JCM Accountancy Limited

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JCM Accountancy Limited Precision in Numbers. Confidence in Business.

JCM Accountancy Limited provides premium accountancy and taxation services, delivering expert guidance across Accounts, VAT, Payroll, Bookkeeping, Xero, Tax Planning and Business Support.

🇬🇧 AUTUMN BUDGET 2026 – KEY TAX CHANGES!The Chancellor has announced changes that could affect business owners, sole tra...
29/10/2026

🇬🇧 AUTUMN BUDGET 2026 – KEY TAX CHANGES!

The Chancellor has announced changes that could affect business owners, sole traders, landlords and individuals.

Here’s what you need to know! 👇

🏢 LIMITED COMPANIES & DIRECTORS
▪️ Capital allowance writing-down rate reducing to 12% from April 2027.
▪️ Qualifying first-year allowance increasing to 50% from January 2027.
▪️ Business Asset Disposal Relief lifetime limit reducing from £1 million to £500,000 from April 2027.
▪️ New rules targeting certain company distributions planned from April 2028.

👷 SOLE TRADERS & SELF-EMPLOYED
▪️ Trading allowance increasing from £1,000 to £3,000 from April 2027.
▪️ Self Assessment trading income reporting threshold also increasing to £3,000.
▪️ Making Tax Digital threshold reducing to £30,000 from April 2027.
▪️ Temporary late submission penalty easement for new MTD entrants in 2027/28.

🏠 LANDLORDS & RENTAL INCOME
▪️ Property Income Tax rates increasing from April 2027:
• Basic rate: 24%
• Higher rate: 44%
• Additional rate: 49%
▪️ Landlords with qualifying combined income over £30,000 brought into MTD from April 2027.

💷 PERSONAL TAX & INVESTMENTS
▪️ Savings Income Tax rates increasing to 24%, 44% and 49% from April 2027.
▪️ Frozen Income Tax thresholds could mean higher tax bills as earnings increase.
▪️ Changes to Self Assessment payments on account planned from April 2029.

🧾 VAT & DIGITAL COMPLIANCE
▪️ Online marketplaces taking on additional VAT collection responsibilities from October 2027.
▪️ Mandatory VAT electronic invoicing planned from April 2029.

📌 WHAT DOES THIS MEAN FOR YOU?

These changes could affect your tax liabilities, business investments, rental profits and future financial planning.

At JCM Accountancy Limited, we help individuals and businesses understand tax changes, remain compliant and plan ahead.

📩 Contact us to discuss how the Budget could affect you!

JCM ACCOUNTANCY LIMITED
ACCA Regulated Accountants

🥂 Taking a client out for dinner? Don’t assume it’s tax deductible.Client entertaining is one of those expenses that cau...
28/10/2026

🥂 Taking a client out for dinner? Don’t assume it’s tax deductible.

Client entertaining is one of those expenses that causes plenty of confusion.

You can usually put genuine business entertaining costs through your accounts — but for UK tax purposes, client entertaining is generally not deductible when calculating your taxable profits.

That means if you take a client or potential client out for:

🍽️ Dinner
🥂 Drinks
⚽ A sporting event
🎭 Hospitality or entertainment
⛳ A round of golf

…the business may pay for it, but you generally won’t receive Corporation Tax or Income Tax relief on the cost.

And there’s another catch: VAT.

If you’re VAT registered, input VAT on business entertainment provided to UK clients or prospective clients is generally blocked, so you normally cannot reclaim the VAT either.

For example, a client meal costing £240 including £40 VAT would ordinarily mean:

£240 business cost
❌ No Corporation Tax deduction
❌ No £40 VAT reclaim

However, staff entertaining is treated differently and can potentially qualify for tax relief and VAT recovery, subject to the relevant rules.

