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21/10/2026

🇬🇧 UK TAX RESIDENCY – WHY THE RULES MATTER MORE THAN EVER

📢 Major changes to the UK taxation of foreign income and gains came into effect on 6 April 2025.

Previously, eligible UK residents who were non-UK domiciled could claim the remittance basis of taxation, meaning that certain foreign income and capital gains were generally only taxed in the UK when brought into or used in the UK.

For example, foreign investment income retained in an overseas bank account could remain outside the UK tax charge under the remittance basis.

What has changed?

From 6 April 2025, the remittance basis was abolished and replaced by a residence-based system.

✅ 4-year Foreign Income and Gains (FIG) regime – Qualifying individuals who become UK tax resident after at least 10 consecutive tax years of non-UK residence may claim relief on eligible foreign income and gains during their first four years of UK tax residence.

✅ Worldwide taxation – UK tax residents who do not qualify for FIG relief are generally subject to UK income tax and capital gains tax on their worldwide income and gains, subject to applicable exemptions and double taxation agreements.

✅ Inheritance Tax (IHT) – The new long-term residence rules generally bring worldwide assets within the scope of UK IHT once an individual has been UK tax resident for at least 10 of the previous 20 tax years. Exposure can also continue after leaving the UK.

⚠️ Does this mean individuals with international connections should avoid becoming UK tax resident?

Not necessarily.

UK tax residency is determined under the Statutory Residence Test (SRT), which considers several factors, including:

* Number of days spent in the UK.
* Family connections, including spouses and minor children.
* Availability of accommodation in the UK.
* Employment and working days in the UK.
* Previous UK residence and other relevant UK ties.

Importantly, spending fewer than 183 days in the UK does not automatically mean you are non-UK tax resident.

Even relatively short visits may affect your residency position depending on your circumstances.

👨‍👩‍👧 Did you know?

Under the SRT, having a minor child resident in the UK can create a UK family tie. However, specific exceptions apply, including where the individual sees that child in person in the UK on fewer than 61 days during the tax year.

Why is careful tax planning essential?

For individuals living between the UK and another country, understanding tax residency, double taxation treaties and the number of days spent in each jurisdiction is increasingly important.

Being tax resident in another country does not automatically prevent you from also being UK tax resident under domestic rules.

A properly documented residency position can make a significant difference if HMRC opens an enquiry several years later.

18/09/2026

📢 Self Assessment reminder – 5 October 2026 deadline

If you became self-employed, started a side business, or began receiving rental income during the 2025/26 tax year (6 April 2025 – 5 April 2026), you may need to register with HMRC for Self Assessment.

📅 Registration deadline: 5 October 2026

This may apply if you:

* started working as a sole trader
* became a landlord and started receiving rental income
* began earning additional income outside your PAYE employment
* have other untaxed income that needs to be declared

⚠️ Don’t leave registration until the last minute. Whether you actually need to register can depend on the type and amount of income you received and the relevant allowances.

The online Self Assessment tax return for 2025/26 is then normally due by 31 January 2027, together with any tax due.

28/07/2026

🏡 “I work from home – can my limited company just pay my rent?”

It’s one of the most common questions we receive from company directors.

The short answer? Usually, no.

Your tenancy is a personal expense. If your company pays your rent, it can create unwanted tax consequences, including a Benefit in Kind, additional National Insurance liabilities, and it may not be tax-efficient for Corporation Tax purposes. In some cases, formally leasing part of your home to your company can also affect your entitlement to Private Residence Relief when you eventually sell your property.

✅ So what can you do?

If you’re working from home, your company can reimburse you for home working expenses in a tax-efficient way.

For many directors, this means:
• Claiming the HMRC-approved home working allowance, or
• Claiming a proportion of the additional household costs genuinely incurred for business use, where appropriate.

The right approach depends on your circumstances, but getting it right can save tax while avoiding unnecessary HMRC issues.

If you’re a company director working from home and you’re unsure what you can claim, we’d be happy to help you find the most tax-efficient solution.

