Adam Fernandes - The Cloud Accountants

Adam Fernandes - The Cloud Accountants If you simply want compliance, then we may not be the firm for you.

We pride ourselves in being integrated in your business, whether that's a couple of meetings a year or something more frequent.

⏰ BENEFITS IN KIND: MANDATORY PAYROLLING FROM 6 APRIL 2027 – PART ONEMandatory payrolling of benefits in kind (BiKs) wil...
03/09/2026

⏰ BENEFITS IN KIND: MANDATORY PAYROLLING FROM 6 APRIL 2027 – PART ONE

Mandatory payrolling of benefits in kind (BiKs) will begin from 6 April 2027, with a phased introduction designed to give employers and payroll providers time to adapt.

Under the first phase, covering the 2027/28 tax year, mandatory payrolling will apply to:

✅ Company cars
✅ Company car fuel
✅ Vans
✅ Van fuel
✅ Private medical benefits

These benefits will need to be reported through payroll in real time rather than being reported after the end of the tax year on form P11D.

Mandatory payrolling will then be extended to most other benefits and expenses from April 2028.

HMRC has confirmed that employers will be able to register voluntarily from November 2026 to payroll other benefits not included in the first phase, such as beneficial loans and living accommodation.

The change will affect employees as well as employers.

Employees who currently pay tax on benefits through adjustments to their tax codes will instead pay the tax in real time through PAYE.

Some employees may also be paying tax on BiKs from earlier years at the same time, which could create confusion about their take-home pay. HMRC is encouraging employers to communicate these changes well in advance.

🔗 If you have any questions at all relating to these changes, please feel free to reach out either via a DM or contact the team at: https://www.adamfernandes.co.uk/contact

🛑 HMRC TARGETS SIDE HUSTLE INCOME HMRC has launched a fresh summer campaign reminding people with "side hustles" that ex...
01/09/2026

🛑 HMRC TARGETS SIDE HUSTLE INCOME

HMRC has launched a fresh summer campaign reminding people with "side hustles" that extra income may need to be reported for tax purposes.

The announcement specifically highlights people earning income from wedding services, online selling, content creation, freelancing and similar activities.

The key figure remains the £1,000 trading allowance.

If total income from side activities exceeds £1,000 during the tax year, there may be an obligation to register for Self-Assessment and declare the income to HMRC.

This is particularly relevant because HMRC now receives increasing amounts of information from digital platforms. Data from marketplaces and gig economy platforms can be matched against tax returns, making it easier for HMRC to identify undeclared income.

Importantly, not everyone selling online has a tax problem.

Selling unwanted personal possessions is generally not taxable. However, regularly buying or making goods to sell, or providing services for payment, is likely to be treated as trading.

If you have a side hustle, you should:

✅ Review any additional income streams

✅ Check whether total trading income exceeds £1,000

✅ Register for Self-Assessment if required

✅ Keep proper records from the outset rather than trying to reconstruct them later

Early disclosure is almost always easier and cheaper than dealing with an HMRC enquiry.

🔗 If you'd like to discuss this in more detail, get in touch. One of the team will be happy to chat with you ways we can support you: https://www.adamfernandes.co.uk/contact

Over the last few weeks we've been sharing a few of HMRC's proposed 2026 tax updates. These posts have covered: ✅ Accele...
27/08/2026

Over the last few weeks we've been sharing a few of HMRC's proposed 2026 tax updates.

These posts have covered:

✅ Accelerated and more frequent tax payments

✅ A review of Benchmark Scale Rates

✅ Electronic invoicing

✅ A proposed change to the CGT holdover relief calculation

✅ Modernising how company payments to shareholders are taxed, and

✅ Further digital compliance and anti-fraud measures

And now finally...

🛑 WHAT HAPPENS NEXT?

Most of the measures announced on 23 June are consultations rather than immediate law changes.

However, they provide an early warning of where tax administration is heading:

✅ Greater use of digital systems

✅ More real-time tax reporting and payment

✅ Increased focus on compliance and data

✅ Simplification of some long-standing tax rules

For now, the best approach is to keep good records, maintain robust bookkeeping systems, and monitor consultations that could affect your business.

