Archive: 11th June 2026

Stamp Duty Land Tax

Who is liable to pay ATED?

Jun 11, 2026 by Terry Harris 0 Comments

The Annual Tax on Enveloped Dwellings (ATED) is a charge that applies to certain high-value residential properties held by non-natural persons (NNPs). It is designed to ensure that residential properties held through corporate or similar structures are subject to an annual tax charge where their value exceeds a set threshold.

ATED is payable mainly by companies that own UK residential property valued at more than £500,000. However, this liability can also extend to other NNPs that own interests in UK dwellings including certain partnerships where companies are members, and managers of collective investment schemes, all of which are treated as NNPs under the legislation.

A property is treated as a dwelling for ATED purposes if it is used, or could be used, as a residence, such as a house or flat, and includes any associated gardens, grounds and buildings within them. 

For the current charging structure from 1 April 2026, ATED is calculated based on the value band of the property as follows:

  • Properties worth over £500,000 but not exceeding £1 million: £4,600 
  • Properties worth over £1 million but not exceeding £2 million: £9,450 
  • Properties worth over £2 million but not exceeding £5 million: £32,200 
  • Properties worth over £5 million but not exceeding £10 million: £75,450 
  • Properties worth over £10 million but not exceeding £20 million: £151,450 
  • Properties worth over £20 million: £303,450 
Source:HM Revenue & Customs | 08-06-2026
Income Tax

Self-assessment tax penalties

Jun 11, 2026 by Terry Harris 0 Comments

If you are required to complete a self-assessment tax return, HMRC may charge penalties if you miss the deadline for making a filing or payment. 

There are also penalties if you fail to register on time for self-assessment. If you register late and do not pay your tax bill by the required deadline, you may receive a ‘failure to notify’ penalty. This is calculated based on the amount of tax still outstanding and is usually issued within 12 months of HMRC receiving your return.

If you submit your tax return after the deadline, you will typically receive an initial £100 penalty. This is followed by daily penalties of £10 per day after three months (up to £900), and further charges at six and twelve months based on a percentage of the tax due or a fixed amount, whichever is higher.

If you pay your tax late, additional penalties of 5% of the unpaid tax may be charged after 30 days, six months and twelve months. In addition, you will also be charged interest on the outstanding balance until it is paid.

Penalties must usually be paid within 30 days of the penalty notice date, and failure to do so may result in further enforcement action. If you believe a penalty has been issued incorrectly, you can appeal where you have a reasonable excuse, and HMRC will consider your circumstances before deciding whether to cancel or reduce penalties charged.

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

Can you claim R & D relief?

Jun 11, 2026 by Terry Harris 0 Comments

Research and Development (R&D) tax relief is designed to support companies that invest in innovation and seek to make advances in science or technology. The scheme offers businesses the ability to invest in new technologies and scientific development in exchange for generous tax reliefs. However, not every project will qualify, and businesses should carefully consider whether their activities meet HMRC’s requirements before making a claim.

Only companies’ chargeable to UK Corporation Tax can qualify for R&D relief. In addition, the company must be undertaking a project that aims to achieve an advance in a field of science or technology. 

For tax purposes, the requirements that must be met for R&D to qualify for relief include creating new processes, products or services, making appreciable improvements to existing ones and even using science and technology to duplicate existing processes in a new way. R&D activities can qualify for tax relief even if the project in question failed and both profitable and loss-making companies can benefit from making a claim. 

The advance must go beyond simply improving processes or products for the business itself and should contribute to overall knowledge or capability in the relevant field. Since April 2023, mathematical advances can also qualify as scientific advances for R&D tax purposes.

Businesses should keep clear records of the uncertainties faced, the work undertaken to resolve them, and the successes and failures encountered during the project. Once eligibility has been established, the next step is to identify the qualifying expenditure that can be included in an R&D relief claim. 

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

When to consider voluntary National Insurance

Jun 11, 2026 by Terry Harris 0 Comments

Many people are unaware that gaps in their National Insurance (NI) record can affect their entitlement to the State Pension and certain state benefits. In some cases, it may be worthwhile to consider making voluntary NI contributions to fill these gaps.

