Total Tax Accountants

20/07/2026

17/07/2026

16/07/2026

Attention drivers 🚗

Claim Tax Relief for Using a Vehicle for Work

If you use a car, van, motorcycle or bicycle for work, you may be able to claim tax relief on eligible business travel.

Please note that ordinary commuting between your home and your usual workplace does not qualify, unless you are travelling to a temporary workplace.

The amount you can claim depends on whether you use:

* A vehicle that you own or lease personally.
* A company vehicle provided or leased by your employer.

If you are eligible, you can claim for the current tax year as well as the previous four tax years.

Using Your Own Vehicle

If you use your own vehicle for business journeys, you may be entitled to claim tax relief based on HMRC’s approved mileage rates. These rates are designed to cover the overall cost of owning and running your vehicle, so you cannot claim separately for expenses such as:

* Fuel or electricity
* Vehicle tax
* MOT tests
* Repairs and maintenance

To calculate your claim for each tax year, you should:

* Keep accurate records of the dates and mileage for all business journeys.
* Total the business mileage for each type of vehicle used.
* Deduct any mileage payments or allowances reimbursed by your employer.

Approved Mileage Rates

2026–2027 tax year

* Cars and goods vehicles – first 10,000 business miles: 55p per mile
* Cars and goods vehicles – over 10,000 business miles: 25p per mile
* Motorcycles: 24p per mile
* Bicycles: 20p per mile

Before 6 April 2026

* Cars and goods vehicles – first 10,000 business miles: 45p per mile
* Cars and goods vehicles – over 10,000 business miles: 25p per mile
* Motorcycles: 24p per mile
* Bicycles: 20p per mile

Using a Company Car

If you use a company car for business travel, you may be able to claim tax relief on the cost of fuel or electricity used for business journeys. You should keep records of the actual fuel or electricity costs incurred.

If your employer reimburses part of these costs, you can only claim tax relief on the remaining amount you have paid yourself.

How to Claim

When submitting your claim, you must provide HM Revenue & Customs (HMRC) with copies of your mileage logs. These should include:

* The purpose of every journey.
* The postcode of the starting location.
* The postcode of the destination.

If you are claiming for more than one employment, you must provide a separate mileage log for each employer.

You can use HMRC’s online service to check whether you are eligible and to make a claim.

If you complete a Self Assessment tax return, you must claim this tax relief through your tax return instead.
Need assistance? Get in touch with us Total Tax Accountants

14/07/2026

What to Do If You Cannot Pay Your Tax Bill on Time

If you’re unable to pay your tax bill in full by the deadline, you may be eligible to arrange a payment plan with HM Revenue & Customs (HMRC), allowing you to spread the cost over monthly instalments.

HMRC will assess your financial circumstances to determine whether the proposed payment plan is affordable. If an agreement cannot be reached, you will be required to pay the outstanding balance in full.

Setting Up a Payment Plan

If your tax bill is overdue, you may be able to pay it in monthly instalments through a payment plan.

To apply, you’ll need:

* The relevant tax reference number (such as your Unique Taxpayer Reference), which can usually be found on correspondence from HMRC.
* Your UK bank account details, as payments are made by Direct Debit. You must be authorised to set one up.
* Details of your income and expenditure, or your company’s income and expenditure if the debt relates to company tax.

If your tax bill is not yet overdue and you’d like to make regular weekly or monthly payments towards your next Self Assessment bill, you may be eligible for a Budget Payment Plan instead.

Apply Online

You can check your eligibility and set up a payment plan online using HMRC’s online service.

If You Cannot Apply Online

If you’re unable to set up a payment plan online, you’ll need to contact HMRC and provide details of:

* Whether you can pay the full amount.
* How much you can afford to repay each month.
* Any other taxes you currently owe.
* Your income.
* Your usual monthly expenditure.
* Any savings or investments you have.

HMRC will use this information to assess your application. If you have savings or valuable assets, you’ll normally be expected to use these to reduce your tax debt before a payment plan is agreed.

If you’ve received independent debt advice, for example from Citizens Advice, and have a Standard Financial Statement, HMRC will usually accept this as evidence of your income and expenditure.

If Your Company Owes Tax

If your company has tax arrears, HMRC will ask how you intend to repay the outstanding amount as quickly as possible. They’ll review your proposal to ensure it’s realistic and affordable.

Before agreeing to a payment plan, HMRC will expect your business to reduce the debt wherever possible by releasing assets, such as stock, vehicles or shares.

HMRC may also ask company directors to:

* Inject personal funds into the business.
* Obtain additional finance or borrowing.
* Extend existing credit facilities.

How Much You’ll Pay

The amount you’ll be asked to pay each month will depend on your disposable income after covering essential living costs, such as rent or mortgage payments, food, utility bills, and any fixed monthly commitments, including subscriptions.

In most cases, HM Revenue & Customs (HMRC) will expect you to pay around half of your remaining disposable income towards your outstanding tax debt each month.

You’re free to pay more than the suggested amount if you wish. Clearing your debt sooner will reduce the amount of interest you pay overall.

