Mileage Rates

As part of a support package to help with rising consumer costs, the government have this month approved new mileage rates, backdated to 6 April 2026:

However, this is subject to having . . .

Mileage Logs

To be able to claim business mileage, HMRC require that each journey is recorded in a compliant mileage log.  Records can be kept in paper or digital format but must include;

• date of journey
• start and end locations
• distance travelled
• purpose of journey

Best practice is to record each journey at the time of travel (there are mileage tracker apps that can do this for you automatically).  Also, don’t forget that commuting between home and your regular place of work is not allowable unless the work location is temporary.

Red Diesel Fuel Duty & HGV Road Tax

Due to the ongoing conflict in the Middle East, the government has announced some temporary support measures to help with rising transportation costs.  Farmers are being assisted with a reduction in red diesel fuel duty (from 10.18p to 6.48p per litre) from 15 June until 31 December 2026, and hauliers will benefit from the introduction of a 12-month road tax holiday during which road tax renewals will cost just £1.

Tax Debts

Paused during Covid, HMRC has reinstated its powers to take unpaid tax debts over £1,000 directly from your bank account. They have reassured that this will only occur if you ignore all other communication and have the funds to pay, i.e. you are deemed to be able to afford to pay but are choosing not to.  HMRC may also take any tax owed by adjusting your tax code.

Close Companies

Directors of close companies (those with 5 or fewer shareholders or all shareholders are directors) must now disclose their percentage shareholding.  This will allow HMRC to match the dividend income reported on their self-assessment tax returns to the company accounts.

HMRC are also consulting currently on requiring close companies to report on all cash withdrawals, debts, loans and other distributions from the company in a bid to reduce the tax gap from the under reporting of income and over claiming of expenses. 

Whilst not yet in force, directors and shareholders are being encouraged to ‘tidy up’.  This means not using company bank accounts for personal transactions, properly voting and drawing dividends and avoiding overdrawn directors’ loans.

Pre-Year End Management Accounts

By preparing management accounts three months before your year end, we can ensure you have a clear picture of how your business is performing.  This enables you to plan for tax liabilities, evaluate profitability margins, identify and manage potential cash flow shortages.  

Insurance Documents

With more policy documentation being provided online, it is worth remembering that business insurance documents (certificates and schedules of cover) should be retained and stored for 7 years (10 years for electronic copies) after the policy has expired.  This ensures you can provide evidence for claims or disputes and comply with HMRC’s checks on record keeping. 

Self-Assessment Payment on Account Reminder 

Lastly, just a reminder that if you are due to make a second payment on account for the 2025-26 tax year HMRC need to receive this by 31 July 2026.

We're here to work alongside you, help you prosper, and turn profit into lasting wealth. 

Please do get in touch at any time for strategic tax and business advice.

Janet, Lucy, James, Josh, Dawn, Becky, Nat & Leanne

01969 624999