T & A Dixon Accountancy Services

07/08/2026

MANDATORY PAYROLLING OF BENEFITS
If you run a limited company and provide benefits to your employees or directors — such as a company car, private medical insurance, or a company van — there is an important change coming that affects how these are reported to HMRC.

From April 2027, reporting of certain benefits in kind will become mandatory through payroll software in real time — rather than via the current end-of-year P11D process.
HMRC published updated guidance on this change on 13 July 2026. Here is what you need to know:
• From April 2027, the following benefits must be reported through payroll (Real Time Information): company cars, car fuel, company vans, van fuel, and employer-provided medical benefits such as private health insurance.
• From April 2028, the change extends to most other benefits in kind.
• Employer-provided loans and living accommodation will be addressed separately — HMRC has not yet confirmed dates for these.
• In the first year, HMRC has confirmed a penalty easement for certain non-deliberate errors, giving businesses time to adapt.

This is a significant shift away from the annual P11D form that many businesses currently use. If you provide any of these benefits and are not already payrolling them voluntarily, you will need to be set up and ready by April 2027.

We would recommend starting to review your position now rather than leaving it until next year. Give us a call on 01388 609045 or visit tadixon.co.uk and we will be happy to help.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

28/07/2026

National Living Wage rises to £12.71 from April 2026

If you employ anyone in your business, the National Living Wage increased from 1 April 2026 — and it is worth making sure your payroll is fully up to date.

The new rates that came into force on 1 April 2026 are:
• Workers aged 21 and over: £12.71 per hour (up from £12.21)
• Workers aged 18 to 20: £10.85 per hour (up from £10.00)
• Workers aged 16 to 17 and apprentices: £8.00 per hour (up from £7.55)

These rates apply to all UK employers without exception — there is no exemption for small businesses, family-run firms, part-time workers, or zero-hours contracts.

One important development this year: the new Fair Work Agency launched on 7 April 2026, bringing together enforcement of National Minimum Wage, holiday pay, and statutory sick pay under one body. This means HMRC-style investigations into wage underpayment now sit alongside stricter enforcement of other employment rights.

The penalties for underpayment remain significant: up to 200% of the arrears owed, a maximum fine of £20,000 per worker, compulsory back pay, and possible public naming by the government.

If you are unsure whether your payroll is compliant with the new rates, or if you have workers who have recently turned 21 and moved into the higher band, we are happy to help you check. Give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

22/07/2026

MTD FIRST QUARTERLY DEADLINE
If you are a sole trader or landlord with total income over £50,000, you are now legally required to file under Making Tax Digital for Income Tax (MTD). And the first ever quarterly submission deadline is just over two weeks away: 7 August 2026.

This first update covers the period from 6 April 2026 to 5 July 2026. Through your MTD-compatible software, you simply submit a summary of your income and expenses for that quarter — it is not a full tax return, just a digital update to HMRC.

A few things to bear in mind:
• You need MTD-compatible software to file — if you have not set this up yet, now is the time. Sage Business Cloud Accounting, QuickBooks, Xero, and others all support MTD for Income Tax.
• You should have been keeping digital records since 6 April 2026. If your records are not fully up to date, prioritise getting them sorted before the 7 August deadline.
• Good news for this year: HMRC has confirmed it will not apply penalty points for late Q1 submissions during the 2026/27 tax year. However, you will still need to submit your Q1 update before you can file your year-end tax return.
• If you have both self-employment and rental income, you may need to file two separate quarterly updates — one for each income source.

Not sure if MTD applies to you, or need help getting set up? Give us a call on 01388 609045 or visit tadixon.co.uk — we are happy to help.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

14/07/2026

PAYING TAX TO HMRC
HMRC has launched a consultation on a significant change to how self-employed people and landlords pay their tax — and if the proposals go ahead, the way Self Assessment works could look very different from April 2029.

At the moment, Self Assessment taxpayers make two advance payments on account each year — in January and July — based on the previous year's bill. The new proposals would move to more frequent, in-year payments that more closely match when the income is actually earned.

For those with PAYE income as well as self-employed income — for example, a director also drawing a salary, or an employee with a side business — the proposal is that the Self Assessment element would be collected through the payroll each pay period from April 2029.

For the wider group of around 9.5 million Self Assessment taxpayers, HMRC is exploring whether monthly or quarterly payment options could replace the current January and July system.
To be clear: the proposals would not increase the total amount of tax owed. The change is purely about timing — collecting tax closer to when the income is earned rather than months later.

The consultation is open now and closes in autumn 2026. The government expects to introduce legislation before April 2029 if the reforms proceed.

If you are self-employed, a landlord, or a company director and want to understand what these changes might mean for your cash flow, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

07/07/2026

HMRC SECOND PAYMENT ON ACCOUNT

If you are self-employed, a landlord, or complete a Self Assessment tax return, the 31 July 2026 deadline is less than four weeks away.

This is the due date for your second payment on account towards your 2025/26 tax bill. Payments on account are advance payments
HMRC requires you to make twice a year — once in January and once in July — each equal to half of the previous year's tax liability.

A few things worth knowing before the deadline:

• Check the amount due: log into your HMRC online account or app to see exactly what you owe. The figure should also appear on your Self Assessment statement.
• Income has dropped this year? If your 2025/26 income is materially lower than last year, you can apply to reduce your payment on account before 31 July through your HMRC online account (select 'Reduce payments on account') or by submitting form SA303. Be careful — if you reduce it too far and your actual bill is higher, HMRC will charge interest on the shortfall from the original due date.
• Missing the deadline does not trigger a fixed penalty, but HMRC will charge interest at the Bank of England base rate plus 2.5% from 1 August. If you cannot pay in full, contact HMRC to set up a Time to Pay arrangement before the deadline.

