All posts by Terry Harris

Corporation Tax

Filing obligations for private limited companies

Apr 16, 2026 by Terry Harris 0 Comments

Those responsible for the accounts and tax compliance of private limited companies must ensure they are fully aware of the relevant obligations and statutory deadlines.

Following the end of each financial year, a private limited company is required to prepare full annual accounts and submit a Company Tax Return. The deadline for filing the first set of accounts must be filed with Companies House within 21 months of the date of incorporation. Thereafter, annual accounts must be filed within 9 months of the end of each financial year.

Corporation Tax is payable 9 months and 1 day after the end of the relevant accounting period. As a result, the tax liability will typically fall due before the filing deadline for the Company Tax Return.

In most cases, the Company Tax Return must be submitted within 12 months of the end of the accounting period. Filing is required to be completed online in iXBRL format, using either HMRC’s own software or approved third-party software.

The Corporation Tax accounting period will generally correspond with the 12-month company financial year covered by the annual accounts.

Penalties may be imposed by both Companies House and HMRC for late filing or non-compliance, and it is therefore essential that all deadlines are carefully monitored and adhered to.

Source:Companies House | 13-04-2026
General

Reducing domestic energy costs

Apr 13, 2026 by Terry Harris 0 Comments

Energy costs remain a significant pressure on household budgets, and reducing consumption continues to be one of the most reliable ways to control expenditure. Fortunately, many practical steps can lower usage without reducing comfort. A structured approach often produces the best results, starting with quick wins and then considering longer term improvements.

Heating is usually the largest component of domestic energy use, often accounting for more than half of total consumption. Ensuring that boilers are serviced regularly helps maintain efficiency and can prevent higher fuel usage caused by poorly operating equipment. Reducing thermostat settings by just one degree can cut heating bills noticeably over a full year. Installing a programmable thermostat allows heating to operate only when needed, avoiding unnecessary energy use during the night or when the home is unoccupied.

Improving insulation is one of the most effective long term strategies. Loft insulation reduces heat loss through the roof, while cavity wall insulation helps retain warmth inside the property. Draught proofing around doors and windows is inexpensive and can produce immediate benefits. Even simple measures such as closing curtains at dusk help retain heat during colder months.

Electricity consumption can also be reduced through small behavioural changes. Switching off appliances rather than leaving them on standby can reduce wasted electricity. Many modern devices continue to consume power even when not in active use. Using energy efficient LED lighting instead of traditional bulbs reduces electricity consumption significantly and LED bulbs also last much longer, reducing replacement costs.

Households should also consider how hot water is used. Lowering the temperature setting on a boiler or hot water cylinder can reduce energy use without affecting comfort. Installing water efficient shower heads and avoiding unnecessarily long showers can also contribute to meaningful savings over time. Washing clothes at lower temperatures and ensuring washing machines are fully loaded before use can further reduce electricity and water usage.

For households able to consider capital investment, energy efficient appliances, improved glazing, solar panels or battery storage may offer longer term savings. While these measures involve upfront cost, they can reduce ongoing energy expenditure and may increase property value.

Taking a planned approach to reducing energy consumption can produce steady financial savings and may also reduce exposure to future increases in fuel prices. Even modest adjustments, when combined, can produce noticeable reductions in household energy costs over the course of a year.

Source:Other | 12-04-2026
Employment & Payroll

Increase in employment costs 2026-27

Apr 13, 2026 by Terry Harris 0 Comments

From April 2026, the National Minimum Wage and National Living Wage rates have increased, and businesses should ensure payroll systems are updated immediately so that employees receive the correct statutory pay. These changes apply from the start of the 2026-27 tax year and form part of the Government’s ongoing policy of maintaining minimum earnings levels that reflect wider wage growth and living cost pressures.

The key rates from 1 April 2026 are as follows:

  • Age 21 and over (National Living Wage): £12.71 per hour
  • Age 18 to 20: £10.85 per hour
  • Age 16 to 17: £8.00 per hour
  • Apprentice rate: £8.00 per hour

These increases mean many employers will see a rise in employment costs during 2026-27, particularly where businesses rely on part-time staff, seasonal workers, or apprentices. Around 2.7 million workers are expected to benefit from the increase, reinforcing the importance of ensuring compliance from the first pay period after 1 April 2026.

