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Using several bank accounts does not automatically create an accounting problem. Many businesses legitimately use a main current account, a separate tax account, credit cards and payment platforms such as Stripe or PayPal.

The risk arises when some accounts are missing from the bookkeeping system. That can lead to duplicated income, omitted expenses and incomplete records. The key is ensuring every account used for business activity is properly recorded and reconciled.

Our guide on how to separate personal and business spending explains the basic principle.

The transfer trap

Suppose you transfer £3,000 from your main business account to a separate savings account for tax.

That transfer is not income. If accounting software records the £3,000 leaving one account and incorrectly categorises the £3,000 entering the other as sales, turnover will be overstated.

The opposite problem occurs when genuine business expenses are paid personally and never entered into the accounts. If records have already become disorganised, see what to do if your bookkeeping is behind.

How different accounts should be treated

For sole traders, money withdrawn for personal use is generally drawings rather than an allowable business expense. Our explanation of profit and drawings covers the distinction.

Connecting relevant accounts through cloud bookkeeping can reduce manual work, but feeds still need regular review and reconciliation.

Making Tax Digital makes complete records more important

Making Tax Digital for Income Tax began on 6 April 2026 for qualifying sole traders and landlords whose combined gross income from self-employment and property exceeded £50,000 in the 2024/25 tax year. The threshold falls to more than £30,000 from April 2027 and more than £20,000 from April 2028.

Those within MTD for Income Tax must use compatible software to create and maintain digital records and provide quarterly updates to HMRC.

Businesses affected should therefore make sure every relevant account feeds into their MTD ready bookkeeping process. HMRC also sets out the supporting business records if you are self-employed, while the House of Commons Library briefing on Making Tax Digital provides further background.

VAT-registered businesses are also generally required to keep digital VAT records and submit returns through compatible software under Making Tax Digital for VAT. See our guide to the documents needed for a VAT return.

Limited companies have an extra consideration

Where a director takes money from a limited company that is not salary, dividend, expense repayment or repayment of money previously introduced, it may need to be recorded through the director’s loan account. HMRC requires records of money directors borrow from or pay into their companies.

An overdrawn director’s loan can create tax consequences depending on its amount, timing and how it is repaid. Read how a director’s loan works before mixing company and personal payments.

What to do now

• List every bank account, credit card and payment platform used by the business.
• Ensure all relevant transactions enter the bookkeeping records.
• Record transfers between your own business accounts as transfers, not sales.
• Keep evidence for business expenses paid personally.
• Reconcile accounts regularly instead of waiting until year end.
• Use reliable records to support cash flow forecasting.

Frequently asked questions

Can a business use more than one bank account?

Yes. Multiple accounts are perfectly workable provided each account containing business transactions is properly recorded and reconciled.

Do transfers between my business accounts count as income?

No. Moving money between accounts belonging to the same business does not itself create sales income.

Can I pay business expenses from a personal account?

Yes, but genuine business costs should be recorded correctly and supported by appropriate evidence.

Do payment platforms need to appear in the accounts?

Yes. Transactions through platforms such as PayPal or Stripe need to be reflected accurately, including sales, refunds and platform fees.

Get a clear view of your numbers

Our accountants in Slough and accountants in Reading can help bring scattered financial records together through sole trader accounting, payroll services and VAT return support.

The post What happens to your accounts when a business owner uses several bank accounts? appeared first on Asmat & Co Accountants.

The temporary 5% VAT rate on qualifying children’s meals, children’s tickets and admission to certain family attractions applies from 25 June to 1 September 2026 inclusive. From 2 September, those supplies return to their normal VAT treatment, generally 20% where they would otherwise be standard-rated.

If you run a café, cinema, theatre, soft play centre, zoo, theme park or similar attraction, check your till settings, bookings and pricing now. If your VAT return checklist has not been updated since June, review it before the change.

What the reduced rate covers

The relief applies to children’s meals held out for sale only as children’s meals and supplied for consumption on the premises. It also covers children’s tickets to cinemas, theatres, concerts, shows and exhibitions, plus qualifying family tickets including at least one child. At specified family attractions, the 5% rate applies to admission for customers of all ages.

For combined transactions, VAT on mixed supplies and bundled services explains why each element needs consideration.

Takeaway meals do not qualify for this temporary relief, but that does not mean every takeaway item is automatically standard-rated; its normal VAT treatment continues to apply.

