WELCOME TO HARBOUR KEY'S JUNE 2026 E-NEWSLETTER
As we enter the summer season, it continues to be busy at HK HQ offices. Although transaction numbers have dropped in volume, we are completing the tidying up and handover on the huge volume we had last tax year, in addition to working on some complicated transactions, one of which completed at the end of May, together with normal compliance responsibilities.
Firstly, we must apologise for those clients who have found it difficult to reach certain team members via their mobiles. Due to issues with a network provider, the local mast being down with no date for a fix, a few of the team have and our continuing to have trouble with their mobiles, to the extent they do not work in the office and the surrounding area. We are currently looking at changing provider, but this is also taking time.
In early June, we had our team away day, starting with professional and technical training in the morning, followed by a team exercise around the Cotswolds in the afternoon. The theme of the morning session was AI – friend or foe to the accountancy profession? With headlines suggesting that AI will replace white-collar jobs within three to five years and could eliminate the need for accountants altogether, it certainly prompted some lively discussion. Our conclusion, based on the service we provide to clients, was that advisors who define themselves by execution alone (purely compliance work) will increasingly find themselves competing with machines – a battle they are unlikely to win. In contrast, HK's offering is built around conscious, accountable and judgement-based advice, delivered by experienced advisors. This is where we believe the real value will continue to lie.
PENSIONS CHARGEABLE TO INHERITANCE TAX
We have reported previously the change announced in the Budget 2024, fundamentally altering how pensions are treated for Estate Planning. From 6 April 2027, most unused pension funds and death benefits will no longer sit outside your estate for Inheritance Tax (“IHT”); instead, they will be subject to a 40% IHT. More details of the change can be found in our article HERE.
Further guidance has been released on the change, as well as pitfalls and traps, as people navigate ways to mitigate the tax impact, or make the administration of the pension as part of the death easier. We would recommend you look at our recent blog on this area below.
INHERITANCE TAX & PENSIONS BLOG
IN OR OUT – COMPANIES HOUSE ACCOUNTS PROFIT & LOSS
Since the legislation was passed in November 2023, we have kept clients informed of the phased implementation of various provisions within The Economic Crime & Corporate Transparency Act. One of the measures we have been actively pursuing is the completion of Identity Verification for directors and persons with significant control (PSCs).
Another controversial part of the Act was that all businesses (whatever size), to file Profit and Loss in the public domain (currently only large businesses are required to do so). The current Government announced last summer that it is considering scrapping this measure after protests from small business owners. The results of the review have been announced, the Government confirming the requirement to file accounts with a Profit & Loss with Companies House will remain, but with an opt-out. The measure will commence from April 2028, and we await details of how a company opts out, so that there is no requirement to put sales, and expense details in the public domain.
Other changes will see the end of abridged accounts, which will no longer be allowed, the plan for small companies to file a director’s report as part of their annual report and accounts is aborted. From April 2028, unless digital excluded, all UK registered companies will have to file their accounts online with an extensible Business Reporting Language (iXBRL), format using commercial software. It is important to note that the web and paper-based filing systems will be closed for accounts filings from this date. In addition, the Company will have to file the component parts of the filed accounts and reports all together, not in a random fashion. Another change will see a limit on the number of times a company can shorten its accounting reference period with changes to secondary legislation required. Full details of the changes, and how they will operate will be circulated in due course.
DID WE HAVE A MINI BUDGET!
The Chancellor, Rachel Reeves announced the "Great British Summer Savings" package to Parliament on 21 May 2026, aimed at easing financial pressures amid the war in Iran.
The following points were announced:
- VAT Cuts on Summer Activities: A temporary reduction in VAT from 20% to 5% for summer visitor attractions (e.g., theme parks, museums, zoos, soft-play) and children's meals;
- Free Children's Bus Travel: Free bus rides for under-16s in England throughout August;
- Food Tariffs: Suspended import charges on more than 100 overseas food products to help manage supermarket price pressures:
- Fuel Duty Freeze: The 5p reduction (which was due to come to an end) is extended through the end of 2026, along with relief on red diesel;
- The tax-free mileage rate increases for workers. This means an increase from the current 45p for cars and vans to 55p per mile for the first 10,000 business miles in the tax year, and 25p for mileage over 10,000 miles. There will be no change to the motorcycle rate. HMRC has updated the rates page stating the new approved mileage rates are ‘approved from tax year 2026 to 2027’;
- For hauliers there will be a 12-month road tax holiday for HGVs, saving the typical heavy lorry up to £912.
The Chancellor will wait until the Autumn to detail any targeted energy and winter heating packages.
BEWARE OF MISLEADING INVOICES
Companies House and the Intellectual Property Office (IPO), are asking businesses to be vigilant of misleading requests for payments sent by organisations not affiliated with Government. These invoices request payment at a highly inflated price for services available for a much lower fee or free of charge.
As with any invoice or payment request, do not take shortcuts. Carry out your own checks, use your bank's verification tools where available, and contact the supplier directly to confirm that the payment is due. Always obtain contact details independently, such as through a web search or previous correspondence, rather than relying on the information provided on the invoice, to ensure both the supplier and the invoice are legitimate.
REMINDERS!
- If you have not (and there are some, despite our chasing since November), completed your Companies House ID verification, can you please deal with at the earliest opportunity. More details can be found at HERE.
- For those who are self-employed and/or a landlord with total income of more than £50k, you will need to register with HMRC for making tax digital, and the first quarterly return filed by 7 August 2026. More details can be found at HERE.
- 2026 Self-Assessment Return - It is never too early to get your tax return information for your 2026 to us, the earlier the better.
Employment Related Securities and Employee Optionschemes - Employers are required to report to HMRC details of directors or employees acquiring shares or being granted share options in the tax year (to 5 April), by the following 6 July, using HMRC’s online system. In addition, annual returns for approved Share Option Schemes, such as EMI, need to be filed by 6 July. These returns can only be filed electronically, which means the employer will need to have set up online access, which takes a few weeks. The Employment Related Securities service is part of the PAYE Online for employers’ service.
DATES
Key Tax dates for the 2026 calender year.
Should you wish to speak with us about a specific matter, or just to be a sounding board or for a chat, please do not hesitate to give us a call on 01452 713277
