By Katie Business Advice • Business Advisory 0 Comments

Andy Burnham Tax Changes: What Could the Autumn Budget 2026 Mean for Businesses and Individuals?

Andy Burnham Tax Changes: What Could the Autumn Budget 2026 Mean for Businesses and Individuals?

With Andy Burnham now Prime Minister, attention is quickly turning to what his new Government could mean for tax, businesses and household finances.

Cost-of-living support has emerged as an early priority, with the Government already announcing a temporary removal of VAT from domestic electricity bills from 1 October 2026.

But what could come next?

With the Autumn Budget approaching, speculation around future UK tax changes is likely to increase. For business owners, landlords and investors, the important thing is to separate confirmed Government policy from proposals and speculation – and to make sure your finances are prepared for different eventualities.

At A&C Chartered Accountants, our advice is simple: don’t make significant financial decisions because of a headline. Understand your position, consider the possible scenarios and plan ahead.

What tax changes has Andy Burnham announced?

One of the first major cost-of-living measures announced by the new Government is the temporary removal of VAT from domestic electricity bills.

Domestic electricity is currently subject to VAT at 5%. From 1 October 2026, the Government plans to reduce this to zero for six months.

The Government estimates that the measure could save a typical household approximately £45 over a year, although the actual saving will depend on electricity consumption.

The announcement gives us an early indication that easing cost-of-living pressures will be an important theme for the new Government.

However, attention is now moving towards the bigger question: what could happen to tax in the Autumn Budget 2026?

Could there be further UK tax changes in 2026?

Whenever a new Prime Minister and Government take office, speculation inevitably begins about possible changes to taxation.

Capital gains tax, property taxation and taxes affecting wealth and investments are among the areas likely to attract particular attention in the run-up to the Budget.

However, it is important to distinguish between three very different things:

  • Government announcements and confirmed policy
  • Proposals being considered or discussed
  • Predictions and speculation from economists, newspapers and commentators

Until the Government formally announces a measure – and the relevant legislation and implementation dates become clear – taxpayers should be cautious about making irreversible decisions.

Could Capital Gains Tax change?

Capital Gains Tax (CGT) is particularly relevant to people considering selling investments, second properties or business assets.

Changes to CGT rates, allowances or reliefs can potentially affect the amount of tax payable when an asset is sold.

This naturally means that speculation about CGT changes can cause investors and business owners to consider bringing transactions forward.

But acting purely because of speculation can create its own problems.

Selling an asset earlier than planned may have commercial, investment and wider tax consequences. The tax position should therefore be considered as part of the overall decision rather than in isolation.

If you’re already considering a significant disposal, now may be a sensible time to understand what your potential CGT liability looks like under the current rules and consider how different future tax scenarios could affect you.

What could future tax changes mean for landlords?

Landlords and property investors should also keep a close eye on the Autumn Budget.

Property has been the subject of considerable tax reform over recent years, so any further announcements affecting landlords could influence long-term investment decisions.

If you’re already considering selling, purchasing or restructuring property investments, understanding your existing tax position before the Budget can make future decisions much easier.

That doesn’t mean making changes now because taxes might change.

Instead, it means knowing your numbers and understanding the implications of the options available to you.

What could tax changes mean for business owners?

For small business owners and company directors, tax planning should go beyond simply looking at the amount of tax due this year.

Possible changes to areas such as Capital Gains Tax and business-related reliefs can become particularly important if you’re thinking about:

  • Selling your business
  • Bringing in new shareholders
  • Passing the business to family members
  • Restructuring your company
  • Extracting profits
  • Planning for retirement or succession

These are significant financial decisions that should generally be considered well in advance.

If a business sale or succession is something you may consider within the next few years, understanding your current position now gives you far more flexibility than waiting until a new tax rule has already been announced.

Don’t let tax speculation drive your decisions

Headlines about potential tax rises can understandably make people nervous.

But reacting too quickly can be just as damaging as failing to plan at all.

At A&C Chartered Accountants, we believe the better approach is to focus on the things you can control.

1. Review your current tax position

Understand where you stand today.