Advance bookings and prepayments

For admissions, qualifying visits between 25 June and 1 September can benefit from the relief. Admission on or after 2 September remains subject to the normal rate even if payment was taken earlier.

HMRC’s change-of-rate provisions can allow 5% to be applied to qualifying advance payments for visits during the relief period. Where VAT previously accounted for at 20% is recalculated at 5%, HMRC says the overpaid VAT should be passed back to the customer. See VAT on deposits and advance payments for more on tax points.

Bundles, promotions and passes

A “kids eat free” offer forming a single catering supply with an adult meal will normally remain standard-rated. Party packages containing admission plus non-qualifying elements such as an entertainer or goody bag will also usually be standard-rated where they form one supply.

Where genuine separate supplies are sold for one price, a fair and reasonable apportionment may be required. Keep your workings and use the proper process for correcting VAT return errors where necessary.

Season or multi-visit passes also need checking. A pass allowing repeat entry outside the relief period generally does not qualify unless it costs the same as a single-day admission.

The temporary change does not alter Flat Rate Scheme percentages. Businesses should continue applying their normal percentage. Our guides to VAT schemes for small businesses, input and output VAT and VAT invoice requirements can support the wider review. Full details are in Revenue and Customs Brief 5 (2026).

Frequently asked questions

When does the 5% VAT rate end?

1 September 2026 is the final qualifying day. Normal VAT treatment resumes from 2 September.

Does it apply to takeaway children’s meals?

No. The temporary relief applies only to qualifying children’s meals consumed on the premises.

Do adults get 5% VAT at family attractions?

Yes, at qualifying attractions. For cinemas, theatres, concerts, shows and exhibitions, the relief is limited to qualifying children’s tickets and family tickets.

Do prepaid customers need a refund?

Where a qualifying prepayment is recalculated at 5%, HMRC says the overpaid VAT should be passed back to the customer. Regular quarterly VAT checks can help identify adjustments.

Get the switch-back right

Our VAT return accountant service can help review August takings, advance bookings and September VAT treatment. We also provide payroll services and sole trader accounting.

Speak to our accountants in Slough or our accountants in Reading before the temporary rate ends.

The post The 5% VAT rate on children’s meals and family attractions ends on 1 September: what to do now appeared first on Asmat & Co Accountants.

The government plans to remove the separate EMI option-grant notification for options granted on or after 6 April 2027. Instead, companies will report grant details through the existing Employment Related Securities end-of-year return, beginning with the return for the 2027/28 tax year, which can be submitted from 6 April 2028.

The change is due to be introduced through the Finance Bill 2026–27, so companies should continue monitoring HMRC guidance before relying on the new process. Options granted before 6 April 2027 will remain subject to the existing notification rules.

What is changing?

Under the current system, a company operating an Enterprise Management Incentives scheme may have two reporting obligations:

• submitting a separate notification when EMI options are granted; and
• filing an annual EMI return through HMRC’s ERS service.

For options granted on or after 6 April 2024 but before 6 April 2027, the separate notification must be submitted by 6 July following the end of the tax year in which the options were granted. This is also the deadline for the annual ERS return.

From 6 April 2027, the separate notification is expected to disappear for new grants. Companies will instead include the required grant information in their annual return. A company establishing a new EMI scheme will still need to register it and make the required declaration that the relevant conditions are met before filing its return. HMRC explains the transition in its employment related securities bulletin.

What is not changing?

The annual ERS return remains in place, with a deadline of 6 July following the end of the relevant tax year. A return or nil return is required for every scheme registered on HMRC’s ERS service until it has been formally ceased.

HMRC automatically charges an initial £100 penalty when a required annual return is late. A further £300 can be charged after three months and another £300 after six months. Daily penalties of £10 may also apply once the return is nine months late.

Companies should keep copies of uploaded files, online entries and confirmation pages. HMRC’s service does not allow you to retrieve a copy of a submitted notification or return afterwards. Strong bookkeeping should therefore include option agreements, board approvals, valuations, cap-table records and HMRC confirmations.

Wider EMI limits changed in April 2026

For most qualifying companies, options granted from 6 April 2026 benefit from expanded EMI limits:

• the total company option limit increased from £3 million to £6 million;
• the gross-assets ceiling increased from £30 million to £120 million;
• the employee limit increased from fewer than 250 to fewer than 500; and
• the maximum exercise period increased from 10 years to 15 years.

