Ashton Knight Ltd - UK Accountants

🚨 Making Tax Digital is coming – are you ready?

From 6 April 2026, HMRC is changing how self-employed individuals and landlords report their income. If you earn over £50,000, this will apply to you.

👉 No more one annual tax return
👉 Quarterly updates will become mandatory
👉 Digital record-keeping will be essential

Who’s affected?
✔️ Sole traders & freelancers
✔️ Landlords
✔️ Anyone with combined income over £50k

If your 2024/25 tax return crosses the threshold, you’ll need to be compliant by April 2026.

💡 The good news? You don’t have to figure this out alone.

At Ashton Knight, we help you:
✔️ Get set up with MTD-compatible software
✔️ Register with HMRC
✔️ Stay compliant with quarterly submissions
✔️ Remove the stress from the entire process

📩 Not sure if this applies to you? Let’s have a quick chat and get you ahead of the change.

🔗 www.ashtonknightaccountants.co.uk

www.ashtonknightaccountants.co.uk

🔍 HMRC enquiries are rarely random.

HM Revenue & Customs uses a sophisticated data-analysis system called Connect, which cross-references information from hundreds of sources — including bank data, Companies House filings, Land Registry records, online marketplaces, and other third-party reports.

It processes vast amounts of data to build a financial profile of individuals and businesses.

When something doesn’t align — such as undeclared rental income, discrepancies between declared income and lifestyle, or unusual year-on-year fluctuations — the system flags this as an anomaly. That’s typically when an enquiry is opened, and often HMRC already has a detailed understanding of the position before contacting you.

💼 The key takeaway?
Accuracy, consistency, and proactive tax planning are critical. Mistakes, omissions, or inconsistencies can trigger unnecessary scrutiny.

Ashton Knight Accountants, we help ensure your tax affairs are accurate, compliant, and consistent — so you’re never caught off guard. And if HMRC does come calling, we’re right there with you, managing the process, communicating on your behalf, and working to achieve the best possible outcome.

✅ Proactive tax planning
✅ Accurate and timely submissions
✅ Full support through any HMRC enquiry
Don’t wait until there’s a problem. Get ahead of it.

📩 Get in touch with the team at Ashton Knight Accountants today and let us give you the peace of mind you deserve. Drop us an email at [email protected] and we’ll be happy to help.

📢 Need to Make a Disclosure to HMRC for the tax year 2025-2026, Ashton Knight Can Help. 🇬🇧💼

Many people assume HMRC won’t notice missing income or gains. The reality? HMRC already holds more data about you than you might think.

🔎 What information does HMRC already have?

HMRC receives data directly from:

▪ Employers (PAYE salary, bonuses & benefits)
▪ Banks & building societies (interest income)
▪ Investment platforms (dividends & disposals)
▪ Crypto exchanges (from 1 January 2026 under new reporting rules)
▪ The Land Registry (property sales)
▪ Letting agents & property platforms
▪ Overseas tax authorities through international data-sharing agreements

This means HMRC can cross-check your Self Assessment against third-party data.

⚠️ If something is missing, it can trigger enquiries, penalties and interest.

✅ How Ashton Knight Can Help

At Ashton Knight Accountants, we help you get ahead of the issue, not react to it.

✅Review your full income position
✅ Identify undeclared income or gains
✅ Calculate capital gains (including crypto & property)
✅ Prepare accurate disclosures for the current tax year
✅ Advise on voluntary disclosure if needed
✅ Minimise penalties where possible

Whether it’s crypto trading, rental income, overseas income, dividends, or self-employment, we ensure everything is disclosed correctly and tax-efficiently.

💬 If you’re unsure whether you need to declare something, it’s better to check now than deal with an HMRC enquiry later.

📩 Message or email ([email protected]) us confidentially to review your position.

Ashton Knight -Clear advice, Full compliance. Peace of mind.

Tax Digital (MTD) for Income Tax – Are You Ready?

Big changes are coming from HM Revenue & Customs and if you’re self-employed or a landlord, this will affect you.

📅 When does it start?

