Mike Hankey & Co Ltd

Expense myths
1. “If it’s on my bank statement, that’s enough proof” - No, HMRC wants receipts, invoices or some form of evidence. The bank shows you spent money, not what you spent it on.
2. “I can claim my daily coffee as it keeps me going at work”- Nice try, unless you are a barista testing beans or a coffee blogger, your latte is personal, not business unless you are working away.
3. “If I pay cash, I don’t need to record it “ - Wrong, recording cash transactions is as important as bank or card spending. Without records, your profit is over or understated and you overpay or not pay enough tax.
4. “I can claim a new suit because I wear it to meetings” - HMRC consider that everyday clothing. Only specialist or protective kit (hi-vis, safety boots, branded uniform) is allowable.
5. “If I lose a receipt, I can’t claim the expense” - You can still claim if you’ve got alternative evidence (bank statement, invoice copy or email confirmation). But don’t make a habit of it, snapping receipts in an app keeps things watertight.

General tip - If you’d buy it anyway outside of business, it probably fails the “wholly and exclusively” test.

With the commencement of Making Tax Digital for Income Tax starting next month and the 2026 Tax Returns becoming available for completion and submission within the coming weeks, we will be sharing a series of professional insights, practical guides and key updates.

Our posts will address frequently asked questions and provide clear, reliable advice to support you in meeting your tax obligations efficiently and with confidence.

Tax return season is over a day early for us this year. Nearly 600 tax returns completed and submitted to HMRC with over a day to spare!

Thank you so much to Helen and Heather who kept me organised (to a degree) and did more than their fair share of tax returns.

Ian

BUDGET 2025

Letters posted or emailed to clients. We had a technical issue with the pdf attachment initially so only the first 3 pages of the 150+ pages are relevant, the rest are duplicates. Ian

Due to a family bereavement, the office may not be opened as planned during the next few weeks. Please leave answer phone messages if the phone isn't answered and we will get back to you as soon as possible

Compulsory identity verification - Companies House

From 18th November 2025, all limited company officers (directors/secretaries) and persons with significant control (PSCs) (usually 25% of share ownership) must have their identitites verified at Companies House. Once the identity has been verified, a personal code will be issued to the individual by Companies House. This code is required for the annual confirmation to be submitted with Companies House which is a legal requirement. This could lead to penalties, the company being struck off and unverified directors potentially being disqualified.

The verification is the responsibility of the individual but we can help as we are an Authorised Corporate Service Provider (ACSP). We have over the last 6 months communicated this requirement to all clients but many have yet to provide us with the necessary up-to-date identifying documents e.g. valid passport or picture UK driving licence. You can verify your identity yourself with Companies House or at some Post Offices but we will still require your personal code.

If the identity isn't verified at Companies House, they will not accept any filings for any companies you are registered with.

Mike Hankey & Co. Ltd are proud to be one of the sponsors for the Dave's Gold Stars "The Hairy Strikers" v Bamber MHFC match at Irongate today. Raising money for Childline and mental health.

We are having issues with our telephone lines and internet today. We are unable to make or receive calls or emails.

The office is closed today but will be open from tomorrow (Thursday).

All tax returns completed and submitted (for those who brought the books and records in). Don’t forget to make sure you pay your tax by midnight. Works mobile (07834898944)will be kept on until 9pm for anyone wanting to know references numbers etc.

Due to personal issues, we will be working from home until lunchtime today (6th). Will be picking up emails and can be contacted on the work mobile phone.