By Katie Business News • Tax 0 Comments

VAT and Public Electric Vehicle Charging Points

HMRC has published Revenue and Customs Brief 4 (2026) following a recent First-tier Tribunal (FTT) decision concerning the VAT treatment of electricity supplied at public electric vehicle (EV) charging points.

The case, Charge My Street Ltd v HMRC, found in favour of the taxpayer, concluding that electricity supplied through public EV charging points qualified for the reduced rate of VAT (5%), rather than the standard rate.

However, HMRC has applied for permission to appeal the decision and has confirmed that its position has not changed. It continues to treat electricity supplied at public EV charging points as standard-rated for VAT (20%).

Why is there a difference?

Electricity supplied to domestic premises generally qualifies for the reduced 5% VAT rate.

HMRC’s long-standing view is that public EV charging points are not domestic premises. As a result, electricity supplied through public charging stations remains subject to the standard 20% VAT rate.

What does this mean?

At present, there is still a difference in the VAT charged depending on where an electric vehicle is charged:

• Charging an EV at home is generally subject to 5% VAT.
• Charging an EV at a public charging point remains subject to 20% VAT, in line with HMRC’s current policy.

Although the tribunal ruled in favour of the taxpayer, First-tier Tribunal decisions do not create binding legal precedent. Until any appeal is concluded or HMRC changes its guidance, businesses and charging point operators should continue to follow HMRC’s published policy.

If you have any questions about the VAT treatment of electric vehicle charging or how it could affect your business, please get in touch. A&C Chartered Accountants will be happy to help.

By Katie Business News • Tax 0 Comments

GOV.UK Chat – A New AI Tool for Tax Questions

The government has launched GOV.UK Chat, an Artificial Intelligence (AI) chatbot designed to help people find official government information more quickly. Users can ask questions in plain English and receive instant answers based on guidance published on GOV.UK.

The chatbot can help with a range of tax and financial topics, including:

• Understanding Income Tax
• Calculating Stamp Duty
• Planning for retirement and the State Pension

Since its soft launch in March 2026, thousands of people have used the service, with tax-related questions proving particularly popular.

Use with caution

While GOV.UK Chat can be a useful starting point, it does have limitations. It is important to remember that:

• It only uses information published on GOV.UK.
• It does not access HMRC’s detailed technical manuals or specialist guidance.
• It is primarily designed to answer straightforward questions rather than complex tax issues.

Like any AI tool, its responses are not guaranteed to be accurate. Occasionally, it may provide incomplete information or generate incorrect answers that appear convincing.

Our advice

GOV.UK Chat can be a helpful way to find official guidance quickly, but it should not replace professional advice. To get the most from the tool:

• Use it to help locate information rather than relying on it to make important decisions.
• Read the full response, including any notes or limitations.
• Make sure your question includes all the relevant facts and circumstances.

For straightforward queries, GOV.UK Chat may save you time. However, when it comes to tax planning or decisions that could affect your finances, it’s always worth seeking professional advice.

If you’re unsure how the rules apply to your circumstances, A&C Chartered Accountants is here to help. We’ll ensure you receive advice that’s tailored to your situation and gives you confidence before you act.

By Katie Business News • Tax 0 Comments

Advisory Fuel Rates for Company Cars – June 2026

HMRC has updated its advisory fuel rates for company cars with effect from 1 June 2026. These rates are used when employers reimburse employees for business mileage in a company car or when employees repay the cost of private fuel.

If an employer does not provide fuel for private use, the advisory rates can be used to reimburse business mileage without creating a taxable benefit.

Engine Size Petrol Diesel LPG
1400cc or less 14p (12p) – 11p (10p)
1600cc or less – 15p (12p) –
1401cc to 2000cc 17p (14p) – 13p (12p)
1601cc to 2000cc – 17p (13p) –
Over 2000cc 26p (22p) 23p (18p) 21p (19p)

Previous rates are shown in brackets. Employers may continue to use the previous rates for up to one month after the new rates take effect.

Hybrid vehicles should use the appropriate petrol or diesel rate.

For fully electric vehicles, the advisory rate remains 7p per mile where the vehicle is charged at home and 15p per mile where it is charged using public charging facilities.

Employees Using Their Own Cars

The Approved Mileage Allowance Payment (AMAP) rates for employees using their own vehicle for business journeys increased from 6 April 2026 to:

• 55p per mile for the first 10,000 business miles in the tax year.
• 25p per mile for each business mile over 10,000.
• An additional 5p per mile can be paid for each business passenger carried.

For National Insurance purposes, employers can continue to reimburse at 55p per mile regardless of the total business mileage, as the 10,000-mile threshold does not apply.

VAT Recovery

Where employees are reimbursed using the AMAP rates, employers may be able to reclaim the VAT element relating to the fuel cost, provided they hold a valid VAT receipt from the filling station.

For example, for a diesel company car with an engine size of 1,500cc, the fuel element is 15p per mile, allowing input VAT of 2.5p per mile (15p × 1/6) to be reclaimed.

If you would like advice on mileage claims, company car tax or VAT recovery, please get in touch. A&C Chartered Accountants will be happy to help.

By Katie Making Tax Digital • Tax 0 Comments

MTD for Income Tax: 7 August Deadline Approaching

Making Tax Digital (MTD) for Income Tax is now underway. Most self-employed individuals and landlords with qualifying income of more than £50,000 in the 2024/25 tax year were required to join the new regime from 6 April 2026.

Under MTD, businesses and landlords must keep digital records and submit quarterly updates to HMRC using compatible software. This represents a significant change from the previous system, where most reporting took place after the end of the tax year.

