Xitax Accounting Solutions

Xitax Accounting Solutions Preparation of sole traders, limited companies, partnership accounts, personal tax, corporation tax, management accounts and VAT returns.

02/04/2026

From 6 April 2026, the State Pension age for both men and women will begin to increase from 66 to 67.

This change will be introduced gradually over a two year period. Individuals born between 6 April 1960 and 5 March 1961 will reach State Pension age at 66 plus a number of additional months, depending on their exact date of birth.

Anyone born between April 1961 and March 1977 will reach State Pension age at 67.

A further increase to age 68 is planned for those born from April 1977 onwards, although this remains under review.

30/03/2026

Changes to Statutory Sick Pay from 6 April 2026

This is one of the biggest updates to SSP in years and it will affect most employers.

SSP now starts from day 1
No more 3 waiting days. Employees are entitled to SSP from the first day they are off sick.

More employees qualify
The lower earnings limit is being removed, so even low-paid and part-time workers will be eligible.

New calculation method
SSP will be the lower of:
• £123.25 per week
• 80% of average weekly earnings

What this means for employers
• Increased cost for short-term absences
• More employees on payroll entitled to SSP
• Policies and payroll processes will need updating

27/03/2026

Prenups get talked about.

Postnups… almost never do.

But they should.

Reality check:

In England and Wales, there were over 102,000 divorces in 2023. And for those that end in divorce, the average marriage lasts around 12.7 years.

Even more telling: around 40% of marriages end before the 25-year mark.

This isn’t rare. It’s real life.

Prenuptial agreement (prenup)
– Signed before marriage

Postnuptial agreement (postnup)
– Signed after marriage

Both set out what should happen to finances if things don’t work out.

But here’s the key point…

Postnups are often more relevant, because they deal with real life, not assumptions.

What does the law actually say?

In England & Wales, these agreements are not automatically binding.

But they carry real weight.

The key case is:
Radmacher v Granatino [2010] UKSC 42

The Supreme Court said courts should generally uphold a nuptial agreement if:

• both parties entered into it freely
• both understood it
• it is fair

Since then, courts have taken these agreements seriously.

Why postnups matter more than people think

Life rarely stays the same after marriage:

• a business grows
• one spouse steps back from work
• wealth increases
• pensions build up significantly

A postnup allows you to reset expectations based on where you are now.

The uncomfortable truth about divorce

The court has very wide powers under the Matrimonial Causes Act 1973.

There is no fixed formula.

But in many cases, especially long marriages, outcomes can look broadly like a sharing approach.

That can include:

• property
• savings
• business interests
• and importantly… pensions

Pensions are the hidden risk

This is the bit most people miss.

Pensions are often one of the largest assets in a divorce, sometimes bigger than the house.

And yes, they can be shared.

The court can make:

• pension sharing orders
• pension attachment orders
• or offsetting arrangements

There is no automatic right to 50% of a pension.

But in some cases, a significant share can be awarded depending on the circumstances.

Why this matters

You might spend years building:

• a business
• investments
• a pension worth £500k+

Without an agreement, you are leaving the outcome to the court’s discretion.

And that outcome is not always predictable.

Final thought

Postnups are not about planning for divorce.

They are about:

• clarity
• fairness
• protecting what both parties have built
• and reducing conflict if things go wrong

If your financial position has changed since you got married…

…it might be time to have that conversation

27/03/2026

Thinking about setting up a trust? Here’s a simple breakdown

There are two main ways to use trusts in the UK:

1) Lifetime trust (set up now)
2) Will trust (comes into effect on death)

Key tax points to be aware of:

- Nil rate band: £325,000 per person (£650,000 for a couple)
- Can increase to £1,000,000 if the residence nil rate band applies
- Putting assets into a trust during lifetime:
- 20% tax on anything above the nil rate band (entry charge)
- 10-year charges on the value of the trust
- On death: 40% inheritance tax above allowances
- Capital gains tax may apply when assets go into or are sold within a trust (holdover relief may help)
- “Gift with reservation” rules apply if you still benefit from the asset (e.g. living in a property you gifted)

Important point:
Putting your main home into a trust while still living in it is usually not effective for tax.

So why use a trust? (Not just tax)

- Protect assets from creditors or bankruptcy
- Help with control and timing of inheritance
- Protect vulnerable or young beneficiaries
- Ringfence assets for children

Trusts can be powerful, but they need to be structured properly. The wrong setup can create tax without the benefit.

If you’re considering this, always take advice first.

23/03/2026

With the tax year ending on 5 April 2026, it might be a good time to think about your children as well.

Have you considered a Junior ISA?

A Junior ISA allows you to invest or save up to £9,000 per child each tax year, and any growth is tax free.

You have two options:
• Cash Junior ISA - savings, low risk
• Stocks & Shares Junior ISA - invested for long term growth

The money is locked until the child turns 18, but that can be a positive. It gives the investment time to grow.

This is where the compound effect matters.

For example, if you invested £1,000 when your child is born:
• at 5% growth - around £2,400 by age 18
• at 7% growth - around £3,300 by age 18

That is without adding anything further.

Starting early makes a big difference, even with smaller amounts.

It is not just about saving money, it is about giving them a financial head start.

If you are already thinking about your own allowances, it is worth considering this before the year end as well.