Many of today's consultations have the potential to become tomorrow's tax rules.

🔗 To read the Tax Update in full head here: https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary

In our last few HMRC's 2026 tax update posts we've covered: ✅ Accelerated and more frequent tax payments✅ A review of Be...
25/08/2026

In our last few HMRC's 2026 tax update posts we've covered:

✅ Accelerated and more frequent tax payments

✅ A review of Benchmark Scale Rates

✅ Electronic invoicing

✅ A proposed change to the CGT holdover relief calculation, and

✅ Modernising how company payments to shareholders are taxed

Today's focus is...

🛑 FURTHER DIGITAL COMPLIANCE AND ANTI-FRAUD MEASURES

Several consultations focus on tackling tax evasion and improving compliance.

These include proposals to extend VAT liability rules for online marketplaces, introduce software standards to combat electronic sales suppression systems, and create a new offence for making reckless untrue statements in direct tax matters.

For compliant businesses, these measures are largely aimed at creating a level playing field by targeting those who deliberately understate sales or avoid tax obligations.

Coming up...

So what happens next? 🤔

In our last couple of posts we been looking at proposals from HMRC's 2026 tax update. So far we've covered: accelerated ...
20/08/2026

In our last couple of posts we been looking at proposals from HMRC's 2026 tax update.

So far we've covered: accelerated and more frequent tax payments, a review of Benchmark Scale Rates, and electronic invoicing.

Today's focus is...

🛑 PROPOSED CHANGE TO THE CGT HOLDOVER RELIEF CALCULATION
The government has published draft legislation to correct an anomaly in the Capital Gains Tax (CGT) holdover relief rules for gifts of business assets, which allow a capital gain on a gift to be deferred until the recipient disposes of the asset.

The proposed change would amend the formula used to calculate relief on certain share transfers, helping ensure the relief operates as intended.

The measure is not yet law, but it could improve the tax position for some business owners transferring shares as part of succession planning, family ownership arrangements or business restructures.

If you're considering a transaction that may be affected, it may be worth discussing whether it can be delayed until the legislation is enacted. Waiting could result in a more favourable outcome, although professional advice should be sought before making any decisions.

🔗 If you'd like to chat with us about this or any of the updates we've shared so far, feel free to get in touch: https://www.adamfernandes.co.uk/contact

Coming up...

Modernising how company payments to shareholders are taxed 💷

In our last post we started looking at proposals from HMRC's 2026 tax update. The first item we covered was accelerated ...
18/08/2026

In our last post we started looking at proposals from HMRC's 2026 tax update. The first item we covered was accelerated and more frequent tax payments.

Today's focus is...

🛑 REVIEW OF BENCHMARK SCALE RATES
Employers should note that HMRC is reviewing its Benchmark Scale Rates (BSRs) and Overseas Scale Rates (OSRs).

These are the flat-rate allowances businesses can use to reimburse employees for meals, accommodation and travel expenses without checking every receipt. The government says the review will consider whether current rates still reflect actual costs and whether the system can be simplified.

For growing businesses with travelling staff, any simplification could reduce administrative work and improve consistency in expense claims.

Coming up...

Electronic invoicing 💻

🛑 HMRC’S 2026 TAX UPDATE Prior to Andy Burnham’s appointment as Prime Minister and the appointment of John Healey as Cha...
13/08/2026

🛑 HMRC’S 2026 TAX UPDATE

Prior to Andy Burnham’s appointment as Prime Minister and the appointment of John Healey as Chancellor, HMRC published a raft of consultations and policy announcements on 23 June 2026.

The wide-ranging package of consultations and policy announcements was aimed at making the tax system simpler, more digital and, in HMRC's words, fairer. While many of the proposals are still at consultation stage, they give us an indication of the government's direction of travel over the next few years.

ACCELERATED, MORE FREQUENT, TAX PAYMENTS
Perhaps the most significant proposal is a consultation on "Timely Payments" for Self-Assessment taxpayers.

The government is exploring ways to collect more tax during the year rather than relying on large payments due each January and July. For taxpayers who have both PAYE income and Self-Assessment income, the proposal could require more of their tax liability to be collected through PAYE from April 2029.