So before assuming that putting the company card down makes dinner “tax deductible”, remember:

Business expense ≠ automatically tax deductible.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

🍺 “John in the pub said he puts it through the business…”We hear plenty of tax advice that starts like this. Unfortunate...
26/10/2026

🍺 “John in the pub said he puts it through the business…”

We hear plenty of tax advice that starts like this. Unfortunately, paying for something from the business account does not automatically make it tax deductible.

Here are a few of our favourites…

🍹 MYTH 1: “I put all my holidays through my limited company — I save the tax.”

FACT: A private holiday does not become a business expense because the company paid for it. If it is personal expenditure, your accountant may have posted it to your Director’s Loan Account rather than claiming tax relief. If that balance is later cleared by a dividend, you could then have dividend tax personally, assuming there are sufficient distributable profits and the dividend is validly declared.

⛳ MYTH 2: “I put my golf trips with my mates through the business and claim the VAT and tax back.”

FACT: A weekend playing golf with friends is private expenditure. Even genuine business entertaining is generally specifically disallowed when calculating taxable profits under s45 ITTOIA 2005 for unincorporated businesses and s1298 CTA 2009 for companies. HMRC also generally blocks input VAT on entertainment provided to UK business contacts.

So calling your friends “clients” doesn’t suddenly make the golf weekend deductible.

🚘 MYTH 3: “My business bought my car, so I claimed all the VAT back.”

FACT: VAT on the purchase of a car is normally blocked. For most businesses, full VAT recovery requires the car to be used exclusively for business purposes and not made available for private use. There are separate exceptions for certain activities such as taxi hire, self-drive hire and driving instruction.

Driving it home and using it personally is therefore very different from a genuine business-only vehicle.

💷 MYTH 4: “I’m a sole trader, so the money I take out each month is my wage and reduces my tax.”

FACT: You cannot employ yourself as a sole trader. Money you take from the business is drawings, not a deductible wage. Your Income Tax is calculated on your taxable business profit, not on how much cash you withdraw. HMRC specifically identifies proprietor “wages” as drawings rather than an allowable business expense.

🚗 MYTH 5: “I put all the HP payments on my personal car through as a motor expense.”

FACT: Not quite. If you own the car under HP, the capital element isn’t simply deducted as a motor expense; the appropriate tax relief may instead come through capital allowances, subject to the car rules and your business/private use. The finance/interest element can be deductible, but for a mixed-use car it needs to be restricted to the business-use proportion.

And ordinary home-to-work commuting is generally private travel, so don’t assume those miles form part of your business percentage.

⌚ MYTH 6: “My company bought me a Rolex — so it’s tax deductible.”

FACT: A company paying for a Rolex for a director doesn’t magically turn a luxury watch into a tax-free business expense. The purpose and actual use matter. Expenditure must satisfy the wholly and exclusively test for a trading deduction, and an asset made available to a director for private use can also create a taxable benefit.

If a company genuinely acquires an asset solely as an investment and it isn’t available for the director’s private use, that’s a different set of facts — but wearing your “company investment” on your wrist is where that argument starts becoming difficult.

🍺 Moral of the story?

John in the pub might be very good company. He isn’t necessarily very good tax advice.

Before you “put it through the business”, speak to your accountant and find out what you’re actually entitled to claim.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

📢 Making Tax Digital is expanding again from April 2027 — will you be affected?From 6 April 2027, MTD for Income Tax is ...
23/10/2026

📢 Making Tax Digital is expanding again from April 2027 — will you be affected?

From 6 April 2027, MTD for Income Tax is due to apply if your qualifying gross income from self-employment and property is over £30,000 a year.

If this applies to you, Self Assessment is changing. Instead of dealing with everything once a year, you’ll need to keep digital records and use MTD-compatible software to report information to HMRC throughout the year.

Under MTD, you’ll generally have:

📅 4 quarterly updates throughout the tax year
📑 1 final tax return after the end of the year

💻 Our advice? Get ahead now.