MTD for Income Tax will become mandatory:

• April 2026 – If your qualifying income is over £50,000 (based on your 2024/25 tax return)
• April 2027 – If your qualifying income is over £30,000

(Qualifying income = gross income from self-employment and/or property before expenses.)

👥 Who does it impact?

MTD applies to:
✅ Sole traders
✅ Self-employed professionals
✅ Landlords (UK or overseas property income)

If you currently submit one Self Assessment tax return per year, you’ll soon need to:

✅ Keep digital records
✅ Submit quarterly updates to HMRC
✅ File a final declaration at year end

💷 What happens if you don’t comply?

HMRC will apply a new points-based penalty system:

⚠️ You’ll receive a penalty point for each late submission
⚠️ Once you reach the threshold, a £200 fine applies
⚠️ Further late submissions trigger additional £200 penalties
⚠️ Late payment interest will also apply

💡 The key message? Don’t wait until April 2026.

We can help you become compliant and get your processes right.

If you’d like to check whether you’ll be affected and how to prepare, feel free to message me.

🚨 Making Tax Digital (MTD) for Income Tax – Are You Ready? 🚨

If you earn income from self-employment and/or property, important changes are coming – and they will be mandatory.

📅 When MTD becomes compulsory (based on qualifying income):
✅ April 2026 – over £50,000 (2024–25 tax year)
✅ April 2027 – over £30,000 (2025–26 tax year)
✅ April 2028 – over £20,000 (2026–27 tax year – legislation planned)

This means:
📊 Digital record-keeping
📤 Quarterly income and expense submissions to HMRC
🧾 An end-of-year final declaration

🔹 If you run a business

You’ll need to:
✅Understand the MTD for Income Tax requirements
✅Prepare your systems and processes in advance
✅Choose MTD-compatible software
✅Authorise your accountant or agent (if applicable)
✅Use MTD to improve cash flow visibility and planning

🔹 Sole traders or landlords

You will need to:
✅Understand how MTD applies to property income
✅Prepare digital records for rental income and expenses
✅Decide on suitable software
✅Authorise an agent if you want support
✅Identify any efficiencies and benefits from digital reporting

📌 MTD is a major change – early preparation is key. The sooner you get ready, the smoother the transition.

👉 Comment “MTD” or message us if you’d like help preparing for Making Tax Digital.

🚨 Self Assessment Deadline: 31 January 2026 – Is Yours Ready? 🚨

The deadline to submit your Self Assessment tax return and pay any tax due is 31 January 2026.

Whether you’re self-employed, a limited company director, or juggling a mix of both, now is the perfect time to get everything in order and avoid the January rush (or panic 😅).

✅ Already submitted and paid? Amazing — you’re done.
⏳ Still working on it? No stress — but here’s what to double-check before you hit submit 👇

🧾 What to Include in Your Return

HMRC expects the full picture, even where tax has already been deducted. Make sure you’ve included all taxable income, such as:

🔹Self-employment or sole trader income
🔹Limited company income (salary and dividends)
🔹Rental income
🔹Savings interest
🔹Pension income
🔹Freelance, side-hustle or part-time work
🔹Benefits in kind (e.g. company car, private healthcare)

💸 Don’t Forget to Claim What You’re Entitled To

The right claims can significantly reduce your tax bill, so don’t leave money on the table.

If you’re self-employed or a sole trader:
🔹Business travel and mileage
🔹Use of home as an office
🔹Phone and internet (business-use proportion)
🔹Tools, subscriptions and training

If you’re a director:
🔹Salary and dividend income
🔹Correctly reimbursed expenses
🔹Charitable donations
🔹Pension contributions and tax reliefs
🔹Professional fees and subscriptions

🧠 Getting it right now = fewer surprises later

If you’re unsure what needs to be included or what you can legitimately claim, getting advice early can save time, tax, and stress.

📅 31 January 2026 will come around quickly.

📣 Selling on Vinted, eBay, Depop or Etsy? Don’t panic if you’re asked for your National Insurance Number!

We’ve seen more people receiving pop-ups on market place apps asking for their NI number after selling items worth more than £1,700 or more than 30 items and it’s causing some worry.

