Winter Bulletin 2025/26
Welcome to our Winter Bulletin
As winter begins to loosen its grip, there are welcome signs that spring is on the way, the days are growing a little longer, and there’s a renewed sense of momentum for the year ahead. This is our first newsletter of 2026, bringing you the latest tax updates and practical insights to help keep you one step ahead of the taxman in the months to come.
January is also a natural time for many clients to review their financial position and plan ahead for the year. With ongoing economic uncertainty, preparations for Making Tax Digital for Income Tax gathering pace, and further changes to employment law, wages, and HMRC processes on the horizon, early awareness and forward planning have never been more important.
This month's ABMV tax bulletin will cover:
Companies House Fee Changes from Feb 2026
IHT Relief Thresholds for Businesses and Farms Increase
State Pension Increase from April 2026
HMRC Steps Up Crypto Reporting Requirements
ABMV Identity Check Service
HMRC Launches R&D Tax Relief Checker
Supporting you through the MTD for Income Tax Transition
High Income Child Benefit Charge: New Payment Process
FSCS Protection Limit Lifts
Marginal Tax Relief/Issues & Associated Companies
Statutory Sick Pay Changes from April 2026
Wellness Benefit for Staff
Companies House ID Fee Changes from February 2026
From 1 February 2026, Companies House will increase several key filing fees. The digital cost of incorporating a company will double, confirmation statement fees will rise, while voluntary strike-off fees will reduce significantly.
At a glance:
Digital company formation increases from £50 to £100.
Digital confirmation statements (CS01) rise from £34 to £50.
Digital voluntary strike-off (DS01) falls from £33 to £13.The increases are intended to fund wider Companies House reforms, including enhanced identity verification and stronger anti-fraud measures. While starting and maintaining a company will become more expensive, dissolving dormant or unused entities will be cheaper.
Clients considering incorporation, annual filings, or company closures in early 2026 may wish to factor these changes into their planning.
IHT Relief Thresholds for Businesses and Farms Increase
From 6 April 2026, the UK government will raise the 100% Inheritance Tax (IHT) relief threshold for qualifying Agricultural Property Relief (APR) and Business Property Relief (BPR) to £2.5 million per individual.
Key points for advisers:
Transferable allowance: Surviving spouses/civil partners can use any unused portion, potentially allowing couples to pass on up to £5 million in qualifying assets tax-free.
Partial relief above threshold: Assets over £2.5 million receive 50% relief, effectively taxing the excess at 20%.
Planning implications: Business and farm owners should review succession plans and wills to ensure maximum tax efficiency.
The change protects more family farms and businesses than earlier proposals, while ensuring larger estates remain subject to IHT.
State Pension Increase from April 2026
From April 2026, the UK State Pension will rise by 4.8% under the triple lock. The full New State Pension will increase to £241.30 per week (£12,547.60 per year), while the Basic State Pension will rise to around £184.90 per week, depending on National Insurance records.
These rates apply from the start of the 2026/27 tax year. The New State Pension remains below the personal allowance, meaning most recipients relying solely on the State Pension will not pay income tax.
HMRC Steps Up Crypto Reporting Requirements
From January 1st, UK cryptocurrency investors must provide their account details to exchanges or risk penalties. Under the new rules, crypto exchanges are required to automatically report user transaction data to HMRC, enabling closer scrutiny of capital gains and other taxable income.
The measures aim to tackle long-standing non-compliance in the crypto sector and will make it significantly harder for investors to conceal untaxed gains. Exchanges that fail to provide accurate, up-to-date information may face fines.
Advisers should ensure clients trading cryptoassets are aware of their UK tax reporting obligations, particularly where gains have been realised.
ABMV Identity Check Service
We would like to make you aware that Companies House is making mandatory changes to online filings from 18th November 2025, which will affect Directors and PSCs. From 18th November 2025, all individual company directors and people with significant control (PSCs) will be legally required to verify their identity under the Economic Crime and Corporate Transparency Act 2023.
Should you rather not set this up via the Gov.UK account, for a one-time fee of £50 plus VAT plus £3 disbursement fee, as an ACSP Agent, ABMV can request an ID Check via our in-house software.
You would receive an email from us stating we have requested an ID Check and you would need to follow the instructions to upload the documents required to verify your identity.
Once your data is uploaded, you will receive a personal code. As the code is personal to you, this would then need to be forwarded to us to be able to continue to file on your behalf.
Please note that although ABMV is an ACSP, we are NOT able to manually verify ID.
HMRC Launches R&D Tax Relief Checker
HMRC has introduced a new online tool to help businesses determine whether their projects qualify for Research & Development tax relief.
The interactive tool guides users through a series of yes/no questions based on HMRC’s R&D guidelines and provides an initial view on eligibility. HMRC has stated they are unlikely to dispute the result if answers are fact-based and well-supported.
Key points:
The tool is a starting point, not a guarantee of a successful claim or a substitute for professional advice.
It does not calculate eligible costs or determine the appropriate tax relief scheme.
Some technical questions require input from a competent professional in the project’s field.
Businesses are encouraged to use the tool before submitting claims to reduce errors and improve accuracy. It is available via the GOV.UK website.
Supporting you through the MTD for Income Tax Transition
In a little over 3 months April 2026, Making Tax Digital (MTD) for income tax begins and will affect businesses and individuals in different ways. For some, it may require only minor changes, whilst others may need to overhaul parts of their current process.
If you need any advice at all, whether it’s choosing the right software, setting up digital record keeping, or simply understanding what’s changing, we are here to help.
High Income Child Benefit Charge: New Payment Process
From 2026, the High Income Child Benefit Charge (HICBC) can now be paid without filing a self-assessment return in some cases.
While child benefit itself is not means-tested, the charge applies if you or your partner earn over £60,000, clawing back part or all of the benefit via tax. The new process simplifies payment for those liable, though it doesn’t remove all obligations. In some cases, it may allow taxpayers to avoid self-assessment entirely.
FSCS Protection Limit Lifts
The protection limit for cash deposits with UK-authorised banks, building societies, and credit unions has been lifted from £85,000 to £120,000 per eligible person, per authorised firm. The change took effect on 1 December 2025.
Marginal Tax Relief/Issues and Associated Companies.
Do you have "control" of more than one company? This may be deemed an "associated company" and, due to marginal tax rates, may affect your company tax positions. Should you wish to discuss further, please get in touch.
Statutory Sick Pay changes from April 2026
Major SSP reforms take effect in April 2026:
Payable from day one of sickness (currently day three)
No earnings threshold; all employees eligible
Low earners receive 80% of weekly pay or SSP rate (whichever is lower)
Employers should update payroll systems and budget for potential cost increases, as SSP cannot be reclaimed from HMRC.
Wellness Benefit for Staff
If your employees bring their dogs to work, use the trivial benefits exemption to provide treats etc.
You can implement a cycle to work scheme and save tax through a salary sacrifice arrangement, or provide a welfare counselling service which is exempt from tax.
If you have any questions or would like to learn more about how we can help you with your accounting and business advisory needs, please don’t hesitate to contact us. Our team of experts is always ready to assist you with any queries you may have.