If you own a business, investment portfolio or additional property, consider what your potential tax exposure would be if you sold or transferred those assets.

2. Think about your long-term plans

Tax shouldn’t be considered separately from your wider financial and commercial objectives.

Ask yourself what you actually want to achieve over the next few years before deciding whether any action is necessary.

3. Consider different scenarios

Good tax planning isn’t about predicting exactly what the Chancellor will announce.

It’s about understanding how different outcomes could affect you.

For example, what would happen if a particular tax rate increased? Would it materially change your plans?

Scenario planning can help answer these questions without requiring you to make rushed decisions.

4. Get advice before major transactions

Property disposals, business sales and succession planning can have significant tax consequences.

Getting professional advice before completing a transaction can help you understand the available options and avoid expensive surprises later.

Preparing for the Autumn Budget 2026

The next few months could bring further announcements about the direction of UK tax policy under Andy Burnham’s Government.

For most individuals and businesses, this isn’t a reason to panic or make immediate changes.

It is, however, a good reason to review your position.

Knowing where you stand today means that when the Government does announce changes, you can make decisions based on your circumstances rather than reacting to the headlines.

Need help reviewing your tax position?

At A&C Chartered Accountants, we work with small businesses, company directors, landlords and individuals across Manchester and the UK.

If you’re considering selling a property or business, planning for succession, or simply want to understand how potential tax changes could affect you, we can help you review your current position and consider different scenarios ahead of the Autumn Budget.

Speak to A&C Chartered Accountants today to start planning ahead.

This article is intended as general information only and does not constitute tax or financial advice. Tax rules can change and individual circumstances vary. Professional advice should be obtained before taking action.

By Katie Business Advice • Business Advisory • Business News 0 Comments

Side Hustle Tax UK: When Do You Need to Tell HMRC?

From selling products online and creating content to freelancing at weekends, side hustles have become an increasingly common way for people in the UK to earn extra money.

But at what point does a side hustle become something you need to tell HMRC about?

HMRC has launched a new summer campaign reminding people earning additional income that they may have tax and reporting obligations.

The campaign specifically highlights people making money from areas such as wedding services, online selling, content creation and freelancing.

For anyone earning money outside their main job, now is a good time to check whether that additional income needs to be reported.

How much can you earn from a side hustle before telling HMRC?

One of the most important figures to understand is the £1,000 trading allowance.

If your gross trading income is £1,000 or less during a tax year, you may be able to use the trading allowance and, in many straightforward cases, won’t need to tell HMRC about that income.

However, if your gross trading income exceeds £1,000, you may need to register for Self Assessment and report your income.

Importantly, the £1,000 threshold relates to income before expenses, not simply the profit you make.

For example, if you receive £1,500 from a side business but spend £800 on materials, your profit may only be £700. However, your gross trading income is still £1,500, so you shouldn’t assume you’re below the threshold.

Whether you actually have tax to pay will depend on your circumstances, including your income, allowable expenses and how the trading allowance applies.

Do you have to pay tax on a side hustle?

Potentially – but earning more than £1,000 doesn’t automatically mean you’ll have a tax bill.

Your overall tax position depends on factors including how much profit your side hustle makes and what other income you receive.

The important distinction is between having an obligation to report income and actually owing additional tax.

If you’re employed and also earn money from a side business, for example, your salary and other income can affect how much tax is ultimately due.

Does HMRC know about income from online platforms?

HMRC increasingly receives information from digital platforms and marketplaces.

That means information held by online selling and gig-economy platforms can potentially be compared with information reported to HMRC.

This has caused some confusion, particularly around whether simply selling items through platforms such as Vinted or eBay automatically creates a tax liability.

It doesn’t.

The underlying tax rules are what matter.

Do you have to pay tax when selling on Vinted or eBay?

If you’re simply clearing out your wardrobe or selling unwanted possessions from around your home, you are not necessarily trading.

For example, selling an old coat, children’s clothes or furniture you no longer need is very different from deliberately purchasing products with the intention of reselling them for profit.

The nature and pattern of your activity matters.

If you’re regularly buying products to resell, making products specifically to sell or operating your online activity like a business, HMRC may regard you as trading.

