1A National Insurance payments due by 19 July if paying by cheque or 22 July if paying electronically.
If your company provides cars, vans, fuel, medical insurance or other staff benefits, this is a good time to review your payroll and benefits process.
Late payment reforms could help small businesses and construction subcontractors
The government has announced reforms aimed at tackling late payment and poor payment practices.
The proposals include:
- a 60-day cap on payment terms for large firms paying smaller suppliers,
- mandatory interest on late payments set at 8% above the Bank of England base rate,
- stronger powers for the Small Business Commissioner, and
- action to ban the practice of withholding retention payments under construction contracts.
Source: GOV.UK announcement on late payment reforms
Cashflow problems do not wait for legal reform
Late payment is not just an admin frustration. It can create serious cashflow pressure.
A business can be profitable on paper and still struggle to pay wages, suppliers, VAT, PAYE, CIS or corporation tax if customers do not pay on time.
This is especially relevant in construction. Subcontractors often pay for labour and materials before receiving full payment, and retentions can leave money tied up long after work is complete.
New rules may help, but they will not replace the need for strong credit control and clear visibility over unpaid invoices.
The proposed reforms are positive, but they are not a replacement for good cashflow management.
Tighten up unpaid invoices and retentions
- Review your aged debt report every month.
- Chase overdue invoices before tax deadlines arrive.
- Track retention money separately from normal unpaid invoices.
- Agree payment terms before starting work.
- Build VAT, PAYE, CIS and corporation tax dates into your cashflow planning.
If late payments are affecting your ability to pay tax or suppliers, speak to us early. Often the issue is not only tax. It is cashflow planning, credit control and visibility over unpaid invoices.
Landlords should check Renters’ Rights Act paperwork
Landlords and letting agents should check whether they have complied with the Renters’ Rights Act Information Sheet 2026 requirements.
GOV.UK says most landlords and agents must have given the official Information Sheet to tenants by 31 May 2026.
The guidance says landlords could be fined up to £7,000 if they fail to provide it where required.
It also says the Information Sheet must be provided as a hard copy or sent electronically as an attachment. Sending only a link to the PDF is not valid.
Source: GOV.UK Renters’ Rights Act Information Sheet 2026
Landlord records now need to prove more than income
Landlord compliance is becoming more detailed.
It is no longer enough to keep only rent figures, mortgage statements and a few repair invoices for the tax return. Landlords also need proper tenancy records, safety records, deposit records and evidence that required documents were provided.
This matters even if you use a letting agent. If the agent manages the property, you should still keep evidence that the correct documents were issued.
A clean property file is not just useful for tax. It can also be your evidence that key landlord obligations have been met.
Create one file for each property
- Ask your letting agent to confirm whether the Information Sheet was provided correctly.
- Keep evidence that each named tenant received the document.
- Create a compliance folder for each rental property.
- Keep tenancy agreements, agent statements, certificates, insurance, mortgage statements and repair invoices together.
- Review whether your rental records are ready for Making Tax Digital.
A clean property file helps with both compliance and tax. It also makes annual accounts and Making Tax Digital preparation much easier.
Mileage rate rises to 55p for cars and vans
The approved mileage rate for cars and vans has increased for the 2026/27 tax year.
For business journeys in an employee’s own car or van, the approved mileage rate is now:
- 55p per mile for the first 10,000 business miles in the tax year
- 25p per mile after that
Motorcycle and bicycle rates have not changed.
Source: GOV.UK travel mileage and fuel rates
The rate changed, but the rules still depend on the vehicle
The rate has changed, but the correct treatment still depends on the vehicle arrangement.
There is a difference between:
- an employee using their own car,
- a director using their own car,
- a company-owned car,
- a company van,
- fuel paid by the company,
- electric vehicle charging, and
- ordinary commuting.
The 55p rate does not apply to every situation.
HMRC’s advisory fuel rates are separate and apply mainly to company cars. From 1 June 2026, the advisory electric rates for fully electric company cars are:
- 7p per mile for home charging
- 15p per mile for public charging
Source: HMRC advisory fuel rates
Mileage claims are straightforward only when the journey, vehicle ownership and business purpose are clear.
Keep mileage evidence, not just totals
- Update mileage reimbursement rates where appropriate.
- Keep mileage logs showing the date, destination, purpose and miles.
- Separate private travel from business travel.
- Do not use advisory fuel rates for personally owned vehicles.
- Review vehicle claims before changing your expense policy.
For construction clients, this is especially important where travel between sites is involved. The journey matters as much as the vehicle.
Companies House identity verification and accounts filing changes
Companies House reforms are continuing, and limited company directors should prepare now.
From 18 November 2025, identity verification became a legal requirement. Companies House says this date started a 12-month transition period for companies to make sure all directors and people with significant control verify their identity by their due dates.
Source: Companies House identity verification guidance
Companies House has also confirmed accounts filing changes from April 2028. All UK registered companies will need to file accounts using commercial software in iXBRL format, and web and paper-based accounts filing routes will close for accounts filings.
Source: Companies House announcement on accounts filing changes from April 2028
Company admin is becoming harder to leave until the last minute
Companies House is becoming more digital, more identity-focused and more data-focused.
For directors, this means company admin should not be left until the last minute. If records are outdated, filings can become harder and important notices may be missed.
This is especially important if you run more than one company, have a property company, have a family company or have old companies that are still active or dormant.
Companies House admin may feel small, but missed verification or outdated company records can block important filings when you least want delays.
Check every company you are connected to
- Check who the current directors are.
- Check who the people with significant control are.
- Confirm whether identity verification is complete or due.
- Make sure the registered office and company email address are correct.
- Keep Companies House authentication details secure.
- Review all companies you are connected to, not just the main trading company.
Small company admin often feels harmless until it blocks something important. This is a good time to tidy the company record before deadlines create pressure.
Final thought
June’s updates all point in the same direction.
HMRC, Companies House and wider business regulation are moving towards cleaner records, earlier reporting and stronger digital compliance.
For landlords, that means better property records.
For construction businesses, that means tighter CIS and cashflow controls.
For employers, that means preparing payroll and benefits records earlier.
For directors, that means keeping company records accurate and identity checks up to date.
The businesses that handle these changes best will not be the ones that rush before deadlines. They will be the ones that keep cleaner records throughout the year.
If any of the updates in this briefing affect you, or you are unsure whether your records are ready, please contact Dali & Co.
We can help you check what applies, organise your records, prepare for Making Tax Digital, review CIS processes, tidy company records and avoid preventable penalties or deadline problems.
The best time to fix record-keeping is before HMRC, Companies House or a tax deadline forces the issue.
Disclaimer
This briefing is for general information only and reflects guidance available at the date of publication. It is not personal tax, legal or financial advice. Tax and compliance treatment depends on your circumstances. Please seek professional advice before taking or refraining from action.