Stephen Hill Partnership Ltd

Stephen Hill Partnership Ltd Chartered Accountants in Medway

16/06/2026

PENSIONS TO BE INCLUDED IN IHT CALCULATIONS FROM APRIL 2027

From April 2027, unused defined contribution (DC) pensions will be counted as part of a person's estate for inheritance tax (IHT). This is a significant shift from current rules where most DC pensions fall outside the estate. Defined benefit (DB) pensions remain unaffected.

Estates above the nil rate band will face a 40% IHT charge. It is believed that 10,500 estates will pay IHT for the first time and 38,500 estates will see higher bills, averaging £34,000 extra. However, this change will only see a move from 5% to 8% of all estates paying IHT.

Despite this, research shows widespread anxiety with 54% of adults fearing their families will face higher IHT and 22% now feeling less confident about their pensions. People are already reacting to the impending change, with savers withdrawing £3.9bn in lump sums in the year after the announcement - £868m more than the previous year. One in seven are spending more of their pension; nearly half plan to. Other things to consider, if you feel your family will now receive an IHT bill, is to exchange your pension for an annuity (these are normally outside the scope of IHT) or use the gifting rules to reduce your estate's overall value.

Please get in touch to discuss your options if you feel this rule change is going to affect you.

🌍⚽ Our 2026 World Cup Sweepstake is officially live!The teams have been drawn, and let’s just say… some of us are alread...
11/06/2026

🌍⚽ Our 2026 World Cup Sweepstake is officially live!

The teams have been drawn, and let’s just say… some of us are already mentally spending the winnings, while others are Googling “How good are Uzbekistan?” 👀😂

Now it’s over to you!

⚽ Who do you think will win the World Cup?
👤 Which member of our team has the winning nation?

Comment below with your prediction!

09/06/2026

HMRC REJECTS ALMOST HALF OF MAKING TAX DIGITAL EXEMPTIONS

At the time of its request, a Freedom of Information request has shown that HMRC rejected 47% of applications for exemption from the MTD for Income Tax scheme. Over 1,600 taxpayers had applied for exemption due to "digital exclusion" but only 855 were approved.

Taxpayers can apply if they cannot use digital tools because of age, disability, health conditions, or religious beliefs. Those approved can continue filing traditional Self-Assessment returns.

759 of the approved exemptions related to taxpayers entering the system in April 2026, ahead of the first rollout phase. Applications are expected to rise as the April 2027 deadline approaches as more sole traders and landlords will be eligible due to the earnings threshold dropping from £50k (earned in the 2024/25 tax year) to £30k (earned in the 2025/26 tax year).

As digital exclusion is hard to define and evidence, please get in touch if you would like us to assist in an exemption application.

02/06/2026

MAKING TAX DIGITAL (MTD) FOR INCOME TAX - DEADLINE REMINDERS

From April 2026, MTD for Income Tax came into force for sole traders and landlords who had gross income over £50,000 in the previous tax year. You must send quarterly updates summarising income and expenses - not full tax returns. The first quarterly update (covering April to June) is due by 7 August. The subsequent deadlines are 7 November 2026, 7 February 2027 and 7 May 2027.

This does not change the need to submit a self-assessment tax return by 31 January 2027. Tax payments are also still due on 31 January and 31 July each year, as before.

These quarterly updates must be submitted using HMRC recognised software. There are many free and paid for options available, as well as utilising an accountant to act as an agent for you. Don't forget that separate submissions must be made for each income stream, for example if you earn money from being self-employed but also receive rental income, you'll need to submit two updates.

Research shows 70% of sole traders don't understand what they need to do under the new MTD system, only 37% know about the first deadline and just 8% currently use software to manage their tax records.

Please get in touch if you need assistance in choosing the right option for you or want to check that your choice will keep you compliant with the new rules as HMRC is introducing fines for non-compliance and late submissions.

JUNE KEY DATES1st - Corporation Tax payments are due for companies with a year-end of 31st August.19th - For employers o...
27/05/2026

JUNE KEY DATES

1st - Corporation Tax payments are due for companies with a year-end of 31st August.