The first quarterly update for the 2026/27 tax year is due by 7 August 2026, so the deadline is now fast approaching.

To ensure your submission is completed accurately and on time, your records should be complete and up to date well before the deadline.

If A&C Chartered Accountants prepares your bookkeeping or submits your quarterly updates, please send us your records as early as possible. Leaving everything until the last minute increases the risk of delays, missing information and errors.

If you’re unsure whether Making Tax Digital applies to you, or you’re not certain what information you need to provide, please get in touch. We’re here to help you stay compliant and avoid any unnecessary stress.

By Katie Business News • Tax 0 Comments

Mandatory Payrolling of Benefits in Kind: Phased Introduction Confirmed

HMRC has confirmed that mandatory payrolling of Benefits in Kind (BiKs) will now be introduced in two phases, beginning on 6 April 2027.

The changes will move the reporting of most employee benefits away from the annual P11D process and into real-time payroll. This means Income Tax and Class 1A National Insurance will be reported through payroll each pay period, whether that is weekly or monthly.

From 6 April 2027

The first phase will apply to:

• Company cars and car fuel
• Vans and van fuel
• Employer-provided medical benefits

From 6 April 2028

Most other taxable benefits will also become subject to mandatory payrolling.

The only exceptions will be:

• Beneficial loans
• Employer-provided living accommodation

These benefits will remain voluntary for payrolling and can continue to be reported using the existing process if preferred.

What does this mean for employers?

Instead of reporting benefits after the end of the tax year using P11Ds, employers will need to include relevant benefits in their payroll submissions throughout the year using Real Time Information (RTI).

Although this will reduce year-end administration, it also means payroll records must be accurate from the outset. Any errors are likely to be identified much sooner and may need to be corrected during the tax year rather than after it has ended.

What should you do now?

Although the new rules do not begin until April 2027, now is a good time to prepare by:

• Reviewing the benefits you currently provide to employees.
• Identifying which benefits will be affected in the first phase.
• Checking that your payroll software and processes will be ready for the changes.

HMRC is continuing to work with payroll software providers and is expected to publish further technical guidance during 2026, with final details anticipated ahead of the Autumn Budget.

This is one of the biggest changes to the taxation and reporting of employee benefits in many years. Planning ahead will help ensure a smooth transition and minimise disruption to your payroll processes.

By Katie Business News 0 Comments

Are Your Workers Employed or Self-Employed? What the PGMOL Case Tells UK Businesses

re Your Workers Employed or Self-Employed? What the PGMOL Case Tells UK Businesses

Employment status has always been one of the trickier areas of UK tax law, and a landmark tribunal decision handed down on 1 May 2026 has put it firmly back in the spotlight. The case is Professional Game Match Officials Ltd v HMRC [2026] UKFTT 654 (TC), and while it involves football referees, the lessons it contains apply to businesses of all kinds.

The Background

Professional Game Match Officials Ltd (PGMOL) is the organisation that provides referees for professional football matches in England. HMRC argued that match officials should be treated as employees, meaning PAYE and National Insurance contributions should have been applied to the match fees paid to them. With over £583,000 at stake, PGMOL disagreed and took the matter to tribunal.

This was not a straightforward case. It had already travelled through the Upper Tribunal, the Court of Appeal and all the way to the Supreme Court before landing back at the First Tier Tribunal for a final determination. The Supreme Court had confirmed that when a referee accepted a match appointment, there was sufficient mutuality of obligation and a framework of control in place. However, it sent the case back to the FTT to look at the overall picture of the relationship and make a final call on employment status.

What the Tribunal Decided

The FTT took a step back and considered the relationship as a whole. Its key findings were:

  • PGMOL was not required to offer matches, and referees were not required to accept them
  • Referees could decline appointments or withdraw without penalty
  • Each match appointment was a short, discrete engagement with no ongoing commitment
  • Most referees carried out their refereeing work alongside other full-time employment

Taking all of this into account, the Tribunal concluded that the relationship simply did not have the hallmarks of employment. The referees were self-employed, and PGMOL was not required to operate PAYE or pay employer National Insurance on the fees it paid them.

Why Does This Matter for Your Business?

The PGMOL case is a reminder that employment status is never determined by a single factor. It does not come down to who provides the equipment, how often someone works for you, or whether there is a written contract calling someone self-employed. What matters is the overall picture of the working relationship, assessed across multiple factors at once.

Getting this wrong can be costly. If HMRC concludes that someone you treat as self-employed should actually be classified as an employee, you could face a significant bill for unpaid PAYE, National Insurance and penalties, potentially going back several years.

If you engage contractors, freelancers or other flexible workers and you are not completely confident about their employment status, it is well worth having that conversation sooner rather than later.

At A&C Chartered Accountants, we help businesses across Manchester review their worker arrangements and make sure they are on solid ground with HMRC. We would be happy to take a look at your situation and give you a clear, practical view.

Book a free consultation today

This article is based on publicly available tribunal decisions and HMRC guidance current as of June 2026. Tax rules can change. Please speak to a qualified accountant before making decisions based on this content.

By Katie Business News 0 Comments

R&D Tax Relief in 2026: A New Opportunity for SMEs and a Costly Warning for All

If your business carries out Research and Development, there are two important updates you need to be aware of right now. One is genuinely good news. The other is a cautionary tale that every business considering an R&D claim should read carefully.

A New Way to Get HMRC’s Blessing Before You Claim

HMRC has launched a new Targeted Advance Assurance pilot for R&D tax relief, which opened on 18 May 2026 and will run for 12 months. It is free of charge, voluntary, and specifically designed for small and medium-sized businesses.