The biggest lesson to learn about VAT? 💡It isn’t your money… and it isn’t really the customer’s either.👨‍💼 For business ...
09/07/2026

The biggest lesson to learn about VAT? 💡

It isn’t your money… and it isn’t really the customer’s either.

👨‍💼 For business owners:
Think of VAT as money you’re collecting on behalf of HMRC. It isn’t part of your income—you collect it, account for it, and pass it on (while reclaiming eligible VAT on business expenses). It can impact cash flow, so it’s important to plan ahead.

🛍️ For customers:
When you see VAT added to a purchase, it isn’t the business adding an extra 20% for profit. VAT is a government tax that registered businesses are required to collect and pay over.

VAT can be confusing, and every business is different. Getting it right from the start can save you time, money, and unnecessary stress.

📩 If you’re unsure about VAT registration, returns, or what you can reclaim, get in touch—we’re happy to help.

08/07/2026

“It’s dormant, so it shouldn’t cost me anything…”

We this all the time.

The reality? A dormant company is rarely free.

Even if it’s not trading, you’ll still usually have:
✅ Annual accounts to prepare and file
✅ Confirmation statements to submit
✅ HMRC obligations to meet
✅ Checks to confirm the company genuinely qualifies as dormant

So while costs are lower, they’re never usually zero.

What concerns us more is when people set up companies “just in case.”

💭 “This one’s for a future idea.”
💭 “I might use this one later.”

Before long, they’re juggling several companies with no real purpose.

More companies often mean:
• More paperwork
• More accounting fees
• More compliance
• More risk

Something else many business owners don’t realise…

Multiple companies can also affect corporation tax payments on account, which can create unnecessary cash flow pressure across your group.

Before registering another company, ask yourself:

✔️ What’s its purpose?
✔️ Is it likely to start generating income soon?
✔️ Do I have the time and systems to manage it properly?

Sometimes, keeping your business structure simple is the smartest financial decision you can make.

A small number of well-managed companies will almost always outperform a collection of entities with no clear strategy.

If you’ve got dormant or inactive companies sitting on the shelf, now could be a good time to review whether you still need them.

26/06/2026

HMRC proposes mandatory Direct Debit for VAT and PAYE payments

HMRC is proposing a major change to the way UK businesses pay their taxes by making Direct Debit the mandatory payment method for VAT and PAYE.

The aim is to simplify tax payments, reduce administration, and support HMRC’s wider digital transformation. At present, only around 13% of businesses pay by Direct Debit. If introduced, the new rules would extend this requirement to around 2.4 million businesses, employers, and sole traders.

The largest businesses are expected to be exempt due to current Direct Debit processing limitations.

This proposal forms part of HMRC’s broader modernisation programme, which also includes moving VAT-related processes fully online. While the changes should improve efficiency and accuracy, many businesses may need to review their payment processes, cash flow planning, and accounting systems to ensure they are ready.

It’s still a proposal at this stage, but it’s one worth keeping an eye on as it could significantly change how businesses manage their tax obligations.

23/06/2026

🚖 A Delayed Taxi from Heathrow Could Affect Your UK Tax Residency Status

Many people carefully track the number of days they spend in the UK, but few realise that a travel delay could have unexpected tax consequences.

Under the UK’s Statutory Residence Test, if you don’t meet the automatic residence or non-residence rules, your status may depend on your “sufficient ties” to the UK. The more ties you have, the fewer days you can spend in the UK before becoming UK tax resident.

One important tie is the Work Tie.

📌 You may have a Work Tie if you work in the UK for 3 hours or more on at least 40 days during the tax year.

What surprises many people is that business-related travel time can count as work.

For example, if you fly into the UK the evening before a business meeting, HMRC may regard you as working from the moment you land if your journey is for business purposes.

Imagine you already have 38 UK working days recorded during the tax year. You arrive at Heathrow at 7pm for a board meeting the next day, but long immigration queues and transport delays mean you don’t reach your hotel until after 10pm.

Because you have spent more than 3 hours travelling for business purposes, that day could count as an additional UK working day. Combined with your board meeting the following day, you may now have reached the 40-day threshold and created a Work Tie.

⚠️ If you have been calculating your UK residency position on the assumption that you did not have a Work Tie, this could have a significant impact on your tax residency status.

