Pi Accountants

24/06/2026

There are several temporary MTD exemptions for 2026-27.

These include:
➡Taxpayers with income from trusts or estates.

➡Those claiming averaging adjustments.

➡Foster carers claiming qualifying care relief.

➡Non-resident entertainers and sportspeople.

➡Taxpayers who need to file non-residence (SA109) supplementary pages with their tax return.

HMRC has clarified that the temporary exemptions should be applied automatically if any of these circumstances were declared on a 2024-25 return.

However, if any of these were not reported on a 2024-25 return, but you expect qualify for an exemption, you will need to apply to HMRC for the temporary exemption.

MTD obligations would then start from 2027-28, but only if their qualifying income in 2025-26 was above £30,000.

If you have any questions or concerns please get in touch.

23/06/2026

From the 2025/26 tax year onwards, directors will need to provide additional information in their tax returns.

Here is a quick summary of the new requirements

For each directorship, one must mandatorily include the following details on the SA102 employment pages:

Confirmation that you were a director during the tax year and whether the company is a close company.

The company name, and registration number.

Dividend income you received from that company ( even if it was zero)

The total percentage of the share capital held.(This should be calculated by reference to the nominal value of the shares. If this amount has changed during the tax year, you should report the highest percentage owned.)

Please note:

This information will be required if you were a director at any point during the year.

This information is only required it you are already required to complete a tax return.

PENALTIES:

A penalty of £60 may apply for each failure to provide the required information.

It is currently unclear whether this will be a single penalty per tax year or multiple penalties per directorship.

If you are uncertain, please speak to your accountant or get in touch

22/06/2026

Changes to filing requirements for your company:

From April 2028, all Small companies and micro-entities will be required to file profit and loss accounts.

They will also have to file accounts via commercial software

However, the start date for these reforms has been pushed back to 2028, giving you plenty of time to be ready.

At this time, the main action you need to take is to ensure that you are using the right commercial software for your business.

If you aren't currently using software or are considering changing the software you use, now is the time to look into your options.

Speak to your accountant and discuss options. Get set up now, in plenty of time for the changes.

Please note that if you are a small or micro-entity, you will have the option to opt out of having your profit and loss accounts published on the public register.

If you need any further advice or have any concerns, please speak to your accountant or get in touch with one of the team at We Are PI.

19/06/2026

Did you know that there is a 5% VAT rate on certain construction services and materials supplied by builders as part of their work?

The builder services that qualify for 5% VAT, relating to residential property, are:
➡️ When a non-residential building is converted to residential use.
➡️ When a residential property has not been lived in for at least two years before the start of the building work.
➡️ When there is a change in the number of dwellings between the start and finish of the work,

Builders should charge 5% VAT, if appropriate, for three reasons:
➡️ If a VAT-registered business receives services that have been incorrectly charged 20%, it can only claim input tax based on the correct 5% rate.

➡️ HMRC will only repay VAT under a DIY refund scheme claim if VAT has been charged correctly.

➡️ A householder with no scope to claim either input tax or a DIY refund will needlessly pay extra tax.

The customer should approach the builder for a 15% refund where they have been overcharged VAT.

The builder can get the overcharged VAT back from HMRC either:
➡️ On their next VAT return or
➡️ If the tax overcharged exceeds £10,000, by submitting an error correction notice to HMRC.

⭐ Professional services are always standard rated,
eg: architects and surveyors.
However, if a 'design and build' contract is agreed with a customer, the professional services will follow the same rate as the building work.

If you need more advice or information relating to this, please get in touch.
(relevant legislation is available at: VATA 1994 Schedule 7A Groups 6 and 7 and within HMRC **VAT Notice 708.)

18/06/2026

Its a tought time for many businesses at the moment

Spending just a little extra time, can make a huge difference.

1️⃣ So many businesses lose profits due to inefficent processes, your time is your most value comodity so ensuring you have the right systems in place can make a big difference.

Not only will the right systems save you time, they will reduce the potential for errors and keep your organised and informed.

2️⃣ Its ok to review your pricing, and your services. This is something you should be doing on a regular basis, your costs are increasing too so keep your pricing realistic to the current market place.

3️⃣ Once your systems are in place and you have freed up some of your own valuable time, take the oportunity to review your products and services, intorducing new offers at different cost levels can help introduce new income streams.

4️⃣ Understand and track your numbers, get confident about what your numbers look like, understanding your cashflow allows you to plan for the future, and make good decision.

5️⃣ Double check your bank statements, you will be surprised how many people are paying for subscriptions, apps and services that they no longer need or use.

