Hello everyone, we are now half way through the year and hopefully you are enjoying the summer weather. Despite the sunshine and warmer weather there is still plenty to be done with tax returns to complete, July tax payments approaching and planning finances to take advantage of tax efficiencies. As ever, if there are any questions please do get in touch.

Kind regards, 
Simon

Tax returns – a vital part of tax compliance and planning. Every year, we have over a 100 tax returns to complete and they cannot all be done in the last 3 months of the year! We would ask that you send in your tax return and accounts details as soon as they are available and by no later than 30 September.

We are aiming to complete all tax returns by 30 November 2025 this year so help us to achieve this target by sending in your papers once they are ready. Finally, a big thank you to those who have already brought in their papers it is much appreciated.

A new section on tax returns this year relates to the reporting of cryptoasset transactions which HMRC generally regard as capital gains tax transactions. If you have transactions in cryptoassets these are likely to need reporting and it should be noted that exchanging one asset for another may be treated as a disposal and need reporting. For further details of HMRC treatment see here . Please discuss your situation with us if you have crypto transactions well in advance of any deadlines.

31 July payments on account – for those required to make payments on account, the second payment on account is due by the end of July. If you are due to make a payment on account, you should receive a reminder and details of how to pay from HMRC. Clients expecting to make a payment who have not received a reminder by 18 July should contact us to confirm their position. For details of how to pay click Here

Making tax digital for income tax starts in April 2026 and will apply to individuals with combined trading and rental income over £50,000 with reductions in the threshold in later years. The £50,000 threshold is determined by reference to the 2024/25 tax return, so once your tax return is completed for last year, you will know whether you are within the MTD reporting rules. We will be discussing the MTD requirements with those effected over the coming months. It will be important to be up to date with book keeping by the end of March to enable a smooth transition to quarterly reporting.

Despite the uncertainties due to global and domestic events, day to day financial house keeping should continue as usual including:

• Contributing to ISAs – there is no need to wait until the end of the tax year to make a contribution;
• Pension contributions – continue to make contributions as normal
• Similarly if you wish to invest in EIS and VCT shares there is little to gain from delay if cashflow and opportunity are available.
• Considering realising assets at current tax rates, be aware the annual capital gains exemption is now only £3,000 and reporting requirements for property sales (see below)
• For extracting funds from limited companies, with the increase in corporation tax, the alternatives of salary / dividends/ pension / benefits etc should be carefully considered and account taken of individual circumstances.

60-day reporting requirement for taxable sales of residential UK property. When selling UK residential property which does not qualify for full CGT exemption as a main residence, be aware that the sale has to be reported by submission of a CGT return within 60 days of completion and tax paid at the same time. We would ask clients to contact us concerning any proposed sales of taxable residential properties well in advance of sale so that there is time to obtain all relevant detail, consider any planning and register for CGT as necessary with HMRC.

HMRC Let Property Campaign and other disclosure facilities. Concerned that you may have unreported rental or other income for earlier years? We have experience of dealing with multiple year disclosures and can assist with resolving prior year issues. It is better to approach HMRC to correct prior year issues than wait for them to come calling and should result in a better settlement.