Key takeaway: If you are monitoring your UK days for tax purposes, build in a buffer. Something as simple as airport delays, immigration queues or a difficult journey from the airport could make a difference.

If your UK residency position is important to your tax planning, it’s worth reviewing your travel and working-day records regularly.

🇬🇧 Moving to Spain for the lifestyle? Make sure you’re prepared for the tax implications.Many British expats move to Spa...
12/06/2026

🇬🇧 Moving to Spain for the lifestyle? Make sure you’re prepared for the tax implications.

Many British expats move to Spain for the sunshine, culture, and quality of life. What often comes as a surprise is how quickly Spanish tax rules can impact their finances.

Once you become a Spanish tax resident, your worldwide income may be subject to Spanish taxation. This can include:

✔️ UK rental income
✔️ Pension income
✔️ Dividends and investment income
✔️ Interest earned on UK-held accounts

One important difference from the UK is that Spain does not operate a split tax year. If you become tax resident during the year, you are generally treated as a Spanish tax resident for the entire calendar year, which can have significant implications for income received before your move.

There are also reporting obligations that many newcomers are unaware of, including Modelo 720, Spain’s overseas assets declaration. Failing to comply can lead to unnecessary complications and penalties.

Estate and succession planning is another area that deserves attention. While regions such as Andalucía have introduced generous allowances and reliefs, the rules remain complex and require careful planning.

None of this is intended to discourage anyone from moving to Spain. With proper advice and forward planning, these issues can usually be managed effectively.

The key is planning ahead. The most valuable tax planning opportunities are often available before you become tax resident, not after.

If you’re considering a move to Spain, now is the time to understand the tax consequences and put the right plans in place.

Please note that tax treatment depends on individual circumstances, and professional advice should always be sought before making decisions based on tax legislation.

11/06/2026

A tax planning point that’s often overlooked when moving into or out of the UK.

If you own a UK investment property and are planning a move overseas—or a move to the UK—the timing of a sale could make a significant difference to your Capital Gains Tax bill.

For many non-UK residents, UK tax on the sale of a long-held residential investment property is calculated by reference to its value at 5 April 2015, rather than when it was originally purchased. This can mean that years of growth before that date are effectively outside the UK tax calculation.

By comparison, someone who is UK resident when they sell will generally be taxed on the gain arising over their full period of ownership.

For properties that have been owned for many years, the difference can be substantial.

This creates an important planning opportunity:

• If you’re leaving the UK, it may be worth considering whether selling after becoming non-resident could be more tax-efficient than selling before you leave.

• If you’re moving to the UK, it may be worth considering whether selling before becoming UK resident could be more tax-efficient than waiting until after your arrival.

Of course, tax planning only works when the move is genuine. The UK has anti-avoidance rules for people who leave, sell assets and then return within a relatively short period.

The key message is simple: if a move abroad or a move to the UK is on the horizon, don’t look at the property sale and the move separately. The timing of the two events could be worth a considerable amount of money.

As always, advice should be tailored to your individual circumstances before taking action.

03/06/2026

🚨 Thinking of moving abroad and taking a large dividend from your UK company tax-free? Think again.

Many business owners assume that once they become non-UK resident, dividends from their company automatically escape UK tax.

In reality, there are two common traps:

🔹 Split-Year Treatment

Moving abroad doesn’t instantly remove UK tax exposure. In the year of departure, dividends taken during the overseas part of the tax year can still be taxable in the UK.

🔹 Temporary Non-Residence Rules

Leave the UK, take dividends, then return within five years? Those dividends may be pulled back into the UK tax net.

And from April 2026, the rules became even tougher. The previous exception for dividends paid from profits earned after departure has been removed, meaning the entire distribution can potentially be caught.

✅ The most effective planning generally requires:
• A full tax year of non-residence
• A genuine intention to remain overseas for more than five years

When it comes to international tax planning, timing matters just as much as location.

Before making any decisions about relocating or extracting profits from your company, make sure you understand the rules.

📩 If you’re considering a move abroad and want to understand the tax implications, get in touch.

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