VAT, Tax and Key Business Dates for SMEs in 2026

Running a small business comes with a lot of responsibilities, and managing your finances is at the heart of it all. From filing taxes to paying National Insurance, staying on top of deadlines is essential to avoid penalties and keep your business on track.

In this article, we’ll go through the key tax and financial dates every small business owner in the UK should know for 2026. Whether you’re a sole trader, a limited company, or a VAT-registered business, these dates will help ensure you stay compliant and avoid any unwanted surprises.

1. Key dates for VAT-registered businesses

If your business is VAT-registered, it’s essential to keep track of VAT return dates and any changes to VAT rates.

When is the next 2026 VAT return due?

VAT returns are typically due one calendar month and seven days after the end of your VAT accounting period. This means if your VAT quarter ends on 31st March 2026, your VAT return and payment are due by 7th May 2026.

VAT return submission deadlines 2026

Here’s a breakdown of quarterly VAT return dates for 2026 if you're on the standard VAT accounting scheme. These VAT submission deadlines and VAT quarter payment dates apply to most UK SMEs:

VAT Quarter End Date	VAT Submission Deadline	Payment Due Date
31st March 2026	7th May 2026	7th May 2026
30th June 2026	7th August 2026	7th August 2026
30st September 2026	7th November 2026	7th November 2026
31st December 2026	7th February 2027	7th February 2027

These quarterly VAT payment dates are based on the standard accounting scheme. If you're on annual or monthly VAT accounting, your deadlines will differ. Check your HMRC VAT online account to confirm your VAT due dates.

When are quarterly VAT returns due?

Quarterly VAT returns are due seven days after the end of the following month. These are the official HMRC VAT payment dates and submission deadlines for each VAT quarter in 2026:

For the period 1st Jan – 31st Mar 2026, your return is due 7th May 2026
For 1st Apr – 30th Jun 2026, your return is due 7th August 2026
For 1st Jul – 30th Sep 2026, your return is due 7th November 2026
For 1st Oct – 31st Dec 2026, your return is due 7th February 2027

If you pay by direct debit, HMRC typically collects the payment three working days after the submission deadline. To stay on track, it’s important to set calendar reminders and check your VAT quarter dates regularly.

Remember that annual adjustments for partly exempt traders will be made either on your March or June returns, which are due on 7th May 2026 or 7th August 2026.

VAT fuel scale charges – what changes in 2026?

If your business claims VAT on fuel for a company car, you’ll need to use something called the VAT fuel scale charge. This is a set of fixed amounts you pay back to HMRC to cover any private fuel use – for example, when an employee uses a company car for personal trips.

The current fuel scale charge tables run until 30th April 2026, covering the period 1st May 2025 to 30th April 2026.

From 1st May 2026, HMRC will release new tables, as part of the normal yearly update. These tables show set amounts based on the CO₂ emissions of the car (that’s the level of carbon dioxide the vehicle produces). They list monthly, quarterly, and yearly figures.

You’ll need to switch to the new CO₂‑banded amounts from May 2026 to make sure your VAT return is correct.

If you use accounting software, this update is often built in – but it’s still worth double‑checking your VAT workings so your numbers stay accurate.

2. Self-Assessment tax returns

Whether you’re a sole trader or in a partnership, you’re required to file a Self-Assessment tax return. This return tells HMRC how much tax you owe based on your business’ income for the year.

Key dates for Self-Assessment

31st October 2026 – Paper Self-Assessment tax return for the 2025/26 tax year
31st January 2027 – Online Self-Assessment tax return for the 2025/26 tax year

New to self-employment?

If you started your business in the 2025/26 tax year, you must notify HMRC by 5th October 2026.

New partner in a partnership?

If a new partner has joined your business during the 2025/26 tax year, you’ll need to inform HMRC by 5th October 2026.

Missed the deadline?

You’ll face a £100 fine - plus extra penalties and interest. Here’s how it works:

Immediately: £100 (even if you don’t owe tax)
After three months: +£10 a day up to £900
After six months: +5% of tax owed or £300 (whichever is greater)
After 12 months: +5% of tax owed or £300 (whichever is greater)

3. Sole traders’ tax and National Insurance deadlines

As a sole trader, you’ll pay your income tax and National Insurance contributions in two stages, known as payments on account. These are advance payments made towards your tax bill based on your previous year’s income.

Key dates for sole traders

31st January 2026 – Balance of any tax for the year 2024/25 is due.
31st January 2026 – First payment on account for the tax year 2025/26 is due.
31st July 2026 – Second payment on account for the tax year 2025/26 is due.
31st January 2027 – Balance of any tax for the year 2025/26 is due.
31st January 2027 – First payment on account for the tax year 2026/27 is due.

If you’re struggling to make your payments on time, it’s important to contact HMRC. You can set up a Time to Pay arrangement, which allows you to pay in instalments. However, remember that interest is charged if you pay late, so always try to stay on top of deadlines.

4. Payroll deadlines for employers

If you employ staff, there are important payroll deadlines to remember, including tax and National Insurance payments, as well as reporting employee benefits.

Key payroll dates

6th April 2026 – Update your employee payroll records for the new tax year.
19th April 2026 – Submit your final Full Payment Summary and Employer Payment Summary for the year ending 5th April 2026 and pay any tax/NIC due.
31st May 2026 – Provide P60s to all employees who were working for you on the last day of the tax year (5 April 2026).
6th July 2026 – Report any employee expenses and benefits for the 2025/26 tax year.
19th July 2026 – Pay Class 1A NICs by post; if paying electronically, the deadline is 22nd July 2026.

