Sage Advice UK Plain-English tax and accounting for UK small business

Sage Advice UK

Plain-English tax and accounting for UK small business

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Two Years, Five Per Cent, One Million: Protecting Business Asset Disposal Relief in 2026/27
Tax & Compliance

Two Years, Five Per Cent, One Million: Protecting Business Asset Disposal Relief in 2026/27

Business Asset Disposal Relief now taxes qualifying gains at 18%, and owners who budgeted on the old 10% figure are discovering a materially larger tax bill on completion. This guide sets out the two-year qualifying period, the 5% personal company test, the £1 million lifetime limit, and the quieter traps — non-trading cash, alphabet shares, and a late restructure — that can unravel a claim.
The Router in the Hallway: A Director's Guide to Connectivity Costs in 2026/27
Tax & Compliance

The Router in the Hallway: A Director's Guide to Connectivity Costs in 2026/27

Broadband and mobile bills are among the least examined entries in a small company's accounts, and among the easiest to get wrong. This guide sets out how phones and home internet are treated for tax in 2026/27, where a reimbursement tips into a benefit-in-kind, and the paperwork that makes the position stand up.
A Contract, Not a Convenience: Placing a Relative on the Payroll in 2026/27
Tax & Compliance

A Contract, Not a Convenience: Placing a Relative on the Payroll in 2026/27

Paying a spouse, partner or adult child a wage is perfectly legitimate — provided the work is real, the rate is commercial and the evidence survives scrutiny. This guide sets out the reasonable-pay test, the National Insurance and pension consequences, and the file a director should be able to produce on request.
A Different Finish Line: Resetting a Company’s Year End Without Tripping Over Corporation Tax in 2026
Company Administration

A Different Finish Line: Resetting a Company’s Year End Without Tripping Over Corporation Tax in 2026

Moving a company’s accounting reference date looks like a single form at Companies House, but it quietly resets filing deadlines, corporation tax payment dates and the shape of the return itself. This is how directors can change the year end in 2026 without creating a compliance muddle.
Red Ink, Real Relief: Making Trading Losses Work in 2026/27
Tax & Compliance

Red Ink, Real Relief: Making Trading Losses Work in 2026/27

A loss year does not have to be a wasted tax year. This guide explains how sole traders and limited companies can match 2026/27 trading losses to the right relief, keep the evidence tidy and avoid claims that fail on a technical point.
When the Payroll Stops Short: Reporting Extra Income Alongside a Job in 2026/27
Tax & Compliance

When the Payroll Stops Short: Reporting Extra Income Alongside a Job in 2026/27

A salary taxed through PAYE does not absorb freelance, marketplace or equipment-hire income. This review sets out when a second income stream must be disclosed, how the £1,000 allowances work and what records employees should keep during 2026/27.
Beyond Salary and Dividends: The Director’s Pension Check-Up for 2026/27
Tax & Compliance

Beyond Salary and Dividends: The Director’s Pension Check-Up for 2026/27

Most owner-managers review salary and dividends each year but leave the company pension untouched. This check-up explains how employer contributions work for corporation tax, how the annual allowance and carry-forward apply in 2026/27, and what paperwork makes the position defensible.
Relief Is Not Automatic: A 2026 Rates Check for Small Business Premises
Tax & Compliance

Relief Is Not Automatic: A 2026 Rates Check for Small Business Premises

Small business rates relief can remove or reduce a significant fixed cost, but eligibility depends on the property, its rateable value and how it is occupied. With new rateable values in England from April 2026, directors and sole traders should check the current position rather than rely on an earlier bill.
When Giving Is Personal: Charitable Donations and the Sole Trader’s Accounts in 2026
Tax & Compliance

When Giving Is Personal: Charitable Donations and the Sole Trader’s Accounts in 2026

A donation paid from the business bank account can look like a business cost, but for a sole trader it usually remains personal. This review explains how Gift Aid works in 2026/27, what records to keep, and where limited companies follow a different path.
A Room, a Ratio and a Reason: Home-Office Claims for 2026/27
Tax & Compliance

A Room, a Ratio and a Reason: Home-Office Claims for 2026/27

A home-office claim is not a discount on the whole house. For 2026/27, sole traders and directors need a method that matches the business use, evidence that supports the ratio, and a clear line between simplified flat rates and actual household costs.
Silence Is Not a Filing Status: Dormant Company Choices for Directors in 2026
Company Administration