The longer exercise period can also apply to qualifying existing options that have not expired or been exercised, provided any amendment is made in accordance with the legislation and option agreement. Different limits may continue to apply to certain Northern Ireland companies.

From 6 April 2027, employers using the increased thresholds are expected to declare their eligibility through the online reporting process. Businesses that previously exceeded the old limits may therefore wish to revisit EMI with their advisers and limited company accountants.

A practical example

A Reading software company grants options to four employees in May 2027. Under the planned rules, it will not submit a separate notification in July 2028. Instead, it will report the grants in its EMI annual return for 2027/28.

That does not remove the need to establish the market value, confirm eligibility and prepare valid option agreements when the options are granted. Current management accounts and an accurate option register can help prevent missing information when the annual filing date arrives.

Frequently asked questions

Do options granted before April 2027 still need notifying?

Yes. Options granted before 6 April 2027 remain subject to the separate notification requirement and must generally be reported by 6 July following the end of the tax year of grant.

Can a sole trader use EMI?

No. EMI options involve shares in a qualifying company, so they are unavailable to an unincorporated business. Our sole trader accounting service can explain the relevant alternatives. Businesses considering incorporation can also review our guide to setting up a limited company.

Get your share-scheme paperwork in order

Whether you work with our accountants in Slough or accountants in Reading, we can help you maintain option records and coordinate filings with your other Companies House and HMRC deadlines, payroll services and VAT returns.

The post EMI option reporting is being simplified: what growing companies need to prepare for April 2027 appeared first on Asmat & Co Accountants.

The temporary notice concession introduced alongside the new day-one right to paternity leave has ended. Employees whose babies are due on or after 26 July 2026 must follow the standard notice requirements: at least 15 weeks’ notice of the expected due date and at least 28 days’ notice of when they want the leave to start and how much leave they intend to take.

Paternity leave has remained a day-one employment right since 6 April 2026. However, eligibility for leave and eligibility for Statutory Paternity Pay are separate, so employers should update policies and payroll procedures accordingly.

What changed on 26 July?

The temporary arrangement applied only to newly eligible employees whose babies were due between 5 April and 25 July 2026 and who had not completed 26 weeks’ employment by the qualifying week. They did not have to provide the usual 15 weeks’ notice of the due date, although they still had to give 28 days’ notice of the intended leave dates.

The concession was necessary because some employees became eligible for paternity leave on 6 April when their baby was already due within the following 15 weeks. The standard rules now apply again. GOV.UK explains the position in its employer guide to paternity leave notice periods.

Notice does not normally have to be in writing unless the employer requests it. Where insufficient notice is given without a reasonable excuse, an employer may be able to delay the start of leave or pay, but must notify the employee in writing within 28 days of the request.

Leave and pay remain separate

An eligible employee can qualify for paternity leave from their first day of employment. Statutory Paternity Pay still normally requires the employee to:

• remain employed until the child is born or placed for adoption;
• have at least 26 weeks’ continuous employment by the qualifying week;
• earn an average of at least £129 a week during the relevant period;
• provide the correct notice.

For 2026/27, Statutory Paternity Pay is £194.32 a week or 90% of average weekly earnings, whichever is lower. A new starter may therefore qualify for up to two weeks’ leave without qualifying for statutory pay. Clear payroll services help ensure that eligibility, payments and Real Time Information submissions are handled correctly.

Other changes introduced in April 2026

Unpaid parental leave also became a day-one right. Eligible employees can take up to 18 weeks per child before the child turns 18, usually subject to a maximum of four weeks per child in each year unless the employer agrees otherwise.

Employees can now take paternity leave and Shared Parental Leave in either order. Paternity leave remains limited to two weeks, which may be taken together or as two separate one-week blocks. It must normally end within 52 weeks of the birth, or the expected due date where the baby is born early.

These changes apply in England, Scotland and Wales. Northern Ireland has separate employment legislation.

A practical example

A small Slough company recruits an engineer in August whose partner is due in January. The employee gives the required notices and qualifies for paternity leave, despite being a recent starter. However, because they will not have completed 26 weeks’ service by the qualifying week, they will not qualify for Statutory Paternity Pay.

