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Landlords are facing another tax squeeze following the latest Budget. Whether you own property personally or through a company, changes are coming and now is the time to start planning. If you’re an unincorporated landlord, from 6 April 2027, a new property income tax rate will apply. It’s 2% higher than normal income tax rates, meaning rental income will be taxed at: 22% (basic rate) 42% (higher rate) 47% (additional rate) The personal allowance will also be set first against employment, trading or pension income (not property income!). Since property income will be taxed at higher rates, this could push up the bill even further. So, what can you do? If you own property jointly with a spouse or civil partner, you might save tax by adjusting the income split. By default, rental profits are split 50:50, but by using a Form 17, you can change this to reflect actual ownership. If more of the rental income is shifted to the lower earner, it can significantly cut the overall bill. Another idea? If possible, delay non-urgent repairs or deductible expenses until after 6 April 2027 so you get relief at the higher rates. If you run a property company you need to be aware that from 6th April 2026, dividend tax rates for basic and higher-rate taxpayers are increasing by 2%. That means taking profits out of your company will cost more. So, if your company has kept profits, consider paying dividends before April 2026 to lock in the lower rates. Make sure you’re using all shareholders’ dividend allowances and basic rate bands. Watch out! If you have outstanding directors’ loans, repaying them via dividends will become more expensive after April 2026. Now is the time to review your structure, especially if property is jointly owned. Waiting could mean paying more tax than necessary! Give Rustrick Accountants a call on 01622 738165 and we can help you figure out what is most tax efficient for you

Electric vehicles used to come with significant tax perks; no road tax, very low company car charges and generous reliefs for businesses. While they are still tax-efficient in many cases, those advantages are gradually being reduced.  From April 2025, EVs are no longer exempt from Vehicle Excise Duty. Most new electric cars now pay the standard annual rate (currently £190), and vehicles with a list price over £40,000 also face the £410 “expensive car” supplement for five years. That increases annual ownership costs, although EVs can still be cheaper to run overall, particularly with access to low-cost charging. There is still government support through the Electric Car Grant, which offers up to £3,750 off eligible new vehicles. However, not all models qualify, so it is important to check eligibility before buying. For company car users, EVs are still good. The Benefit-in-Kind rate is rising gradually from 2% to 5% by 2028/29, but that is still significantly lower than most petrol or diesel alternatives. Electric vans also retain a 0% BIK rate until at least April 2028. Businesses can continue to claim 100% capital allowances on new electric cars (if purchased outright) and on charging points, making them tax-efficient investments. Basically, EVs are still a sensible option from a tax perspective, just not quite the bargain they once were. Running the numbers before making a purchase is now more important than ever; give us a call on 01622 738165 and we can help you with that!

The 2025 Budget wasn’t exactly packed with giveaways, but hidden among the tax hikes was a small (and very welcome) perk for employers and employees. Right now, there’s a tax exemption if you provide things like eye tests or homeworking equipment to employees. But if an employee buys it themselves and you reimburse them? That reimbursement is taxable. But, from 6 April 2026, reimbursements for certain everyday work-related expenses will be exempt from both income tax and National Insurance. This includes: Eye tests Flu vaccines (will be tax-free when provided directly) Homeworking equipment Accommodation, supplies or services needed to do the job So whether you provide the benefit directly or simply repay your employee for it, the tax treatment will be the same. So, from April 2026, reimbursing employees for small, work-related costs will be simpler and tax-free. Give us a call on 01622 738165 if you want more information or help with this change.

HMRC is now reaching out to employers and employees by letter and text to let them know when a tax refund is due. The big change? Refunds aren’t automatic anymore; you have to claim them yourself. The quickest way to do this is through the HMRC app. Just open the app, go to the PAYE section, and if you’re owed a refund, a green Claim button will show the amount. Tap it, and the money should hit your bank account within a week. No app? No problem, you can also claim online or by contacting HMRC directly using the details in their letter. The key point: if you don’t take action, the refund won’t be paid. So check your PAYE info and claim what’s yours! Not sure if you have received a letter or text? Give Rustrick Accountants a call on 01622 738165 and we can help you out