For employers, the immediate priority is to review payroll settings, salary sacrifice arrangements, and employment contracts to confirm that hourly pay levels meet or exceed the new statutory thresholds. Failure to apply the correct rates can result in penalties and reputational risk, as HMRC has powers to require repayment of arrears and to publicly identify employers who do not comply with minimum wage legislation.

It is also important to consider knock-on effects. Businesses paying slightly above the previous minimum wage may wish to review pay differentials across their workforce in order to maintain fairness and staff morale. In practice, increases in the statutory minimum often lead to wider wage adjustments as employers maintain distinctions between entry-level and more experienced roles.

Source:Other | 12-04-2026
Tax Diary

Tax Diary May/June 2026

Apr 13, 2026 by Terry Harris 0 Comments

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

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

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

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

31 May 2026 – Ensure all employees have been given their P60s for the 2025/26 tax year.

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

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

19 June 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2024. 

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

Source:HM Revenue & Customs | 12-04-2026
Employee Benefits

New rules for working from home from April 2026

Apr 9, 2026 by Terry Harris 0 Comments

The rules on claiming tax relief for working from home are changing for the new 2026-27 tax year. In most cases, employees will no longer be able to claim relief for homeworking, although claims can still be made for the previous four tax years. The removal of the tax relief was announced in the Autumn Budget last year and it is estimated that some 300,000 taxpayers will be affected by the change.

Relief is only available if you have to work from home for your job, for example, if your role requires you to live far from the office or your employer does not provide an office to work from. You cannot claim tax relief if you choose to work from home, including under flexible arrangements allowed by your contract.

Where eligible, you can claim for work-related household costs such as business phone calls or the additional gas and electricity used in your work area. You cannot claim for costs used for both private and work purposes, such as rent or broadband.

Tax relief can be claimed at £6 a week or for the exact amount spent, and the relief is calculated based on your income tax rate. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you will get £1.20 per week in tax relief (20% of £6). Evidence is required for claims, including receipts or bills if claiming actual costs.

Claims for the current and previous tax years can be made through https://www.tax.service.gov.uk/claim-tax-relief-expenses/claim-any-other-expense. If you complete a self-assessment tax return, you must claim through your tax return instead. The new rules mark a return to stricter pre-pandemic rules when tax relief was only available when working from home was required and not optional.

Source:HM Revenue & Customs | 06-04-2026
Income Tax

MTD – when the quarterly returns to HMRC are due

Apr 9, 2026 by Terry Harris 0 Comments

Making Tax Digital (MTD) for Income Tax began on 6 April 2026 for qualifying taxpayers. Those with qualifying income over £50,000 are now required to maintain digital records and submit updates of trading or property income and expenses using compatible software.

Under MTD for Income Tax, quarterly updates are required every three months for each self-employment and property business. These quarterly updates are simply summaries of income and expenses based on digital records. You do not need to make any accounting or tax adjustments before sending a quarterly update to HMRC. HMRC receives totals only, not individual digital records.

For those using standard tax year periods, the deadlines are:

  • 7 August (covering the period 6 April to 5 July)
  • 7 November (covering the period 6 April to 5 October)
  • 7 February (covering the period 6 April to 5 January)
  • 7 May (covering the period 6 April to 5 April)

Alternatively, calendar quarters can be used if they better match your accounting period, but the same deadline dates apply. This will make record keeping simpler if your accounting period ends on 31 March.

Even if there has been no activity, an update must still be submitted. Missing deadlines can lead to penalties, although HMRC has said they will not apply penalty points for late quarterly updates for the first 12 months. Penalty points will still apply for late tax returns.

Source:HM Revenue & Customs | 06-04-2026
Excise duties

Vaping products duty schemes

Apr 9, 2026 by Terry Harris 0 Comments

The new Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) are being introduced from 1 October 2026. In advance of the launch of the new schemes, HMRC opened applications for approval for manufacturers, importers and warehouse keepers on 1 April 2026.

This means that businesses affected by these changes should act now. Early registration is essential to ensure approval is in place before the rules take effect, particularly as applications can take time to process and at least 45 working days if further information is needed.

VPD will apply to all vaping liquids, whether they contain nicotine or not, with a flat-rate duty charged. At the same time, duty stamps must be affixes to individual retail products to show the duty has been accounted for. These stamps are designed to support compliance and help tackle illicit trade.