Gaps can arise for a number of reasons, including periods of low earnings, unemployment without claiming benefits, self-employment with small profits, or time spent living and working abroad. If sufficient qualifying years are not built up, this could reduce the amount of State Pension ultimately received.

Voluntary contributions can help increase State Pension entitlement, particularly for those approaching retirement age who do not have enough qualifying years, or those who expect to fall short of the years needed for a full State Pension. They may also be worth considering for individuals living overseas who wish to maintain their entitlement to UK pension benefits.

However, paying voluntary contributions does not always provide a benefit. For example, some individuals who were contracted out of the State Pension system may see little or no increase in their pension entitlement. Before making any payment, it is important to review your National Insurance record and obtain a State Pension forecast.

Taxpayers should also check whether they are entitled to National Insurance credits, as these may fill gaps without the need to make voluntary contributions. Taking advice before paying can help ensure that any contributions serve a useful purpose.

Source:HM Revenue & Customs | 08-06-2026
Capital Gains Tax

Tax when selling overseas property

Jun 11, 2026 by Terry Harris 0 Comments

UK residents are generally liable to Capital Gains Tax (CGT) when they dispose of overseas property at a gain. A disposal includes selling, gifting, or otherwise transferring ownership of a property located outside the UK.

CGT is chargeable on the profit made on the disposal at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. You can usually reduce your gain by deducting allowable costs, such as legal fees, estate agent fees and the cost of capital improvements (but not routine maintenance).

If you are a UK resident but your permanent home (“domicile”) is abroad, special rules may apply which can affect how gains are taxed and reported.

You may also be liable to tax in the country where the property is located. Where the same gain is taxed in both jurisdictions, double taxation relief may be available depending on the terms of the relevant tax treaty between the UK and that country.

Non-residents may still be within the scope of UK CGT on overseas property in certain circumstances, including where they return to the UK within five years of leaving.

Given the complexities between UK rules, overseas tax systems and residency status, it is important to consider your tax obligations in both jurisdictions when disposing of overseas property.

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

Government Backing your Business programme

Jun 8, 2026 by Terry Harris 0 Comments

The government continues to place growing emphasis on supporting smaller businesses through its “Backing Your Business” programme, which is designed to encourage growth, investment and long term resilience across the UK business sector.

The programme brings together a range of initiatives aimed at helping businesses deal with some of the pressures they continue to face, including rising costs, late payment issues, skills shortages and access to finance. The government has also indicated that reducing unnecessary regulation and encouraging innovation remain key priorities.

One area receiving particular attention is the problem of late payments, which continues to affect cash flow for many smaller firms. The government has proposed stronger powers for the Small Business Commissioner in an effort to improve payment practices and support businesses that struggle to recover money owed by larger organisations.

The programme also highlights support for exporting businesses, investment in digital technology and the promotion of artificial intelligence tools that could help smaller firms improve efficiency and productivity. Although many businesses remain cautious about adopting new technologies, there is increasing recognition that practical digital systems may help reduce administrative workloads and improve decision making.

For business owners, the current environment remains challenging, particularly as employment costs, borrowing costs and wider economic uncertainty continue to place pressure on profitability. However, government support initiatives may provide useful opportunities for businesses willing to review their plans and adapt to changing conditions.

Regular financial reviews, cash flow forecasting and strategic planning remain important for businesses seeking to maintain stability and identify future opportunities.

Source:Other | 07-06-2026
Business Support

Companies House ID verification

Jun 8, 2026 by Terry Harris 0 Comments

Major changes are continuing at Companies House as part of the government's efforts to improve corporate transparency and tackle economic crime. One of the most significant developments is the introduction of compulsory identity verification for company directors and Persons with Significant Control (PSCs).

The transition period is now underway, and affected individuals will eventually need to complete verification before they can file information or carry out certain actions on behalf of a company. Although some businesses are already aware of the changes, many smaller companies have not yet reviewed what the new rules may mean in practice.

The identity verification process is intended to confirm that the individuals connected with UK companies are genuine and properly linked to the businesses they control. Verification can either be completed directly with Companies House or through an Authorised Corporate Service Provider, such as an accountant or company formation agent.