HMRC has started a new campaign targeting sole traders and partnerships, checking that expenses claimed in self-assessment returns are properly adjusted for private use. If you’re self-employed, it’s worth paying attention; mistakes can trigger unnecessary questions or even penalties. The focus is on disallowable expenses (especially costs that are partly personal). Think cars, phones, and similar items where you use them for both business and private purposes. For example, if you spend £2,200 on car costs and only 8,000 of the 14,000 miles are business, HMRC expects you to adjust the private portion proportionally. It’s not just cars and phones, either. Business entertainment, travel, or marketing expenses can also come under scrutiny if they include personal use. The safest approach is to be clear and consistent in your calculations and records. Tips to stay on HMRC’s good side: Keep detailed records for items like mileage or phone use. Don’t just copy last year’s figures. If you account for private use before filling in your tax return, explain it in the additional information section. HMRC accepts reasonable estimates where precise calculation is tricky (for example, home office costs or phone use). Using simplified expenses for homeworking can help avoid disputes. In short, make sure you understand HMRC’s rules on private use, check each tax return carefully, and adjust expenses appropriately. Unsure or just want a friendly, helping hand? Give Rustrick Accountants a call on 01622 738165 !

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If you provide employees with a company van (or fuel for private use) the benefit-in-kind charges are going up again next tax year. These charges are increased annually in line with the Consumer Price Index, and the 2026/27 figures have now been confirmed. The benefit applies if an employee: Has a company van available for private use Receives fuel for private journeys in a company van Receives fuel for private use in a company car It’s worth noting that the van charges are fixed flat rates, while company car fuel uses a multiplier system. Here’s how the numbers compare:

Late January can hit hard—especially if you suddenly realise you need to file a tax return but haven’t even told HMRC yet. Don’t worry, you’re not alone. This happens more often than you think, particularly if you’re a first-time filer or returning to Self Assessment after the Christmas break! Usually, HMRC expects you to let them know you’re liable for Income Tax or Capital Gains Tax by 5 October following the end of the tax year. If you miss the 5 October deadline, you could face penalties, but if you act quickly you can significantly reduce them. So, if it’s late January and you realise you’ve missed the notification deadline, the most important thing is to act immediately: Register for Self Assessment online as soon as you can. Work out your tax liability and pay it by 31 January. If you haven’t received your Unique Taxpayer Reference (UTR) yet, you can still use your National Insurance number. Paying the tax you owe on time can reduce the risk of penalties, as HMRC will base fines on any ‘potential lost revenue.’ Any HMRC penalties will depend on: How late your notification was Whether your disclosure was prompted by HMRC or unprompted Whether the failure was deliberate The penalty will be 0% if the notification was unprompted and not deliberate, but it could be up to 100% of the tax due for “deliberate concealment”. You might avoid penalties entirely if you have a reasonable excuse, weren’t deliberately late, and notified HMRC without unnecessary delay! Once you’re registered, submit your tax return as soon as possible to avoid more late filing penalties. Remember, the deadline is the 31st January after the tax year or three months after HMRC issues the notice. If you’ve filed your tax return before, don’t create a new account. Doing so can delay processing and mess up your tax calculations. Instead, reactivate your existing Self Assessment record by calling the Agent Dedicated Line or completing form SA1. If you have received a late tax return notification, don’t panic! Give Rustrick Accountants a call on 01622 738165 and the friendly team will sort it out for you and reduce the penalties by as much as possible

Changes to Business Property Relief

It’s very common for parents to help their kids get a business off the ground, but when it comes to taxes, things can get a bit tricky! Normally, if a business buys equipment for trade, it can claim a capital allowance (CA) to reduce taxable profits. For most purchases, you can use the annual investment allowance (AIA) to claim up to £1 million in the year of purchase. If the AIA doesn’t apply, the deduction is spread over several years as a writing down allowance (WDA). To qualify, the owner of the equipment must use it in their business. So if the parent has bought the equipment for their child’s business, the usual rules for capital allowances don’t apply. So, if you want a tax benefit from helping a family member, you need to do a bit of planning such as:  Treating the repayments as rent for use of the equipment, under a formal agreement. Transferring ownership of the equipment, so they can claim the capital allowance himself. Without doing either, neither the parent nor the child gets a deduction! Helping your children with a business is generous, but it can easily backfire tax-wise if you don’t plan carefully. If you are thinking of getting involved or want to get some advice before you start, give Rustrick Accountants a call on 01622 738165 and we will happily chat through the best steps for you