HMRC is also considering wider reforms to the Payments on Account regime for other Self-Assessment taxpayers. These reforms would require taxpayers to pay all of their forecast tax liability during the tax year, with a balancing payment/repayment being due when their tax position is finalised on the 31 January following the end of the tax year.

For many sole traders and landlords, spreading payments throughout the year could help with budgeting and reduce the shock of large tax bills. However, it may also accelerate when tax is paid, affecting cash flow planning.

We'll be back with an update on Benchmark Scale Rates and Overseas Scale Rates.

🤔 QUESTIONS OVER FUTURE TAX CHANGES UNDER NEW PRIME MINISTER ANDY BURNHAM Since becoming Prime Minister, Andy Burnham ha...
11/08/2026

🤔 QUESTIONS OVER FUTURE TAX CHANGES UNDER NEW PRIME MINISTER ANDY BURNHAM

Since becoming Prime Minister, Andy Burnham has made cost-of-living support a key focus. One headline measure announced this month is the planned removal of VAT on household electricity from October 2026, which the Government estimates could reduce average household bills by around £45 a year. Household electricity is currently subject to VAT at 5%.

At the same time, attention is turning towards how future tax policy might develop. Economists and commentators are already speculating about whether further tax reform could feature in the Autumn Budget.

For business owners, landlords and investors, the key message is: DO NOT react to headlines. Many of the most talked-about measures remain informal proposals or speculation, rather than law.

Changes to capital gains tax, property taxation and other wealth-related taxes have all been widely discussed, but little has been formally confirmed at this stage.

History shows that major tax changes are often signalled well before implementation. That means now is a good time to review long-term plans, particularly if you are considering property sales, business disposals or succession planning.

Our recommended approach:

✅ Avoid making rushed decisions based on speculation

✅ Review your current tax position

✅ Consider scenario planning ahead of the Autumn Budget

✅ Seek advice before implementing major transactions

The coming months are likely to bring further tax announcements, making regular reviews of your business and personal plans more important than ever.

🔗 If you’d like to discuss any of the above issues, please get in touch with us - we’d be happy to help: https://www.adamfernandes.co.uk/contact

⛽ ADVISORY FUEL RATES FOR COMPANY CARS – PART TWO ⛽EMPLOYEES USING THEIR OWN CARS For employees using their own cars for...
28/07/2026

⛽ ADVISORY FUEL RATES FOR COMPANY CARS – PART TWO ⛽

EMPLOYEES USING THEIR OWN CARS

For employees using their own cars for business purposes, the Advisory Mileage Allowance Payment (AMAP) tax-free reimbursement rate was increased on 6 April 2026 to 55p per mile (plus 5p per passenger) for the first 10,000 business miles, reducing to 25p per mile thereafter. Note that for NIC purposes the employer can continue to reimburse at the 55p rate regardless of mileage as the 10,000 mile threshold does not apply.

INPUT VAT

Within the 55p/25p AMAP payments, the amounts in the above table represent the fuel element. The employer is able to reclaim 20/120 of the fuel amount as input VAT provided the claim is supported by a VAT invoice from the filling station. For a 1500cc diesel-engine car, 2.5 pence per mile can be reclaimed as input VAT (15p x 1/6).

⛽ ADVISORY FUEL RATES FOR COMPANY CARS – PART ONE ⛽The table below sets out the HMRC advisory fuel rates from 1 June 202...
23/07/2026

⛽ ADVISORY FUEL RATES FOR COMPANY CARS – PART ONE ⛽

The table below sets out the HMRC advisory fuel rates from 1 June 2026. These are the suggested reimbursement rates for employees' private mileage using their company car.

Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.

Previous rates are shown in brackets.

You can also continue to use the previous rates for up to 1 month from the date the new rates apply.

Note that for hybrid cars, you must use the petrol or diesel rate.

For fully electric vehicles the rate is 7p (7p) per mile where the vehicle is charged at home. The rate applicable to vehicles charged using public facilities is 15p (15p) per mile.

Address

Unit 3 Fen End, Astwick Road
Stotfold
SG54BA

Website

Alerts

Be the first to know and let us send you an email when Adam Fernandes - The Cloud Accountants posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category