💡 Here’s the truth for UK sellers:
From 1 January 2024, online selling platforms must report certain seller information to HMRC if you:

✅ Sell 30 or more items in a calendar year, or
✅ Make £1,700 or more in total sales

This is just a reporting requirement.
It does NOT mean:

❌ you automatically owe tax
❌ HMRC thinks you’re running a business
❌ your second-hand sales are taxable

👍 If you’re simply decluttering, you won’t owe tax. Selling your own second-hand clothes, shoes or household items. especially at a loss is not taxable.

💼 Tax only applies if:
🔹You are buying items to resell for profit,
🔹OR your overall online selling profit is more than £1,000 per year (the Trading Allowance),
🔹OR you sell a single item worth over £6,000 (Capital Gains Tax may apply).

HMRC can already spot business-like activity (e.g. multiple identical items, items bought and quickly resold), which is why these new rules help them identify genuine trading — not casual sellers.

If you’re unsure whether your online selling counts as a small business or just a clear-out, Ashton Knight can advise.

📩 Contact us at: [email protected]
We’re here to help you stay compliant, stress-free and fully informed.

Self Assessment Season Is Here!
Pay the Right Tax — & Claim What You’re Owed

The Self Assessment deadline is 31 January 2026 — and whether you’re self-employed, a limited company director, or earning additional income (dividends, rental income, side projects), now’s the perfect time to get everything organised.

Starting early means:
✅ No last-minute stress
✅ No missing information
✅ And most importantly… claiming every expense you’re entitled to 💸

💸 Are You Claiming Everything You Can?

Many people miss out on legitimate tax deductions every year. Make sure you’re not one of them:

🔹💻 Working from home? Claim a proportion of electricity, rent, broadband, heating.
🔹🚗 Business travel? Mileage, parking, public transport — yes. Your commute — no.
🔹☕ Client meetings? Meals when travelling or meeting clients = claimable. Lunch at your desk = not.
🔹📱 Phone & Wi-Fi? Claim the business use percentage only.
🔹💼 Training? Must relate to your current work — not a brand new profession.

Whether you’re self-employed or running a limited company, the key is knowing what’s allowed.

📂 Record Keeping = Your Tax Superpower

Good records make tax returns faster, easier and far less stressful:

✅ Keep digital or scanned copies of receipts
✅ Add a quick note on each expense (e.g. “client coffee”, “Zoom subscription”)
✅ Track expenses regularly — don’t wait until January
✅ Keep records for at least 6 years

Remember: No receipt = no claim (except mileage or approved flat-rate allowances)

🧠 Need a Hand?

If you’re unsure what you can claim or what should be included in your return — don’t guess.

Ashton Knight is here to make your Self Assessment simple, accurate and stress-free.
We can help with:
✔️ Filing your return
✔️ Reviewing your expenses
✔️ Tidying and organising your records
✔️ Avoiding HMRC surprises

📩 Contact us: [email protected]
Let’s get your 2024/25 return sorted long before the January rush! 🚀

🇬🇧 Budget 2025 — What It Means for You (Simple Breakdown with All the Key Figures)

The Government has now confirmed the 2025 Budget changes — here are the updates that matter most for individuals, families, landlords, savers and small business owners 👇

💷 Wages & Everyday Living
🔹National Living Wage (21+) rises to £12.71/hr from April 2026 (up from £12.21).
🔹18–20 year olds: increases to £10.85/hr (from £10.00).
🔹16–17 year olds & apprentices: increase to £8.00/hr.
🔹State Pension increases by 4.8% next year.
🔹Rail fares & prescription charges are frozen for another year.
🔹Energy support means the average household will get around £150 off bills.

📈 Tax on Savings, Dividends & Rental Income

Major changes are coming to how income from assets is taxed:

From April 2026 – Dividend Tax Increases:
• Basic rate: 8.75% → 10.75%
• Higher rate: 33.75% → 35.75%
• Additional rate remains aligned with higher rate uplift.

From April 2027 – Savings & Property Income Tax Rates Change:
New rates for interest income and rental income:
• 22% basic rate
• 42% higher rate
• 47% additional rate

These increases will impact anyone earning income from dividends, savings, or property rentals.