If you have any questions about your Self Assessment position, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

30/06/2026

WRITING DOWN ALLOWANCE CHANGES
If your business invests in equipment, machinery, or vehicles, two changes to capital allowances from April 2026 are worth knowing about.

The first is a reduction. The writing-down allowance (WDA) on the main pool of plant and machinery has been cut from 18% to 14% per year. This affects the tax relief you get on any existing pool of assets as well as new purchases that do not qualify for the Annual Investment Allowance (AIA) or full expensing.

The second is an addition. A new 40% first-year allowance (FYA) has been introduced for main rate plant and machinery. This allows businesses — including sole traders and partnerships — to deduct 40% of the cost of qualifying assets in the year of purchase, even for assets that could not previously benefit from first-year allowances, such as assets used for leasing.

For most businesses buying equipment within the annual investment allowance limit of £1 million, these changes will have limited day-to-day impact. But for businesses with larger historic asset pools, or those buying assets not covered by the AIA, the interplay between the lower WDA and the new 40% FYA is worth reviewing.

If you are planning any significant investment in equipment or machinery this year and want to make sure you are claiming the right relief, give us a call on 01388 609045 or visit tadixon.co.uk.
T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

23/06/2026

WORKING FROM HOME ALLOWANCE

If you or any of your employees work from home, there is a change you need to know about from the 2026/27 tax year.

From 6 April 2026, employees can no longer claim income tax relief directly from HMRC for the extra household costs of working from home. This includes the well-known flat-rate claim of £6 per week (worth up to £124 a year for higher rate taxpayers). The relief has been abolished for unreimbursed costs, even where employees are contractually required to work from home.

There are two important things to note:

First, employers can still reimburse homeworking costs to employees tax-free and NIC-free, up to £6 per week or higher actual evidenced costs, where there is an agreement for the employee to work from home regularly. If you employ home workers and do not already pay this allowance, it is worth considering.

Second, the change only affects employees. If you are self-employed — a sole trader or partner — you can still claim working from home expenses through your accounts as before, either using the flat-rate simplified expenses or actual apportioned costs.

If you still have unclaimed years from 2021/22 onwards, those can still be claimed — but the window is closing.

If you would like advice on your business expenses or payroll obligations for home workers, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

16/06/2026

Corporation Tax Return Filing Update
If you run a limited company and have been filing your own Corporation Tax return using HMRC's free online service, there is something you need to know.

HMRC's free Company Accounts and Tax Online service — known as CATO — closed permanently on 31 March 2026. From 1 April 2026, all companies must use HMRC-approved commercial software to file their annual accounts and Corporation Tax return (CT600). There is no free HMRC web form for companies in normal circumstances.

This matters for two reasons:

First, if you self-filed previously and have not yet made alternative arrangements for your next filing deadline, you need to do so now. Your next CT600 will need to go through compatible commercial software. Options range from free tools for micro-entity companies to low-cost paid services.

Second, previously filed returns are no longer accessible through CATO. HMRC recommended downloading and saving at least three years of historical returns before the service closed. If you have not done this, you may find gaps in your records.

If you are unsure whether this affects you, or you would like us to handle your Corporation Tax filing going forward, we are happy to help. Give us a call on 01388 609045 or visit tadixon.co.uk for a free initial chat.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

12/06/2026

P11D deadline 6 July 2026

If your business provides benefits or expenses to employees or directors, you have less than four weeks to submit your P11D forms to HMRC.

The deadline for reporting benefits and expenses for the 2025/26 tax year is 6 July 2026. By this date, employers must:
• Submit a P11D form for each employee or director who received a taxable benefit
• Submit a P11D(b) form declaring the total Class 1A National Insurance owed
• Provide employees with a copy of their P11D information

Common benefits that need reporting include company cars and fuel, private medical insurance, beneficial loans, gym memberships, personal expenses paid by the company, and assets made available for private use.

Note: if you have already registered to payroll your benefits through your payroll software, those benefits do not need to go on a P11D — but a P11D(b) may still be required.

Class 1A National Insurance on the reported benefits is due by 22 July (or 19 July if paying by cheque).

If you are unsure what needs reporting or need help pulling your P11D together, give us a call on 01388 609045 or visit tadixon.co.uk — we are happy to help.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

09/06/2026

📊 Is your bookkeeping costing you more than you think?

Many small business owners spend hours every week wrestling with receipts, invoices, and bank statements — time that could be spent actually running your business.

Whether you're a sole trader, in a partnership, or running a Limited Company here in County Durham, keeping accurate records isn't just good practice — it's a legal requirement.

Here's what good bookkeeping gives you:
✅ A clear picture of your cash flow
✅ Stress-free tax returns
✅ Confidence when making business decisions
✅ Protection if HMRC ever comes knocking

At T & A Dixon, we've been helping small businesses in and around Bishop Auckland with exactly this for nearly 30 years. We're a family-run firm — and we treat every client like one.

📞 Call Alan today for a FREE initial consultation:
👉 01388 609045
📧 [email protected]
🌐 www.tadixon.co.uk

T & A Dixon Accountancy Services is a family-run Accountants based on the outskirts of historic Bishop Auckland. We provide Accountancy, Payroll, Taxation and Company Secretarial Services to small and medium sized business.