Taxcare Accountancy

If your income falls below the MTD for Income Tax threshold, you cannot usually leave straight away. HMRC generally requires qualifying self-employment and property income to remain below the relevant threshold for three consecutive tax years before you can opt out.

An amended return or stopping all qualifying activities may affect your position sooner. Before stopping digital records or quarterly updates, check your eligibility first.

Taxcare Accountancy can help review your MTD position, qualifying income, quarterly reporting and Self Assessment requirements.

Mileage allowance and fuel reimbursement follow different HMRC rules. Employees using their own car or van for business travel can use approved mileage rates, while employees using a company car may be reimbursed using HMRC’s Advisory Fuel Rates. Keeping the two systems separate and maintaining clear journey records helps businesses avoid payroll and tax errors.

HMRC’s approved mileage rate for employees and directors using their own car or van for business travel increased to 55p per mile for the first 10,000 business miles, with 25p per mile thereafter. Employers do not have to pay the full 55p, but employees paid less may be able to claim Mileage Allowance Relief on the difference. Only genuine business journeys qualify, so accurate mileage records are essential.

Taxcare Accountancy can help businesses review mileage policies, check expense claims, manage PAYE treatment and ensure director and employee reimbursements are recorded correctly and remain HMRC compliant.

HMRC plans to require most amended Company Tax Returns to be filed online from 1 April 2027, extending the digital approach already used for original returns. Around 95% of amendments are already submitted electronically, but businesses still using paper methods will need to move to compatible commercial software. The usual amendment deadline is not changing, and companies can generally amend a return within 12 months of the normal filing deadline.

Accurate bookkeeping, tax computations and supporting records will remain essential to make corrections quickly and avoid errors. Taxcare Accountancy can help with Company Tax Returns, amendments, Corporation Tax calculations, digital bookkeeping and HMRC correspondence.

New Company? Prepare for Year-End from Day One

Good year-end preparation starts when your business begins. Keep your bookkeeping, receipts, invoices, payroll, VAT and bank records organised from the start to avoid errors, penalties and last-minute stress.

Taxcare Accountancy can support your new company with bookkeeping, payroll, VAT, annual accounts, tax returns and Companies House filings.

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Stay organised, compliant and ready for year-end.

FRC enforcement activity shows that audit oversight remains a key focus, with audit quality, documentation and professional judgement under increasing scrutiny.

Businesses should keep clear records, including reconciliations, payroll reports, invoices, board minutes, loan agreements and evidence for key accounting estimates, as weak documentation can delay audits and increase compliance risk. Strong internal controls and organised financial records help auditors reach conclusions more efficiently and reduce the chance of issues.

Taxcare Accountancy can help businesses prepare audit-ready records, review bookkeeping, payroll, VAT, director loan accounts and year-end documents, helping reduce audit delays and improve compliance confidence.

Artificial intelligence is becoming increasingly common in audit and accounting, helping professionals analyse data, review documents, and identify potential risks more efficiently.

However, the growing use of AI also creates documentation and compliance challenges. The FRC’s AI-in-audit guidance highlights that while AI can support audit work, responsibility for audit quality and professional judgement remains with humans. Businesses and accountants should ensure there is a clear audit trail showing how AI was used, what information was reviewed, and how outputs were verified.

Strong documentation, reliable source records, and appropriate human oversight remain essential to reduce risk and support confidence in financial reporting.

The new kinship allowance income tax exemption is a welcome update for eligible carers, helping ensure qualifying payments under the Kinship Zones pilot scheme can be received tax-free. It may reduce Self Assessment worries, but carers should still check what type of payment they receive and keep clear records.

Taxcare Accountancy can help confirm whether the allowance is taxable or exempt and support with any required tax reporting.