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Christopher R Brown Ltd

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Christopher R Brown Ltd

Christopher R Brown Ltd is a leading independent firm of chartered Accountants in Clevedon. We offer a wide range of accountancy and tax advice.

17/07/2026

Self Assessment penalty warning: not all voluntary returns need filing.

A recent First Tier Tribunal ruling is worth knowing about. The case of Gerrit Wals v HMRC established that HMRC cannot charge late-filing penalties for voluntary Self Assessment returns - returns where no notice to file was ever issued.

This is a point that's easily missed - and it matters if you've received a penalty for filing late when you filed voluntarily without being formally required to.

The broader point this raises: do you actually need to be in Self Assessment?

You need to register if you:
- Are self-employed with income over £1,000
- Are a company director
- Have untaxed income over £2,500
- Have income over £100,000
- Received a formal notice to file from HMRC

If you're filing voluntarily and shouldn't be, or if you've received a penalty on a return filed without a formal notice - this ruling may be relevant to you.

Penalties aren't always correct. Get in touch if you've had one and aren't sure it's valid.

14/07/2026

Dividend tax went up again in April. Have you rebalanced?

From 6 April 2026, the basic rate rose from 8.75% to 10.75% and the upper rate from 33.75% to 35.75%. Only the 39.35% additional rate stayed the same. If you're a director-shareholder taking dividends, your tax bill just went up.

The dividend allowance is still only £500.

What to review now:
- Your salary vs dividends mix for 2026/27
- Whether pension contributions could reduce your overall tax bill more efficiently
- If you have a spouse or civil partner as a shareholder, whether dividend splitting still makes sense at the new rates
- Whether retained profits in the company might be a better strategy

The higher dividend tax rates are another step in the gradual narrowing of the gap between sole trader and limited company taxation. But limited companies can still be significantly more efficient - especially when pension contributions and retained profits are part of the plan.

Speak to us before the end of July to make sure your 2026/27 extraction strategy is right.

10/07/2026

Day-one sick pay is now law - is your HR policy up to date?

Under the Employment Rights Act 2025, the three-day waiting period for Statutory Sick Pay is gone. From April 2026, employees are entitled to SSP from their very first day of illness. And crucially, the Lower Earnings Limit for SSP has been removed - so even low-earners now qualify.

This matters for small businesses because:
- You can no longer use the 3-day waiting rule to deter sick days
- Part-time staff on low wages now all qualify for SSP
- The new Fair Work Agency has powers to issue 200% penalties for non-compliance
- You must keep records of every absence - even a single day

The National Living Wage also rose to £12.71/hr (age 21+) from April 2026, with 18-20 year olds seeing an 8.5% jump to £10.85/hr. If you employ hourly-paid staff, review your contracts and records now.

Small businesses are the ones the Fair Work Agency tends to catch out. Don't be one of them - get your HR policies reviewed.

07/07/2026

Can you incorporate to avoid Making Tax Digital?

Yes - and it's completely legitimate. A limited company is subject to Corporation Tax, not Income Tax. That places you entirely outside the scope of MTD for Income Tax.

For sole traders approaching the £50,000 income threshold who were already considering incorporation, MTD is now an additional reason to make the move. But be careful: incorporation should never be driven by tax compliance avoidance alone. There are real costs and admin obligations involved.

The fuller picture:
- Limited companies don't do MTD for Income Tax
- But you will have more admin: corporation tax returns, annual accounts, Companies House filings
- You'll need an accountant - budget £500-£2,000 per year at minimum
- You should only incorporate if the overall tax saving justifies it

At profit levels above around £60,000, the combined benefit of lower corporation tax + dividend efficiency + escaping MTD admin can be compelling. Below £40,000, it often isn't worth it.

Book a chat with us and we'll model both scenarios for your situation.

03/07/2026

VAT registration trap: are you monitoring your rolling turnover?

The VAT registration threshold is £90,000 - but you must register if your turnover exceeds that on a rolling 12-month basis, not just at the end of your financial year. Many small businesses get caught out by this, especially when they have a strong run of new clients.

Real-world example: a service business takes on two big clients in May and June. By August their rolling 12-month turnover has crossed £90,000 - even if the calendar year total still looks modest. If they only review turnover annually, they miss the trigger and end up funding backdated VAT out of current cashflow.