The idea is straightforward. Rather than submitting a claim and waiting to see if HMRC pushes back, eligible SMEs can now approach HMRC in advance and get clarity on the trickiest parts of their claim before they file. This is particularly useful if your R&D involves any of the following:

  • Whether your project genuinely meets the definition of R&D for tax purposes
  • Whether overseas expenditure qualifies for relief
  • Whether R&D relief can be claimed where one company contracts work to another
  • Whether your company qualifies for an exemption from the PAYE and National Insurance contributions cap

It is worth noting that this new pilot runs alongside the existing full claim advance assurance service, which remains available but is restricted to first-time claimants only. The new targeted scheme is open more broadly to any eligible SME, regardless of whether they have claimed before.

If you are planning an R&D claim and there are areas where you are genuinely uncertain, this pilot could be well worth exploring. Get in touch and we can help you assess whether it is right for your situation.

A Tribunal Case Every R&D Claimant Should Know About

At the same time as this new pilot was launched, a significant First Tier Tribunal decision was handed down that serves as a sharp reminder of what can go wrong when R&D claims are not handled properly.

In Beer Express Ltd v HMRC [2026] UKFTT 672 (TC), a wholesale drinks business from the North of England lost its appeal against HMRC’s decision to disallow R&D tax relief totalling over £490,000 across two accounting periods.

The company had been approached by a third-party R&D advisory firm, which identified several of Beer Express’s operational projects as potentially qualifying for relief and prepared the claims on their behalf. When HMRC challenged those claims, the advisory firm had become uncontactable, leaving Beer Express to defend a case it could not fully explain.

The Tribunal’s findings were damaging. The supporting reports were described as vague and unconvincing, offering little more than high-level descriptions of the work carried out. There was no clear explanation of the technological baseline the company was working from, no defined advance in science or technology, and no identification of the genuine technological uncertainties the projects were trying to resolve. Crucially, there was no input from a competent professional with the technical knowledge to explain why the work qualified.

The Tribunal found Beer Express’s director to be honest and credible, but that was not enough. The appeal was dismissed in full.

This case is not an isolated incident. HMRC has significantly increased its scrutiny of R&D claims in recent years, and poorly evidenced claims are increasingly being challenged. The message is clear: R&D tax relief is a genuinely valuable relief, but it has to be claimed correctly, with proper technical evidence and proper professional support.

What This Means for Your Business

Whether you are considering your first R&D claim or have been claiming for years, now is a good time to ask some honest questions:

  • Is your claim supported by clear technical evidence, not just high-level descriptions?
  • Can someone with genuine technical knowledge explain why your work qualifies?
  • Do you know exactly who would defend your claim if HMRC came knocking?

At A&C Chartered Accountants, we work with businesses across Manchester to make sure their R&D claims are well-founded, properly evidenced and compliant. We can also help you assess whether the new HMRC advance assurance pilot is worth pursuing before you file.

Book a free consultation today

This article is based on HMRC guidance and publicly available tribunal decisions current as of June 2026. Tax rules can change. Please speak to a qualified accountant before making decisions based on this content.

By Katie Tax 0 Comments

New Rules for Directors: What You Need to Report on Your 2025/26 Self Assessment Tax Return

If you are a director of a limited company in the UK, there is an important change to your Self Assessment tax return this year that you need to know about. HMRC has updated the 2025/26 return to include new mandatory boxes specifically for directors of close companies, and getting it wrong could result in a penalty.

Here is everything you need to know.

What Is a Close Company?

A company is a close company if it is controlled by five or fewer participators, or by any number of participators who are also directors. In practice, this covers the vast majority of owner-managed and family-run businesses in the UK. If you run your own limited company, there is a good chance these new rules apply to you.

What Has Changed?

Previously, a director was only required to tick a box on the SA102 employment page to confirm they were a director and whether the company was a close company. That was it.

From the 2025/26 tax year onwards, that is no longer enough. Directors of close companies now need to complete a separate employment page for each directorship on their Self Assessment return, even where no salary, dividends or other income have been received.

For each directorship, you will need to provide:

  • Whether the company is a close company
  • The company’s name and Companies House registration number
  • The amount of dividends you received from the company during the tax year (even if this is zero)
  • The highest percentage of shares you held at any point during the tax year

What Happens If You Do Not Report It?

HMRC has introduced a new penalty of £60 per omission for failing to provide the required information, applying to Self Assessment returns from 2025/26 onwards. It is worth noting that a white space disclosure listing directorships will not suffice as a workaround. Each directorship needs its own completed employment page.

Why Is HMRC Doing This?

This is not a routine admin update. It is a deliberate push by HMRC to join the dots between ownership, control and profit extraction. HMRC has made no secret of the fact that it considers small businesses to be a significant source of the UK tax gap, and close company dividends are firmly in its sights. Alongside these new return requirements, HMRC has also published a consultation on additional reporting requirements for close companies themselves, which could see companies required to report details of transactions between the business and its shareholders, including loans, dividends, cash withdrawals and asset transfers.

In short, scrutiny of close company dividend arrangements is only going to increase.

What Should You Do Now?

The most important thing is to make sure you have told your accountant about every directorship you hold, including any where you received no income during the year. Beyond that, now is a good time to review whether your dividend procedures are properly documented, commercially justified and fully compliant.

At A&C Chartered Accountants, we work with directors and owner-managed businesses across Manchester to make sure their Self Assessment returns are accurate, complete and submitted on time. If you would like help navigating the new reporting requirements or want to sense-check your dividend procedures, we would love to hear from you.