The employer must plan cover and explain the pay position clearly. Good management accounts can also help the business anticipate temporary staffing costs.

What employers should update

Remove any reference to a 26-week service requirement for paternity leave. Keep the service requirement only within the statutory pay section. Update notice wording for babies due from 26 July 2026 and retain employees’ declarations and leave requests with your employment records. Consistent bookkeeping practices should extend to payroll and supporting HR documentation.

A company director may qualify where they are also an employee and meet the statutory conditions. Their leave pay may need to be considered alongside their salary and dividend split, which our limited company accountants can review.

A sole trader cannot claim statutory paternity leave from their own business, but must apply the rules to eligible employees. Anyone setting up a limited company and employing staff should include the updated rights in their policies from the outset.

Keep payroll and policies aligned

Whether you work with our accountants in Slough or accountants in Reading, we can manage statutory payments, payroll, Companies House and HMRC deadlines and VAT returns within one coordinated compliance service.

The post Paternity leave notice rules changed on 26 July: what small employers need to update appeared first on Asmat & Co Accountants.

The electronic deadline for paying Class 1A National Insurance on benefits provided during 2025/26 was 22 July 2026. Cheque payments had to reach HMRC by 19 July. If an amount remains outstanding, interest is already running, so act promptly.

What you should have paid

Class 1A is an employer-only charge on the cash equivalent of taxable benefits provided to employees and directors. It commonly applies to company cars, employer-provided medical insurance and beneficial loans. It is not deducted from employees’ pay.

For 2025/26, the rate is 15%. Add together the benefits liable to Class 1A and multiply the total by 15%. Taxable benefits of £40,000 therefore create a £6,000 liability.

The amount was declared on form P11D(b). P11Ds, the P11D(b) and employee copies were due by 6 July 2026. HMRC’s expenses and benefits for employers guidance explains what must be reported.

Key dates and consequences

Further 5% penalties can apply to amounts still unpaid six and 12 months after the due date. HMRC will issue a penalty notice stating what is owed. A clear schedule of Companies House and HMRC deadlines helps prevent filing and payment dates being confused.

Checks worth completing now

• Confirm that 15%, rather than 13.8%, was used.
• Check benefits provided to directors, including relevant benefits for family or household members.
• Review interest-free or low-interest employment-related loans. The £10,000 exemption depends on the combined outstanding balance and the circumstances. See how directors’ loans work.
• Ensure correctly payrolled benefits were not duplicated on P11Ds but were included in the P11D(b) calculation.
• If HMRC requested a P11D(b) but there was nothing to declare, submit the online no-return declaration.
• For a July 2026 Class 1A payment, add 2613 to the 13-character Accounts Office reference.

A quick example

A company provides two cars and family medical cover with a taxable value of £38,000. At 15%, the Class 1A liability is £5,700. The calculation is simple, but the figures must reflect changes such as a replacement car or revised medical premium.

Accurate bookkeeping and well-managed payroll services help keep those records current.

What changes from April 2027

From 6 April 2027, mandatory real-time payrolling will initially apply to company cars, car fuel, vans, van fuel and employer-provided medical benefits. Most other benefits are expected to follow from April 2028. The timetable for employer-provided loans and accommodation will be confirmed separately.

Employers should prepare their software, records and employee communications. There will also be a one-off cash-flow overlap in 2027 because the 2026/27 Class 1A bill remains payable after the year end while Class 1A for benefits within the new regime begins to be handled in real time. Our limited company accountants can help with the transition.

Frequently asked questions

What is the Class 1A National Insurance rate for 2025/26?

It is 15% of the cash equivalent or relevant amount of benefits liable to Class 1A.

Do sole traders need to file a P11D?

Not for benefits provided to themselves, because a sole trader is not their own employee. Obligations can arise where staff receive taxable benefits. Our sole trader accounting service can clarify the position.

Can HMRC query a P11D after filing?

Yes. Keep supporting records and submit online corrections when errors are found. Our guide to HMRC enquiries explains what to expect.

Get next July under control

Tracking benefits throughout the year reduces errors and last-minute work. Whether you use our accountants in Slough or accountants in Reading, we can coordinate P11Ds, Class 1A, payroll and VAT returns within one compliance calendar.

The post Class 1A National Insurance was due on 22 July: a final payroll check for employers appeared first on Asmat & Co Accountants.

