Adam Fernandes - The Cloud Accountants, Unit 3 Fen End, Astwick Road, Stotfold (2026)

26/05/2026

At The Cloud Accountants we have years of experience providing expert Accounting Set Up services to both corporate and individual clients.

We provide...

✅ Self-assessment
✅ PAYE
✅ VAT
✅ CIS
✅ MTD
✅ Xero / Dext

Setting up a business is exciting, especially when you know that you’ve got a killer product / service. But one of the first and most important steps you must take is to sort your financials. Get the basics right and all the other good stuff will follow.

To find out more about our Accounting Set Up services, give us a call and speak with one of the team: https://www.adamfernandes.co.uk/contact

21/05/2026

❓❓ STAMP DUTY LAND TAX (SDLT): WHAT IS ‘MIXED USE’?

When buying property in England, Stamp Duty Land Tax (SDLT) often represents a significant cost. One crucial distinction is whether a property is treated as purely residential or mixed‑use.

Mixed‑use property includes both residential and non‑residential elements, such as a house with farmland, commercial buildings, or genuinely non‑residential land, and it is taxed at lower SDLT rates than residential property.

This makes mixed‑use classification attractive, but it is also an area closely scrutinised by HMRC. That was highlighted in HMRC v Christopher Brzezicki [2026] UKUT 00125, a recent Upper Tribunal decision. Mr Brzezicki bought a large house together with a fishing stream and an island and claimed the purchase was mixed‑use.

While the First‑tier Tribunal initially agreed, the Upper Tribunal overturned that decision and ruled that the entire property was residential, because the stream and island formed part of the house’s “grounds” rather than being genuinely non‑residential land.

Although the stream bred trout naturally, it was not being run on a commercial basis when the property was purchased.

The case shows that even unusual features like streams or separate parcels of land will not automatically create mixed‑use treatment. The key question is how the land is used and whether, in ordinary terms, it is part of the home.

🔗 Before relying on mixed‑use SDLT rates, get clear advice. We will be happy to assist you in this area, so please get in touch: https://www.adamfernandes.co.uk/contact

19/05/2026

🧱 APRIL 2026 CHANGES TO THE CONSTRUCTION INDUSTRY SCHEME (CIS)

As outlined in Autumn Budget 2025, several changes took place on 6 April that may affect those who use the Construction Industry Scheme.

From April 2026, contractors are required by law to either:

✅ File a CIS return every month, including nil returns in months where they have not used a subcontractor; or
✅ Inform HMRC in advance that they will not pay subcontractors that month by submitting an inactivity request.

From April 2026, with the nil filing requirement back in place, HMRC have reinstated a full CIS late filing penalty regime. If you file a late CIS return, a £100 fixed penalty will apply. You may also subsequently be charged:

✅ A second fixed penalty of £200 after two months.
✅ A tax-geared penalty at six months of a minimum of £300 or 5% of any liability which should have been shown on the return.
✅ A further tax-geared penalty at 12 months.

The amount of this penalty will depend on why the return was late.

In situations where a business makes or receives a payment they knew or should have known was connected to fraud, HMRC now have enhanced powers to immediately remove Gross Payment Status (GPS), assess for lost tax and charge a penalty of up to 30%. If GPS has been immediately removed, the time limit for reapplication is increased from one year to five years.

14/05/2026

❓ WHAT QUALIFIES FOR CAPITAL ALLOWANCES? ❓

In Orsted West of Duddon Sands (UK) Limited & Ors v HMRC, the Supreme Court considered whether major pre‑construction costs could qualify for tax relief as capital allowances.

The case arose from offshore wind projects where the companies spent significant amounts on environmental surveys, seabed studies and technical investigations before any turbines were built.

The companies argued that these costs were an essential part of creating bespoke assets and should therefore attract tax relief. HMRC disagreed, and the Supreme Court ultimately sided with HMRC.

The Court’s decision turned on a single statutory phrase: capital allowances are only available for expenditure incurred “on the provision of plant or machinery.”

The judges held that this wording requires a close and direct link to the physical asset itself. While the surveys were necessary to decide whether and how to build the windfarms, they were seen as preparatory. They put Orsted in a position to construct plant, but they were not part of providing the plant itself.

Although this case involved offshore windfarms, the lesson is far broader. Many businesses incur substantial costs before buying or building long‑term assets: feasibility studies, design work, professional fees or regulatory assessments.

After this decision, those costs are less likely to qualify for capital allowances unless they are tightly bound to the actual acquisition or installation of the asset.

When planning major investments, don’t assume all upfront project costs will attract tax relief.

Map costs carefully as they arise and separate genuinely asset‑related spending from earlier feasibility or exploratory work. Getting that distinction right early can avoid unpleasant tax surprises later.

🔗 If you need support with this, feel free to reach out and speak with our team about how we can help you: https://www.adamfernandes.co.uk/contact

12/05/2026

🍡 ANOTHER BITE OF THE MARSHMALLOW! 🍡

In 2025, the Court of Appeal sent the case of Innovative Bites Ltd v HMRC to the First-tier Tribunal (FTT), telling them to determine whether ‘Mega Marshmallows’ are a “sweetened prepared food which is normally eaten with the fingers”.

The VAT legislation zero‑rates food, but this excludes “confectionery”. Confectionery is defined as “any item of sweetened prepared food which is normally eaten with the fingers”.

“Mega Marshmallows” are approximately 5cm in diameter and are primarily intended for roasting over fires and being used to make ‘s’mores’. In their March 2026 ruling, the FTT found that the product was more frequently eaten by non‑finger methods than by with-finger methods. Mega-marshmallows are therefore not standard-rated confectionery items and can be zero-rated for VAT.