Silence Is Not a Filing Status: Dormant Company Choices for Directors in 2026

A company can stop trading without disappearing from the register. This guide explains the different meanings of dormancy at Companies House and HMRC, the three realistic routes open to directors in 2026, and the filings and traps that need attention before deadlines arrive.
The Home Charging Reimbursement File: What to Pay and Prove for Electric Vehicles in 2026/27
Tax & Compliance

The Home Charging Reimbursement File: What to Pay and Prove for Electric Vehicles in 2026/27

Reimbursing home electric car charging is straightforward only when the payment is tied to business mileage and supported by a clean record. This guide sets out the advisory electricity rate, the evidence that keeps a claim outside the P11D, and the VAT and sole trader traps to avoid in 2026/27.
Before the Bank Transfer: Building a Defensible Dividend Paper Trail for 2026/27
Company Administration

Before the Bank Transfer: Building a Defensible Dividend Paper Trail for 2026/27

A dividend is a company-law distribution, not merely a label attached to a bank transfer. This article explains the records that support a lawful dividend in 2026/27, from board minutes and interim accounts to distributable profits, and sets out a practical checklist for small companies.
One Group, One Threshold: Counting Associated Companies for Corporation Tax in 2026/27
Tax & Compliance

One Group, One Threshold: Counting Associated Companies for Corporation Tax in 2026/27

The £50,000 and £250,000 corporation tax limits are not always available to each company in full. Where companies are associated, the thresholds are shared — and that can move a modestly profitable company onto the 25% main rate. This guide explains the rule and the checks to make in 2026/27.
A Christmas Gift Without a P11D: The 2026/27 Employer’s Guide to PAYE Settlement Agreements
Tax & Compliance

A Christmas Gift Without a P11D: The 2026/27 Employer’s Guide to PAYE Settlement Agreements

A PAYE Settlement Agreement lets an employer meet the tax and NIC on minor staff gifts without individual P11D entries. This guide compares a PSA with the trivial benefits exemption and the £150 staff party rule, and works through a practical Christmas-gift calculation for 2026/27.
The Software Posted It, Not You: A Human Review Checklist for AI Bookkeeping
Tax & Compliance

The Software Posted It, Not You: A Human Review Checklist for AI Bookkeeping

AI tools now categorise transactions, reconcile feeds and draft VAT figures, but HMRC's expectations of the business owner have not moved with the technology. This checklist sets out the review, audit trail and record-keeping steps that keep an automated bookkeeping process defensible.
When Flat Rate VAT Stops Paying: A 2026 Suitability Review for Small Businesses
Tax & Compliance

When Flat Rate VAT Stops Paying: A 2026 Suitability Review for Small Businesses

The VAT Flat Rate Scheme remains a useful simplification for some small businesses, but it is not a universal saving. This 2026 review explains the limited-cost trader test, the 16.5% rate, and how to decide whether standard VAT accounting would leave you better off.
The Six-Month Rule for Unpaid Invoices: VAT Bad Debt Relief in 2026
Tax & Compliance

The Six-Month Rule for Unpaid Invoices: VAT Bad Debt Relief in 2026

VAT bad debt relief can recover output tax on invoices a customer never pays, but the claim depends on timing, write-off and evidence. This checklist explains the six-month rule, partial payments, credit notes and the records HMRC expects in 2026.
The Odometer Is Only the Starting Point: Making a Defensible Mileage Claim in 2026/27
Tax & Compliance

The Odometer Is Only the Starting Point: Making a Defensible Mileage Claim in 2026/27

HMRC's simplified mileage rates are straightforward until business travel passes 10,000 miles. This guide explains the 2026/27 rates for sole traders and directors, the business and private travel boundary, electric vehicle considerations and the records that make a claim defensible.
When HMRC Writes About Your Online Sales: A Calm Response Plan for 2026
Tax & Compliance

When HMRC Writes About Your Online Sales: A Calm Response Plan for 2026

Platforms such as eBay, Etsy and Vinted now pass seller data to HMRC each January, and information letters are arriving on doormats across the UK. This guide explains how to tell a genuine clear-out from a taxable trade, how the £1,000 trading allowance actually works, and how to answer HMRC in a measured, well-documented way.