T & A Dixon Accountancy Services

14/07/2026

PAYING TAX TO HMRC
HMRC has launched a consultation on a significant change to how self-employed people and landlords pay their tax — and if the proposals go ahead, the way Self Assessment works could look very different from April 2029.

At the moment, Self Assessment taxpayers make two advance payments on account each year — in January and July — based on the previous year's bill. The new proposals would move to more frequent, in-year payments that more closely match when the income is actually earned.

For those with PAYE income as well as self-employed income — for example, a director also drawing a salary, or an employee with a side business — the proposal is that the Self Assessment element would be collected through the payroll each pay period from April 2029.

For the wider group of around 9.5 million Self Assessment taxpayers, HMRC is exploring whether monthly or quarterly payment options could replace the current January and July system.
To be clear: the proposals would not increase the total amount of tax owed. The change is purely about timing — collecting tax closer to when the income is earned rather than months later.

The consultation is open now and closes in autumn 2026. The government expects to introduce legislation before April 2029 if the reforms proceed.

If you are self-employed, a landlord, or a company director and want to understand what these changes might mean for your cash flow, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

07/07/2026

HMRC SECOND PAYMENT ON ACCOUNT

If you are self-employed, a landlord, or complete a Self Assessment tax return, the 31 July 2026 deadline is less than four weeks away.

This is the due date for your second payment on account towards your 2025/26 tax bill. Payments on account are advance payments
HMRC requires you to make twice a year — once in January and once in July — each equal to half of the previous year's tax liability.

A few things worth knowing before the deadline:

• Check the amount due: log into your HMRC online account or app to see exactly what you owe. The figure should also appear on your Self Assessment statement.
• Income has dropped this year? If your 2025/26 income is materially lower than last year, you can apply to reduce your payment on account before 31 July through your HMRC online account (select 'Reduce payments on account') or by submitting form SA303. Be careful — if you reduce it too far and your actual bill is higher, HMRC will charge interest on the shortfall from the original due date.
• Missing the deadline does not trigger a fixed penalty, but HMRC will charge interest at the Bank of England base rate plus 2.5% from 1 August. If you cannot pay in full, contact HMRC to set up a Time to Pay arrangement before the deadline.

If you have any questions about your Self Assessment position, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

30/06/2026

WRITING DOWN ALLOWANCE CHANGES
If your business invests in equipment, machinery, or vehicles, two changes to capital allowances from April 2026 are worth knowing about.

The first is a reduction. The writing-down allowance (WDA) on the main pool of plant and machinery has been cut from 18% to 14% per year. This affects the tax relief you get on any existing pool of assets as well as new purchases that do not qualify for the Annual Investment Allowance (AIA) or full expensing.

The second is an addition. A new 40% first-year allowance (FYA) has been introduced for main rate plant and machinery. This allows businesses — including sole traders and partnerships — to deduct 40% of the cost of qualifying assets in the year of purchase, even for assets that could not previously benefit from first-year allowances, such as assets used for leasing.

For most businesses buying equipment within the annual investment allowance limit of £1 million, these changes will have limited day-to-day impact. But for businesses with larger historic asset pools, or those buying assets not covered by the AIA, the interplay between the lower WDA and the new 40% FYA is worth reviewing.

If you are planning any significant investment in equipment or machinery this year and want to make sure you are claiming the right relief, give us a call on 01388 609045 or visit tadixon.co.uk.
T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

23/06/2026

WORKING FROM HOME ALLOWANCE

If you or any of your employees work from home, there is a change you need to know about from the 2026/27 tax year.

From 6 April 2026, employees can no longer claim income tax relief directly from HMRC for the extra household costs of working from home. This includes the well-known flat-rate claim of £6 per week (worth up to £124 a year for higher rate taxpayers). The relief has been abolished for unreimbursed costs, even where employees are contractually required to work from home.

There are two important things to note:

First, employers can still reimburse homeworking costs to employees tax-free and NIC-free, up to £6 per week or higher actual evidenced costs, where there is an agreement for the employee to work from home regularly. If you employ home workers and do not already pay this allowance, it is worth considering.

Second, the change only affects employees. If you are self-employed — a sole trader or partner — you can still claim working from home expenses through your accounts as before, either using the flat-rate simplified expenses or actual apportioned costs.

If you still have unclaimed years from 2021/22 onwards, those can still be claimed — but the window is closing.

If you would like advice on your business expenses or payroll obligations for home workers, give us a call on 01388 609045 or visit tadixon.co.uk.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

16/06/2026

Corporation Tax Return Filing Update
If you run a limited company and have been filing your own Corporation Tax return using HMRC's free online service, there is something you need to know.

HMRC's free Company Accounts and Tax Online service — known as CATO — closed permanently on 31 March 2026. From 1 April 2026, all companies must use HMRC-approved commercial software to file their annual accounts and Corporation Tax return (CT600). There is no free HMRC web form for companies in normal circumstances.

This matters for two reasons:

First, if you self-filed previously and have not yet made alternative arrangements for your next filing deadline, you need to do so now. Your next CT600 will need to go through compatible commercial software. Options range from free tools for micro-entity companies to low-cost paid services.

Second, previously filed returns are no longer accessible through CATO. HMRC recommended downloading and saving at least three years of historical returns before the service closed. If you have not done this, you may find gaps in your records.