In that situation, the normal rules surrounding trading income and the £1,000 trading allowance become relevant.

What counts as a side hustle?

A side hustle can take many forms.

You could potentially be trading if you regularly earn money from activities such as:

  • Freelance work
  • Social media and content creation
  • Photography or videography
  • Wedding services
  • Tutoring
  • Beauty treatments
  • Selling handmade products
  • Buying and reselling products
  • Consulting
  • Graphic design or marketing
  • Gig-economy work
  • Other paid services alongside your main employment

The fact that you consider something a hobby doesn’t necessarily determine its tax treatment.

If you’re regularly providing goods or services in return for payment, it’s worth checking your position.

Do influencers and content creators need to declare income?

Content creators, influencers and people earning money through social media should pay particular attention to their tax position.

Income can come from multiple sources, including sponsorships, brand partnerships, advertising, affiliate commissions and platform payments.

Having lots of relatively small income streams can make it surprisingly easy to lose track of how much you’ve earned during a tax year.

Good bookkeeping is therefore valuable even when a side hustle is still relatively small.

Keeping records from the beginning is much easier than trying to reconstruct a year’s worth of transactions when a tax deadline approaches.

What should you do if your side hustle earns more than £1,000?

Don’t panic.

Crossing the £1,000 gross income threshold doesn’t mean HMRC is suddenly going to send you a large tax bill.

Instead, it’s a prompt to check whether you need to register for Self Assessment and understand what information needs to be reported.

A sensible starting point is to:

  1. Add up your gross income from relevant trading activities.
  2. Keep records of payments received and business expenses.
  3. Check whether you need to register for Self Assessment.
  4. Understand whether claiming actual allowable expenses or using the trading allowance is appropriate.
  5. Put money aside for tax if you expect to have a liability.

The earlier you understand your position, the easier it generally is to manage.

What if you haven’t declared previous side hustle income?

If you think you should have reported income to HMRC in an earlier tax year but didn’t, ignoring it is unlikely to make the situation easier.

Coming forward voluntarily can generally put you in a better position than waiting for HMRC to identify a discrepancy and open an enquiry.

Exactly how you should correct the position will depend on the circumstances and the tax years involved.

It’s therefore worth getting professional advice before making a disclosure, particularly where the income is substantial or covers several years.

Don’t let your side hustle create a tax headache

Starting a side hustle should be exciting.

The tax side doesn’t need to make it complicated.

The easiest approach is to treat your finances properly from the beginning: keep records, separate business transactions where practical, understand the £1,000 trading allowance and check your Self Assessment obligations as your income grows.

At A&C Chartered Accountants, we work with start-ups, sole traders, freelancers, content creators and small businesses across Manchester and the UK.

Whether your side hustle has just crossed the £1,000 threshold or has developed into a growing business, we can help you understand your tax obligations and make sure everything is reported correctly.

Need help with your side hustle tax? Get in touch with A&C Chartered Accountants and we’ll help you understand what you need to do next.

This article provides general information only and does not constitute tax advice. Tax treatment depends on individual circumstances and tax rules can change. Professional advice should be obtained where appropriate.

By Katie Business Advisory • Business News 0 Comments

HMRC Tax Changes 2026: What the Latest Tax Update Means for Small Businesses

HMRC has published a major package of tax consultations and policy announcements that could change how businesses and individuals report, manage and pay tax over the coming years.

Published on 23 June 2026, the Tax Update 2026: Simplification, Modernisation and Fairness covers everything from more frequent Self Assessment tax payments and mandatory e-invoicing to Capital Gains Tax relief and the taxation of payments to company shareholders.

Many of these measures are currently proposals rather than confirmed changes to the law.

However, they give businesses a useful indication of where the UK tax system could be heading: more digital, more real-time and increasingly data-driven.

For small businesses, landlords, sole traders and company directors, understanding these changes early could make it much easier to prepare.

Here, A&C Chartered Accountants explains some of the most important proposals and what they could mean for you.

Could Self Assessment tax payments become more frequent?

One of the most significant proposals is HMRC’s consultation on Timely Payments for Self Assessment taxpayers.