These payroll dates are vital to stay compliant with HMRC’s reporting and payment requirements, so be sure to keep your records accurate and up to date.

5. National Minimum Wage and Statutory Pay increases

In 2026, several statutory pay rates are due to increase. This includes the National Minimum Wage (NMW), Statutory Sick Pay (SSP), and Statutory family-related pay. Make sure to update your payroll to reflect these increases.

National Minimum Wage increase (from 1st April 2026)

National Living Wage (for workers aged 21 and over) – Increases to £12.71 per hour (up 50p, 4.1%).
For workers aged 18-20 – Increases to £10.25 per hour (up 85p, 8.5%).
For workers under 18 – Increases to £7.55 per hour (up from £6.40).
Apprentices – Increases in the 6-8.5% band (exact pence to be confirmed – up from £6.40).

These increases will significantly impact labour costs, especially in hospitality, retail and care. SMEs should re‑forecast wage, rota, and pricing models for 2026/27.

Statutory family-related pay increase (from 6th April 2026)

Statutory maternity, paternity, adoption, shared parental leave, and parental bereavement leave pay will remain at 90% of average weekly earnings for the first six weeks, but the remaining weeks cap will increase from £187.18 to £194.32 per week.
The Lower Earnings Limit for rises from £125 to £129 per week for all of the above, bar maternity allowance, which remains at £30.

Statutory Sick Pay (SSP) increase (from April 2026)

From 6th April 2026, SSP changes both in rate and structure under the Employment Rights Act 2025:

SSP will increase from £118.75 per week to £123.25 per week.
SSP will become a day-one entitlement (no three unpaid waiting days).
The Lower Earnings Limit will be removed – all employees will qualify regardless of earnings level.
Employers will pay whichever is lower: 80% of the employee’s average weekly earnings or £123.25 flat rate.

6. Corporation Tax deadlines (for limited companies)

If you run a limited company, you’re required to file your Corporation Tax return and pay any tax due. These deadlines remain unchanged.

Corporation Tax deadlines

9 months after your company’s financial year ends – Your Corporation Tax payment is due. Be sure to check your company’s financial year-end to know the exact date.
12 months after your company’s financial year ends – Your Corporation Tax return is due. This return must be filed with HMRC.

Corporation tax is calculated based on your company’s profits, so it’s important to keep accurate records and file your return on time to avoid penalties.

7. Important changes and adjustments for 2026

Several updates and changes may affect your business in 2026. Stay aware of these changes to ensure you remain compliant and avoid any unexpected tax bills.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA)

From 6 April 2026, HMRC is bringing more people into Making Tax Digital for Income Tax, often shortened to MTD ITSA.

If you earn more than £50,000 a year from self‑employment or rental property (or a mix of both), you’ll need to follow the new rules.

In practice, this means three things:

Quarterly digital updates – You’ll report your income and expenses to HMRC every three months instead of once a year.
Digital record‑keeping – You’ll need to keep your business records in a digital format (for example, in accounting software).
MTD‑compatible software – You must use software that links directly to HMRC (such as Xero, QuickBooks or other approved tools).

This mainly affects company directors who also run a side business or rent out property in their own name. Even if your company is incorporated, your personal income still counts towards the £50,000 threshold.

Companies House and corporate transparency reforms

Throughout 2026, Companies House is rolling out major changes under the Economic Crime and Corporate Transparency Act. These changes aim to reduce fraud and improve the accuracy of company records.

Here’s what small businesses can expect:

Stricter checks on filings – Companies House will look more closely at the information you submit.
More questions about your paperwork – You may see extra requests asking you to confirm or explain details.
Mandatory ID checks (phased in) – Directors and “people with significant control” (PSCs) will need to verify their identity.

Because of these tighter rules, SMEs should allow extra time when forming companies, appointing directors, or submitting filings in 2026.

Enterprise Management Incentive (EMI) reforms

From 6 April 2026, the Government is widening access to the Enterprise Management Incentive (EMI) scheme. EMI is a tax‑efficient employee share option scheme that helps growing businesses reward and retain staff.

Here’s what’s changing:

Gross assets limit: £30m → £120m
Employee limit: 250 → 500
Total EMI options allowed: £3m → £6m
Time employees have to exercise options: 10 years → 15 years

These increases mean that many scale‑ups and previously “too big for EMI” SMEs can now rejoin the scheme. If you’re planning a reward or retention strategy, 2025–26 is a good time to review or redesign your option plans.

Late‑payment reforms and SME protections

Late payments are one of the biggest cash‑flow problems for SMEs. New reforms expected in 2026 aim to improve how quickly big companies pay small suppliers.

The proposed rules include:

Large customers must pay within 60 days, dropping to 45 days after a transition period.
Invoices must be paid or formally disputed within 30 days.
Stronger penalties, including statutory interest at 8% above the Bank of England base rate.
More enforcement power for the Small Business Commissioner, who supports SMEs facing chronic late payment.

To stay ahead, SMEs should review:

Their credit control process
Payment terms in contracts
How quickly they chase overdue invoices

These changes are designed to give small businesses more confidence, more protection, and faster cash flow.

Staying on top of key tax, VAT, and payroll deadlines is essential for the smooth running of your small business in 2026. By planning ahead, as well as submitting and paying on time, you can avoid penalties and focus on what you do best - growing your business.

This article is accurate as of 20th February 2026.