2026 – Mansion Tax – who does it affect?
2026 – Mansion Tax – who does it affect? Announced at the 2025 Budget by the chancellor, where it was called ‘the high value council tax surcharge’ (HVCTS), the mansion tax was released with fanfare from the government. At the time it was revealed that properties worth over £2m would face a £2,500 annual charge, and…
Read More2025/26 Tax Year changes for Directors
2025/26 Tax Year changes for Directors From the 2025/26 tax year onwards, directors will be required to provide additional information in their tax returns. At first glance, the additional information requirements may seem like a small administrative update, however in practice they raise a number of practical questions. From 2025/26, directors will be required to…
Read MorePersonal tax for 2026/27 Tax Year – some of the changes!
Personal tax for 2026/27 Tax Year – some of the changes! Dividend tax There will be a 2% increase in the rates of income tax paid on dividends at the basic and higher rate of taxation. The rates of tax on dividends for 2026-27 will increase to 10.75% at the basic rate and 35.75% for the higher rate.…
Read MoreApril 2026 – Company car tax rises for EV’s
April 2026 – Company car tax rises for EV’s There are increases in tax for people using electric vehicle (EV) company cars, as the electric vehicle rate goes up from 3% to 4%, adding to the tax costs for employees with these company cars. Standard petrol and diesel rates are also increasing by one percentage…
Read MoreA record £190bn paid in income tax by High Earners
A record £190bn paid in income tax by High Earners Additional and higher rate payers paid £190.6bn in income tax in the 2023-24 tax year has been revealed in the latest HMRC breakdown of income tax paid across the population depending on earnings. The 20% cohort paid £84bn in total, bringing income tax revenue to…
Read MoreVAT – Over 500,000 taxpayers fined for late VAT payments
VAT – Over 500,000 taxpayers fined for late VAT payments For context there are approximately 2.3m entities registered for VAT in the UK. Therefore, the high level of VAT fines means the equivalent of 25% of registered VAT companies and sole traders have been fined by HMRC for late payments. A total of 582,000 fines…
Read MoreAre you ready for mandatory e-invoicing?
Are you ready for mandatory e-invoicing? When the decision requiring e-invoicing was announced at the autumn Budget, chancellor Rachel Reeves said it was designed to ‘modernise the tax system’, confirming from April 2029 businesses will be required to issue all VAT invoices as e-invoices. This mandatory change was announced without much fanfare from the Treasury…
Read MoreVAT Domestic reverse charge – HMRC advises of further tax enquiries
VAT Domestic reverse charge – HMRC advises of further tax enquiries The construction sector has been working with the VAT domestic reverse charge (DRC) since March 2021, but lately it seems HMRC’s attitude towards compliance has changed dramatically. The scheme, which was introduced to combat VAT fraud, with a promise of ‘light touch’ enforcement, is…
Read MoreAnnual Leave – Employers will need to retain records for 6 years
Annual Leave – Employers will need to retain records for 6 years From 6 April 2026, under the Employment Rights Act 2025, employers are required to keep records on annual leave and holiday pay for a period of six years. This will be a major change for employers with the current approach tending to be…
Read MoreDirectors Loan Accounts (DLA’S) – HMRC clamp down
Directors Loan Accounts (DLA’S) – HMRC clamp down HMRC is planning draconian reporting requirements on director’s loan accounts and participator loans to connected companies. This move is designed to target the £14.7bn small business tax gap, which is said to have hit a record high in 2024, which now represents 40% of small business corporation…
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