The Growth Guarantee Scheme is being expanded to support an additional £2 billion of SME lending each year by 2028/29, taking annual scheme-backed lending from £1.35 billion to £3.35 billion. The government also announced that the turnover ceiling will rise from £45 million to £54 million. Eligible term loans and asset finance facilities of up to £1.1 million may be available for as long as 10 years.
However, the British Business Bank is still working with accredited lenders to introduce these enhancements. The scheme remains open under its existing terms, so applicants should confirm which rules their chosen lender is currently applying.

What the scheme is, and what it is not

The Growth Guarantee Scheme supports commercial finance, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. Facilities are generally available up to £2 million per business group, although lower limits apply to some Northern Ireland borrowers and certain sectors.

The government guarantee covers 70% of the lender’s outstanding balance after the lender has completed its normal recovery process. You remain 100% responsible for repaying the debt. It is not a grant, and it does not guarantee approval.

Applications are made through an accredited lender rather than directly to the British Business Bank. Lenders conduct their standard credit and fraud checks and must consider the business viable and able to afford the borrowing. Personal guarantees may be requested at the lender’s discretion, although a principal private residence cannot be taken as security under the scheme.

The figures a lender may request

Where applications tend to come unstuck

Applications often weaken because the evidence is outdated or inconsistent. Regular monthly bookkeeping helps keep source records current, while QuickBooks for small businesses can support timely reconciliations. Proper management accounts allow a lender to compare current performance with filed accounts and forecasts.

Late VAT returns, missed Companies House and HMRC deadlines or inaccurate payroll services records may prompt further questions. Tax arrears do not necessarily prevent borrowing, but they should be disclosed and supported by a credible repayment arrangement.

Directors should also explain unusual payments between personal and company accounts. The distinction between profit versus drawings matters for sole traders, while salary versus dividends affects a limited company’s reported profit, tax position and available funds.

A worked example

A Reading business with £900,000 turnover may seek £250,000 for equipment over 7 years. The monthly repayment cannot be stated accurately without knowing the lender’s interest rate and fees. The lender will test whether existing cash generation can cover repayments after tax, working-capital requirements and current debts.

Evidence of customer demand, equipment costs and realistic revenue gains will carry more weight than unsupported growth percentages. Longer terms can ease monthly cash flow, but they may increase the total interest paid. The term should reflect the asset’s useful life and the business’s repayment capacity.

Get your numbers ready before applying

The expansion increases lending capacity, but it does not reduce commercial lending standards. Whether you use limited company accountants, operate as a sole trader or are setting up a limited company, prepare current accounts, realistic forecasts, bank statements and details of existing commitments before approaching a lender.

Speak to our accountants in Slough or accountants in Reading to bring your figures up to date and prepare an application pack that can withstand commercial scrutiny.

The post Growth Guarantee Scheme expansion: what lenders may expect from your business figures appeared first on Asmat & Co Accountants.

As of 22 July 2026, the South East Investment Fund is not yet accepting applications. The British Business Bank continues to describe it as “coming soon” and says it is on course to launch during summer 2026. Businesses in Berkshire, including Slough, Reading, Maidenhead and Bracknell, are within the South East of England, while London is specifically excluded from the fund’s geographical remit.
The fund will provide commercial loans and equity finance rather than grants. No fixed opening date or application process has yet been published, so businesses should monitor the British Business Bank’s South East Investment Fund page and register for official updates.

What the fund will offer

The South East Investment Fund forms part of the British Business Bank’s Nations and Regions Investment Funds programme. Procurement documents allocate £210 million to the South East fund and £140 million to the East of England fund, making £350 million available across the two regions.

Commercial investment decisions will be made by contracted fund managers rather than directly by the British Business Bank. Applications will therefore be assessed against the manager’s lending or investment criteria, including affordability, growth prospects, management capability and the proposed use of funds.

The precise interest rates, security requirements, repayment periods, equity terms and eligibility criteria will be confirmed by the appointed managers. Equity investment involves giving the investor a stake in the business, while debt finance must be repaid under the agreed terms.

Why London is excluded

The British Business Bank says London receives more than half of UK venture capital investment despite representing a considerably smaller share of the business population. Excluding London is intended to direct more funding towards businesses and innovation clusters facing regional gaps in access to finance. It does not guarantee approval or reduce the need for a commercially credible application.