Currently, many Self Assessment taxpayers make payments in January and July through the Payments on Account system.

The Government is exploring whether more tax could instead be collected throughout the year.

For taxpayers who receive both PAYE income and Self Assessment income, the proposals could result in more of their tax liability being collected through PAYE from April 2029.

HMRC is also considering wider reforms to Payments on Account for other Self Assessment taxpayers.

Under the proposals, taxpayers could be required to pay their forecast tax liability during the tax year, followed by a balancing payment or repayment once their final tax position is established.

What could this mean for sole traders and landlords?

There are potential advantages.

Paying tax more frequently could make budgeting easier and reduce the prospect of facing a substantial tax bill in January.

However, there’s another side to it.

If tax has to be paid sooner than under the existing system, businesses and individuals may have less cash available during the year.

For sole traders, landlords and other Self Assessment taxpayers, cash-flow forecasting could therefore become increasingly important if these proposals eventually become law.

HMRC is reviewing Benchmark Scale Rates

HMRC is also reviewing Benchmark Scale Rates (BSRs) and Overseas Scale Rates (OSRs).

These rates allow employers to reimburse employees for qualifying expenses such as meals and travel using agreed flat rates rather than checking every individual receipt.

The Government is considering whether the existing rates accurately reflect current costs and whether the overall system can be simplified.

For businesses with employees who regularly travel for work, a simpler system could reduce administration and make expense claims more consistent.

Employers should therefore keep an eye on the outcome of the review.

Mandatory e-invoicing is coming to the UK

Another important development for businesses is the continued move towards electronic invoicing, or e-invoicing.

The Government has confirmed that the Peppol framework will form the core network supporting the UK’s planned e-invoicing system.

But what exactly does that mean?

What is e-invoicing?

E-invoicing isn’t simply creating an invoice and emailing it to your customer as a PDF.

Instead, invoice information is created in a standardised digital format and transmitted directly between accounting and finance systems.

This can reduce manual data entry, improve accuracy and potentially speed up invoice processing.

Peppol is an international framework designed to allow different accounting and finance systems to exchange invoice information securely and consistently.

When will e-invoicing become mandatory in the UK?

The Government is working towards mandatory e-invoicing from 2029, primarily covering VAT invoices for business-to-business and business-to-government transactions.

Businesses are expected to exchange invoices through approved software providers rather than uploading invoices to a central Government platform.

A more detailed implementation roadmap is expected later in 2026.

What should small businesses do about e-invoicing?

There’s no need for small businesses to overhaul their systems immediately.

However, this is another strong reason to consider how digital your bookkeeping currently is.

Businesses already using modern cloud accounting software are likely to be better positioned for the transition than businesses relying heavily on spreadsheets, paper records or manual invoicing.

At A&C Chartered Accountants, we already work with businesses using cloud accounting systems such as Xero, helping them streamline bookkeeping and financial processes.

Moving towards good digital bookkeeping isn’t simply about complying with future HMRC requirements. It can also give business owners better visibility over cash flow, invoices, expenses and overall business performance.

Proposed changes to CGT Holdover Relief

The Government has also published draft legislation intended to correct an anomaly in the calculation of Capital Gains Tax (CGT) Holdover Relief for gifts of business assets.

Holdover Relief can allow a capital gain arising when certain business assets are gifted to be deferred until the person receiving the asset subsequently disposes of it.

The proposed legislation would amend the calculation used for certain share transfers so that the relief operates as intended.

Why could this matter for business owners?

The change could be particularly relevant where shares are being transferred as part of:

  • Business succession planning
  • Family ownership arrangements
  • Company restructures
  • Transfers of business assets

The measure isn’t yet law.

However, if you’re currently considering a transaction that could be affected, it may be worth taking professional tax advice before proceeding.

Depending on the circumstances and the final legislation, the timing of a transaction could potentially affect the tax outcome.

Changes to how company payments to shareholders are taxed

The Government is also examining the rules governing how certain payments made by companies to shareholders are taxed.

Many of the existing rules have developed over decades and can be complicated.

