Small Business Tax News: 2026 Changes and Deadlines

What Small Business Owners Need to Know Now

The biggest small business tax news is the 2025 federal tax law. It changed several rules that affect owners in 2026.

The law restored full bonus depreciation for many assets. It also raised the Section 179 limit. These rules can lower taxable income when you buy equipment.

UK owners face a separate set of issues. Current VAT news centers on registration, digital records, and VAT rate rules.

Use this guide as a planning map. Check each deadline and rule with the IRS or HMRC before filing.

Recent Federal Tax Changes That Matter

The One Big Beautiful Bill Act became law on July 4, 2025. It extended or changed several business tax rules from the 2017 tax law.

For many qualifying assets, bonus depreciation returned to 100%. The rule can apply to property placed in service after January 19, 2025.

The law also increased the Section 179 deduction limit. For tax year 2025, the limit rose to $2.5 million. The phaseout began when total equipment costs passed $4 million.

These figures may rise with inflation in later years. The asset must also meet the rules for business use. Keep the invoice, date placed in service, and use records.

• Check whether the asset qualifies for Section 179 or bonus depreciation
• Compare an immediate write-off with regular depreciation
• Track business use for vehicles and mixed-use equipment
• Review new IRS guidance before filing a return

The law also kept a 20% deduction for many pass-through businesses. This includes many sole proprietors, partnerships, and S corporations.

The deduction has income limits and special rules. Service trades may face extra limits at higher income levels. Ask your tax adviser to model both personal and business income.

How UK VAT Affects Small Businesses

VAT is a tax added to many goods and services in the United Kingdom. A VAT-registered business charges VAT on sales and claims back VAT on eligible costs.

The main UK VAT registration threshold is £90,000 in taxable turnover. A business must register when its rolling 12-month turnover passes that level.

It may also register by choice below the threshold. Voluntary registration can help a firm claim input VAT. It can also raise prices for customers who cannot recover VAT.

That trade-off matters for firms that sell to consumers. It matters less when most customers are VAT-registered businesses.

HMRC requires most VAT-registered firms to keep digital records. Many must file through Making Tax Digital for VAT.

Read HMRC's VAT registration rules before making a choice. The page sets out the current threshold and key registration tests.

Simple VAT example

Suppose a shop sells £12,000 of taxable goods in one month. At a 20% VAT rate, it charges £2,400 in output VAT.

It paid £800 in VAT on eligible stock and tools. Its VAT return may show £1,600 due before other adjustments.

Keep sales and purchase records by VAT rate. Separate exempt sales from zero-rated sales. The difference can change what you may claim.

Common Deductions and Write-Offs

Small firms can deduct costs that are ordinary and needed for their trade. The expense must link to the business.

Start-up costs often include market tests, legal fees, ads, and supplier research. Some costs may qualify for a limited first-year deduction. Others may become part of an asset's cost.

Equipment works differently from a normal expense. You may claim Section 179, bonus depreciation, or standard depreciation.

Do not choose a write-off by habit. A large deduction may waste value if your business has little profit this year.

Cost type	Typical tax treatment	Record to keep
Start-up research	May qualify under start-up cost rules	Invoices and payment dates
Computers and tools	May use Section 179 or depreciation	Asset list and service date
Business mileage	May use the standard mileage method	Date, route, and business purpose
Insurance and rent	Often deductible when tied to the trade	Policy or lease records

Other common deductions include wages, rent, software, bank fees, and business insurance. Meals have special limits. Personal costs do not become business costs because you paid them from a business account.

Self-employment tax also needs a cash plan. Sole proprietors often owe both income tax and self-employment tax on profit.

Tax Planning Steps for the Rest of the Year

Start with a forecast of sales, costs, profit, and cash. Update it each month through year end.

Then compare your expected tax with payments made so far. This can show whether your next estimated tax payment needs to rise.

1. Close your books through the latest full month.
2. List open invoices, unpaid bills, and planned asset buys.
3. Estimate federal, state, and self-employment tax.
4. Set cash aside for the next payment date.
5. Review credits, retirement plans, and payroll before year end.

Time equipment purchases with care. Buying an asset only for a tax break can hurt cash flow.

A machine that costs $20,000 still costs $20,000. A deduction only cuts the tax tied to that cost.

Review business tax credits as well. Some firms may qualify for credits tied to research, clean energy, hiring, or paid leave rules.

Payroll needs its own check. Confirm worker status, payroll deposits, W-2 forms, and employment tax returns.

Pass-through owners should also review salary, distributions, and retirement savings. Keep personal and business funds apart.

Trusted Tax Resources for Small Firms

Good tax planning starts with primary sources. The IRS Small Business and Self-Employed Tax Center covers forms, records, payments, and filing help.

Use the IRS Small Business and Self-Employed Tax Center for official guidance. It links to key publications and online tools in one place.

• IRS Publication 535 for business expenses and deductions
• IRS Publication 946 for depreciation and asset write-offs
• IRS Form 1040-ES for individual estimated tax payments
• IRS Form 941 for many quarterly employment tax filings
• HMRC VAT guidance for UK registration and returns
• Your state tax agency for sales, payroll, and income tax rules

Use tax software for routine records and payment checks. A tax professional can help with entity choice, payroll, credits, and large asset buys.

Save digital copies of receipts and bank records. Set a monthly review date. Small gaps are easier to fix before filing season.

Upcoming Tax Deadlines to Put on Your Calendar

Federal dates depend on your business type and tax year. The dates below cover common 2026 filings for calendar-year firms.

Date	Common task
March 16, 2026	Partnership and S corporation returns
April 15, 2026	Individual returns and first 2026 estimated payment
June 15, 2026	Second 2026 estimated payment
September 15, 2026	Third 2026 estimated payment
October 15, 2026	Extended individual returns
January 15, 2027	Fourth 2026 estimated payment

As of August 2026, September 15 is the next major federal estimate date. An extension gives more time to file. It does not give more time to pay.

Corporations may use different dates. Payroll and excise tax dates can also fall each month or quarter.

Mark each date with a reminder two weeks early. Check IRS notices and state rules before sending funds.