Prime Numbers

Did you know that business mileage can be reimbursed through your payroll, tax-free, when it's done properly?

From 6 April 2026, HMRC increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans for the first time since 2011.

Here are the key facts every employer and director should know:

Mileage can be paid through payroll for business journeys (not commuting).

HMRC's approved mileage rates from 6 April 2026 are:

For cars and vans:

55p per mile for the first 10,000 business miles in a tax year (up from 45p)
25p per mile after that (unchanged)

Other rates, all unchanged:

- Motorcycles: 24p per mile
- Bicycles: 20p per mile
- Passenger payments: 5p per mile per qualifying passenger on the same business trip

These rates apply to employees and directors using their own vehicle. When paid at or below HMRC's approved rates, there's:

- no income tax
- no national insurance

You must keep records showing:

- date of journey
- purpose of the trip
- miles travelled

If you pay more than the approved rates, the excess becomes taxable.

If you pay less (or nothing), the employee or director can usually claim Mileage Allowance Relief from HMRC for the shortfall.

The 10,000 mile threshold resets every tax year on 6 April, and it's per person, not per employer — so if someone changes jobs mid-year, their cumulative business miles carry across.

This is one of those areas where small, regular claims add up over the year, but only if it's set up correctly and recorded properly.

If you're not sure whether you're claiming mileage in the most tax-efficient way, it's worth a check. It's a simple fix that often gets missed.

If you use your own car for business journeys, this is worth knowing.

On 21st May 2026 it was announced that mileage rate increased to 55p for the first 10,000 miles backdated to 06/04/2026. This has not been updated since 2011.

Here are the details: https://f.mtr.cool/ivlfqsnbux

Record keeping matters here, you need to know:

- Where you went
- Why the journey was for business
- How many miles you travelled
- When the journey took place

A calendar note, mileage app or monthly spreadsheet can make this much easier than trying to piece it all together at year end.

Small habits like this are not exciting, we know, but they are exactly what make tax returns cleaner, faster and less stressful.

Thinking about making an R&D tax relief claim?

HMRC has introduced a pilot advance assurance scheme for SMEs, giving eligible businesses the chance to ask HMRC for a view on certain parts of a proposed R&D claim before it is submitted.

This could be especially useful where there is uncertainty around the more complex areas of a claim, such as whether the work being carried out meets the definition of R&D.

It is important to note that the scheme does not approve the whole claim. However, it can help businesses gain more clarity on specific points and reduce the risk of issues arising later.

For businesses investing in new products, software, systems, processes or technical improvements, this could be a valuable opportunity to get key areas reviewed earlier in the process.

The pilot launched in May 2026 and is expected to run for a limited time.

If your business is innovating and you are unsure whether R&D relief could apply, it may be worth having that conversation sooner rather than later.

The government has announced an important change to inheritance tax planning for business and agricultural assets.

From April 2026,

- A new £2.5 million allowance will cap how much business and agricultural property qualifies for 100% relief

- Values above this are expected to receive 50% relief instead

- Allowances can be transferred between spouses and civil partners

This change will affect fewer estates than originally planned, but it’s still significant for anyone with valuable business or farming assets — especially where trusts or succession planning are involved.

Early review gives more flexibility than last-minute decisions.

Here's what we hear from clients once we've got their management accounts running monthly.

"I finally feel like I understand my own business."

Not because they didn't understand it before. They knew their product, their customers, and their market. But the numbers were always either behind, vague, or someone else's job.

Management accounts change that. You get a clear profit and loss for the period. A cash flow picture. A view of who owes you money and how long it's been sitting there. And a comparison against what you planned, so you can see immediately if something's drifting.

We don't produce a pack of numbers and send it over. We produce it and talk you through it, because that conversation is where the value is.

One client put it like this: they knew their busiest months, but had no idea those were also their lowest margin months. The management accounts showed it in minutes.

That's the kind of thing that changes decisions.

If you're running your business from your bank balance and an instinct, there's a better way.

One detail that’s catching people out: the £50,000 income test for Making Tax Digital starting in April 2026 is based on your 2024/25 tax return.

That return was due by 31 January 2026, which means HMRC already has the figures it will use to decide whether you’re brought into MTD from April.

If your income was close to the threshold, or last year was stronger than usual, it’s worth checking where you now stand and what this means for the way you manage your tax going forward.

Clarity now saves stress later.

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Big news for business and farming families! Is your estate ready for the changes in inheritance tax?

Starting in April 2026, there's a new £2.5M allowance for business and agricultural assets. Beyond that, expect only 50% relief. But don't worry! Spouses and civil partners can transfer allowances.

This might affect fewer estates than expected, but if you have valuable assets, it's time to act! Early planning beats last-minute stress.

What are your thoughts on this change?

Is your accountant giving you insight, or just numbers?

Many business owners have spent years with accountants who simply file paperwork.
But the industry is changing, and so are expectations.

You deserve strategic advice, clarity, and real partnership.
That’s what future-focused accounting looks like.

This is one of the most common questions we're seeing right now. And it's a fair one.

A quarterly MTD update is not a tax return. Let's be clear about that.

It's a summary of your income and expenses for those three months, submitted digitally to HMRC through approved software. No tax is calculated at that point. No payment is due. It's a reporting update, not a bill.

Your four deadlines for the 2026/27 tax year are 7 August, 7 November, 7 February, and 7 May.
The actual tax calculation still happens at year end, with your final annual declaration due 31 January 2027.

So, if the quarterly updates feel overwhelming, reframe them. They're just regular snapshots of what your business is already doing. If your records are kept up to date, each one should take minutes, not hours.

The real question is: are your records actually up to date?

If the honest answer is no, that's exactly where we start.

We're often asked what the one simple change is that makes the biggest difference to how a business is run.

The answer is always the same: regular management reporting.

When you have up-to-date numbers, decisions stop being guesswork. You can see what’s really happening in the business, spot issues earlier, and move forward with confidence rather than uncertainty.

It’s one of the most empowering shifts a business owner can make — because you’re leading with facts, not gut feel.

If you want 2026 to feel calmer, clearer and more intentional, this is a very good place to start.