Start using compatible software before April 2027 and get comfortable with recording your income and expenses digitally. If you can maintain good bookkeeping records yourself, you may also be able to avoid or reduce additional bookkeeping charges when MTD begins.

You’ll also need to make sure you’re registered for MTD for Income Tax when required.

April 2027 might sound a long way away, but changing your bookkeeping habits now will make the transition considerably easier.

Don’t wait until MTD becomes mandatory to start getting ready.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

📣 Had self-employed or rental income between 6 April 2025 and 5 April 2026?If you need to complete a Self Assessment tax...
21/10/2026

📣 Had self-employed or rental income between 6 April 2025 and 5 April 2026?

If you need to complete a Self Assessment tax return but haven’t registered with HMRC yet, now is the time to get it sorted.

The registration deadline is generally 5 October 2026 where you need to notify HMRC that you are chargeable to tax for the first time.

Not sure where to start? You’re not alone. Whether you’ve started a new business, picked up some freelance work or begun receiving rental income, the process can feel confusing when it’s your first tax return.

At JCM Accountancy Limited, we can help with:

✓ Registering you for Self Assessment
✓ Confirming what records and information you need
✓ Preparing your accounts and tax return
✓ Calculating your tax liability
✓ Explaining Payments on Account where applicable
✓ Submitting your return to HMRC

⚠️ Don’t forget: registering for Self Assessment and submitting your tax return are two separate things. The online filing and payment deadline for the 2025/26 tax year is 31 January 2027.

Not registered and don’t know where to start? Get in touch and we’ll guide you through it.

📞 0191 464 7173
📧 [email protected]
📍 144–146 Fowler Street, South Shields

💷 Why is my January tax bill so much higher than I expected?The answer could be Payments on Account — and they can catch...
19/10/2026

💷 Why is my January tax bill so much higher than I expected?

The answer could be Payments on Account — and they can catch you off guard the first time they apply.

If your Self Assessment tax bill is more than £1,000, HMRC will normally ask you to make advance payments towards your next year’s tax bill too. There are exceptions, including where more than 80% of the relevant tax was collected outside Self Assessment.

Payments on Account are generally calculated as two instalments of 50% of the previous year’s relevant tax liability.

For example, if your relevant tax bill is £4,000:

➡️ 31 January: £4,000 balancing payment + £2,000 first Payment on Account = £6,000 to pay

➡️ 31 July: £2,000 second Payment on Account

That means you could be asked to pay £8,000 across the year, even though the tax liability shown for the previous year was £4,000.

The extra £4,000 isn’t another tax charge — it is being paid on account towards the following tax year. But if you weren’t expecting it, it can create a significant cash-flow shock.

This is another reason why getting your tax return completed early matters. Knowing your liability months before January gives you time to budget, save and plan.

If your income has genuinely fallen, it may also be possible to apply to reduce your Payments on Account — but they shouldn’t be reduced without a reasonable basis, as interest can arise if they’re reduced too far.

Don’t wait until January to find out what you owe.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

⏳ 31 January might feel a long way off… but it will be here before you know it.The Self Assessment deadline has a habit ...
16/10/2026

⏳ 31 January might feel a long way off… but it will be here before you know it.

The Self Assessment deadline has a habit of arriving quickly — and leaving your tax return until January can mean unnecessary stress and very little time to plan.

Getting your records to your accountant as early as possible gives them the time to properly prepare and review your return — and gives you more time to prepare financially.

💷 Tax to pay?
The earlier you know your liability, the longer you have to put the money aside before the 31 January deadline.

💰 Due a refund?
Why wait until January? Getting your return submitted sooner could mean receiving money owed back to you much earlier.

And remember — submitting your tax return early doesn’t mean you have to pay your tax early. You can still pay by the normal deadline.

Don’t let January become a last-minute rush.

Records ready? Send them to your accountant now.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

👔 Can you claim your work clothes as a business expense? Not necessarily.One of the biggest misconceptions around busine...
14/10/2026

👔 Can you claim your work clothes as a business expense? Not necessarily.