Dont - cut costs for the sake of it - before you do, make sure you understand the value the cost has to the business.

If an expense supports business growth, it is an expense worth keeping!

If you need support with growth, and understanding your numbers, get in touch

12/06/2026

Since 5th May, if you are using MTD, You (and your accountant) can now request tax refunds online through a dedicated HMRC digital service.

Access to the service is available via your HMRC Online Account.

The introduction of a refund tracking capability,allows you to monitor the progress of any claims in real time.

The service is initially launching in a controlled live testing phase. This will allow HMRC to closely monitor how the system performs in real-world use.

Is this a system that you will use or will be a benefit to you and our business?

11/06/2026

An HMRC dispute that will be of interest to Electric car drivers:

The back ground:

👉Home electricity for domestic use is taxed at a reduced VAT rate of 5%,

👉HMRC's policy stated that public EV charging stations are subject to the standard 20% VAT rate

⭐The challenge:

Charge My Street (a charge point operator) argued that because electricity supplied at public chargers falls under the "de minimis" limit of 1,000 kWh per month per customer, it should be legally deemed for "domestic use" and qualify for the same 5% VAT rate as home charging

⭐The Ruling:

The FTT ruled in favor of Charge My Street.

The tribunal determined that "premises" can include defined public areas
(like car parks),

And that under current law, the 5% reduced VAT rate should apply to public charging facilities within that monthly usage threshold.

👉HMRC:

HMRC disagrees with the ruling and is appealing the decision,

It has reiterated its policy that standard-rated VAT applies to electricity supplied through public EV charging infrastructure.

👉What this means:

If the FTT ruling is upheld, EV charging operators could potentially claim refunds for overpaid VAT on historic sales and significantly alter pricing models for consumers.

If the 5% VAT eventually becomes legally binding for public chargers, it would dramatically lower the cost of public charging, especially for drivers without driveways who are subjected to the so-called "pavement tax".

Would cost of charging impact your decisions on buying electric?

09/06/2026

As a Sole Trader, I found all of Angelique’s staff, and herself of course, to be extremely professional in dealing with all aspects of my accounts, no matter how trivial or complicated. Nothing seemed to be too much trouble for them. All carried out in a kind and friendly manner. Top class.I can thoroughly recommend their services.

As a Sole Trader, I found all of Angelique’s staff, and herself of course, to be extremely professional in dealing with all aspects of my accounts, no matter how trivial or complicated. Nothing seemed to be too much trouble for them. ★★★★★

08/06/2026

Are you ready for the Summer Bonanza?

The summer Bonanza is a government funded program designed to ease financial pressure on families this summer holiday, while supporting the leisure and hospitality sectors.

The scheme will bring in a temporary reduction in VAT from 20% to 5% across a range of eligible family activities, to include:

Admission tickets to many amusement parks, theme parks, zoos, and aquariums. (season tickets are not included)

Museums, galleries, theatres, circuses, and soft play areas are also included in the program.

Reduced VAT on admission tickets for many places will be for both parents and children.

Childrens meals will also be included (when eaten on site and marked as children's portions)

For Businesses:
Whilst it is hoped that this will increase business throughout the sector, there will be many practical challenges for the businesses themselves.

Accounting records will need to distinguish between qualifying and non-qualifying services and products.

Menus and price lists need updating, and staff need to be ready for the changes.

The scheme will come into effect from the 25th June, so now is the time to plan and make sure your business is ready to take advantage of the program and decide how you will communicate the changes to potential customers.

ALSO:
Additionally, children aged five to 15 in England will also be able to travel free on local bus services throughout August.

Dont forget to follow to keep upto date with everything Accounting.

05/06/2026

KFC Meal deal eater?… this one is for you!

A company that operates around 50 KFC restaurants has been in battle with HMRC.

Historically, charging VAT on Meal deals (as single standard-rated supplies), they argued that, in fact, the meals were multiple supplies, and some elements should fall outside of the VAT rated catagory, ie: dipping pots were actually small tubs of condiment.

Why this mattered: The sale of hot food (such as fried chicken) is standard rated for VAT purposes, whereas cold food items (including dip pots) are ordinarily zero-rated.

The question also centred around whether the dips were ancillary to the standard-rated hot food and therefore formed part of a single standard-rated supply.

The company, after numerous appeals and tribunals, won its appeal.

The next question is the impact this could have on many other restaurants that sell multiple mixed food elements as part of one “meal deal.”

And of course, whether this could lead to lower prices for us or increased profits for the restaurants without having to increase prices?

It also highlights the intricacies that are involved with tax, and in ensuring you are getting the best possible advice that is right for you and your business.