Book a free consultation today

This article is based on HMRC guidance current as of June 2026. Tax rules can change. Please speak to a qualified accountant before making decisions based on this content.

By Katie Business News 0 Comments

HMRC Mileage Rates 2026/27 and the Summer VAT Cut: What UK Businesses Need to Know

On 21 May 2026, Chancellor Rachel Reeves announced the Great British Summer Savings scheme, a package of measures aimed at reducing costs for families across the UK. But buried within the headlines are two changes that matter just as much to business owners, directors, and the self-employed as they do to families planning a day out.

Here’s a plain-English breakdown of what’s changed, what it means for your business, and what you should do next.

HMRC Mileage Rates 2026/27: The Biggest Increase in 15 Years

If you or your employees use a personal vehicle for business travel, this is the most significant update in over a decade.

The HMRC approved mileage rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles in the 2026/27 tax year and it’s been backdated to 6 April 2026. That means if you’ve already been paying or claiming mileage since the start of the tax year, you may owe a top-up.

This is the first increase to HMRC’s Approved Mileage Allowance Payments (AMAPs) since 2011, a long-overdue update given how much the cost of running a vehicle has risen in that time.

Updated HMRC Mileage Rates for 2026/27

For employees using their own vehicle:

Vehicle First 10,000 miles Over 10,000 miles
Cars & vans 55p (up from 45p) 25p (unchanged)
Motorbikes 24p (unchanged) 24p (unchanged)
Bicycles 20p (unchanged) 20p (unchanged)

For the self-employed:

Vehicle First 10,000 miles Over 10,000 miles
Cars & goods vehicles 55p (up from 45p) 25p (unchanged)
Motorbikes 24p (unchanged) 24p (unchanged)

Only the rate for cars and vans (or goods vehicles) for the first 10,000 miles has changed. All other rates remain the same.

What Does This Mean in Practice?

The Treasury estimates this saves a worker doing around 6,000 business miles approximately £120 per year, but for higher mileage drivers, the saving is considerably more. For example, an employee driving 10,000 business miles in their own car could now receive up to £5,500 tax-free, compared to £4,500 under the old rate.

What Should Employers Do Now?

  • Update your mileage reimbursement policy to reflect 55p per mile for cars and vans
  • Review mileage payments made since 6 April 2026 – if you’ve been paying at the old 45p rate, consider making a top-up payment to employees
  • Check employees aren’t being underpaid – if your rate is lower than the HMRC approved amount, staff may be missing out on tax relief and could have grounds to claim the difference themselves
  • Don’t overpay either – reimbursing above the approved HMRC rate creates a taxable benefit and potential National Insurance implications

What About Self-Employed Individuals?

If you’re self-employed and use simplified mileage expenses, you can claim the new 55p rate for the full 2026/27 tax year on your Self Assessment return. Make sure your mileage logs are up to date – HMRC requires records of each journey’s date, start and end point, reason for travel, and total miles claimed.

Temporary 5% VAT Rate on Summer Activities: What It Means for Your Business

From 25 June to 1 September 2026, the standard 20% rate of VAT will be reduced to 5% on a specific range of activities. While this is primarily aimed at helping families during the school holidays, it has direct practical implications for businesses operating in the affected sectors.

What’s Covered?

Children’s meals in restaurants and cafés, where the meal:

  • Is specifically held out for sale as a children’s meal
  • Is a supply of catering consumed on the premises
  • Is not takeaway food
  • Can include drinks

Children’s tickets for cinema, theatre, shows, and concerts.

Admission to qualifying attractions – including amusement parks, museums, heritage sites, zoos, and soft play areas. Importantly, the reduced rate applies to all admissions regardless of age, not just children’s tickets.

What Do Affected Businesses Need to Do?

If your business falls into any of the above categories, there are a few things to get in order before 25 June:

  • Update your point-of-sale and accounting systems to apply the 5% rate to eligible sales from the correct date
  • Review your VAT return periods – if your VAT quarter straddles the start or end date, you’ll need to apply different rates within the same period
  • Train your team on which products or admissions qualify and which don’t, especially if your business offers a mix of eligible and non-eligible items
  • Revert to 20% from 1 September – this is a temporary measure, so your systems need to switch back automatically or be updated manually on that date

If you’re not sure whether your business qualifies, or how to handle the transitional periods, it’s worth speaking to an accountant before the change comes into effect.

A Quick Summary

Change What’s Changed When From
HMRC mileage rate (cars/vans, first 10,000 miles) 45p → 55p per mile Backdated to 6 April 2026
VAT on eligible summer activities 20% → 5% 25 June – 1 September 2026

Not Sure How This Affects Your Business?

These changes might seem straightforward on paper, but the practical implications – especially around backdated mileage payments and VAT system updates — can be easy to get wrong.

At A&C Chartered Accountants, we work with startups and SMEs across Manchester and beyond to make sure they’re always on the right side of HMRC. Whether you need help updating your expense policy, reviewing your VAT setup, or just want a second opinion – we’re here to help.

Book a free consultation today →

By Katie Business Advice 0 Comments

HMRC Mileage Rates Increase for 2026/27

HMRC has updated approved mileage and travel allowances for the 2026/27 tax year, including the first increase to car and van mileage rates since 2011.