If you are unsure whether this affects you, or you would like us to handle your Corporation Tax filing going forward, we are happy to help. Give us a call on 01388 609045 or visit tadixon.co.uk for a free initial chat.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

12/06/2026

P11D deadline 6 July 2026

If your business provides benefits or expenses to employees or directors, you have less than four weeks to submit your P11D forms to HMRC.

The deadline for reporting benefits and expenses for the 2025/26 tax year is 6 July 2026. By this date, employers must:
• Submit a P11D form for each employee or director who received a taxable benefit
• Submit a P11D(b) form declaring the total Class 1A National Insurance owed
• Provide employees with a copy of their P11D information

Common benefits that need reporting include company cars and fuel, private medical insurance, beneficial loans, gym memberships, personal expenses paid by the company, and assets made available for private use.

Note: if you have already registered to payroll your benefits through your payroll software, those benefits do not need to go on a P11D — but a P11D(b) may still be required.

Class 1A National Insurance on the reported benefits is due by 22 July (or 19 July if paying by cheque).

If you are unsure what needs reporting or need help pulling your P11D together, give us a call on 01388 609045 or visit tadixon.co.uk — we are happy to help.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

09/06/2026

📊 Is your bookkeeping costing you more than you think?

Many small business owners spend hours every week wrestling with receipts, invoices, and bank statements — time that could be spent actually running your business.

Whether you're a sole trader, in a partnership, or running a Limited Company here in County Durham, keeping accurate records isn't just good practice — it's a legal requirement.

Here's what good bookkeeping gives you:
✅ A clear picture of your cash flow
✅ Stress-free tax returns
✅ Confidence when making business decisions
✅ Protection if HMRC ever comes knocking

At T & A Dixon, we've been helping small businesses in and around Bishop Auckland with exactly this for nearly 30 years. We're a family-run firm — and we treat every client like one.

📞 Call Alan today for a FREE initial consultation:
👉 01388 609045
📧 [email protected]
🌐 www.tadixon.co.uk

T & A Dixon Accountancy Services is a family-run Accountants based on the outskirts of historic Bishop Auckland. We provide Accountancy, Payroll, Taxation and Company Secretarial Services to small and medium sized business.

29/05/2026

TAX ON DIVIDEND INCOME
If you run your business through a limited company and pay yourself dividends, it is worth knowing that dividend tax rates increased from 6 April 2026.

The changes affect all taxpayers who receive dividend income above the £500 annual dividend allowance:
• Basic rate taxpayers: dividend tax rises from 8.75% to 10.75%
• Higher rate taxpayers: rises from 33.75% to 35.75%
• Additional rate taxpayers: stays at 39.35%

For a director taking £30,000 in dividends in the basic rate band, that is roughly an extra £600 in tax compared to last year. It is not enormous, but it does mean reviewing your salary and dividend mix for 2026/27 is worthwhile.

Also worth noting: the annual dividend allowance has already dropped significantly in recent years, from £2,000 to just £500. Combined with the rate rise, the tax cost of dividend income has increased considerably over a short period.

If you would like to review the most tax-efficient way to take income from your company this year, give us a call on 01388 609045 or visit tadixon.co.uk. We are happy to run through the numbers with you.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

19/05/2026

MTD UPDATE

If you are a sole trader or landlord earning over £50,000 a year,

Making Tax Digital for Income Tax is now live — and your first quarterly deadline is approaching fast.

The first quarterly update covers the period from 6 April to 5 July 2026 and must be submitted to HMRC by 7 August 2026. That is just eleven weeks away.

Here is what you need to have in place right now:
• Digital records: every transaction from 6 April onwards must be recorded using MTD-compatible software. Paper records and standard spreadsheets alone no longer meet HMRC's requirements.
• Compatible software: you must use HMRC-approved software to keep records and submit your quarterly updates. Free options exist, but not all bookkeeping tools are approved — always check the HMRC approved software list.
• Four updates per year: the quarterly deadlines for 2026/27 are 7 August, 7 November, 7 February, and 7 May.

Not sure whether you are in scope, or which software suits your business? We are here to help. Give us a call on 01388 609045 or visit tadixon.co.uk for a free initial chat.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland

12/05/2026

If you employ staff, there is an important deadline coming up fast — P60s for the 2025/26 tax year must be provided to all employees by 31 May 2026.

A P60 summarises each employee's total pay and deductions for the year. The rule is simple: if someone was on your payroll on 5 April 2026, they need a P60 from you by the end of this month — whether you have one employee or twenty, and whether you pay directors monthly, quarterly, or irregularly.

A few points worth double-checking before you issue them:

Confirm your final payroll figures are settled before generating P60s — issuing them with errors causes headaches later.

Directors on irregular pay are included if they were on payroll on 5 April.

P60s can be issued on paper or electronically, but electronic delivery is only valid if the employee can actually access the system.

Also worth keeping in view: P11D forms reporting employee benefits and expenses are due by 6 July 2026 — not far behind.

If you need any help with year-end payroll or P60 preparation, give us a call on 01388 609045 or visit tadixon.co.uk — we are happy to help.

T & A Dixon Accountancy Services | tadixon.co.uk | Bishop Auckland