Author Archives: Eliza Burke

The approved mileage rate for employees using their own cars or vans for business journeys has increased from 45p to 55p per mile for the first 10,000 business miles in a tax year. Importantly, the increase has been backdated to 6 April 2026, so employers and employees should review mileage payments already made during the […]

Be sure to check the contents if you do receive the letter HMRC has started sending 2025/26 Simple Assessment letters to pensioners from 12 August 2026. If you receive one, it is important to check the figures carefully rather than assume that HMRC’s calculation must be correct. HMRC expects to issue around 1.8 million Simple […]

If you have recently joined Making Tax Digital (MTD) for Income Tax, or you are still uncertain about what the new rules mean for you, now is the time to act. The first quarterly update for many self-employed individuals and landlords was due by 7 August 2026. If you have not yet submitted your first […]

The Government is consulting on an extension to HMRC’s existing debt recovery powers that would allow lower-value tax debts to be recovered through affordable monthly deductions from taxpayers’ bank and building society accounts. HMRC already has powers to recover certain tax debts directly from bank accounts in limited circumstances. The consultation proposes extending those powers […]

Electricity bills to be zero rated from October 2026 Source of the update The Government has announced that VAT on domestic electricity supplies will be reduced from the current 5% rate to 0% from 1 October 2026. The measure is intended to reduce household energy costs and provide additional support during the winter months. Who […]

Source of the update The Institute of Chartered Accountants in England & Wales (ICAEW) has reported that HMRC has identified an error affecting some taxpayers where incorrect State Pension figures were used in certain PAYE end of year reconciliations, Self-Assessment pre-populated data and Simple Assessment calculations. The issue came to light following a letter from […]

Many owner-managed companies focus on extracting profits through salary or dividends, but pension contributions are sometimes overlooked. Used correctly, employer pension contributions can be one of the most effective ways of rewarding directors while helping to build long-term financial security. Unlike salary payments, employer pension contributions are not normally subject to Income Tax or National […]

Many business owners are finding that employment costs have increased significantly over the past year. Higher wage rates, increased employer National Insurance contributions and rising pension costs are all placing additional pressure on profitability, particularly for businesses that employ several members of staff. While each individual increase may appear manageable, the combined effect can have […]