Archive: 18th June 2026

Capital Gains Tax

Capital Gains Tax if selling shares or investments

Jun 18, 2026 by Terry Harris 0 Comments

Capital Gains Tax (CGT) is a tax on the profit you make when you sell or dispose of an asset that has increased in value. It is the gain itself that is taxed, not the total amount you receive. For example, if you buy shares for £3,000 and sell them for £8,000, the taxable gain is £5,000.

CGT typically applies when you dispose of shares or other investments. Examples of assets or gains that are generally exempt from CGT, including investments held within ISAs or PEPs, UK government gilts and Premium Bonds, gambling winnings and carried interest (from 6 April 2026). A disposal includes selling, gifting, exchanging or receiving compensation for an asset. If you jointly own investments, you are taxed only on your share of any gain.

You only pay CGT on total gains above your annual tax-free allowance, which is currently £3,000. If your gains exceed the allowance, you must report and pay CGT. This is usually completed by filing a self-assessment tax return, with different reporting deadlines depending on the type of asset sold or gifted.

The rate of tax depends on your income. Basic rate taxpayers pay 18% CGT on gains within the basic rate band and 24% on amounts above it. Higher and additional rate taxpayers generally pay 24% CGT on all gains.

Losses on investments can be used to reduce gains, and other reliefs may also be available. It is important to keep records of purchase costs, sale proceeds and other associated fees to calculate the correct taxable amount.

Source:HM Revenue & Customs | 15-06-2026
National Insurance

Understanding your National Insurance record

Jun 18, 2026 by Terry Harris 0 Comments

Your National Insurance record can be checked online to see what contributions and credits you have built up and whether you have any gaps that may affect your State Pension.

The record shows how much National Insurance you have paid up to the start of the current tax year, as well as any National Insurance credits you have received. It also highlights whether any years do not count as qualifying years for your State Pension.

By reviewing your record, you can see if paying voluntary contributions could help fill gaps and improve your State Pension entitlement. The service also provides a State Pension forecast and shows how this may change if you choose to make additional payments, including whether you can pay online and how much it may cost.

To access the service, you need to sign in or create a Government Gateway or GOV.UK One login. You may be asked to verify your identity using photo ID such as a passport or driving licence.

You can also request a printed National Insurance statement online, by phone or by post, although you cannot request details for the current or previous tax year. 

Source:HM Revenue & Customs | 15-06-2026
Employee Benefits

Tax-free benefits in kind from your employer

Jun 18, 2026 by Terry Harris 0 Comments

The range of benefits that can be provided tax-free by an employer is relatively limited, but there are several common exemptions that apply where certain conditions are met.

Meals provided in a staff canteen can be exempt where they are offered to all employees on a reasonable scale and are not seen as excessively lavish. This exemption does not apply where meals are provided under salary sacrifice or flexible remuneration arrangements. Employers can also provide hot drinks and water at the workplace without triggering a tax charge.

The provision of one mobile phone per employee is generally not taxable, provided it is supplied by the employer for business use. Parking facilities can also be provided tax-free, including workplace parking for cars or motorcycles, as well as bicycle parking at or near the place of work. Certain staff entertainment can qualify for exemption, such as annual or Christmas parties, provided they are open to all employees and the cost does not exceed £150 per head.

Other exempt benefits can include medical insurance or treatment for employees working overseas, as well as one annual health screening or medical check-up per employee. Long service awards and awards under approved suggestion schemes may also qualify, subject to specific limits.

Where a benefit falls within a statutory exemption or HMRC concession, it is not taxable and does not need to be reported on a tax return.

Source:HM Revenue & Customs | 15-06-2026
Income Tax

Claiming tax relief on charitable donations

Jun 18, 2026 by Terry Harris 0 Comments

When you donate money to a charity or Community Amateur Sports Club (CASC) under Gift Aid, the organisation can claim an extra 25p from HMRC for every £1 you give. This increases the value of your donation at no extra cost to you.

If you pay higher or additional rate tax, you can also claim further tax relief on your donation. This is based on the difference between the basic rate and your highest rate of tax. The relief can be claimed through your self-assessment tax return or by asking HMRC to adjust your tax code.

For example, a £1,000 donation becomes £1,250 once Gift Aid is added. A higher rate taxpayer can then claim additional relief of £250 if they pay tax at 40%, or £312.50 if they pay tax at 45%.

You must have paid enough tax in the relevant tax year for your donations to qualify. In general, the total value of Gift Aid donations cannot exceed four times the amount of tax you have paid. If too much relief is claimed, you must notify the charity and repay the excess to HMRC.