The consultation considers areas including distributions, returns of capital, company reorganisations and interactions with the loans to participators rules.

There are no immediate changes for owner-managed businesses as a result of the consultation.

However, it is an area worth watching.

For company directors and shareholders, future reform could potentially affect the tax treatment of dividends, extracting money from a company and certain company restructures.

HMRC’s increasing focus on digital tax compliance

A wider theme running through the 2026 Tax Update is HMRC’s continued investment in digitalisation and tax compliance.

Several consultations look at ways of tackling tax evasion, fraud and inaccurate reporting.

Proposals include extending VAT liability rules for online marketplaces, introducing software standards designed to combat electronic sales suppression and creating a new offence relating to reckless untrue statements in direct tax matters.

For businesses already complying with their tax obligations, these measures are primarily intended to target businesses and individuals that deliberately understate sales or avoid tax.

However, they reinforce an important trend.

HMRC is increasingly using technology and data to administer and enforce the UK tax system.

Accurate bookkeeping and robust financial records are therefore becoming more important, not less.

What does the HMRC Tax Update mean for small businesses?

Most of the measures announced on 23 June 2026 are consultations or proposals rather than immediate changes to tax law.

There is therefore no need for businesses to make rushed decisions.

But taken together, the announcements give us a useful indication of the direction in which UK tax administration is moving.

We expect four themes to become increasingly important:

  1. Greater digitalisation – businesses will increasingly need accounting systems capable of communicating digitally with HMRC and other businesses.
  2. More real-time tax reporting and payment – the gap between earning income, reporting it and paying the associated tax could become shorter.
  3. Greater use of data and compliance technology – HMRC will continue to use digital information to identify errors and potential non-compliance.
  4. Simplification of existing tax rules – some long-standing and complicated areas of taxation are being reviewed.

What should businesses do now?

The key message from A&C Chartered Accountants is prepare rather than panic.

Many of these proposals won’t take effect for several years, and some could change significantly following consultation.

But businesses can still take sensible steps now.

Keep your accounting records accurate and up to date. Review whether your bookkeeping and invoicing systems are ready for an increasingly digital tax system. Monitor upcoming changes that could affect your business and consider cash-flow forecasting if the timing of tax payments changes.

Most importantly, seek advice before making significant decisions based on proposed tax changes.

Preparing your business for the future of tax

HMRC’s Tax Update 2026 isn’t simply a collection of technical tax consultations.

It provides a glimpse of what running a tax-compliant business in the UK could look like towards the end of this decade.

Digital bookkeeping, electronic invoicing, more timely tax payments and increasingly sophisticated HMRC data analysis are all part of that picture.

Businesses that prepare gradually should be in a much stronger position than those that wait until new requirements become mandatory.

This article is intended for general information only and does not constitute tax or financial advice. Many of the measures discussed are proposals or consultations and may change before implementation. Individual circumstances vary, so professional advice should be obtained before taking action.

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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 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 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.

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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

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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.

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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.

By Katie Business Advisory • Tax 0 Comments

Spring Forecast 2026: What the OBR’s outlook could mean for tax planning

During a week dominated by news from the Middle East, the Chancellor, Rachel Reeves, presented the government’s Spring Forecast to Parliament on 3 March 2026.

The Chancellor told MPs that economic stability had been restored, pointing to the latest projections from the Office for Budget Responsibility.

While the government focused on signs of economic growth, particularly when measured by GDP per person, the OBR’s report paints a more complex picture. It suggests that the fiscal environment remains tight and that the next Budget will take place against a challenging backdrop.

As part of the government’s policy to hold only one major fiscal event each year, the Spring Forecast included no new tax or spending announcements. However, the updated forecasts provide useful signals about where future tax pressures may emerge.

A steadily rising tax burden

One of the clearest messages from the OBR’s projections is that the overall tax burden is expected to continue rising.

Taxes are forecast to reach 38.5% of GDP by 2030/31, which would represent the highest level since the Second World War.

A major driver of this increase is the continued freeze on income tax thresholds, which is currently scheduled to remain in place until April 2031. As wages rise over time, more people will be pushed into higher tax brackets even if their real financial position has not changed.