New approved mileage rates:

• Cars and vans
55p per mile for the first 10,000 business miles
25p per mile over 10,000 business miles
(Previously 45p then 25p)

• Motorcycles
24p per mile

• Bicycles
20p per mile

Other key changes for 2026/27:

• Passenger payments remain at 5p per passenger, per business mile for carrying employees on work journeys

• Company van benefit charge increases to £4,170
(2025/26: £4,020)

• Company car fuel benefit multiplier increases to £29,200
(2025/26: £28,200)

• Van fuel benefit charge increases to £798
(2025/26: £769)

Mileage within HMRC approved rates is generally tax and National Insurance free. Amounts paid above these limits may create additional reporting or tax implications.

Businesses may wish to review mileage reimbursement policies, payroll settings and expense processes following the update.

By Katie Business Advisory • Tax 0 Comments

April 2026 CIS changes: what construction businesses need to know

From 6 April 2026, important changes to the Construction Industry Scheme came into effect. These changes mainly affect contractors who either use subcontractors or have periods where no subcontractors are paid.

Contractors must now either file a CIS return every month, including nil returns, or tell HMRC in advance that they will not be paying subcontractors for that month by submitting an inactivity request. HMRC confirms that penalties may apply where neither action is taken without reasonable excuse.

The full late filing penalty regime has also returned. A late CIS return can trigger a £100 fixed penalty, followed by a £200 penalty after two months. Further penalties may apply at six and twelve months, including tax-geared penalties based on the liability that should have been reported.

There are also tougher rules around fraud and Gross Payment Status. From 6 April 2026, HMRC can remove Gross Payment Status immediately, recover lost tax and charge penalties of up to 30% where a business knew, or should have known, that a payment was connected to fraud.

For construction businesses, the message is simple: every CIS month now needs to be accounted for. Filing nothing is no longer a safe option.

At A&C Chartered Accountants, we help construction businesses stay compliant, avoid unnecessary penalties and keep their CIS records in order. If you are unsure whether you need to file a return or submit an inactivity request, speak to us before the deadline.

By Katie Tax 0 Comments

Loans to Participators (Company Shareholders)

When a close company makes a loan to a participator, most commonly a shareholder, a corporation tax charge can arise if the loan is not repaid within the required timeframe. This is often referred to as a Section 455 or s.455 tax charge.

For loans advanced on or after 6 April 2026, the s.455 tax rate increased to 35.75%, up from the previous rate of 33.75%.

The charge applies where the loan remains outstanding nine months and one day after the end of the company’s accounting period.

However, relief from the s.455 charge can usually be claimed where the loan is:

• repaid
• released
• written off

within that nine month period.

It is important to note that relief cannot be claimed for anticipated future repayments. In practice, this means participators should ensure any outstanding loan balances are cleared before the corporation tax return is submitted wherever possible.

If repayments are made after the return has already been filed, the company may still be able to recover the tax by submitting an amended corporation tax return or making a later claim to HMRC.

For many owner managed businesses, directors’ loan accounts can build up gradually over time, particularly where funds are withdrawn informally throughout the year. Monitoring balances regularly can help avoid unexpected corporation tax charges and cash flow issues.

At A&C Chartered Accountants, we help businesses review participator loan accounts proactively so potential s.455 issues can be identified early and managed efficiently.

By Katie Business News • Tax 0 Comments

SDLT and mixed use property: why classification matters

When buying property in England, Stamp Duty Land Tax (SDLT) can be a significant cost. One important distinction is whether a property is treated as purely residential or as mixed use.

A mixed use property includes both residential and non residential elements. This could include a house with farmland, commercial buildings or land used for a genuine non residential purpose. Mixed use properties are subject to lower SDLT rates than residential properties, which can result in substantial tax savings.

However, HMRC continues to closely scrutinise claims for mixed use treatment.

This was highlighted in the recent case of HMRC v Christopher Brzezicki. Mr Brzezicki purchased a large house together with a fishing stream and an island and argued that the transaction qualified as mixed use. Although the First tier Tribunal initially agreed, the Upper Tribunal overturned the decision and ruled that the entire property was residential.

The Tribunal found that the stream and island formed part of the property’s “grounds” and were therefore residential in nature, rather than genuinely non residential land. While trout bred naturally in the stream, there was no active commercial operation in place at the time of purchase.

The decision is a useful reminder that unusual features such as woodland, streams, paddocks or separate parcels of land will not automatically qualify a property for mixed use SDLT treatment. The key consideration is how the land is actually being used and whether it would ordinarily be regarded as part of the home.

For buyers, getting the classification wrong can lead to unexpected tax liabilities, interest and penalties if HMRC successfully challenges the SDLT position.

At A&C Chartered Accountants, we can help review property transactions, assess whether mixed use treatment is appropriate and ensure SDLT claims are properly supported before completion.

By Katie Business Advisory • Business News • Tax 0 Comments

What Qualifies for Capital Allowances?

In Orsted West of Duddon Sands (UK) Limited & Ors v HMRC, the Supreme Court considered whether significant pre-construction costs could qualify for capital allowances tax relief.

The case centred on offshore windfarm projects where the companies incurred substantial expenditure on environmental surveys, seabed investigations and technical studies before any turbines were constructed. The companies argued that these costs were an essential part of creating bespoke assets and should therefore qualify for capital allowances.

HMRC disagreed, and the Supreme Court ultimately sided with HMRC.

The decision focused on a key piece of legislation stating that capital allowances are only available for expenditure incurred “on the provision of plant or machinery”.

The judges concluded that this requires a direct and close connection to the physical asset itself. Although the surveys and investigations were necessary for deciding whether and how the windfarms could be built, they were considered preparatory in nature. They helped place Orsted in a position to construct the assets, but they were not part of providing the plant or machinery itself.

While this case involved offshore windfarms, the implications are much wider.