There is a transitional period to allow businesses to prepare. Retailers can continue to sell existing unstamped stock until 31 March 2027, but all new products from October 2026 must meet the new requirements and have a duty stamp.

HMRC’s Director of Indirect Tax, said:

‘From 1 April 2026, UK vape manufacturers, importers and warehouse keepers can apply to HMRC for Vaping Products Duty and Vaping Duty Stamps Scheme approval, which is essential for these businesses to continue trading legally from 1 October.

Our guidance brings all the key information together, and using it now will help firms prepare properly, avoid errors and ensure they can continue trading when the new requirements apply from October.

Source:HM Revenue & Customs | 06-04-2026
Capital Gains Tax

Living away from home?

Apr 9, 2026 by Terry Harris 0 Comments

Private Residence Relief (PRR) is a valuable Capital Gains Tax relief that can eliminate the tax due when you sell your home. In simple terms, it applies to periods when a property has been your only or main residence. However, if you spend time living away from home, the position becomes less clear, and CGT may well be due.

The starting point is that you will usually get full relief for the time you actually lived in the property, plus some additional “deemed occupation” periods. Most notably, the final 9 months of ownership always qualify for relief, provided the property was your main home at some stage.

You may also qualify for relief during absences when you live away from your home. Broadly, this includes up to three years away for any reason, up to four years if working elsewhere in the UK, and unlimited periods if working abroad. In most cases, you must have lived in the property before and after the absence, unless work prevents your return.

There are also special rules for the first two years of ownership if the property was being built or renovated or you could not sell your old home.

Where you own more than one property, only one can qualify as your main residence at any given time. Married couples and those in a civil partnership are restricted to a single main home between them.

It is important to carefully keep track of time living away from your home in order to correctly be able to calculate if any how much CGT is due when your home is sold.

Source:HM Revenue & Customs | 06-04-2026
Income Tax

Do you have a personal tax account yet?

Apr 9, 2026 by Terry Harris 0 Comments

Your Personal Tax Account (PTA) is an easy and secure way to manage your tax online. You can use it to check your tax code, claim a refund and update your details, all in one place, without needing to contact HMRC by phone or post.

Every UK taxpayer has a PTA, but you will need to register through the Government Gateway or GOV.UK One Login to start using it. You may also be asked to confirm your identity during the setup process. This is to keep your details safe and normally involves using photo ID such as a passport or driving licence.

Currently, the following services are accessible through your PTA:

  • check your Income Tax estimate and tax code
  • fill in, send and view a personal tax return
  • claim a tax refund
  • check your Child Benefit
  • check your income from work in the previous 5 years
  • check how much Income Tax you paid in the previous 5 years
  • check your State Pension
  • check if you will benefit from paying voluntary National Insurance contributions and if you can pay online
  • track tax forms that you’ve submitted online
  • check or update your Marriage Allowance
  • tell HMRC about a change of name or address
  • check or update benefits you get from work, for example company car details and medical insurance
  • find your National Insurance number
  • find your Unique Taxpayer Reference (UTR) number
  • check your Simple Assessment tax bill.
Source:HM Revenue & Customs | 06-04-2026
General

New support measures to allow affordable debt repayment

Apr 9, 2026 by Terry Harris 0 Comments

The government has announced new support measures to allow affordable debt repayment for government debt. The new measures set out a clearer and more practical approach to helping individuals and businesses manage what they owe. Announced during Debt Awareness Week 2026, the plans aim to ensure repayments are realistic, tailored and, crucially, affordable.

The 2026–2030 Government Debt Management Strategy sets out plans for the better use of data and earlier engagement. The idea is to support a debt strategy to help people who fall behind on payments of government debt, ensuring repayment plans reflect individual circumstances and remain genuinely affordable. This should mean fewer people falling into unmanageable debt and more consistent treatment across government departments.

The strategy focuses on three key areas:

  1. Preventing avoidable debt through early contact.
  2. Resolving existing debt fairly with affordable payment plans.
  3. Improving skills and technology to handle cases more effectively.

Government debt arises from a wide range of sources, including unpaid taxes, benefit overpayments, fines and loans.

Importantly, while there is a stronger emphasis on support and flexibility, the government is maintaining a firm stance on fraud and deliberate non-payment. In short, the message is that those in genuine difficulty will be helped, but those who can pay and choose not to will face targeted enforcement.

Source:HM Treasury | 06-04-2026