What to prepare before applications open

Start with current financial records. Fund managers are likely to need recent annual accounts, management information and evidence showing how the business is currently performing. If the books are behind, Asmat Accountants’ bookkeeping services can bring them up to date. Businesses using cloud software can also review the guide to QuickBooks for small businesses.

Prepare a realistic cash-flow forecast showing the amount required, when it will be spent and how any loan repayments would be met. Include existing commitments such as tax, VAT, wages and payments on account. Test the forecast against slower sales, delayed customer payments and higher costs rather than relying only on the most optimistic outcome.

The application pack should also include:

• A concise business plan explaining the funding requirement and expected commercial outcome
• Current management accounts and an aged debtor and creditor position
• Historical accounts and recent bank statements
• Details of existing borrowing, security and repayment commitments
• Evidence supporting sales forecasts, contracts or the customer pipeline
• A clear distinction between profit versus drawings
• Accurate VAT and payroll records

Inconsistent VAT figures can undermine confidence in the wider accounts. Support is available from a VAT return accountant, while the guide to choosing a VAT accountant explains what to assess. Where funding will support recruitment, ensure wage costs, employer National Insurance and pension contributions are included. Asmat Accountants’ payroll services can help establish reliable figures.

A practical example

Consider a Slough engineering company seeking £150,000 for new machinery. Its application should show the machine’s purchase and installation costs, the additional production capacity it will create, confirmed or expected customer demand and the resulting cash available for repayments. Up-to-date accounts and a forecast linked to evidence will be more persuasive than unsupported growth percentages.

Frequently asked questions

When will the South East Investment Fund open?

The British Business Bank says it is on course to launch in summer 2026, but no exact application date has been announced.

Can sole traders apply?

Detailed eligibility criteria have not yet been published. Sole traders should wait for the appointed fund managers’ rules rather than assume they qualify. In the meantime, the sole trader accounting service can help prepare suitable financial records.

Is the funding a grant?

No. The fund will provide commercial loans and equity investment. A loan must be repaid, while equity finance requires giving an investor an ownership interest.

Be ready before applications open

Preparation does not guarantee funding, but it can prevent avoidable delays once the application window opens. The accountants in Slough and accountants in Reading at Asmat Accountants can update your records, prepare management information and build a forecast that clearly supports your funding request.

The post South East Investment Fund: what Berkshire SMEs should prepare before applications open appeared first on Asmat & Co Accountants.

If you own a company and may buy out a shareholder, separate parts of the business or return capital, HMRC’s latest consultation deserves attention. Published on 23 June 2026, it considers modernising the taxation of company distributions and repayments of capital. The consultation closes on 14 September 2026. These are proposals rather than enacted rules, and there is currently no confirmed implementation date.
The consultation does not propose changing ordinary dividend tax rates themselves. Instead, it focuses on situations where value is extracted through share buybacks, capital reductions, demergers, loans and distributions from non-UK companies. The underlying rules have remained broadly unchanged since Corporation Tax was introduced in 1965.

Why the distinction between income and capital matters

A dividend is generally taxed as income. For 2026/27, dividend rates above the £500 dividend allowance are 10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers.

Capital receipts may instead fall within Capital Gains Tax. The main individual CGT rates are 18% and 24%, depending on taxable income. Qualifying gains covered by Business Asset Disposal Relief are taxed at 18% for disposals made from 6 April 2026, subject to the £1 million lifetime limit.

This difference explains why the tax treatment of buybacks and capital repayments can materially affect the amount shareholders retain. HMRC’s consultation on GOV.UK sets out the proposals in full.

The main proposals

The proposals remain subject to consultation and may change before legislation is introduced.

One important proposal concerns holding-company reorganisations. A share-for-share exchange can currently increase the amount treated as capital for distribution purposes even though the original CGT base cost carries across. HMRC is considering a “frozen capital” rule based on the shareholder’s original subscription. This could cause a larger part of a later buyback or capital repayment to be taxed as income.

What this means for owner-managed companies

There is no need to rush into a transaction simply because a consultation is open. However, planned buybacks, demergers, capital reductions and holding-company reorganisations should be reviewed before documents are signed. Existing rules remain in force, but the proposals indicate the direction HMRC is considering.

Day-to-day extraction should also be reviewed through salary versus dividends, particularly because dividend and BADR rates changed from April 2026.

