B W Whiffin & Co

🚕 Reclaiming VAT on taxi and ride-hailing fares

Recent changes mean VAT treatment on taxi and ride-hailing fares can now vary depending on how the journey is supplied and where it takes place.

For businesses, the key point is simple: you can only reclaim VAT if it is clearly shown on a valid VAT invoice or receipt. If VAT is not separately identified, it cannot be reclaimed, although the cost may still be deductible for Corporation Tax purposes.

If your team regularly uses taxis, private hire vehicles or ride-hailing apps for business travel, it is worth checking receipts carefully and making sure your records are correct.

📞 01376 570171
📩 [email protected]
🌐 www.whiffin.co.uk

How are bonuses taxed?

Bonuses are treated as taxable earnings, so they are added to normal pay and taxed through PAYE.

For cash bonuses, employers must deduct:

✔ Income Tax
✔ Class 1 National Insurance

A bonus can sometimes push an employee into a higher tax band for that pay period, meaning the take-home amount may be lower than expected.

Non-cash bonuses can be more complex. Some are taxed like cash, while others may be treated as benefits in kind and reported differently.

If you are paying bonuses and want to make sure everything is handled correctly through payroll, we can help.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

💷 Tax on savings interest

For the 2026–27 tax year, you may be able to earn savings interest tax-free, depending on your income.

Key allowances include:

✔ Personal Allowance – £12,570
✔ Starting rate for savings – up to £5,000 at 0%
✔ Personal Savings Allowance – £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers

Additional-rate taxpayers do not receive the Personal Savings Allowance.

Interest from ISAs and Premium Bond winnings remains tax-free and does not count towards these limits.

If you owe tax on savings interest, you may need to report it through Self Assessment. If you have overpaid, you may be able to claim a refund.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

📉 Can you set business losses against other income?

If you are self-employed or in a partnership, you may be able to claim tax relief when your business makes a loss.

Depending on your circumstances, losses may be set against:

✔ Income from the same tax year
✔ Income from the previous tax year
✔ Chargeable gains
✔ Future profits from the same trade
✔ Earlier years if the loss relates to the first 4 years of trading
✔ Previous profits if the business has ceased

However, each loss can only be used once, and restrictions may apply if the trade is not commercial or is not carried on with a view to profit.

Loss relief can be valuable, but the rules are detailed. If your business has made a loss, we can help you work out the most tax-efficient way to use it.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

👵 Working after State Pension age?

Your National Insurance position changes, but your Income Tax responsibilities usually remain.

Once you reach State Pension age, you no longer pay employee Class 1 National Insurance on your wages. If you are self-employed, Class 2 stops and Class 4 ends from the start of the following tax year.

However, Income Tax can still apply if your total taxable income is above your personal allowance, and you may still need to file a Self Assessment return.

If you think you have overpaid tax or National Insurance, it is worth checking whether you can claim a refund.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

💍 Gifts to a spouse or civil partner

Transfers of assets between spouses or civil partners are usually free from immediate Capital Gains Tax, as they are treated on a “no gain, no loss” basis.

This means the receiving partner takes over the original cost and ownership history of the asset, and any gain is only calculated when the asset is eventually sold.

However, exceptions apply if you are separated and did not live together during the tax year, or if the asset is transferred as trading stock. In these cases, CGT could arise.

Keeping clear records of the original purchase cost is essential for future tax planning.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

🏠 New legal duty for landlords

Under the Renters’ Rights Act, landlords and letting agents must provide tenants with the official government information sheet by 31 May 2026.

This applies to existing tenancies and explains the new rights and protections coming into force from 1 May 2026, including major reforms such as the removal of Section 21 “no fault” evictions.

The information sheet can be provided in paper form or electronically, but landlords should keep clear records to prove it has been issued.

Failure to comply could result in financial penalties, so now is the time to review tenancy paperwork, communication processes and record keeping.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

💡 Could your spare capacity be earning you extra income?

Many businesses have underused space, quieter staff periods, equipment or internal resources that could generate revenue without adding significant overhead.

That might mean:
✔ Renting out unused office, workshop or storage space
✔ Using quieter staff time to offer additional services
✔ Hiring out equipment when it is not needed
✔ Licensing digital assets like templates, training or tools

Making better use of what you already have can strengthen cash flow, improve profitability and build resilience without the cost and risk of major expansion.

If you would like help reviewing where extra income opportunities might exist in your business, we would be happy to help.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

⚠️ Beware Winter Fuel Payment scams

HMRC is starting to recover Winter Fuel Payments from those earning over £35,000, but most repayments will be handled automatically through PAYE tax code adjustments from April 2026.

Scammers are already using the confusion to target pensioners with fake texts, emails and phone calls pretending to be HMRC.

Remember:
✔ HMRC will not ask for bank details by text or email
✔ Do not click suspicious links
✔ Check GOV.UK if you are unsure
✔ Self Assessment taxpayers should check the payment appears correctly on their 2025–26 return

Stay alert and protect your personal information.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk

⛽ Private fuel in a company car? Avoid an unnecessary tax charge

If your employer pays for fuel used privately in a company car, you may face a car fuel benefit charge unless you repay the full private fuel cost.

This is known as making good, and for the 2025–26 tax year, the repayment must be made by 6 July 2026.

To avoid the charge:
✔ Repay the full cost of private fuel
✔ Include commuting mileage
✔ Keep accurate mileage records
✔ Make the repayment before the deadline

Because the fuel benefit charge is based on CO2 emissions rather than actual private fuel used, it can be expensive, even where private mileage is low.

If you are unsure whether repayment is the better option, we can help you review the figures.

📞 01376 570171
📩 [email protected]

🌐 www.whiffin.co.uk