A business can normally only reclaim VAT on the purchase of a car if the car is not available for any private use whatsoever. This is a very strict test. Typically, the business must be able to demonstrate that private…
When is VAT on cars reclaimable?
Mileage allowances changed for tax year 2026-27
Rates have increased HMRC have reminded businesses that the Approved Mileage Allowance Payments (MAPs) have been updated for the 2026-27 tax year. Rates have: Increased to 55p per mile for the first 10,000 miles. Remained at 25p per mile after 10,000…
Making Tax Digital for Income Tax – An update
Making Tax Digital (MTD) for Income Tax became mandatory from 6 April 2026 for sole traders and landlords with combined gross income from self-employment and property exceeding £50,000, based on their 2024/25 tax return. Qualifying income is measured before expenses…
HMRC using third-party information to target landlords
HMRC has begun writing to landlords where the information it holds from third parties does not appear to match the taxpayer’s records. The letters encourage recipients to review whether all rental income has been declared and remind them of their…
Benefits in kind: Mandatory payrolling from 6 April 2027
Mandatory payrolling of benefits in kind (BiKs) will begin from 6 April 2027, with a phased introduction designed to give employers and payroll providers time to adapt. Under the first phase, covering the 2027/28 tax year, mandatory payrolling will apply…
HMRC targets side hustle
HMRC has launched a fresh summer campaign reminding people with “side hustles” that extra income may need to be reported for tax purposes. The announcement specifically highlights people earning income from wedding services, online selling, content creation, freelancing and similar…
HMRC contacts self-employed people about National Insurance gaps
HMRC is writing to some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their State Pension. If you receive a letter, don’t ignore it. The issue affects some people who were self-employed between 2015 and…
Advisory fuel rates for company cars
The table below sets out the HMRC advisory fuel rates from 1 June 2026. These are the suggested reimbursement rates for employees’ private mileage using their company car. Where the employer does not pay for any fuel for the company…
Mandatory payrolling now to be phased in
The announcement of mandatory payrolling for Benefits In Kind was originally expected to start in April 2027, but following industry pressure, it will now be introduced in two phases. Phase 1 will continue to be rolled out from 6 April…
Temporary VAT reduction on children’s meals, tickets and family attractions
The government has announced a temporary reduced rate of VAT for children’s meals in restaurants and family leisure activities over the summer. VAT will be reduced from 20% to 5% between 25 June and 1 September 2026 for qualifying activities…
Load More