You can also donate directly from your wages or pension through a payroll giving scheme if your employer operates one. This allows donations to be taken before Income Tax is deducted, giving you immediate tax relief at your highest rate.
 

Source:HM Revenue & Customs | 15-06-2026
Income Tax

Understanding your tax code

Jun 18, 2026 by Terry Harris 0 Comments

Your tax code tells your employer or pension provider how much Income Tax to deduct from your pay. It is set by HMRC, and you may have a different code for each job or pension.

Most people with one job (or pension) use the code 1257L, which reflects the standard Personal Allowance of £12,570. The numbers show how much tax-free income you are entitled to, while the letters explain your circumstances.

Your tax code can change if your situation changes. Common reasons include starting a new job, receiving a pension or taxable benefits, claiming Marriage Allowance, receiving company benefits, or having unpaid tax from a previous year. HMRC may also update your code if your income details are corrected.

The letters in your code provide further detail. For example, L means you receive the standard Personal Allowance, M or N relate to Marriage Allowance, and BR means income is taxed at the basic rate. Codes ending in W1, M1 or X are emergency tax codes, used when HMRC does not yet have full information.

Emergency codes tax each pay period (such as weekly or monthly) in isolation, which can temporarily lead to overpayments or underpayments of tax. These issues are usually corrected once HMRC updates your records.

A "K" prefix indicates that taxable income or deductions exceed your Personal Allowance. In these cases, your employer will apply the adjustment but cannot take more than half of your pay.

If your tax code looks wrong, you should check your details with HMRC online or through the HMRC app. Once updated, any tax difference will normally be adjusted through your next payslip.

Source:HM Revenue & Customs | 15-06-2026
HMRC notices

Salaried members of LLPs

Jun 18, 2026 by Terry Harris 0 Comments

Members of a Limited Liability Partnership (LLP) are normally treated as self-employed for tax purposes. However, special rules can apply where a member's terms of membership are more akin to the terms of an employee than a partner in a traditional partnership. These are known as salaried members.

The legislation applies a three-part test. A member will be treated as a salaried member for tax purposes only if all three conditions are met:

  • Condition A – Disguised salary: At least 80% of the member's remuneration is fixed, or any variable element is not linked to the LLP's overall profits or losses. 
  • Condition B – Lack of influence: The member does not have significant influence over the affairs of the LLP. 
  • Condition C – Insufficient capital stake: The member's capital contribution is less than 25% of their expected annual remuneration.

To fall within the salaried member rules, an individual must perform services for the LLP in their capacity as a member. Some LLPs will strive to ensure that at least one of the conditions set out above does not apply to ensure these rules do not apply.

In addition, the rules do not apply to:

  • Companies
  • Individuals who only invest capital in the LLP
  • Former active members who no longer provide services but continue to receive a share of profits.
Source:HM Revenue & Customs | 15-06-2026
Employment Law

The corporate manual, not time and motion studies, defines employment roles

Jun 17, 2026 by Terry Harris 0 Comments

Equal pay claims can grind on for years before resolution. However, the ground has shifted since the Court of Appeal (CoA) took Tesco’s own operating and training manual as the definitive source on employee roles rather than any granular analysis of their activity.

This claim began in 2018 when almost 60,000 Tesco store workers, primarily women, argued that their roles held equal value to those of their male counterparts in higher-paid distribution centre jobs. This pay dispute pivoted unexpectedly when the Tribunal issued its Judgement 1 in July 2023. Instead of parsing thousands of individual instances, it ruled that Tesco’s own weighty corporate manuals were the definitive evidence of role requirements. Tesco fought this argument vigorously, appealing for a rehearing that would have delayed the outcome by a further three years. However, the Tribunal held its ground, issuing a 619-page Judgement 2 in July 2024, appending a further 750 training documents.

The CoA delivered a resounding vindication for the claimants on four of five grounds in relation to Sections 64 and 65 of the Equality Act 2010, which define "relevant types of work" and establish that such work is deemed to be of "equal value" if it demands similar levels of effort, skill, and decision-making. Ultimately, this ruling effectively defines a ‘role’ as what the employer requires the employee to do – roles that are exhaustively detailed within Tesco’s voluminous training manuals.

This ruling is clear and constitutes a significant strategic advantage for litigants in equal pay claims, in effect shifting the body of evidence from invasive, second-by-second monitoring of employees’ daily activities to the blueprints of the company’s own operational handbooks and mandatory training manuals. The devil, it appears, lies in the detail, and these weighty tomes form the very rope by which employers effectively hang themselves. Indeed, such exhaustive detail can be leveraged to demonstrate the true complexity, effort, and skill a prescribed role actually requires.