If you receive a pension, HMRC will treat your pension payments as income. However, the value of your pension pot itself will not be counted as savings.

How Long a Payment Plan Can Last

There is no fixed maximum length for a payment plan. The duration will depend on the amount you owe and what you can realistically afford to repay each month.

If your financial circumstances change, you should notify HMRC as soon as possible. Your payment plan may be adjusted by extending or shortening the repayment period.

Likewise, if HMRC becomes aware of changes to your financial situation, they may contact you to review and amend your repayment arrangement.

If You Miss a Payment

If you miss a payment, HMRC will contact you to understand the reason. Where possible, they will work with you to rearrange or renegotiate your payment plan.

If you receive another tax bill that you cannot pay, you should contact HMRC immediately. Depending on your circumstances, it may be possible to include the new tax liability within your existing payment plan.

10/07/2026

Self Assessment customers! There’s less than one month to go to file your payment on account. 📆

Did you know you can make tax payments via the HMRC app? 📲

Watch our simple YouTube explainer to find out how. 👇

https://www.youtube.com/watch?v=FizsvQbH-xM

09/07/2026

Tax on Savings Interest

Most people can earn interest on their savings without paying tax. The amount of tax-free interest you can receive depends on your available allowances. These include your Personal Allowance, Starting Rate for Savings, and Personal Savings Allowance (PSA). These allowances apply to each tax year, which runs from 6 April to 5 April, and the amount you’re entitled to depends on your total income.

Personal Allowance

If you have not used all of your Personal Allowance on income such as wages, pensions or other taxable income, any unused amount can be used to receive savings interest tax-free.

Starting Rate for Savings

You may also qualify for the Starting Rate for Savings, which allows you to earn up to £5,000 in savings interest without paying tax.

Whether you qualify depends on your other taxable income:

* If your other income is £17,570 or more, you are not eligible for the Starting Rate for Savings.
* If your other income is less than £17,570, you may qualify for the full or partial £5,000 allowance. However, for every £1 your other income exceeds your Personal Allowance, your Starting Rate for Savings is reduced by £1.

Personal Savings Allowance (PSA)

In addition to the above, you may be entitled to a Personal Savings Allowance, which lets you earn a certain amount of savings interest tax-free depending on your Income Tax band.

To determine your tax band, add together your other income and the interest you’ve received.

Income Tax Band

Personal Savings Allowance

Basic Rate

Up to £1,000

Higher Rate

Up to £500

Additional Rate

£0

What Counts Towards Your Allowance?

Your allowance applies to interest earned from:

* Bank and building society accounts
* Savings and credit union accounts
* Unit trusts, investment trusts and open-ended investment companies (OEICs)
* Peer-to-peer lending
* Trust funds
* Payment Protection Insurance (PPI) interest
* Government and company bonds
* Life annuity payments
* Certain life insurance contracts

Interest earned in tax-free accounts, such as Individual Savings Accounts (ISAs) and some National Savings and Investments (NS&I) accounts, does not count towards your allowance.

Different rules apply to foreign savings and children’s savings accounts.

Joint Accounts

If you hold a joint savings account, any interest earned is normally divided equally between the account holders for tax purposes. If you believe the interest should be split differently, you should contact HM Revenue and Customs (HMRC).

If You Exceed Your Allowance

If your savings interest exceeds your available tax-free allowances, you’ll pay Income Tax on the excess at your usual Income Tax rate.

If You’re Self-Employed

If you complete a Self Assessment tax return, you must declare any savings interest you’ve received.

You’ll also need to register for Self Assessment if your income from savings and investments exceeds £10,000. If you’re unsure whether you need to complete a tax return, you should check HMRC’s guidance.

If You’re Employed or Receive a Pension

HMRC will usually collect any tax due by adjusting your tax code. They estimate the amount of interest you’ll receive in the current tax year based on the interest you earned in the previous year.

If you’ve paid too much or too little tax, HMRC will send you a tax calculation letter between June and March following the end of the tax year.

If you exceed your savings allowance but do not receive a letter by 31 March after the end of the relevant tax year, you should contact HMRC as soon as possible to avoid potential penalties.

If You’re Not Employed, Don’t Receive a Pension or Don’t Complete Self Assessment

Your bank or building society will report the amount of interest you’ve earned to HMRC after the end of the tax year. HMRC will then contact you if you have any tax to pay and explain how to make payment.

Claiming a Refund

If you’ve paid tax on savings interest that was actually covered by your tax-free allowances, you may be able to reclaim the overpaid tax.

Claims must generally be made within four years of the end of the relevant tax year.

If you complete a Self Assessment tax return, you can claim your refund through your return. Otherwise, you can apply directly to HMRC for a refund.

08/07/2026

Pay your Self Assessment tax bill

The deadlines for paying your Self Assessment tax bill are usually:

* 31 January : for any tax owed for the previous tax year (known as a balancing payment) and your first payment on account.
* 31 July :for your second payment on account.

