Busy Bee Accountancy

Busy Bee Accountancy Expert accountancy and bookkeeping services for small and micro businesses. Book a free dicovery call: https://calendly.com/busy-bee-accountancy/20min

04/07/2026

2026–27 Tax Figures at a Glance

The new tax year started on 6 April 2026. These are some of the key figures limited company directors should be aware of:

• Personal Allowance: £12,570
• Dividend Allowance: £500

Dividend tax rates:
• Basic rate: 10.75%
• Higher rate: 35.75%
• Additional rate: 39.35%

National Insurance:
• Lower Earnings Limit: £6,708
• Employee National Insurance threshold: £12,570
• Employer National Insurance threshold: £5,000
• Employer National Insurance rate: 15%

Corporation Tax:
• Small profits rate: 19%
• Main rate: 25%

Other important figures:
• Section 455 tax on relevant director’s loans made from 6 April 2026: 35.75%

• Standard pension annual allowance: £60,000

These figures are a useful starting point when reviewing your salary, dividends, pension contributions and director’s loan account.

There is no single best approach for every director. The right option depends on your personal income, company profits, family circumstances and future plans.

27/06/2026

HMRC has published a new consultation which could change how some Self Assessment taxpayers pay their tax.

The proposals focus on people who complete a Self Assessment tax return but also receive income through PAYE.

From April 2029, they may be required to pay more of their estimated Self Assessment tax during the year through their PAYE tax code, rather than waiting to pay it through the usual Self Assessment process.

The government is also consulting on possible changes to Payments on Account, with the aim of collecting tax sooner.

This is only a consultation at this stage, so nothing has been confirmed yet. However, it is another clear sign that HMRC is moving towards more regular reporting, earlier tax payments and tighter compliance.

For small business owners, this makes accurate bookkeeping and regular tax planning even more important. There is becoming less room for errors, late reporting or leaving everything until the year end.

The consultation closes on 4 August 2026.

Consultation link: https://www.gov.uk/government/consultations/timely-payments-in-income-tax-self-assessment/timely-payments-in-income-tax-self-assessment-itsa

20/06/2026

If your company has made a trading loss, there may be different ways to use that loss to reduce Corporation Tax.

Here are 3 common options:
1. Offset the loss against total profits of the same accounting period
This means the loss may be used against other profits the company has made in the same period.

2. Carry the loss back
In some cases, the company may be able to carry the loss back and offset it against profits from the previous 12 months. This could result in a Corporation Tax refund if tax was paid in the previous period.

3. Group relief
If your company is part of a group structure, it may be possible to surrender the loss to another group company. This means another company in the group may be able to use the loss against its own taxable profits.

The best option will depend on your company’s circumstances, the type of loss and the tax position of the business.

A trading loss can feel like bad news, but with the right advice, it may help reduce your tax bill or improve cash flow.

Speak to your accountant before making a claim, as the rules can be complex and time limits apply.

13/06/2026

DIRECTORS: HMRC IS NOW ASKING MORE QUESTIONS ABOUT DIRECTOR'S LOANS

If your company lends money to a director and the loan is not repaid within 9 months and 1 day of the year end, the company could face an additional tax charge of 35.75% of the outstanding balance.

Although this tax can usually be reclaimed once the loan is repaid, it can create an unnecessary cash flow problem for the business.

HMRC is now increasing its focus on director's loans and may ask directors to confirm:
• That loans reported as repaid were genuinely repaid by the stated date.
• That no further loans were made shortly before or after the repayment.

This means accurate records are more important than ever.

If you have taken money from your company and are unsure whether it is a salary, dividend or director's loan, now is the time to check.

Getting it wrong could result in unexpected tax charges and unwanted attention from HMRC.

06/06/2026

Here are 5 simple rules of thumb for limited companies:

• A company can retain profits in the business, which can often be more tax efficient than taking all the money personally.

• Companies can provide certain tax-free benefits and perks to directors and employees.

• In many cases, taking profits as dividends can be more tax efficient than taking everything as salary.

• Limited companies can often find it easier to attract investment and raise finance.

• Some tax reliefs and planning opportunities are only available to limited companies.

Every business is different, and the right structure depends on your circumstances, income levels and future plans.

If you're not sure whether a limited company is right for you, speak to an accountant before making a decision.

30/05/2026

Being VAT registered comes with responsibilities.

HMRC requires businesses to keep proper VAT records, including:

• VAT invoices
• Purchase records
• Import and export records
• Credit notes and debit notes
• Records of zero-rated and exempt sales
• Details of any VAT that cannot be reclaimed

HMRC can visit your business to inspect your records and bookkeeping systems. If your records are not accurate or up to date, penalties may apply.

Good bookkeeping is not just about staying organised — it helps protect your business and ensures your VAT returns are correct.

This is why keeping proper accounting records throughout the year is so important.

24/05/2026

This is one of those cases that shows why people shouldn’t automatically accept HMRC penalties without understanding why they were issued.

In this case, someone filed several tax returns very late and HMRC issued £4,500 of penalties. On the surface, that sounds straightforward.

But HMRC couldn’t prove they had actually issued valid notices requiring the returns to be filed in the first place.

That changed everything.

The tribunal found that the returns were voluntary returns, which meant the late filing penalties shouldn’t have applied at all.

A lot of people assume HMRC is always right. They’re not always wrong either — but mistakes do happen, and sometimes penalties need to be questioned.

Always get proper advice before paying a penalty you don’t fully understand.

23/05/2026

HMRC has increased the tax-free mileage allowance for employees and workers using their own car or van for business journeys.

This is the first increase in 15 years and has been backdated to 6 April 2026.

Updated HMRC Mileage Rates for 2026/27:

• Cars & Vans: 55p per mile for the first 10,000 miles
• Cars & Vans: 25p per mile after 10,000 miles
• Motorcycles: 24p per mile
• Bicycles: 20p per mile
• Passenger allowance: 5p per mile for carrying fellow employees on business journeys

If you use your own vehicle for work, make sure you are claiming the correct amount and keeping accurate mileage records.

17/05/2026

From 6 April 2025, HMRC introduced additional reporting requirements for directors of close companies.

If you’re already in Self Assessment, you now need to disclose extra information such as your company details, dividends received (even if none were taken), and your shareholding percentage.

I can already see this catching people out because many directors assume their tax return stays the same year after year.

It doesn’t. Rules change regularly, and missing something small can lead to unnecessary penalties.

It’s worth understanding what applies to you before filing your return.

16/05/2026

A lot of directors treat their company bank account like a personal bank account… until tax time exposes the problem.

“We’ll sort it at year end.”
“I’ll just take it out now and repay it later.”
“It’s my company anyway.”

This is how director’s loan accounts quietly become a mess.

Here’s what many people don’t realise:

If your Director’s Loan Account is in credit → the company owes you money.

If it’s overdrawn → you owe the company money.

And if that overdrawn balance is still outstanding 9 months after your year end, HMRC can step in with:

• An additional corporation tax charge under Section 455
• Benefit in kind issues if the loan is interest-free above the threshold

What makes this frustrating is that many directors don’t realise they have an overdrawn loan account until their accountant starts preparing the year-end accounts. By then, the tax issue may already exist.

And no — calling it a dividend doesn’t automatically fix it. You need enough distributable profits for that.

The simplest solution?

Know what you’re taking from the business.
Keep proper records.
Review your numbers regularly.

And don’t wait until year end to find out you owe HMRC more tax than expected.

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