Essential UK Tax & Compliance Briefing: May 2026

 


May 2026 Compliance Update

May is a key compliance month for UK businesses and employers, with multiple HMRC deadlines, ongoing Companies House obligations, and the first full payroll month under the 2026/27 tax year rules.

The emphasis this month is on maintaining accurate records, correct payroll processing, and meeting statutory deadlines.

Making Tax Digital (MTD) for Income Tax

MTD for Income Tax applies from 6 April 2026 to self‑employed individuals and landlords with qualifying income over £50,000.

No MTD quarterly submission is due in May. The first mandatory quarterly update (covering 6 April to 5 July 2026) is due by 5 August 2026.

From 6 April 2026, taxpayers must:

  • Keep digital records of income and allowable expenses
  • Record transactions within MTD‑compatible software as they occur

If April transactions have not yet been properly categorised in compliant software, records are already incomplete.

HMRC – Key May Deadlines

VAT

7 May 2026

  • VAT return submission and payment for VAT quarters ending 31 March 2026

PAYE, NIC & CIS

3 May 2026

  • P46(Car) deadline for reporting company car changes in the previous quarter

19 May 2026 (Postal)

  • CIS300 monthly return deadline
  • PAYE, NIC, and Student Loan payments by cheque
  • Final Employer Payment Summary (EPS) for 2025/26, if not submitted in April

22 May 2026 (Electronic)

  • PAYE, NIC, Student Loan, and CIS payments must clear HMRC

On or before each payday

  • RTI Full Payment Submissions (FPS) must be submitted for every payroll run

Student Loans – Payroll Check

For the 2026/27 tax year:

  • Plan 2 Student Loan threshold remains frozen at £27,295
  • Payroll systems should be checked to ensure thresholds have not been increased in error

Employment Reporting & Benefits

31 May 2026

  • P60s must be issued to all employees employed at 5 April 2026

Payrolled Benefits

Where benefits are payrolled (e.g. private medical insurance):

  • No P11Ds will be required later in the year
  • Correct Benefit‑in‑Kind values must be included in monthly payroll, including May

Employers not payrolling benefits must still prepare for P11D and P11D(b) reporting in July.

Business Cost & Payroll Considerations

  • April 2026 National Living Wage increases now apply fully in May payrolls
  • Frozen tax thresholds and increased HMRC penalties require close deadline monitoring
  • Payroll, VAT, and bookkeeping software should be reviewed for continued compliance

Key Compliance Dates – May 2026

  • 3 May – P46(Car) deadline
  • 7 May – VAT return & payment (quarter ended 31 March 2026)
  • 19 May – CIS300, PAYE/NIC postal payments, final EPS (if missed in April)
  • 22 May – PAYE/NIC/CIS electronic payments
  • 31 May – P60 deadline

What You Should Be Doing Now

Individuals & Landlords

  • Ensure digital records are complete from 6 April
  • Review MTD software categorisation for April transactions

Business Owners & Employers

  • Check Student Loan thresholds and BiK treatment in payroll
  • Issue P60s by 31 May
  • Confirm VAT, PAYE, and CIS liabilities are paid on time
  • Review Companies House deadlines for the year ahead

Visit the CrossCountry Website: www.crosscountry-accountants.co.uk

Location: Manchester, UK

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