One of the biggest misconceptions around business expenses is that if you only wear something for work, it automatically becomes tax deductible.

HMRC’s rules are stricter than that.

For the self-employed, an expense generally needs to be incurred wholly and exclusively for the purposes of the trade. Ordinary clothing such as suits, shirts, trousers and shoes normally has an inherent dual purpose: it keeps you clothed as well as making you presentable for work.

So even if you buy a £1,000 suit specifically for client meetings and never wear it socially, that does not normally make the cost allowable.

✅ What can potentially qualify?
Protective clothing required for your work, specialist uniforms or costumes, and clothing that genuinely forms part of an identifiable business uniform.

🏷️ What about company-branded clothing?
Adding permanent and conspicuous company branding — for example an embroidered company logo — can help turn clothing into a recognisable uniform rather than ordinary everyday clothing. But simply adding a tiny or removable logo isn’t an automatic route to tax relief; the overall facts still matter.

❌ A normal business suit with no branding?
Generally not deductible simply because you wear it exclusively at work.

The key distinction is business use versus dual purpose.

“I only wear it for work” and “HMRC allows it as a business expense” are not the same thing.

Unsure whether an expense is genuinely allowable? Speak to JCM Accountancy Limited before claiming it.

📞 0191 464 7173
📧 [email protected]

⌚ Bought a Rolex through the business? That doesn’t automatically make it tax deductible.Putting something through the c...
12/10/2026

⌚ Bought a Rolex through the business? That doesn’t automatically make it tax deductible.

Putting something through the company bank account and being able to claim tax relief on it are two very different things.

For most business expenses, HMRC considers whether the cost was incurred wholly and exclusively for the purposes of the trade.

A Rolex worn by a director or business owner has an obvious private purpose too. You can wear it outside work, enjoy it personally and retain the benefit of owning it. That dual purpose makes claiming it as an ordinary business expense extremely difficult.

But what if the Rolex is bought as an investment asset?

That can be different. If the business genuinely purchases watches as investments, holds them solely for investment/resale and there is no private use, the accounting and tax treatment needs to be considered based on the facts.

The problem? The moment the director starts wearing the watch, the position becomes much harder to defend. Simply calling something an “investment” doesn’t make it one for tax purposes.

A £10,000 Rolex bought by the company ≠ a £10,000 tax deduction.

This is an area where the purpose, ownership, accounting treatment and actual use of the asset matter — and getting it wrong can create further tax consequences.

Before putting luxury purchases through your company, get advice first.

JCM Accountancy Limited
📞 0191 464 7173
📧 [email protected]

💷 Taking money from your limited company? A dividend isn’t your only option.A Director’s Loan Account (DLA) can allow yo...
09/10/2026

💷 Taking money from your limited company? A dividend isn’t your only option.

A Director’s Loan Account (DLA) can allow you to take money from your company without immediately treating the withdrawal as salary or a dividend — but the tax rules and repayment deadlines matter.

If your Director’s Loan Account becomes overdrawn, the company will generally need the outstanding balance to be repaid within 9 months and 1 day of the company’s year-end to avoid a Section 455 Corporation Tax charge.

⚠️ It’s important to remember that this isn’t simply a way of taking company money tax-free. Depending on the amount borrowed, how long it remains outstanding and whether interest is charged, there can also be benefit-in-kind and personal tax implications.

Used correctly, a Director’s Loan Account can be a useful short-term cash-flow tool. Used without proper planning, it can create an unexpected tax bill.

At JCM Accountancy Limited, we can help you plan withdrawals from your company and understand the most tax-efficient combination of salary, dividends and director’s loans for your circumstances.

📞 0191 464 7173
📧 [email protected]
📍 144–146 Fowler Street, South Shields

Before taking money from your company, understand the tax consequences first.

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144-146 Fowler Street
South Shields
NE331PZ

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