Important Tax and Legal Changes Affecting Allotment Associations and Landowners

Two significant updates to UK tax and company law have taken place that have implications for allotment associations, landowner members, and some individuals. These changes are part of HMRC’s wider Making Tax Digital (MTD) programme and broader reforms aimed at increasing transparency and moving more reporting processes online.

While the details may sound technical, the key message is simple: more digital record keeping and software-based reporting is here—and organisations need to be ready.

Changes for Companies House-Registered Organisations (from 2027)

Allotment associations registered with Companies House will see changes to how they submit their accounts in the coming years.

This applies to organisations such as:

Community Interest Companies (CICs)
Companies Limited by Guarantee

It does not apply to organisations registered with the Financial Conduct Authority (FCA), such as co-operatives and community benefit societies.

What’s changing?

From April 2027, Companies House will stop accepting paper accounts and web-based filing. Instead, affected organisations will need to:

Maintain digital financial records
Use recognised accounting software
Submit accounts through approved digital systems

In many cases, organisations may already have been contacted by Companies House outlining what will be required.

For smaller associations, this transition may feel like a big step—but there are already a range of low-cost and even free software options available that may be suitable depending on the complexity of your accounts.

This may also be a good moment for associations to review their current legal structure. Some groups choose to consider alternatives such as co-operative models, which are widely used across the allotment movement and supported through the FCA Mutuals Register.

Making Tax Digital for Landlords and Sole Traders (from 2026)

In addition to changes affecting organisations, HMRC is also expanding Making Tax Digital for Income Tax to some individuals.

Since 6 April 2026, sole traders and landlords earning more than £50,000 per year from self-employment and/or property are required to:

Keep digital records of income and expenses
Use HMRC-recognised software
Submit quarterly updates to HMRC

It is important to note that these quarterly submissions are not additional tax returns. Instead, they replace some of the traditional annual reporting with more regular digital updates.

Identity Verification Requirements

Alongside changes to accounts filing, the Economic Crime and Corporate Transparency Act 2023 introduce new identity verification requirements for individuals involved in Companies House-registered organisations.

From 18 November 2025, identity verification will apply to:

Directors (or equivalent roles such as members or general partners)
Persons with significant control
Authorised Corporate Service Providers (ACSPs)
Individuals filing documents on behalf of a company

All relevant individuals will need to complete verification by Autumn 2026

How verification works

There are two main routes:

GOV.UK One Login identity verification service
This online system will guide users through the process, which may include app-based verification or identity document checks.

Authorised Corporate Service Provider (ACSP)
This is an approved third party (such as an accountant or solicitor) who can verify identity on behalf of individuals. A fee may apply.

What this means for allotment groups and landowners

Although these changes affect different types of organisations and individuals, they reflect a clear shift in how financial information is managed in the UK:

Increased use of digital accounting systems
Greater reliance on approved software
More regular and structured reporting requirements
A move towards online verification and compliance processes

For allotment associations, this is a timely reminder to begin reviewing financial systems, record keeping processes, and governance structures ahead of upcoming deadlines.

For landowners who also operate as sole traders or manage property income, the 2026 changes may also require preparation for digital tax reporting.

Suggested next steps for associations

To help members and stakeholders prepare, organisations may wish to:

Review whether they are affected by Companies House changes
Explore suitable accounting software options early
Ensure committee members understand identity verification requirements
Consider whether current legal structures remain appropriate
Share key updates with members in advance of deadlines

Communications recommendation
This topic is likely to be most useful when communicated in stages:

A short summary in newsletters (particularly for landowner members)
A Facebook post linking to this blog article for wider awareness
Ongoing updates as deadlines approach

Further information

For official guidance, visit GOV.UK or speak with a qualified accountant, legal adviser, or governance specialist.

For allotment-specific advice on incorporation and legal structures, refer to the legal guidance section of the NAS members’ area.

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National Society of Allotment & Leisure Gardeners Ltd
Registered in 1930 under the Industrial & Provident Societies Acts no. 11144R
VAT No. 1212930 14
Patron His Majesty King Charles III