This phenomenon, often described as fiscal drag, means that many individuals and business owners may find themselves paying higher levels of tax without any formal rate increases being introduced.

The state pension and income tax

Another interesting point raised in the forecast relates to the state pension.

From 2027/28, the full state pension is expected to exceed the personal allowance. This could potentially bring around 600,000 more people into the income tax system by 2026/27, rising to approximately one million by 2030/31.

The government has stated that it does not intend for pensioners whose only income is the basic or new state pension to pay income tax during this Parliament. However, the detailed policy explaining how this will work in practice has not yet been confirmed.

National insurance and hiring pressures

The OBR also notes that the increase in employer national insurance contributions, introduced last April, is contributing to the higher tax take.

For businesses, this increase in employment costs may influence hiring decisions. At the same time, the OBR forecasts that unemployment could rise to around 5.3% in 2026 before gradually falling back to 4.1% by 2030.

For many employers, the combination of higher payroll costs and economic uncertainty may encourage a more cautious approach to recruitment.

Self assessment and international tax changes

Self assessment payments are expected to increase significantly during the 2026/27 tax year.

Part of this rise is linked to the abolition of the UK’s non-domiciled tax regime in 2025/26, alongside a temporary facility that allows certain overseas income to be brought back to the UK.

Anyone with overseas income, assets or international financial arrangements should review their position carefully, as these changes may have a meaningful impact on future tax liabilities.

Capital taxes and investment planning

The OBR also expects receipts from capital taxes to rise.

Strong performance in UK equity markets has increased the value of many portfolios, which means more investors could be facing capital gains tax when they sell assets.

If you hold UK shares or other investments, this may be an appropriate time to review your portfolio and consider whether crystallising gains, rebalancing holdings or making use of available allowances could improve your tax position.

Any such planning needs to take account of anti-avoidance rules such as the ‘bed and breakfasting’ rules, which restrict the immediate repurchase of assets after they have been sold.

Why proactive tax planning matters more than ever

Taken together, the OBR’s report suggests that tax planning will become increasingly important over the coming years.

For individuals and business owners alike, this means:

  • monitoring available allowances carefully

  • thinking about the timing of income, gains and dividends

  • making sure reliefs are fully utilised

  • reviewing pension contributions and investment structures

  • considering how assets are held within a family

Small adjustments made early can often make a meaningful difference to future tax liabilities.

As the tax landscape continues to evolve, taking a proactive approach to financial planning will be key to keeping tax bills under control while maintaining long-term financial stability.

By Katie Business Advisory • Tax 0 Comments

A Practical Tax Planning Guide Before 5 April 2026

Effective tax planning is about timing, structure and using allowances before they’re lost. The following areas should be reviewed well ahead of the 5 April 2026 tax year end.

Income tax & allowances

  • Maximise use of the personal allowance (£12,570) and basic rate band across family members where income splitting is commercially justified

  • Use the dividend allowance (£500) and personal savings allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers) before year end

  • Consider the timing of bonuses and discretionary income, particularly where income is approaching £100,000 (personal allowance withdrawal) or £125,140

  • Accelerate or defer income receipts based on expected tax rates and personal circumstances in 2026/27

Capital gains tax planning

  • Use the annual exempt amount (£3,000 per individual) before 5 April 2026 — losses cannot be carried back

  • Consider bed-and-breakfasting alternatives, such as ISA reinvestment or spouse transfers, to refresh CGT base costs

  • Review disposals where Business Asset Disposal Relief may apply (lifetime limit £1 million, taxed at 14%, subject to qualifying conditions)

  • Crystallise capital losses before year end to offset current or future gains (losses carry forward indefinitely but current year losses must be used first)

  • For residential property disposals, note CGT rates of 18% or 24% and the 60-day reporting and payment requirement

Pension contributions

  • Maximise pension contributions up to the £60,000 annual allowance and use carry-forward relief from the previous three tax years

  • High earners with adjusted income over £260,000 should review the tapered annual allowance, which can reduce to £10,000

  • Employer pension contributions avoid employer NICs (now 15%) and remain deductible for corporation tax