23/03/2026

A lot of people are putting money into pensions and stocks & shares ISAs, but do not actually know where the money goes.

So here is the simple version.

Your money is not just sitting there.
It is usually invested in funds.

A fund is a basket of investments, so your money is spread across lots of companies and assets rather than relying on one.

For example:
If your money is in a global fund, you might be investing in companies like Apple, Microsoft, or Amazon, along with many others around the world.

Inside these funds you will typically have:
• shares in companies (higher growth, more ups and downs)
• bonds (more stable, lower return)
• or a mix of both

Some funds simply follow the market (low cost), others are actively managed (higher cost).

That is why values go up and down. It is not a savings account.

Two simple questions worth asking:
• what is my money invested in?
• what level of risk am I taking?

Most people do not ask this, but it makes a big difference over time.

23/03/2026

Tax year ends 5 April 2026. Have you used your allowances?

If you have spare cash, think about where it should go:

• Short term - Cash ISA (safe, easy access)
• Long term - Stocks & Shares ISA (potential for growth)

If you are a higher rate taxpayer, pension contributions can be very powerful:

• reduce your taxable income
• give you immediate tax relief
• money is invested for long term growth

Yes, pensions are locked away, but you get the benefit today through tax savings and uplift.

Simple rule:
Need access - ISA
Want growth - invest
Want tax efficiency - pension

If you are unsure what works best for your situation, it is worth reviewing before the year end.

19/03/2026

Making Tax Digital (MTD) – landlords & sole traders

If you have combined gross income of £50,000 or more from self-employment and/or rental property, you will need to comply with MTD for Income Tax from April 2026.

This means:
• Keeping digital records
• Submitting quarterly updates to HMRC
• Filing a final end-of-year return

HMRC will calculate your tax liability. You do not need to include adjustments in the quarterly submissions, these are done at the year end.

From April 2027, this will extend to those with gross income over £30,000, and from April 2028 to those over £20,000.

If you want to get ahead of this, now is the time to act. We highly recommend using Xero. Their simple package starts from around £7 per month and is fully MTD compliant.

19/03/2026

Bank of England holds base rate at 3.75%

18/03/2026

Minimum Wage Update: From 6 April 2026

The new UK minimum wage rates will be:

National Living Wage (age 21+)
£12.71 per hour (up 50p)

Age 18–20
£10.85 per hour (up 85p)

Age 16–17
£8.00 per hour (up 45p)

Apprentice Rate
£8.00 per hour (up 45p)

Employers should review payroll and budgets ahead of April to ensure compliance.

A Milestone Worth Celebrating We were meant to post this yesterday, but some milestones deserve celebrating properly.19 ...
21/02/2026

A Milestone Worth Celebrating

We were meant to post this yesterday, but some milestones deserve celebrating properly.

19 years in accountancy.

What began in 2007 as the start of a career has grown into something I am incredibly proud of. In 2015, I set up Xitax with a simple aim: to support business owners with straightforward, reliable advice they can trust.

There have been countless changes in tax rules and regulation over the years, but what has never changed is my commitment to doing things properly and putting clients first.

Thank you to everyone who has supported the journey, trusted the advice and been part of the growth.

Here’s to continuing the work and building on what has been achieved.

30/01/2026

Client question: “If I buy a house for my child, do I get a tax rebate?”

Short answer: no.

I have seen a lot of articles making this sound simple, but it really is not.

1) There is no tax rebate for buying your child a property

Buying a property for your child to live in does not create some special tax relief. If anything, it can create extra tax costs depending on how it’s done.

2) “What if I buy it in my child’s name?”

If the property is in your child’s name and you give them the money to buy it, then yes, you avoid a lot of the issues that come up when you own the property (for example, your own future Capital Gains Tax on sale).

But you need to be clear what that actually means:
• You are making a gift for inheritance tax purposes
• The seven-year clock starts (potentially exempt transfer)
• If you survive seven years, that gifted amount can fall outside your estate for inheritance tax

Example: if you gift £500,000 and survive seven years, that £500,000 can be outside your estate for IHT.

3) The big practical issue: once you gift it, it is no longer yours

This is the part most people gloss over.

Once the money is gifted (and used to buy a house), you have no control. You cannot later decide you want the money back. A gift is a gift.

And you also need to think about real-life risks:
• If your child later marries and divorces, that property can become part of a divorce settlement
• If your child has financial problems, the asset is theirs, not yours
• You cannot “undo” it

4) Stamp Duty can still be higher depending on the structure

If you buy an additional property in your own name, and you already own a property, you may be looking at higher SDLT (additional property rates).

If it’s bought in your child’s name and they do not own another property, the higher rates may not apply, but it depends on the facts.

5) Don’t mix up inheritance tax planning with income tax and CGT

Gifting is mainly an inheritance tax strategy.

It has nothing to do with getting an income tax rebate, and it is not a CGT strategy in itself.

If you have an IHT problem (for example, your estate is over the nil rate band thresholds), then starting gifts early can be sensible.

You can gift:
• £3,000 per year (annual exemption)
• Gifts out of excess income (if the conditions are met)
• Larger gifts that start the seven-year clock

Bottom line

Yes, you can help your child buy a home.
No, you do not get a tax rebate.
And if something sounds too good to be true online, it usually is.

If you are considering this, get advice first, because the best approach depends on your family situation, your estate size, and how much control you want to keep.

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