Capital transactions require careful company-law and tax documentation. Our limited company accountants can work alongside your solicitor, while our guide to Companies House and HMRC deadlines helps you manage ongoing filings.

A taxable or reportable share disposal may need to be included in a director’s Self Assessment or another appropriate HMRC reporting route. Our tax return support can help you report the transaction correctly. Regular management accounts also provide useful information when assessing affordability and the effect of a proposed payment on working capital.

Get advice before restructuring

A sensible share structure created when setting up a limited company can reduce the need for a costly reorganisation later. These proposals concern companies and their shareholders, so they do not directly apply where you operate only as a sole trader.

Asmat Accountants can coordinate this work with payroll services and VAT returns. Whether you use our accountants in Slough or accountants in Reading, speak to us before completing a buyback, demerger or capital repayment.

The post How to navigate the proposed changes to company distributions and capital repayments appeared first on Asmat & Co Accountants.

If you are a sole trader in Slough, the biggest 2026 change is Making Tax Digital for Income Tax. Since 6 April 2026, sole traders and landlords with qualifying income above £50,000 have had to keep digital records, send quarterly updates and submit their annual tax return through compatible software. The threshold falls to more than £30,000 from April 2027 and more than £20,000 from April 2028. Other developments include a higher simplified mileage rate and consultations on changing how some taxes are paid.

Making Tax Digital is the headline change

The first phase applies where your combined gross income from self-employment and property exceeded £50,000 in 2024/25. Qualifying income is measured before expenses, and income from all relevant sole-trader businesses and property sources is added together.

MTD does not replace the annual return with 4 quarterly tax returns. You must maintain digital records and use compatible software to send summaries of income and expenses during the year. You then add other reportable income and gains and submit your tax return through the software. The GOV.UK eligibility tool can confirm when the rules apply to you.

The first deadline is already approaching

For businesses that joined on 6 April 2026, the first quarterly update covers 6 April to 5 July 2026 and is due by 7 August 2026. The remaining 2026/27 deadlines are 7 November 2026, 7 February 2027 and 7 May 2027.

You must still submit your 2025/26 Self Assessment for sole traders return in the usual way by 31 January 2027. Your first annual return submitted through MTD software, covering 2026/27, is due by 31 January 2028. Our guide to the first MTD deadline for Slough sole traders explains the transition.

HMRC will not apply penalty points for late quarterly updates during 2026/27 to people required to join from April 2026. However, digital record-keeping and reporting remain mandatory. Penalties can still apply to a late annual return or tax paid after its deadline.

Getting the practical side right

You need software that can maintain records, submit quarterly updates and complete the annual return. Our MTD software shortlist compares practical options, while our QuickBooks accountants can configure a suitable system. Our bookkeeping services can also keep transactions reconciled throughout the year.

The other changes worth noting

The simplified mileage rate for self-employed people using cars or goods vehicles increased retrospectively from 45p to 55p for the first 10,000 qualifying business miles in 2026/27. It remains 25p for each mile above 10,000. You cannot use this method for a vehicle where you have already claimed capital allowances or deducted its actual running costs.

The government is consulting on more timely Income Tax payments, including possible changes to payments on account. These are proposals, so existing Self Assessment payment deadlines remain in place. A separate consultation is considering whether VAT and PAYE liabilities should generally be paid by Direct Debit. Current payment methods continue to apply to VAT returns.

Frequently asked questions

Do I have to pay tax quarterly under MTD?
No. Quarterly updates report income and expenses; they are not quarterly tax bills.

What if my income is below £50,000?
You may be outside the first phase, but the later thresholds could bring you into MTD from April 2027 or April 2028.

Can my accountant handle MTD for me?
Yes. An authorised agent can help with registration, records, quarterly updates and the annual return.

Does MTD change how much tax I pay?
No. It changes record-keeping and reporting, not the rules used to calculate taxable profit.

Get MTD-ready before your next deadline

As sole trader accounting specialists and accountants in Slough, Asmat Accountants can help with software, bookkeeping, quarterly updates and annual returns. Support is also available through our accountants in Reading, while our payroll services can be coordinated with your wider accounting work. Book a call to put a reliable digital process in place.

The post What the 2026 Tax Update Means for Slough-Based Sole Traders appeared first on Asmat & Co Accountants.