This means that currently, only standard-sized marshmallows are subject to VAT at 20%. Mini marshmallows, when held out for sale as a baking ingredient, are zero-rated along with their mega-sized counterparts!

This case demonstrates how complicated VAT can be - if you have any doubt about the VAT rate you should be applying to your products and services, please do get in touch.

07/05/2026

💷 LOANS TO PARTICIPATORS (COMPANY SHAREHOLDERS) 💷

When a close company makes a loan to a participator (in most cases, this means a company’s shareholder), and it is not repaid in the same accounting period, a corporation tax charge can arise. This is sometimes referred to as a ‘Section 455’ or ‘s.455’ charge.

For loans advanced on or after 6 April 2026, the percentage charged increased to 35.75% (previously, this was 33.75%).

Where a loan to a participator is repaid, released, or written off within nine months of the end of the accounting period, relief from the s.455 tax charge can be claimed in the corporation tax return.

It's not possible to claim relief for anticipated future loan repayments. This means that company participators should take care to repay any outstanding participator loans before their company tax return is submitted.

As a client of ours, if repayments are made after a return has been submitted, let us know, so that an amended corporation tax return can be completed, and relief claimed, as appropriate.

05/05/2026

❗MAKING TAX DIGITAL FOR INCOME TAX IS NOW LIVE❗

Making Tax Digital (MTD) for Income Tax is now live – most self-employed individuals and landlords with turnover above £50,000 in 2024/25 were mandated into the regime from 6 April 2026.

Under MTD for Income Tax, individuals will keep digital records and send updates to HMRC every quarter using compatible software. This will require in-year record keeping, rather than everything being dealt with after the year ends.

For those already mandated, the deadline for the first quarterly update in 2026/27 is 7 August 2026.

While MTD is currently optional for many taxpayers, the next cohort of individuals will be mandated soon.

If your qualifying income (turnover before expenses are deducted) from self‑employment and/or property was over £30,000 in the 2025/26 tax year, you will be required to follow MTD for Income Tax from 6 April 2027.

This change does not mean paying tax four times a year, but it does mean reporting more regularly. With time to prepare, choosing the right software and understanding what’s required can make the transition smoother and help you stay in control of your tax affairs.

🔗 Please talk to us if you think you’re likely to be mandated from April 2027 – we’d be happy to help: https://www.adamfernandes.co.uk/contact

28/04/2026

At The Cloud Accountants we have years of experience providing expert Advanced Reporting services to both corporate and individual clients.

We provide...

✅ Bespoke profit and loss
✅ Tax calculators
✅ Management accounts
✅ Tracking profitability
✅ Cashflow forecasting

And with all your accounting services neatly configured in the latest apps, including Xero, Dext, Spotlight and more, advanced reporting is available at the touch of button.

Suddenly, accounting is fun (kind of 😉) and super intuitive!

To find out more about our Advanced Reporting services, give us a call and speak with one of the team: https://www.adamfernandes.co.uk/contact

23/04/2026

🔌 VAT ON PUBLIC ELECTRIC VEHICLE CHARGING 🔌

In a recent VAT case (Charge My Street Ltd v HMRC [2026] TC09802), the First Tier Tribunal found that electric vehicle charging supplied at public charging stations qualified for a 5% reduced rate VAT charge.

This ruling contradicts HMRC’s long-held policy that electric vehicle charging at public charging stations is subject to a standard 20% rate of VAT.

Charge My Street Ltd (CMS) supplied electric vehicle charging at charging stations in public places in the North of England, which were installed and operated by CMS.

CMS considered that VAT was due on the supplies at the reduced rate of 5% which applies to supplies of fuel and power for (or deemed for) domestic use.

VAT legislation allows ‘domestic’ supplies of fuel and power to be reduced-rated at 5%. ‘De minimis’ supplies of electricity (below 1,000 kWh per month) are classed as domestic supplies.

The Tribunal found that when supplies were made to individual customers, they were below 1,000 kWh per month and therefore qualified for the 5% reduced-rating.

This ruling effectively removes the VAT disparity between reduced-rated electricity used to charge vehicles at home and the standard-rated electricity used to charge vehicles and public charging stations.

Does this mean we can expect to see a reduction in price at public charging stations?

Unfortunately, not, or not yet.

The Tribunal finding does not carry force of law and it is expected that HMRC will appeal. We will watch the CMS case progress with interest however.

This case also demonstrates how complicated VAT can be and if you have any doubt about the VAT rate you should be applying to your products and services, please do get in touch: https://www.adamfernandes.co.uk/contact

21/04/2026

NEW DIVIDEND DATA BEING COLLECTED VIA 2025/26 SELF-ASSESSMENTS

The Finance Act 2024 introduced powers to enable the collection of additional data on Income Tax Self-Assessment and allowed for HMRC to specify the particular information required.

HMRC now have powers to collect additional information from company directors and, as a result, the 2025/26 self-assessment tax returns will require the following information:

✅ If the taxpayer was a director of a company
✅ If the company was a close company
✅ The company’s name and registration number
✅ Dividends the taxpayer received from the close company during the tax year, and
✅ The highest percentage shareholding that the taxpayer held during the tax year

Combined with the above consultation and more detailed disclosure requirements for company accounts, we can see that HMRC will have increased access to information on dividends and director transactions .

It will pay to make sure that dividend procedures are tight, lawful and compliant.

Please feel free to contact us if you have any questions around this: https://www.adamfernandes.co.uk/contact

Adam Fernandes - The Cloud Accountants

26/05/2026

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