Xitax Accounting Solutions

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

29/06/2026

Government consults on plans to bring forward income tax payment dates

The proposed changes to MTD for Income Tax make this come as no surprise.

From April 2029, some self assessment taxpayers who are also on PAYE could have their tax collected through their salary. There are also proposals to move other taxpayers towards more regular in-year tax payments.

Personally, I think this was always the direction of travel.

For taxpayers, it should help reduce those large January and July tax bills. However, it also means keeping your accounting up to date and understanding your tax position throughout the year will become even more important.

27/06/2026

One day, life will throw you a challenge. Job loss, illness, divorce, a recession or an unexpected expense.

The question isn’t if. It’s when.

Every £1 you save buys future freedom.

Every £1 of unnecessary spend/debt gives away a piece of your future.

Save first. Spend what’s left.

Your future self will thank you.

23/06/2026

VAT registered business

VAT Reminder: Client vs Staff Entertainment

A quick reminder of the HMRC rules:

Staff entertainment (Christmas parties, team-building events, staff socials)
• VAT can be reclaimed.
• Corporation tax relief is available.

Client entertainment (meals, drinks, hospitality, sporting events, golf days, etc.)
• VAT cannot be reclaimed.
• Corporation tax relief is not available. We add back the entertainment when calculating tax. So you still pay for the entertainment through the business but we do the adjustment.

If both staff and clients attend the same event, the VAT may need to be apportioned between employees and non-employees.

If you’re unsure whether VAT can be reclaimed on a particular event or expense, please get in touch and we’ll be happy to help.

18/06/2026

Companies House Filing Changes – No Action Required

Dear Clients,

You may have received an email from Companies House regarding upcoming changes to company accounts filing requirements.

Please do not be concerned. We are already aware of these changes and there is no action required from you at this stage.

What is changing?

• Small companies and micro-entities will be required to file a profit and loss account with Companies House.

• All companies will be required to file accounts using approved commercial software.

• Some additional technical filing changes will also be introduced.

What does this mean for you?

• We already file your accounts using commercial software, so this change will not affect our filing process.

• Although Companies House will require profit and loss accounts to be filed, the government has confirmed that small companies and micro-entities will be able to opt out of having their profit and loss account published on the public register.

• Our software is expected to include this option, allowing us to prevent your profit and loss account from being publicly disclosed where eligible.

• Therefore, there is nothing to be alarmed about regarding the publication of your financial information.

When do these changes start?

• The implementation date has been postponed to 1 April 2028.

• This provides businesses with over 21 months to prepare.

What do you need to do?

Nothing at present.

04/06/2026

VAT on business mileage claims

If your business is VAT registered and you use your own personal car for business journeys, you may be able to reclaim VAT on the fuel element of your mileage claim.

This can apply to journeys such as:

• Client meetings
• Business appointments
• Travel to temporary workplaces
• Other business-related journeys

Example:

You drive 10,000 business miles and claim 55p per mile.

Mileage claim:

10,000 miles × 55p = £5,500

If you drive a petrol car with an engine size of 1400cc or less, HMRC’s advisory fuel rate is currently 14p per mile.

Fuel element:

10,000 miles × 14p = £1,400

VAT reclaim:

£1,400 ÷ 6 = £233.33

So, even though the total mileage claim is £5,500, the VAT reclaim is only calculated on the fuel element, not the full mileage amount.

To support the VAT claim, the business must keep:

• Mileage records
• Details of the business journeys
• VAT fuel receipts

Please note that HMRC’s advisory fuel rates can change, so the correct rate should always be checked at the time of making the claim.

15/05/2026

Making Tax Digital for Income Tax has now started for those who fall within the rules.

The first quarterly period will end on either:

• 5 July 2026, if using standard tax year quarters
• 30 June 2026, if using calendar quarters

The first submission deadline is 7 August 2026.

MTD applies first to sole traders and landlords with qualifying income over £50,000.

The £50,000 threshold is based on gross income before expenses. For landlords, this means rental income before agent fees and other deductions.

Now is a good time to check whether you are affected and make sure your records are being kept digitally.

A big thank you to our lovely clients for the beautiful flowers sent to me and my colleague today.Such a thoughtful surp...
14/05/2026

A big thank you to our lovely clients for the beautiful flowers sent to me and my colleague today.

Such a thoughtful surprise and very much appreciated. Thank you for your kindness, it really made our day :)

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

Address

Pera Business Park
Melton Mowbray
LE130PB

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