Helping Milton Keynes Businesses and Individuals Stay Ahead
Welcome to the June 2026 edition of the Bidwell Accountancy newsletter. As trusted accountants in Milton Keynes, we are committed to keeping our clients informed about the latest tax changes, business updates and financial planning opportunities.
This month, we explore how dividend income is taxed, highlight valuable Inheritance Tax gifting exemptions, explain the latest Companies House identity verification requirements, review changes to approved business mileage rates, and remind you of important tax deadlines approaching over the coming weeks.
Whether you are a business owner, company director, landlord, sole trader or individual taxpayer, understanding these developments can help you make better financial decisions and avoid unnecessary tax liabilities.
If you would like tailored advice on any of the topics covered, please contact the team at Bidwell Accountancy.
Understanding Dividend Tax in 2026/27
Many business owners and company directors choose to extract profits through dividends. However, it is important to understand how dividend income is taxed to avoid unexpected tax bills.
For the 2026/27 tax year, dividend income benefits from two tax-free allowances:
Personal Allowance: £12,570
Dividend Allowance: £500
Once these allowances have been used, dividend income is taxed at the following rates:
Basic Rate Taxpayers: 10.75%
Higher Rate Taxpayers: 35.75%
Additional Rate Taxpayers: 39.35%
Your dividend income is added to your other taxable income, which means dividends can push you into a higher tax band.
If you receive more than £10,000 in dividends during the tax year, you will normally need to complete a Self Assessment tax return. If you are not already registered for Self Assessment, registration must usually be completed by 5 October following the end of the relevant tax year.
At Bidwell Accountancy, we regularly help company directors and shareholders plan dividend payments efficiently to minimise their overall tax liability.
Inheritance Tax Planning: Making Use of Tax-Free Gifts
Inheritance Tax planning is becoming increasingly important for many families. One of the simplest ways to reduce the value of your estate is by making use of available gifting exemptions.
Annual Exemption
Each individual can give away up to £3,000 every tax year without the gift being included in their estate for Inheritance Tax purposes.
Unused exemption can be carried forward for one year only. This means that if you made no gifts during 2025/26, you may be able to give away up to £6,000 during 2026/27.
Small Gift Exemption
You may also make unlimited gifts of up to £250 per person each tax year, provided no other exemption has been used for that individual.
Wedding and Civil Partnership Gifts
Tax-free gifts can also be made when someone gets married or enters a civil partnership:
Parents: up to £5,000
Grandparents: up to £2,500
Other individuals: up to £1,000
Gifts Out of Surplus Income
One of the most valuable but often overlooked exemptions allows gifts to be made from surplus income.
There is no financial limit, provided:
The gifts are made regularly.
They come from income rather than capital.
Your standard of living is not affected.
This can be particularly useful for individuals receiving pension income or investment income who wish to support children or grandchildren.
Good record keeping is essential, as HMRC may request evidence that the exemption conditions have been met.
Companies House Identity Verification: What Directors Need to Know
Companies House identity verification became a legal requirement for directors and Persons with Significant Control (PSCs) from 18 November 2025.
A 12-month transition period is currently underway, meaning affected individuals will need to complete verification by November 2026.
Verification is generally a one-off process and can be completed:
Directly through Companies House using GOV.UK One Login.
Through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor.
Most individuals can verify their identity online using:
Passport
UK Driving Licence
Biometric Residence Permit
Alternative options include selected Post Office branches and other approved verification methods.
Failure to complete identity verification could lead to filing restrictions and financial penalties.
As an accountancy practice supporting businesses throughout Milton Keynes and beyond, Bidwell Accountancy can assist clients in understanding and meeting these new compliance requirements.
Business Mileage Rates Increased
In response to rising costs affecting businesses and households, the Government announced an increase to approved business mileage rates from 6 April 2026.
New Approved Mileage Rates
For cars and vans:
First 10,000 business miles: 55p per mile
Additional miles over 10,000: 25p per mile
This represents an increase from the previous 45p per mile rate and has been backdated to the start of the 2026/27 tax year.
Other approved rates remain unchanged:
Motorcycles: 24p per mile
Bicycles: 20p per mile
Employers may also continue paying an additional 5p per passenger per mile when employees carry colleagues on business journeys.
Where employers reimburse mileage below the approved rate, employees may be able to claim Mileage Allowance Relief (MAR) through HMRC.
For self-employed individuals and company directors who travel regularly, reviewing mileage claims can provide valuable tax savings.
Tax Diary: Key Dates for June and July 2026
June 2026
1 June 2026 - Corporation Tax due for companies with a year end of 31 August 2025.
19 June 2026 - PAYE and NIC liabilities due for the month ended 5 June 2026 (22 June if paying electronically).
19 June 2026 - CIS300 monthly return filing deadline.
19 June 2026 - Construction Industry Scheme (CIS) deductions payable.
July 2026
1 July 2026 - Corporation Tax due for companies with a year end of 30 September 2025.
6 July 2026 - Deadline for submitting forms P11D and P11D(b).
19 July 2026 - Class 1A National Insurance due (22 July if paying electronically).
19 July 2026 - PAYE and NIC liabilities due for the month ended 5 July 2026.
19 July 2026 - CIS300 monthly return filing deadline.
19 July 2026 - Construction Industry Scheme (CIS) deductions payable.
Need Tax Advice or Business Support?
Whether you need help with tax planning, Self Assessment, company accounts, bookkeeping, payroll, Xero accounting software, Corporation Tax or business growth advice, the team at Bidwell Accountancy is here to help.
Based in Milton Keynes, we support businesses and individuals across Buckinghamshire and throughout the UK with proactive accountancy and tax services designed to help you save tax, stay compliant and grow with confidence.
Contact Bidwell Accountancy today to arrange a free consultation and discover how we can help make the complex simple.
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