  • Review exposure to the money purchase annual allowance (£10,000) if pension benefits have already been accessed

Tax-efficient investments

  • Use ISA allowances (£20,000 per individual) and Junior ISA allowances (£9,000 per child) — unused allowances cannot be carried forward

  • Consider venture capital schemes where appropriate:

    • SEIS: up to £200,000 at 50% income tax relief

    • EIS: up to £1m (£2m for knowledge-intensive companies) at 30% relief

    • VCTs: up to £200,000 at 30% relief

  • Review availability of loss relief on EIS and SEIS investments, which can be set against income as well as gains

Corporate planning for directors and companies

  • Review the optimal mix of salary and dividends, particularly following the increase in employer NICs to 15% from April 2025

  • Consider timing of capital expenditure to maximise relief under the £1m Annual Investment Allowance or full expensing rules

  • Review group relief opportunities where companies have differing year ends

  • Monitor director loan accounts — balances over £10,000 can trigger benefit-in-kind charges, and outstanding loans may attract a 33.75% s455 charge

Inheritance tax planning

  • Use the annual gifting exemption (£3,000, plus prior year if unused) and small gifts exemption (£250 per recipient)

  • Structure regular gifts from surplus income to qualify for immediate exemption, ensuring appropriate records are kept

  • Consider potentially exempt transfers now to start the seven-year clock

  • Review Business Property Relief and Agricultural Property Relief eligibility and ownership periods

  • Check life assurance policies are written in trust where appropriate

Property & SDLT considerations

  • Review property portfolios for potential disposals ahead of future tax changes

  • Consider incorporation of property businesses, balancing SDLT costs (including the 3% surcharge) against long-term corporation tax savings

Cross-tax and administrative planning

  • Review salary sacrifice arrangements for pensions, childcare and cycle-to-work schemes

  • Time charitable donations to maximise Gift Aid relief

  • Review VAT schemes (flat rate, cash accounting or annual accounting) where relevant

  • Check HMRC coding notices and payments on account

  • Ensure self-assessment obligations are planned for ahead of the 31 January 2027 deadline

By Katie Business Advisory • Wealth Planning 0 Comments

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By Katie Business Advisory • Business News • Tax • Wealth Planning 0 Comments

Proposed changes to inheritance tax – what’s coming in April 2026

Proposed changes to inheritance tax – what’s coming in April 2026

The government has now published draft legislation to reform Agricultural Property Relief (APR) and Business Property Relief (BPR) from 6 April 2026 – changes first announced in the Autumn Budget 2024. The aim, according to the Treasury, is to make the reliefs “fairer and more sustainable”.

What’s changing?

In addition to the existing nil-rate bands and exemptions, APR and BPR will continue – but with some important new limits:

  • A £1 million cap will be introduced, restricting the current 100% relief to the first £1 million of combined agricultural and business property.

  • Any value above this cap will qualify for relief at 50% instead.

  • Quoted shares classed as “not listed” on the markets of recognised stock exchanges (such as AIM) will see relief reduced to 50% – with no £1 million allowance.

These changes will take effect from April 2026.

What’s not changing?

Despite criticism from business owners and the farming community, the plans remain largely the same as first proposed in Autumn 2024. However, the government has confirmed it will not proceed with extending the related property rules for qualifying property placed into multiple trusts.

Some positive news

Two additional announcements may soften the impact for some:

  • The option to pay inheritance tax in equal annual instalments over 10 years interest-free will be extended to all property eligible for APR or BPR.

  • The new £1 million allowance for APR and BPR will be indexed in line with CPI – but it will remain fixed until the end of the 2029/30 tax year in line with the frozen nil rate band.

What this could mean for you

If you own agricultural land, a farming business, or a company that qualifies for BPR, these changes could significantly affect future inheritance tax planning. It’s worth reviewing your estate plans now to see how the new limits could impact your family’s tax position.

At A&C Chartered Accountants, we can help you assess your current exposure to inheritance tax, explore available reliefs, and plan ahead to make sure your estate is structured in the most tax-efficient way.

If you’d like to discuss your options before the April 2026 changes take effect, get in touch with our team today.