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If you sell a property for more than you paid for it, the difference is liable to Capital Gains Tax (CGT). In 2025/26, you will be liable to 18% CGT when your income and gains fall in the basic rate band. You will be charged up to 24% if it is over the basic rate band. This actually works out as you paying a mixed rate, i.e 18% and 24%, and the difference in these rates can reduce the CGT bill on the sale of assets. Before your CGT exemption is deducted from your gains, any capital losses you’ve made in the same year are deducted alongside any capital losses from earlier tax years (that you haven’t already used against gains). In addition, the first £3,000 of any capital gains you make in 2025/26 is exempt. Remember, this renews every tax year and is the allowance per person, so if the asset you’re selling is joint with your spouse, the exemption increases to £6,000. Before any sale, a married couple or civil partners can change the proportion of the property they own to double up on these annual exemptions, reduce tax rates and use available capital losses to minimize the tax payable on gains from property. This can get complicated, give the team at Rustrick Accountants a call today to chat through things on  01622 738165  and see if you can save today!

MRC is now demanding that small companies and their owners will have to report all income; not just a single total figure for all dividend income. If you receive dividends from a close company in your tax return for 2025/26, you must indicate whether you were a director of it at any point in the tax year and you must now provide the company’s full name and registration number. You must also disclose details of the director’s highest percentage of share capital held in the year. Directors are not limited to just those registered at Companies House, it also includes shadow directors and if you control more than 20% of the company’s ordinary share capital. From 6th April 2025, directors of close companies must make sure they are making detailed records of dividends, changes to the company’s shareholdings and the rights attaching to every class of issued shares. If these details aren’t accurate you may face a penalty of £60 for each error. If you have alphabet shares or if your class rights/shareholdings have changed, give us a call on  01622 738165  as this could complicate things.

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Interest rates have risen and the personal savings allowance (PSA), the amount on which 0% tax applies to savings income, has frozen at £1,000 and £500 per tax year for basic rate and higher rates. If in 2023/24 you received interest exceeding the PSA, you don’t normally submit a self-assessment tax return, you haven’t received a P800, you should contact HMRC now to notify them you may owe tax. This also applies for 2024/25, but you have until 5th October 2025 to tell HMRC.

A trivial benefit is something that costs the employer little, which they give to their employees as a perk of their job. A perk counts as trivial and is exempt from income tax and NI as long as it costs the employer no more than £50 and meets other conditions. This £50 includes both the price of the item/service and all the related costs. If a gift is shared by employees and you can’t work out the exact cost, you can use the average to determine if the exemption applies. It would not be counted as trivial (even if it is less than £50) if it is part of a salary sacrifice, paid in cash or a voucher that can be converted to cash, part of the employee’s contractual earnings or if it is in recognition for services performed as part of employment duties. The trivial benefits exemption exists to allow employers to reward employees tax and NI free and to reduce paperwork and admin for both employers and HMRC. So give us a call on  01622 738165  and let us help you today!

Did you know that contributing to a registered pension scheme qualifies for income tax relief? You can pay into a workplace pension or set up your own, but either way you will be entitled to relief dependent on the rate of income tax you pay. If you are a higher (40%) or additional (45%) rate taxpayer you can claim further income tax relief on personal pension contributions (this includes contributions to workplace pension that is deducted from your pay!). If you are not in self-assessment (only have PAYE income) you can claim this extra tax relief through HMRC’s new online form. You can access this by logging into the Government Gateway and then supply proof that you’ve paid contributions (your pension company can give you this). HMRC will then make an adjustment to your tax code so you receive the income tax relief. If you are registered for self-assessment, you can simply claim it on your tax return. Remember you will have to wait until the end of the year to do this! If you have PAYE income, you can get the tax relief faster by logging into your HMRC personal tax account and updating your tax code (remember to report the pension contributions on your tax return!). Not sure if you are entitled to the extra tax relief or how to get it? Give us a call on  01622 738165  and the team will help you out.

High Income Child Benefit Charge (HICBC) uses the income tax system to get back child benefits from couples when one or both of them have an annual income of over £60,000. HMRC has announced that from August 2025 if you pay tax through PAYE and are liable to HICBC you have to report it through a new online service. So if you were previously filling out a self-assessment form, ask HMRC to remove you from the self-assessment system and collect the HICBC from your PAYE income. This is a new system so there is a high risk of over or underpayments and will be under review for a period of time. Not sure how this will affect you? Give us a call on  01622 738165  and we can talk you through the change.