The reforms form part of wider changes that are gradually transforming Companies House from a largely passive filing registry into a more active gatekeeper with greater powers to question, challenge and remove information that appears inaccurate or suspicious.

For many smaller businesses, the practical impact may simply involve making sure that director details are correct and ensuring that identity checks are completed before filing deadlines arise. However, businesses that leave preparations until the last minute could face delays and administrative difficulties.

Now may be a good time for company directors to review their Companies House records and consider whether any action is required before the new requirements become fully operational.

Source:Other | 07-06-2026
Tax Diary

Tax Diary July/August 2026

Jun 8, 2026 by Terry Harris 0 Comments

1 July 2026 – Due date for corporation tax due for the year ended 30 September 2025.

6 July 2026 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs for 2025-26.

19 July 2026 – Pay Class 1A NICs for 2025-26 (by the 22 July 2026 if paid electronically).

19 July 2026 – PAYE and NIC deductions due for month ended 5 July 2026. (If you pay your tax electronically the due date is 22 July 2026).

19 July 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2026. 

19 July 2026 – CIS tax deducted for the month ended 5 July 2026 is payable by today.

1 August 2026 – Due date for corporation tax due for the year ended 31 October 2025.

19 August 2026 – PAYE and NIC deductions due for month ended 5 August 2026. (If you pay your tax electronically the due date is 22 August 2026)

19 August 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2026. 

19 August 2026 – CIS tax deducted for the month ended 5 August 2026 is payable by today.

Source:HM Revenue & Customs | 07-06-2026
Business

Allowable expenses for the self-employed

Jun 4, 2026 by Terry Harris 0 Comments

If you are self-employed, claiming all of your allowable business expenses can significantly reduce your tax bill. For example, if your business turnover is £40,000 and you have £10,000 of allowable expenses, you will only pay tax on your taxable profit of £30,000. However, personal spending and money withdrawn from the business for private use cannot be claimed.

A wide range of business costs may qualify as allowable expenses. These include office expenses such as stationery, phone bills and software subscriptions, as well as the costs of running business premises, including rent, utilities, business rates and insurance. Travel expenses, including fuel, parking charges and public transport costs incurred for business journeys, can also be claimed.

Other common deductible costs include staff wages, subcontractor fees, uniforms and protective clothing, advertising and marketing expenses, website costs, professional subscriptions and certain training courses that help maintain or update existing business skills. Businesses that buy goods for resale can also claim the cost of stock and raw materials.

Those who work from home may be able to claim a proportion of household costs, including heating, electricity, internet charges and rent or mortgage interest. Alternatively, many self-employed individuals can use HMRC's simplified expenses system, which uses flat-rate allowances for working from home, use of vehicles and living at business premises.
 

Source:HM Revenue & Customs | 01-06-2026
Income Tax

Are you affected by the High Income Child Benefit Charge?

Jun 4, 2026 by Terry Harris 0 Comments

Families claiming Child Benefit should be aware of the High Income Child Benefit Charge (HICBC), which can apply when one member of the household has a higher income.

The charge applies where an individual has adjusted net income of more than £60,000 in a tax year and either they or their partner receives a Child Benefit payment. The amount payable increases gradually as income rises, with the charge set at 1% of the Child Benefit received for every £200 of income above £60,000.

As a result, the impact of the charge is phased in rather than applying all at once. However, once income reaches £80,000, the charge effectively claws back all of the Child Benefit received, removing the direct financial benefit of the payments.

Eligible taxpayers can elect to have the charge collected through their PAYE tax code rather than completing a self-assessment tax return. This measure is intended to reduce the administrative burden for employees whose only reason for filing a self-assessment tax return is to declare the HICBC.

Although some families choose to stop receiving Child Benefit to avoid the charge, it is often worthwhile to continue making a claim. Registering for Child Benefit can help protect entitlement to National Insurance credits for parents or carers and ensures children are automatically issued with a National Insurance number shortly before their 16th birthday.

Taxpayers with income approaching or exceeding £60,000 should review their position regularly to ensure they are complying with the rules and making the most appropriate choice for their circumstances.

Source:HM Revenue & Customs | 01-06-2026