Many businesses incur significant costs before acquiring or constructing long term assets, including:

• feasibility studies
• design and planning work
• professional fees
• environmental or regulatory assessments

Following this decision, these types of costs are less likely to qualify for capital allowances unless they are closely linked to the acquisition, construction or installation of the qualifying asset itself.

For businesses planning major investment projects, this is an important reminder not to assume that all upfront project costs will attract tax relief.

At A&C Chartered Accountants, we recommend reviewing expenditure carefully as projects progress, separating early stage exploratory costs from spending directly connected to the asset. Getting this distinction right from the outset can help avoid unexpected tax liabilities later.

By Katie Business News 0 Comments

Good luck to everyone running the Manchester Marathon

Good luck to everyone running the Manchester Marathon this weekend.

Our team member Katie will be taking on the marathon in support of Royal Manchester Children’s Hospital. It’s a fantastic cause and one that makes a real difference to the lives of children and families across our region.

We would love to raise as much as we can for this important charity. If you would like to support, you can do so using the link here.

We also know that many of our clients are running this weekend, and we want to wish each of you the very best of luck. It’s an incredible achievement to even get to the start line, and we’ll be cheering you all on!

By Katie Business News • Tax 0 Comments

VAT on public electric vehicle charging: tribunal challenges HMRC position

A recent VAT case has raised important questions around the correct VAT treatment of public electric vehicle charging.

In Charge My Street Ltd v HMRC [2026], the First-tier Tribunal concluded that supplies of electric vehicle charging at public charging stations could qualify for the reduced rate of VAT at 5%. This contrasts with HMRC’s long-standing position that such supplies should be subject to the standard rate of 20%.

Charge My Street Ltd operated electric vehicle charging points in public locations across the North of England. The company applied the reduced 5% VAT rate on the basis that its supplies fell within the rules for domestic fuel and power.

Under VAT legislation, supplies of electricity for domestic use can qualify for the reduced rate, provided certain conditions are met. One key provision is the ‘de minimis’ rule, which treats supplies of electricity below 1,000 kWh per month as domestic.

The Tribunal found that where charging was supplied to individual users, the level of electricity consumption fell below this threshold. As a result, those supplies qualified for the reduced rate.

This decision challenges the long-standing disparity between VAT treatment for electric vehicle charging at home, which benefits from the reduced rate, and charging at public stations, which has typically been standard-rated.

However, it is important to note that this is a First-tier Tribunal decision and does not set binding precedent. It is widely expected that HMRC will appeal the ruling, and the position may evolve further as the case progresses.

A complex and evolving area of VAT

This case highlights the complexity of VAT, particularly where legislation intersects with emerging technologies and changing consumer behaviour. The correct VAT treatment will depend on the specific facts of each supply, including how the electricity is delivered and measured.

At A&C Chartered Accountants, we are monitoring developments in this area closely. Businesses involved in electric vehicle infrastructure, or those uncertain about the VAT treatment of their supplies, should ensure their approach is robust and well-supported.

If you would like to review your VAT position or discuss how these developments may affect your business, we would be happy to assist.

By Katie Business News • Tax 0 Comments

Dividends: increased scrutiny and new reporting requirements

Recent developments indicate a clear shift in HMRC’s approach to monitoring dividends and transactions between companies and their shareholders. With new consultations and expanded data collection, there is a growing focus on transparency and compliance for close companies.

New consultation: reporting company payments to participators

A new consultation, Reporting company payments to participators, has been published, seeking views on proposals to introduce enhanced reporting requirements for close companies.

The government’s position is that the risk of error and tax non-compliance is higher in close companies, where the distinction between the company and its participators can become blurred. HMRC has identified that it does not currently have full visibility over how these companies interact with their shareholders.

Under the proposed framework, close companies may be required to report detailed information to HMRC on transactions with participators, including:

  • payments made by cash, bank transfer or other means
  • loan repayments and loan write-offs
  • sales of assets to the company
  • purchases of assets from the company
  • dividends and other distributions
  • any other transfer of value from the company to the participator

Salary and wage payments are expected to remain outside the scope of these requirements, as they are already captured through PAYE reporting systems.

If implemented, these proposals would represent a significant increase in reporting obligations and HMRC oversight.

Expanded dividend reporting through self-assessment

In addition to the consultation, Finance Act 2024 introduced powers allowing HMRC to collect more detailed information through self-assessment tax returns.

From the 2025/26 tax year onwards, company directors will be required to disclose additional information, including:

  • whether they were a director of a company
  • whether the company was a close company
  • the company’s name and registration number
  • the amount of dividends received from the close company during the tax year
  • the highest percentage shareholding held during the tax year

This enhanced reporting framework provides HMRC with greater insight into the relationship between directors, shareholders and their companies, particularly in relation to dividend extraction.

A clear direction of travel

Taken together, these developments point to a more data-driven and compliance-focused approach from HMRC. With increased access to information on dividends and participator transactions, discrepancies are more likely to be identified.

For business owners operating through limited companies, it is increasingly important that dividend procedures are robust, properly documented and aligned with both company law and tax legislation.

By Katie Business News • Tax 0 Comments

What the 2026/27 tax year means for your business: key changes to plan for now

Each new tax year introduces a range of updates, and while some thresholds remain unchanged for 2026/27, a number of targeted changes will have a direct impact on business owners and shareholders. Understanding these developments early allows for more effective planning and informed decision-making.

Income tax: higher dividend tax rates

Income tax thresholds remain broadly aligned with the 2025/26 tax year. The personal allowance continues at £12,570, and the basic rate band remains at £37,700.

