If you’re a business owner or decision maker, there are several recent tax changes that could affect you. These aren’t just technical changes – they can directly affect your profitability, reporting workload and day-to-day financial decisions.
As your part time financial director, we help you stay ahead of these changes, interpret what they mean in practice, and ensure your business remains compliant, efficient, and well-prepared.

Key updates you should be aware of

• Mileage rate increase (from April 2026)

The tax-free mileage rate for the first 10,000 business miles has increased to 55p per mile (up from 45p). This applies to both employees and the self-employed. This will require updated expense policies and payroll processes with accurate record-keeping to ensure that the new rate is being applied correctly.

• Temporary VAT reduction on family-related activities

A short-term 5% VAT rate applies from 25 June to 1 September 2026 on qualifying children’s meals, admission tickets, and family attractions. This scheme is designed to help families afford meals out and leisure activities during the school summer holidays. Businesses in hospitality, leisure, and tourism may need to adjust pricing, update systems, and review VAT treatment carefully to ensure compliance and avoid reporting errors.

• New dividend reporting requirements for directors

Directors of owner-managed businesses now face enhanced disclosure requirements on 2025/26 self-assessment tax returns, including additional details on dividends from close companies and shareholdings. This increases the importance of maintaining accurate, up-to-date records throughout the year and ensuring consistency between bookkeeping, payroll, and personal tax reporting.

• R&D tax relief advance assurance pilot

HMRC has introduced a pilot scheme to give SMEs greater certainty on complex R&D claims before submission. This helps reduce uncertainty, supports better planning for innovation investment, and may reduce the risk of disputes or adjustments later in the process.

• R&D claim rejected by tribunal

A recent tribunal decision rejected an R&D claim and highlighted the importance of robust evidence when claiming R&D relief. Businesses must clearly demonstrate technological or scientific advancement and must identify the related technological uncertainties. This must be supported by detailed documentation. Weak or unclear records can result in reduced or rejected claims.

• Employment status challenges (football referees’ case)

A recent case involving professional football referees reinforces that employment status depends on actual working arrangements, not just contract wording. Businesses using contractors should regularly review working practices, control levels, and engagement terms to avoid unexpected PAYE and NIC liabilities.

How we support you

These changes can quickly become time-consuming and complex, especially when you’re focused on running and growing your business.

As your part time financial director, we help you:

• Stay ahead of HMRC changes and deadlines
• Turn tax and regulatory updates into practical business actions
• Improve tax efficiency and financial control
• Strengthen reporting accuracy and internal processes
• Reduce compliance risk across VAT, payroll, and director obligations

We act as your proactive finance partner, helping you plan ahead rather than simply react to change. We can help you stay compliant, confident, and in control of your finances.

Please contact us on 01628 623444 or email [email protected].

Our team is always happy to help.