Newsletter - July 2026

Posted on 8th July 2026

Looking for expert accountants in Milton Keynes?

Whether you're a limited company director, sole trader, landlord or individual taxpayer, staying ahead of tax changes can save you thousands of pounds and help you avoid costly HMRC penalties.

At Bidwell Accountancy, we pride ourselves on making the complex simple. Every month we bring you the latest tax news, practical business advice and important HMRC deadlines, helping you stay compliant while identifying opportunities to reduce your tax bill.

In this month's update, we explain:

High Income Child Benefit Charge (HICBC)

Research & Development (R&D) Tax Relief

LLP Salaried Member Rules

Dividend Tax for the 2026/27 tax year

Key HMRC deadlines for July and August

High Income Child Benefit Charge – Could You Be Paying More Tax Than Necessary?

If you or your partner receive Child Benefit, now is a good time to review whether the High Income Child Benefit Charge (HICBC) affects your family.

For the 2026/27 tax year, the charge begins when one partner's adjusted net income exceeds £60,000.

Rather than losing Child Benefit immediately, the charge increases gradually. For every £200 of income above £60,000, you repay 1% of the Child Benefit received.

Once income reaches £80,000, the entire amount is effectively repaid through the tax system.

Don't Automatically Stop Claiming Child Benefit

Many families stop receiving Child Benefit once their income exceeds the threshold.

However, this isn't always the right decision.

Continuing your claim can provide valuable National Insurance credits that help protect your future State Pension entitlement. It also ensures your child is automatically issued with their National Insurance number before their 16th birthday.

Can You Reduce the Charge?

In many cases, yes.

Tax planning opportunities may include:

Increasing pension contributions

Making Gift Aid donations

Reviewing salary and dividend levels

Adjusting the timing of taxable income

These strategies can reduce your adjusted net income and potentially reduce—or even eliminate—the HICBC.

At Bidwell Accountancy, we regularly review our clients' tax positions to ensure they aren't paying more tax than necessary.

Research & Development Tax Relief – Is Your Business Missing Out?

One of the biggest misconceptions surrounding Research & Development (R&D) Tax Relief is that it only applies to technology companies.

In reality, many businesses qualify without realising it.

If your company develops new products, improves existing processes, creates bespoke software, solves engineering challenges or overcomes technical uncertainty, you could be entitled to valuable Corporation Tax relief.

What Qualifies?

Your company must:

Pay UK Corporation Tax

Be attempting to achieve an advance in science or technology

Face genuine technological uncertainty

Carry out qualifying work to overcome those uncertainties

Importantly, your project does not have to succeed.

Failed projects often qualify because HMRC recognises that innovation frequently involves trial, error and experimentation.

Industries That Commonly Qualify

Many sectors successfully claim R&D relief, including:

Manufacturing

Engineering

Construction

Software Development

Food Production

Medical Technology

Environmental Technology

Product Design

Since April 2023, certain mathematical advances can also qualify.

Good Record Keeping Matters

HMRC has increased its scrutiny of R&D claims.

Businesses should keep detailed records explaining:

The technical challenge

Why the solution wasn't readily available

The work carried out

The costs incurred

The outcome of the project

If you're unsure whether your business qualifies, speak to our team before submitting a claim.

LLP Salaried Member Rules – Are Your Members Being Taxed Correctly?

Limited Liability Partnerships (LLPs) remain popular business structures, but many members are unaware of the Salaried Member Rules.

Although LLP members are normally taxed as self-employed, HMRC can treat certain members as employees for tax purposes.

This means PAYE and National Insurance may become payable.

The Three Tests

A member will normally be treated as a salaried member if all three of the following apply:

1. Disguised Salary

At least 80% of their remuneration is fixed or not linked to the LLP's overall profits.

2. Lack of Significant Influence

The individual has little influence over how the LLP operates.

3. Low Capital Contribution

Their capital contribution is less than 25% of their expected annual remuneration.

Many LLPs regularly review their agreements to ensure these conditions aren't all met.

If you operate through an LLP, it's worth checking that your structure remains tax efficient.

Dividend Tax 2026/27 – What Every Company Director Should Know

For many business owners, dividends remain one of the most tax-efficient ways to extract profits from a limited company.

However, understanding the tax rules is essential.

For the 2026/27 tax year:

Allowance / Rate Amount

Personal Allowance £12,570

Dividend Allowance £500

Basic Rate Dividend Tax 10.75%

Higher Rate Dividend Tax 35.75%

Additional Rate Dividend Tax 39.35%

Dividend income sits on top of your other taxable income.

This means dividends can push you into a higher tax band, resulting in different portions of your dividend income being taxed at different rates.

Planning Ahead Makes a Difference

Rather than waiting until the end of the tax year, directors should review:

Salary levels

Dividend timing

Company profits

Pension contributions

Personal tax allowances

Good tax planning throughout the year can significantly reduce your overall tax liability.

Our proactive tax planning service helps directors maximise what they take home while remaining fully compliant with HMRC rules.

Important HMRC Deadlines – July & August 2026

July 2026

1 July

Corporation Tax due for companies with a 30 September 2025 year end.

6 July

Submit P11D forms.

Submit P11D(b).

Report employee benefits and expenses.

19 July (22 July if paying electronically)

PAYE and National Insurance due.

Class 1A National Insurance due.

CIS300 monthly return.

CIS deductions payment.

August 2026

1 August

Corporation Tax due for companies with a 31 October 2025 year end.

19 August (22 August if paying electronically)

PAYE and National Insurance.

CIS300 return.

CIS deductions payment.

Why Businesses Choose Bidwell Accountancy

We're much more than accountants.

Our clients choose us because we provide proactive advice that helps them grow their businesses while paying the right amount of tax—not a penny more.

We help with:

Limited Company Accounts

Corporation Tax

Self Assessment Tax Returns

Bookkeeping

Payroll

VAT Returns

Xero Cloud Accounting

Business Growth Advice

Cash Flow Forecasting

Tax Planning

Director Salary & Dividend Planning