The principal change is an increase in the rates applied to dividend income from 6 April 2026. Dividends within the basic rate band will be taxed at 10.75%, increased from 8.75%. Dividends within the higher rate band will be taxed at 35.75%, increased from 33.75%. The additional rate remains unchanged at 39.35%.

This adjustment increases the overall tax cost for individuals who extract profits via dividends, particularly owner-managed businesses where dividends form a key part of remuneration.

Corporation tax: increased compliance costs and charges

Two notable changes take effect in relation to corporation tax.

The section 455 tax charge, which applies to loans made by close companies to participators that remain outstanding nine months and one day after the end of the accounting period, will increase to 35.75% for loans and advances made on or after 6 April 2026. This aligns the charge with the higher dividend rate.

In addition, revised penalties will apply to late-filed corporation tax returns where the filing deadline falls on or after 1 April 2026. The updated penalty structure is as follows:

  • £200 for missing the filing deadline
  • £400 where the return is three months late
  • £1,000 for a third consecutive failure to file on time
  • £2,000 where the return is three months late for a third consecutive failure

These changes represent a more stringent approach to compliance and increase the financial consequences of late filing.

Capital gains tax: higher rates on qualifying disposals

The rate of capital gains tax applicable to gains qualifying for Business Asset Disposal Relief and Investors’ Relief will increase to 18% from 6 April 2026. This follows the increase to 14% introduced in April 2025.

The continued upward movement in these rates increases the tax cost associated with qualifying business disposals and investment exits.

VAT: relief for donations of business goods

From 1 April 2026, a new VAT relief will apply to certain donations of business goods to charities. Where the relevant conditions are met, these donations will no longer be treated as a deemed supply for VAT purposes.

The relief is subject to specific eligibility criteria, including value limits and exclusions for certain categories of goods.

Summary

Although many headline thresholds remain unchanged, the 2026/27 tax year introduces a series of focused changes that increase tax exposure in key areas, particularly for company owners and investors. Higher dividend tax rates, increased section 455 charges, enhanced penalties for late filing, and rising capital gains tax rates all contribute to a more demanding tax environment.

At A&C Chartered Accountants, we support clients in navigating these changes with clarity and confidence, ensuring that tax positions are managed proactively and aligned with wider business objectives.

By Katie Business Advisory 0 Comments

Making Tax Digital for Income Tax is now live

Making Tax Digital for Income Tax has officially started from 6 April 2026 for self-employed individuals and landlords with qualifying income over £50,000. HMRC’s qualifying income test is based on gross income from self-employment and property, not net profit.

Under the new rules, affected taxpayers must keep digital records and send quarterly updates to HMRC using compatible software. For the 2026/27 tax year, the first quarterly update is due by 7 August 2026.

HMRC has said that around 864,000 sole traders and landlords are expected to come into the regime from April 2026.

It is also important to remember that a normal self assessment tax return is still required for the 2025/26 tax year, with the filing deadline remaining 31 January 2027. The first MTD-based tax return, covering 2026/27, will then be due by 31 January 2028.

The final regulations underpinning the new regime were made in March 2026, with the relevant legislation now in force.

At A&C Chartered Accountants, we have been helping clients prepare for the move to MTD for Income Tax and put the right software and processes in place. If we are not already supporting your transition, please get in touch and we will help you get ready for this new digital regime.

By Katie Business Advisory • Tax 0 Comments

Sourcing Labour from Third Parties? Due Diligence Required

A final reminder for any businesses that source workers through third parties, such as agencies or umbrella companies. New rules will come into effect from 6 April 2026 that could have significant tax implications.

Under the new legislation, businesses may become jointly and severally liable for PAYE and National Insurance contributions relating to workers supplied through these arrangements if the third party fails to meet its tax obligations to HMRC.

This means that if an agency or umbrella company in the labour supply chain does not correctly account for PAYE or NIC, HMRC may seek to recover the unpaid amounts from other parties involved in the arrangement, including the end client.

Given the potential financial exposure, it is important for businesses that rely on outsourced labour to review their current arrangements and understand how the new rules may apply.

Carrying out appropriate due diligence on labour providers and understanding how workers are engaged within the supply chain will be essential to reduce the risk of unexpected tax liabilities.

If your business regularly engages workers through agencies or umbrella companies, it would be sensible to review these arrangements before the new rules take effect in April 2026. We would be happy to help you assess your current position and ensure your processes are compliant.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

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By Katie Business Advisory • Tax 0 Comments

Employer-Provided Vehicles and Taxable Benefits in Kind

As we approach the new tax year, it is worth remembering that the flat-rate figures used in calculating certain employer-provided vehicle benefits will increase in line with inflation from 6 April 2026.

The updated figures are as follows:

  • The flat-rate van benefit charge will increase from £4,020 to £4,170.

  • The flat-rate van fuel benefit charge will increase from £769 to £798.

  • The multiplier used to calculate the car fuel benefit charge will increase from £28,200 to £29,200.

Where an employer provides a company car to an employee or director, this will normally be treated as a taxable benefit in kind. The amount of the benefit depends on several factors, including the vehicle’s power source, the manufacturer’s list price and its CO₂ emissions. A reduction may apply for any period during the year when the vehicle is unavailable for use.

Pool Cars

Cars that are owned by the business and used by multiple employees may qualify as pool cars. Where the conditions are met, this can mean no benefit in kind arises.

However, strict rules apply. To qualify as a pool car:

  • the vehicle must be used by more than one employee

  • it must not normally be kept overnight at any employee’s home

  • private use must be very limited or purely incidental to business travel

If these conditions are not genuinely met in practice, the vehicle may be treated as a company car for tax purposes.