HMRC can backdate VAT registration and charge penalties. Avoid this by:
- Checking your rolling 12-month turnover monthly
- Knowing your threshold is gross sales - before any expenses
- Understanding that exceeding the threshold even for one month can trigger registration
- Notifying HMRC within 30 days of breaching the threshold

Already over the threshold but not registered? Let's talk. Voluntary disclosure now is far better than HMRC discovering it later.

30/06/2026

Close company directors: HMRC wants to know about every withdrawal.

HMRC is consulting on new rules that would require close companies to report details of individual transactions with their owners - including cash withdrawals, loans, dividends and other distributions.

If the proposals become law, companies would have to report:
- The amount and date of each transaction
- The recipient's name, address and National Insurance number

This is part of HMRC's drive to close the small business tax gap - which currently represents 60% of the UK's estimated overall tax shortfall.

What should you do now?
- Make sure your dividend records are clean and formally documented
- Directors' loan accounts should be reconciled and properly recorded
- Don't mix personal and business expenditure - even temporarily

If your record-keeping has been a bit informal, now is the time to tighten things up. We can help you get audit-ready.

26/06/2026

P11Ds are gone - benefits in kind are now through payroll.

From April 2026, HMRC made it mandatory to report most benefits in kind through your payroll software in real time - rather than filing a year-end P11D form. This is a significant change to how company cars, health insurance, gym memberships and other perks are taxed.

What it means for you:
- Benefits must be reported through payroll as they're provided - not at year end
- Income Tax and Class 1A NICs are collected throughout the year
- Employees no longer claim homeworking relief via their tax code (employers reimburse via payroll instead)
- Certain employer-funded health benefits and eye tests are now tax-exempt when processed through payroll

If you're still running your payroll the old way, this is a wake-up call. Outdated software or manual processes will cause errors and potential HMRC penalties.

We can review your current payroll setup and make sure you're fully compliant.

23/06/2026

Thinking of incorporating? The rules on Incorporation Relief just changed.

If you're a sole trader or partnership considering moving into a limited company, there's something important you need to know. Incorporation Relief - which allows you to transfer your business without an immediate Capital Gains Tax bill - changed on 6 April 2026.

The relief itself hasn't been removed. You can still defer CGT when you transfer your business to a limited company in exchange for shares. But how you claim it and the conditions around it have shifted following the 2025 Budget announcement.

If you've been putting off incorporation, the time to act and get proper advice is now - not in a rush at the end of the tax year.

What you'll need to consider:
- The value of goodwill and assets being transferred
- Whether full business integration relief conditions are met
- How shares are structured on incorporation
- Whether the timing works in your favour

This is one area where the wrong decision can cost thousands. Get specialist advice before you act.

19/06/2026

MTD Phase 2 is coming April 2027 - is your income between £30k and £50k?

Making Tax Digital started with incomes over £50,000 in April 2026. But next April, the threshold drops to £30,000 - bringing an estimated 970,000 more sole traders and landlords into the system.

Then in April 2028: the threshold drops again to £20,000.

If you're earning between £30k and £50k from self-employment or property, you have roughly 10 months to prepare. That means:

- Choosing MTD-compatible software (Xero, QuickBooks, FreeAgent, HMRC-approved apps)
- Setting up digital record-keeping now so the habit is formed
- Understanding what counts towards the threshold - it's gross income, not profit
- Getting an accountant set up on your software

The businesses that prepare early find it straightforward. The ones that leave it until March are the ones who panic.

Talk to us today about getting MTD-ready before the deadline.

16/06/2026

Employer NI is 15%. What it really costs your business.

Since April 2025, employer National Insurance has been 15% - and the threshold dropped from £9,100 to just £5,000 per employee per year. That means you're now paying NI on nearly every employee, including many part-timers who were previously exempt.

For an employee on the UK average wage of £36,000, that's an extra £938 per year in employer NI. Multiply that across your team and the impact stacks up fast.

The good news? The Employment Allowance is now £10,500, with the old £100,000 eligibility cap completely removed. For many small businesses, this wipes out the NI bill entirely.

A business with 5 employees each earning £25,000 has an NI bill of around £15,000. After the allowance: just £4,500.

Are you claiming yours? Many businesses forget to activate it in their first payroll submission. Let us check.

Address

Tickton Lodge, Clevedon
Bristol
BS217NR

Opening Hours

Monday	8:30am - 5pm
Tuesday	8:30am - 5pm
Wednesday	8:30am - 5pm
Thursday	8:30am - 5pm
Friday	8:30am - 5pm

Website

http://www.crb1.co.uk/

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