Galloways Accounting

01/06/2026

What you need to know about your first quarterly MTD report on 7 August 2026.

From April 2026, sole traders, self‑employed individuals and landlords earning over £50,000 are required to follow Making Tax Digital for Income Tax. The first quarterly update is due 7 August 2026, covering income and expenses from 6 April–5 July. If you’re unsure what you’ll need to submit—or how to get set up with compliant software—our team can help you prepare. Read the full update on our website https://wearegalloways.com/what-you-need-to-know-about-your-first-quarterly-mtd-report-on-7-august-2026/

For sole traders, self-employed individuals and landlords with gross incomes exceeding £50,000 from self-employment or property, you are now mandated to abide by Making Tax Digital (MTD) for Income Tax regulations. Applied from 6 April 2026, these new responsibilities require those affected to prov...

26/05/2026

Mileage rate increase: what SMEs need to know

For the first time in 15 years, the government has increased the approved mileage rate — rising from 45p to 55p per mile from 6 April 2026. This applies to the first 10,000 business miles for cars and vans and is designed to better reflect today’s running costs.

For SMEs, this change isn’t just a tax update — it’s a chance to tidy up processes and support your team. Whether you reimburse staff for business travel or claim mileage yourself as a director, the new rate could affect:

• Payroll and expense policies
• How you record and approve mileage
• Tax relief claims for directors and employees
• Budgeting for travel costs across the business

At Galloways, we know SMEs don’t have time to get lost in the detail. We’re here to help you understand what this means for your business and make any adjustments smoothly and confidently.

If you’d like us to review your mileage processes or check you’re claiming correctly, just get in touch — we’re always happy to help.
https://wearegalloways.com/get-in-touch/

20/05/2026

We're often asked about the VAT liability of supplies of electricity whilst using public electric vehicle charge points.

In simple terms, whilst the charging of vehicles at home will benefit from the domestic VAT rate of 5%, any other charging in a public place will be subject to the standard rate of VAT at 20%. This will include where there are any charges made to employees or third parties by a business.

A recent Tribunal found in the case of Charge my Street Limited that public charging could be at 5% but, as a First Tier Tribunal decision, it is not binding. HMRC disagree and have appealed this decision and the business brief confirms HMRC’s current position. So, this may well change - watch this space.

If you have any queries on this or any other VAT issue, please get in touch.

12/05/2026

Stamp Duty Land Tax – what is ‘mixed use’?

Stamp Duty Land Tax can be a major cost when buying property in England — and whether a purchase counts as residential or mixed use makes a big difference.
A recent Upper Tribunal case, HMRC v Brzezicki (2026), is a timely reminder that mixed use treatment is far from automatic. In this case, a home purchased with a fishing stream and island was still ruled fully residential. Why? Because the additional land formed part of the property’s “grounds” and wasn’t being used commercially.
The takeaway: unusual features or extra land don’t guarantee mixed use status. What matters is genuine non residential use.
If you’re considering a mixed use SDLT claim, get clear advice early. We’re happy to help if you’d like to discuss your situation. https://wearegalloways.com/stamp-duty-land-tax-sdlt-what-is-mixed-use/

06/05/2026

Mega Marshmallows officially zero‑rated for VAT

The FTT has ruled that Mega Marshmallows aren’t “confectionery” because they’re not normally eaten with fingers. That means mega and mini marshmallows can be zero‑rated, while standard ones remain at 20%.

A great reminder of how complex VAT can be. If you’re unsure about VAT on your products, our VAT experts at Galloways can help. https://wearegalloways.com/another-bite-of-marshmallow/

05/05/2026

Key CIS changes took effect on 6 April — and more are coming.

Contractors will need to file monthly CIS returns, including nil returns, or submit an inactivity request. HMRC are also reinstating full late filing penalties and strengthening powers to remove Gross Payment Status where fraud is involved.

These updates could impact compliance and cash flow across the sector.

Read the full breakdown on our website: www.wearegalloways.com/april-2026-changes-to-the-construction-industry-scheme-cis

27/04/2026

Dividend Rules Are Changing — What It Means for You



HMRC is tightening dividend reporting from 5 April 2026. If you’re a director of a close company, you’ll need to disclose:

• Your company name and registration number

• Your highest shareholding percentage

• Exact dividend amounts

• Dividends from your own company separately from other income

From 2026/27, dividend tax rates will also rise, while the allowance stays at £500.

These changes make accurate reporting — and smart profit‑extraction planning — more important than ever. Dividends can still be tax‑efficient, but the gap is narrowing.

If you’re unsure how the new rules affect you, we’re here to help you stay compliant and make informed decisions.

https://wearegalloways.com/the-dividend-rules-are-changing-disclosure-rules-on-tax-returns-and-new-rates