A Recent Tax Tribunal Reminder

The importance of applying the rules correctly was highlighted in a recent tax tribunal case, MWL International Ltd and Maywal Ltd v HMRC [2026].

In this case, a company had treated several vehicles as pool cars for more than 20 years and had not reported any benefit in kind. The approach had originally been discussed informally with HMRC many years earlier.

However, during a later PAYE audit, HMRC concluded that the vehicles did not actually meet the conditions required to qualify as pool cars. As a result, significant National Insurance liabilities arose.

The company challenged HMRC’s position, but the Upper Tribunal ruled that HMRC was entitled to apply the correct tax treatment, regardless of any previous informal understanding.

The case serves as a useful reminder that company vehicles must genuinely meet the pool car conditions in practice, not just in theory. Informal agreements or historic arrangements with HMRC do not provide long-term protection if the rules are not being properly followed.

If you would like to review how company vehicles are currently being treated within your business, we would be happy to help ensure everything is structured in the most tax-efficient and compliant way.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

See what our clients say

By Katie Business Advisory • Tax 0 Comments

Advisory Fuel Rates for Company Cars from 1 March 2026

HMRC has published the latest advisory fuel rates for company cars, which apply from 1 March 2026.

These rates represent the suggested reimbursement amounts for employees who use a company car for private mileage. Where an employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed for business journeys without creating a taxable benefit for the employee.

For this quarter, the petrol, diesel and home charging rates remain unchanged. However, the LPG rate and the public electric charging rate have been updated.

The new rates per mile are as follows:

Engine size (N/A for fully electric cars)

Petrol
1400cc or less – 12p (previously 12p)
1401cc to 2000cc – 14p (previously 14p)
Over 2000cc – 22p (previously 22p)

Diesel
1600cc or less – 12p (previously 12p)
1601cc to 2000cc – 13p (previously 13p)
Over 2000cc – 18p (previously 18p)

LPG
1400cc or less – 10p (previously 11p)
1401cc to 2000cc – 12p (previously 13p)
Over 2000cc – 19p (previously 21p)

Electric vehicles (fully electric only)

Home charging – 7p per mile (previously 7p)
Public charging – 15p per mile (previously 14p)

For hybrid vehicles, the petrol or diesel rate must be used rather than the electric rate.

Employers may continue to use the previous advisory fuel rates until 31 March 2026.

Employees Using Their Own Cars

Where employees use their own cars for business journeys, the Advisory Mileage Allowance Payment (AMAP) rates remain unchanged.

Employees can be reimbursed:

45p per mile for the first 10,000 business miles in a tax year
25p per mile for any additional business miles

An additional 5p per mile may be paid for each passenger carried on a business journey.

Input VAT

Within the 45p and 25p AMAP rates, a portion relates to the fuel element. Employers can reclaim input VAT on this fuel component, provided the claim is supported by a valid VAT invoice from the filling station.

For example, for a 1300cc petrol car, the fuel element is 12p per mile. This means the employer can reclaim 20/120 of that amount, which equates to 2p per mile as input VAT.

By Katie Business Advisory • Tax 0 Comments

Overpayment Relief From HMRC

If you have paid too much tax, perhaps because of an error on a tax return or because you believe an amount assessed by HMRC was incorrect, there are ways to reclaim the overpaid tax.

As a general rule, claims for refunds cannot be made more than four years after the end of the relevant tax year. For example, a claim relating to the 2021/22 tax year would need to be made by 5 April 2026.

However, in certain circumstances it may be possible to reclaim overpaid tax through a process known as overpayment relief. This involves making a formal claim to HMRC and acts as an important safeguard for taxpayers.

HMRC has recently updated its guidance to help individuals submit successful claims. Any claim for overpayment relief must be made in writing and must clearly state:

  • that the claim is for overpayment relief

  • the tax year in which too much tax was paid or assessed

  • the reason why too much tax was paid or assessed

  • the amount believed to have been overpaid or over-assessed

  • whether an appeal has previously been made in relation to the same payment or assessment (the term “appeal” must be used)

The claim must also include a declaration confirming that the information provided is correct and complete to the best of the claimant’s knowledge and belief, and it must be signed personally.

It is important to follow the correct process when making a claim. If you believe you may have paid too much tax in previous years, we would be pleased to assist you in reviewing the position and preparing a claim where appropriate.

Need more information?

At A&C Chartered Accountants, we’re not just accountants; we’re your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

CONTACT US TODAY

See what our clients say

By Katie Business Advisory • Tax 0 Comments

Making Tax Digital for Income Tax – Time Is Ticking

We are continuing to work with a number of our clients as they prepare for Making Tax Digital (MTD) for Income Tax. This new regime will apply from April 2026 to self-employed individuals and landlords whose business and/or property income (that is, total takings rather than profit) exceeds £50,000 per year.

Under the new system, individuals will be required to keep digital records and submit quarterly updates to HMRC. The first quarterly update will be due by 7 August 2026.

HMRC recently confirmed that around 860,000 individuals will be brought into the regime from April 2026. They are encouraging taxpayers to begin preparing now and are emphasising the benefits of spreading tax administration across the year, rather than leaving everything until the annual tax return deadline.

If you fall within the group affected from April 2026, it is important to remember that the normal Self Assessment process will still apply for the current tax year. Your tax return for the year ended 5 April 2026 must still be submitted by 31 January 2027.

This means that during the 2026/27 tax year you will be providing HMRC with quarterly updates under MTD, while also completing your final traditional tax return for 2025/26.

If we are not already working with you to plan your transition into this new digital regime, please do get in touch and we will be happy to support you.