19th - For employers operating PAYE, this is the deadline to send an Employer Payment Summary (EPS) to claim any reduction on what you'll owe HMRC.
- It is also the deadline for employers operating PAYE to pay HMRC by post, for May.

22nd - Deadline for employers operating PAYE to pay HMRC electronically, for May.

30th - Corporation Tax Returns (CT600 form) are due for companies with a year-end of 30th June.

25/05/2026

CHANCELLOR PLANNING TAX CHANGES TO ATTRACT WEALTHY BACK TO THE UK

The Chancellor, Rachel Reeves, is preparing a package of tax breaks aimed at high earners, particularly those who left the UK following recent tax rises. The focus is on wealthy residents in Gulf countries, many of whom are reconsidering their location due to instability linked to the Iran conflict.

The government wants to signal that Britain is 'open for business' and Ms Reeves has used the recent IMF meetings in Washington to promote the UK as a competitive destination for investment and residency. A senior Treasury official says geopolitical risk is reshaping where people choose to live and invest, and the UK wants to respond strategically.

The Treasury will launch a formal consultation on how Limited Liability Companies (LLCs) are taxed, as this has been a sticking point for potential wealthy arrivals. The review will look at targeted reliefs for new arrivals and possible reforms to offshore structures.

The Chancellor has faced criticism that her earlier tax increases drove millionaires out of the UK. The government hopes these new measures will reverse the exodus and bring high earners back.

18/05/2026

STAMP DUTY NETS £307M MORE IN THE YEAR SINCE ITS CHANGE

First-time buyers are paying significantly more in stamp duty since temporary tax relief ended in April 2025. Over the past year, they collectively paid £408m in stamp duty - up from £101m the previous year.

The tax-free threshold for first-time buyers dropped from £425,000 to £300,000, increasing upfront costs. On average, buyers now pay about £4,618 more in stamp duty than before.

The change comes at a time when mortgage rates remain high, adding further pressure on new buyers. Over half (53%) of the extra revenue comes from property sales in London, with just under a quarter (23%) contributed from sales in the South East. Many properties in the North East and East Midlands remain below the £300,000 tax-free limit, contributing only 1.3% between them.

11/05/2026

MASSIVE COUNCIL TAX HIKES FOR SECOND HOMES IN SCOTLAND

Midlothian Council has introduced a 500% council tax premium on second homes from 1 April. This means some owners now face annual bills up to about £28,000, especially for Band G properties. A typical Band D second home could now cost £14,811 per year.

The premium increases depending on how long the property has been owned:

Under 2 years: double the standard rate

2–3 years: 300% surcharge

Over 3 years: full 500% premium

Empty homes are treated the same way. There are 35 second homes in Midlothian and only two are in Band G. So, this move is only expected to raise circa £200,000 in the 2026–27 financial year. But the council says the goal is behavioural change, not revenue - specifically to discourage second home ownership and free up housing for locals.

Scottish councils now have unlimited powers to set second home premiums. In England they are capped at 100% (double the standard rate), and in Wales it is up to 300%.

Critics argue they worsen the cost-of-living pressures, noting second homes already face an 8% additional dwelling supplement at purchase. The Adam Smith Institute warns extreme premiums could drive away investment and harm local economies.

Turns out “working like a dog” means something very different around here.
08/05/2026

Turns out “working like a dog” means something very different around here.

04/05/2026

178,000 TAXPAYERS MISSED OUT ON REBATES SENT BY CHEQUE

178,000 people didn't receive tax rebates last year because they never cashed the cheques HMRC sent them. These uncashed cheques were worth £144m in total, averaging about £800 per taxpayer.

HMRC still issues cheques when people don't respond to rebate letters within 21 days - a legacy process that hasn't fully adapted to the digital era. 1.74 million cheques were issued last year; although this is fewer than in the past, a significant number still go unclaimed.

HMRC is transitioning to a new system where cheques are only sent if someone specifically requests one. Around 20% of taxpayers are still on the old system, but HMRC aims to complete the switch by April next year.

Overpayments happen for common reasons such as job changes, incorrect tax codes or having multiple sources of income.

If you have an uncashed cheque from HMRC that was issued over six months ago, you will no longer be able to cash it. HMRC says it can be replaced on request.

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