By validating the use of extant corporate manuals to establish the baseline requirements of a position, the CoA has effectively streamlined the fact-gathering phase of equal pay litigation, and employers can no longer easily escape liability under a ‘Section 69 material factor defence’ by simply downplaying the everyday realities of female-dominated roles if their own written guidance suggests otherwise. So, if an employer demands exhaustive operational perfection on paper, then the law will hold them accountable when structuring employee pay. Employers should take care not to be caught in flagrant self-contradiction by their own documentation.

Source:Court of Appeal | 16-06-2026
Business Support

Could exporting help your business grow?

Jun 15, 2026 by Terry Harris 0 Comments

Many small business owners assume that exporting is something reserved for larger companies with dedicated sales teams and substantial resources. In reality, advances in technology, online marketplaces and international logistics have made overseas markets more accessible than ever, creating opportunities for businesses of all sizes.

Finding new customers is often one of the biggest challenges facing small businesses. Exporting allows firms to reach markets that may be significantly larger than those available locally. In some cases, products or services that face intense competition in the UK may find a more receptive audience overseas, particularly where specialist expertise or niche products are involved.

Exporting is not limited to manufacturers. Professional service firms, software developers, consultants, training providers and creative businesses can all potentially benefit from international sales. Digital technology has made it easier to market, deliver and support many services across borders.

The good news is that a range of support is available to businesses considering overseas expansion. Government-backed organisations and trade support bodies offer guidance on exporting, market research, finance options and introductions to potential customers and distributors. Taking advantage of these resources can help reduce risk and improve the likelihood of success.

Even if exporting is not an immediate priority, it may be worth reviewing whether your products or services could appeal to customers outside the UK. Many businesses discover that opportunities already exist but have simply never been explored.

Growth does not always require opening new premises or launching new product lines. Sometimes the next stage of development can be achieved by reaching customers in new markets. For the right business, exporting could provide an effective way to increase sales, strengthen resilience and support long term growth.

Source:Other | 14-06-2026
Corporate Governance & Regulation

Profit and loss accounts to be filed from April 2028

Jun 15, 2026 by Terry Harris 0 Comments

The Government has confirmed that important changes to Companies House filing requirements will now take effect from April 2028 (rather than April 2027), giving small companies and micro-entities additional time to prepare for the new rules.

One of the most significant changes is the requirement for small companies and micro-entities to file a profit and loss account with Companies House. This marks a substantial change from the current position, where many smaller businesses can submit abbreviated financial information that does not include details of their trading performance.

The announcement will be of particular interest to owner-managed businesses, many of which have traditionally valued the privacy afforded by the existing filing regime. Concerns have been raised by businesses and professional advisers that the publication of detailed profit information could make commercially sensitive data available to competitors, suppliers and customers.

In response to these concerns, the Government has confirmed that smaller companies will be able to opt out of having their profit and loss account placed on the public register. While the information will still need to be submitted to Companies House, it is not expected that it will automatically become available for public inspection. Further details of how this process will operate are expected before the new rules come into force.

The changes form part of a wider programme of reforms designed to improve the quality and transparency of information held by Companies House, while also helping to tackle economic crime and strengthen confidence in the UK corporate environment.

Although the new requirements will not apply until April 2028, directors of small companies may wish to begin considering how the changes could affect their business and what additional information may need to be prepared as part of their annual accounts process.

Source:Other | 14-06-2026
Income Tax

Further registration for Making Tax Digital

Jun 11, 2026 by Terry Harris 0 Comments

Making Tax Digital (MTD) for Income Tax is being rolled out in stages for sole traders and landlords who complete self-assessment returns. Liability to register depends on the level of “qualifying income”, which includes income from self-employment and property.

Since April 2026, those with qualifying income over £50,000 have been required to maintain digital records and submit quarterly updates of trading or property income and expenses

Further registration for MTD will be required from April 2027, when the threshold will reduce to £30,000, and in April 2028 it will further reduce to £20,000. The thresholds are based on income reported for the previous tax year, meaning your obligation to join MTD is triggered by your most recently submitted self-assessment return.

For example, the £30,000 threshold that applies from 6 April 2027 is linked to your qualifying income for the 2025–26 tax year. If your reported income for that year exceeds £30,000, you will be required to start using MTD from April 2027.

HMRC reviews your self-assessment return each year to determine your qualifying income. If you exceed the relevant threshold, they will normally write to confirm when you must start using the system. However, even if you do not receive a letter, it remains your responsibility to check whether you are required to comply and to prepare in time.

If you believe you fall within the rules but have not been notified, you should check your income against the thresholds and ascertain whether you are required to sign up.

Source:HM Revenue & Customs | 08-06-2026