05/06/2026
Mileage rate changes!
The recent increase to HMRC’s approved mileage rate is a long overdue change for many business owners and employees who use their own vehicles for work.
From 6 April 2026, the rate for cars and vans increased from 45p to 55p per mile for the first 10,000 business miles in the tax year. The rate for mileage above 10,000 miles remains at 25p per mile.
This means a fairer reimbursement for genuine business travel, particularly given the increased cost of fuel, insurance and servicing.
Claims should be supported by the date of travel, business purpose, start and end locations, and mileage covered. Ordinary commuting does not qualify.
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11/05/2026
Trivial benefits.
If you run a UK limited company, trivial benefits are one of the simplest ways to reward staff tax efficiently.
A trivial benefit is a small gift from the business that is exempt from tax and NI, provided a few conditions are met. The cost must be £50 or less per benefit, it cannot be cash or a cash voucher, it cannot be a contractual entitlement and it cannot be given in recognition of work performed.
Typical examples might include a birthday gift, flowers, a bottle of wine, or a small festive hamper.
Directors have slightly different rules in this area. If you are a director of a close company, the annual exemption is capped at £300 per tax year. In practice, that usually means up to six benefits of £50 each, although you do not have to use the allowance evenly.
Most owner managed companies in the UK are close companies, so this rule catches many directors. If the total goes over £300, the excess will not qualify for the exemption.
Used properly, trivial benefits are a useful planning tool, but the conditions matter. A £50 gift can be exempt; £50.01 cannot.
If you wish to discuss this area, please feel free to contact us.
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01323649509