🏠 Property Taxes & High-Value Homes
🔹A new High-Value Council Tax Surcharge of £2500 will apply to homes worth between £2m and £2.5m, rising to a maximum charge of £7500 for properties valued at £5m and above.
🔹This will take effect from April 2028 and will increase the annual cost of owning high-value property.

🏦 Pension & Salary Sacrifice Changes

🔹From April 2029, only the first £2,000 per year of pension contributions made via salary sacrifice will remain tax/National Insurance-free.
🔹Contributions above this will no longer receive the full tax benefits — an important change for higher earners and company directors.

⚠️ What This Means for You
🔹Workers benefit from higher minimum wages and frozen everyday costs.
🔹Pensioners get a meaningful uplift.
🔹Landlords, investors and dividend-earners face higher tax bills — worth reviewing your strategy now.
🔹High-value homeowners will face extra annual charges from 2028.
🔹Business owners/directors using salary sacrifice will need to rethink pension planning from 2029.

📣 Companies House ID Verification – Important Update for Directors, PSCs & Agents

Following the introduction of the new Companies House identity verification rules on 18 November, many assumed the full 12-month transition period meant plenty of time to act.

However, Companies House is now issuing letters directly to Directors, PSCs and Agents, confirming individual deadlines by which verification must be completed.

🔎 Key points to be aware of:
🔹There is a 12-month transition period for existing directors, tied to your next confirmation statement.
🔹PSCs must verify within 14 days of receiving their notification.
🔹Companies House may contact you sooner than expected — and when they do, you must follow the stated deadline.

💼 How Ashton Knight can support you
We can act as your authorised agent to manage the verification process on your behalf, ensuring everything is completed correctly and on time.
Whether you’ve already received a letter or want to get ahead of the changes, we’re here to help.

📩 Get in touch:
[email protected]

🎄 Christmas is Around the Corner — And Yes, You Can Celebrate Tax-Free! 🎉

With December nearly here (how did that happen already?! 😅), it’s the perfect time to say thank you — to your team, to yourself, or both. And the best bit? HMRC actually lets you do it tax-free… if you follow a few simple rules 👇

🥂 1. Staff Parties & Annual Events – The £150 Per Head Rule

HMRC loves a good Christmas party (as long as you stay within the rules):

✅ Open to all employees
✅ Annual event (e.g. Christmas party, summer BBQ)
✅ Total cost £150 per head or less — including food, drinks, VAT & even taxis home

Go over £150 — even by £1 — and the whole amount becomes taxable, so budget carefully!
But stay within the limit and it’s tax-free, no BIK, no Class 1A NI, and fully deductible for Corporation Tax.

🎁 2. Trivial Benefits – £50 Gifts (Even for Directors!)

Want to give small festive thank-yous? Trivial benefits let you treat staff — or yourself.

Rules:
✅ £50 or less (inc. VAT)
❌ No cash or cash vouchers
❌ Not a reward for work done

Perfect ideas:
🎅 Festive hamper
🍾 Bottle of fizz
🌸 Birthday flowers
☕ Coffee shop gift card

Directors can claim up to £300 per tax year (6 x £50 gifts).

🎄 So whether it’s a party, a small gift or a year-end thank-you, you can do it tax-smart this Christmas.

Not sure how to claim it correctly? We’ve got you.
Drop us a message — Ashton Knight is here to help you save tax and spread festive cheer! 🎉✨

🔔 FSCS Deposit Protection Limit Increasing to £120,000 from 1 December 2025

The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise from £85,000 to £120,000 per eligible depositor, per authorised institution, effective 1 December 2025.

This is a significant update for individuals, households and businesses across the UK, providing stronger protection in the event a bank, building society or credit union fails.

Key points:
• The new £120,000 limit reflects updated economic conditions and helps ensure depositors are better safeguarded.
• The temporary high balance protection limit (used for events like property sales or insurance payouts) will also increase from £1 million to £1.4 million.
• Firms will be required to update customer-facing materials and disclosures by 31 May 2026.

This change strengthens the resilience of the UK financial safety net and offers welcome reassurance for savers and businesses holding larger cash balances.

Always good practice to review where deposits are held to ensure full protection across institutions.