If you prefer, you can pay your tax bill in instalments before the deadline. This can be done by setting up weekly or monthly payments towards your bill or by making one-off payments through your online bank account, online or telephone banking (Faster Payments), single Direct Debits, or by posting a cheque.

Ways to pay

Ensure your payment reaches HM Revenue and Customs (HMRC) by the deadline. Late payments may incur interest and, in some cases, a penalty. The time your payment takes to reach HMRC depends on the payment method you choose.

Please note that payments can no longer be made at the Post Office.

Same or next working day

* Online bank account
* Online or telephone banking (Faster Payments)
* CHAPS
* Debit or corporate credit card online
* At your bank or building society (you’ll need a paying-in slip from HMRC)

Within 3 working days

* Bacs
* Direct Debit (if previously set up with HMRC)

Within 5 working days

* Direct Debit (if setting it up with HMRC for the first time)

Need assistance? Get in touch with Total Tax Accountants today.

07/07/2026

Your child could have around £2,200 sitting unclaimed. 💰

If they’ve recently turned 18, they may have a Child Trust Fund waiting for them.

Find out if they qualify. 👇

https://www.gov.uk/child-trust-funds/find-a-child-trust-fund?&utm_source=f.co_hmrcgovuk&utm_medium=social&utm_campaign=child_trust_funds

06/07/2026

🔔 Reminder

If you’re a sole trader or landlord with a combined turnover exceeding £50,000, you must submit your first quarterly update by 7 August.

If you haven’t already done so, make sure you’ve signed up. Find out more below. ⬇️

https://makingtaxdigital.campaign.gov.uk/quarterly-updates/?&utm_source=f.co_hmrcgovuk&utm_medium=social&utm_campaign=mtd&utm_content=mythbuster1

Check how quarterly updates work for Making Tax Digital and make sure you're ready for the new way of reporting income and expenses.

03/07/2026

Bereavement Support Payment

You may be entitled to Bereavement Support Payment if your partner has passed away. This scheme has replaced the following benefits:

* Widowed Parent’s Allowance (if you are already receiving this, payments will continue until you are no longer eligible)
* Bereavement Allowance (previously known as Widow’s Pension)
* Bereavement Payment

Eligibility

Bereavement Support Payment is not means tested, which means your income and savings will not affect the amount you receive.

At the time of your partner’s death, you must have been:

* Under State Pension age
* Living in the UK or in a country that pays bereavement benefits
* Married to your partner, in a civil partnership, or living together as though you were married

Your partner must also have:

* Paid sufficient Class 1 or Class 2 National Insurance contributions in any single tax year since 6 April 1975, or
* Died as a result of a workplace accident or an illness caused by their work

You can still apply even if you are unsure about your partner’s National Insurance contributions. The Bereavement Service will assess your claim and inform you.

You cannot claim Bereavement Support Payment if you are in prison.

When to Make a Claim

You should usually submit your claim within 21 months of your partner’s death.

If more than 21 months have passed, you may still be able to claim if the cause of death was only confirmed recently. In such cases, contact the Bereavement Service helpline for advice.

The timing of your claim can affect how much you receive:

* Claim within 3 months to receive the full payment
* Claims made later may result in reduced payments

If your partner died before 6 April 2017, you may be eligible for Widowed Parent’s Allowance instead.

If You Were Living Together (Not Married or in a Civil Partnership)

Unless you are applying for a backdated payment, one of the following must have applied when your partner died:

* You were receiving Child Benefit for a child living with you
* You had been informed by the Child Benefit Office that you were entitled to Child Benefit (even if you chose not to receive it)
* You were pregnant

If your partner was receiving (or entitled to) Child Benefit instead, you must first submit a new claim in your own name before applying for Bereavement Support Payment.

What You May Receive

The amount you receive depends on:

* Your relationship to the deceased
* When you submit your claim
* When you reach State Pension age

Payments are made directly into your bank, building society, or credit union account.

Payment Rates

If you were married or in a civil partnership

You will receive the higher rate if, at the time of your partner’s death:

* You were receiving Child Benefit for a child living with you, or
* You were entitled to Child Benefit, or
* You were pregnant

Higher rate includes:

* A one-off payment of £3,500
* Up to 18 monthly payments of £350

If you do not qualify for the higher rate, you will receive the lower rate:

* A one-off payment of £2,500
* Up to 18 monthly payments of £100

If you were living together as if married

You may receive:

* A one-off payment of £3,500
* Up to 18 monthly payments of £350

How Timing Affects Payments

* Within 3 months: Full one-off payment plus all 18 monthly payments
* 3 to 12 months: One-off payment plus some monthly payments
* 12 to 21 months: No one-off payment, but some monthly payments may still be paid
* After 21 months: You will usually not receive any payment

State Pension Age

If you reach State Pension age within 18 months of your partner’s death, you may receive fewer monthly payments.

Effect on Other Benefits

Bereavement Support Payment will not affect your other benefits for the first 12 months after your initial payment.

After this period, any remaining money from your payment may be considered when applying for or renewing other benefits, which could affect the amount you receive.