Accounting Equations Limited

28/11/2025

📢 Budget Update: £6-per-week Working-From-Home Allowance to Be Scrapped

If you currently claim the £6-per-week tax relief for working from home, there’s an important change coming.

From 6 April 2026, the government will abolish the flat-rate homeworking allowance for employees who claim it through their tax return or HMRC’s online system.

👉 This means employees will no longer be able to claim the £6-per-week (£26 per month / £312 per year) deduction unless their employer actually reimburses them.

👉 Employers can still reimburse homeworking costs tax-free — but only if the employer pays it directly.

The change does not affect self-employed homeworking claims (those rules stay the same).

If you’re unsure how this affects your payroll, tax return, or employees, feel free to get in touch and I’ll be happy to advise.

27/11/2025

📢 Budget 2025 – Key Tax Changes at a Glance

Here are the biggest tax changes announced in the 26 November 2025 Budget:

🔹 Income Tax: Personal Allowance & Higher Rate Threshold frozen until 2030/31
🔹 Dividend Tax: All rates rise by 2% from April 2026
🔹 Property Income: New higher rates from April 2027 (22%, 42%, 47%)
🔹 Savings Income: All rates rise by 2% from April 2027
🔹 Inheritance Tax: Major changes to APR/BPR from April 2026 + pensions become taxable for IHT from 2027
🔹 Capital Allowances: Main WDA reduces to 14% from 2026; new 40% first-year allowance
🔹 “Mansion Tax” on properties over £2m from 2028
🔹 Salary Sacrifice: Pension sacrifice over £2,000 will be subject to NI from 2029
🔹 Umbrella Company Reform: Agencies/end clients liable for PAYE errors from 2026
🔹 MTD: Soft landing for first four late quarterly updates
🔹 Corporation Tax: Late filing penalties double from April 2026
🔹 CGT: BADR rate rises from 14% → 18% (April 2026)
🔹 Electric Vehicles: Mileage tax from 2028 (3p per mile for EVs)

➡️ Bottom line: This Budget brings long-term tax pressure across almost every area. Planning early is essential.

19/03/2025

HMRC MTD ITSA webinar - worth a look?

MTD

Making Tax Digital will be mandatory for some traders and landlords next year. Ahead of this, the government is ramping up its guidance to help you get ready. What is the latest offering?

Some sole traders and landlords will be mandated into Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) next April. HMRC has published a video purporting to explain MTD ITSA; though it really doesn’t say anything especially helpful, rather it seems to aim to convince the customer that MTD ITSA will be very helpful. It also initially implies the mandation threshold for 2026 is £30,000 – it isn’t, it’s £50,000 dropping to £30,000 in 2027.

Perhaps more helpful is the opportunity to register for a live webinar on 3 April. This will cover some basics regarding what you will need to do once you are required to use MTD ITSA. You can register for the webinar here.

Video explanation for customers of Making Tax Digital for Income Tax.HMRC is the UK’s tax, payments and customs authority. We collect the money that pays for...

13/03/2025

HMRC and Companies House to scrap free filing services

COMPANY FILINGS

From April 2026 companies won’t be able to file their tax returns and accounts using the HMRC and Companies House free-to-use service. What steps should you take ahead of the deadline?

On 6 March HMRC and Companies House (CH) announced that their online filing services for corporation tax (CT) returns and accounts will be withdrawn with effect midnight on 31 March 2026. This will be a blow mainly for micro and small companies which are the chief users of the services. If you already use software to submit CT returns to HMRC and accounts to CH the withdrawal of the services won’t affect you. Companies that are affected by the withdrawal of services will be allowed to submit accounts to CH on paper but will need to purchase software to file their CT returns.