As we approach the end of the 2025/26 tax year, now is the perfect time to review your finances and make sure you are prepared for upcoming tax changes and key deadlines.
At Bidwell Accountancy Ltd, we support business owners, landlords and individuals across Milton Keynes and the UK with proactive tax planning, accounting and compliance advice.
In this month’s newsletter we cover:
How National Insurance credits can fill gaps in your contribution record
The upcoming launch of Making Tax Digital (MTD) for Income Tax from April 2026
The rules around inheriting Additional State Pension
What car and travel expenses self-employed individuals can claim
A tax diary for March and April 2026 so you don’t miss key deadlines
If any of these topics affect you or your business, our team would be happy to help.
Filling Gaps in Your National Insurance Record
Many people are unaware that gaps in their National Insurance record can reduce the amount of State Pension and other benefits they may receive in the future.
National Insurance credits can help fill these gaps and increase the number of qualifying years on your record.
You may have gaps if you were:
Employed but earning below the National Insurance threshold
Unemployed and not claiming benefits
Self-employed with small profits
Living or working outside the UK
Receiving credits for less than a full tax year
Credits may also apply automatically if you are:
Caring for someone
On maternity or paternity leave
Ill or receiving statutory sick pay
Looking for work
On jury service
There are two main types of credits:
Class 1 credits
These count towards the State Pension and other benefits such as Jobseeker’s Allowance.
Class 3 credits
These count towards the State Pension and certain bereavement benefits.
If you have gaps in your record, you may also be able to pay voluntary National Insurance contributions to protect your entitlement.
You can normally fill gaps for the previous six tax years, and the deadline to make voluntary payments is 5 April each year.
If you are unsure whether you have gaps in your record, we can review this for you.
Making Tax Digital for Income Tax – Coming April 2026
One of the biggest changes to the UK tax system in recent years is the introduction of Making Tax Digital (MTD) for Income Tax.
From 6 April 2026, many self-employed individuals and landlords will need to change how they report their income to HMRC.
The new rules apply to:
Self-employed individuals
Landlords
Those earning over £50,000 per year from business or property income
Under MTD, you will need to:
✔ Keep digital accounting records
✔ Submit quarterly updates of income and expenses
✔ Use HMRC-approved software
A final tax return will still be required after the end of the tax year. For example:
First MTD tax year: 2026/27
Final return due: 31 January 2028
The aim of MTD is to reduce errors and help taxpayers stay on top of their finances throughout the year rather than facing the usual January self-assessment rush.
HMRC has confirmed that taxpayers joining MTD in April 2026 will not receive penalty points for late quarterly submissions during the first year, giving businesses time to adjust.
At Bidwell Accountancy, we specialise in cloud accounting and digital bookkeeping systems and can help you transition smoothly to MTD.
Inheriting Additional State Pension
The Additional State Pension only applies to people who reached State Pension age before 6 April 2016 and are receiving the Old State Pension system.
This additional amount was paid on top of the basic State Pension and was based on National Insurance contributions.
If your spouse or civil partner dies, you may be able to inherit part of their Additional State Pension if you reached State Pension age before April 2016.
You may also be able to:
Use your partner’s National Insurance record to increase your State Pension
Inherit part of their Graduated Retirement Benefit
Receive a portion of their Additional State Pension entitlement
Different rules apply for people who reached State Pension age after April 2016, when the New State Pension system was introduced.
If you believe this may apply to you, we recommend contacting the Pension Service or speaking with a professional adviser.
Car and Travel Expenses for the Self-Employed
If you are self-employed, claiming the correct business expenses is essential to ensure you do not pay more tax than necessary.
You can claim allowable expenses for business travel including:
Vehicle insurance
Repairs and servicing
Fuel costs
Parking charges
Vehicle tax and licence fees
Breakdown cover
Hire charges
You may also claim business travel costs such as:
Train, bus and tram fares
Taxi fares
Air travel for business trips
Hotel accommodation
Meals on overnight business trips
However, you cannot claim:
Personal travel costs
Commuting between home and a regular workplace
Fines or penalty charges
For vehicle costs, you can usually choose between:
Actual vehicle expenses
Claiming the business proportion of real running costs.
HMRC simplified expenses
Claiming a fixed mileage rate for business journeys.
If you purchase a vehicle for business use, you may also be able to claim capital allowances, depending on your accounting method.
Understanding these rules correctly can significantly reduce your tax bill.
📅Tax Diary – March & April 2026
Here are some key upcoming tax deadlines to be aware of.
1 March 2026
Corporation Tax due for companies with a year end of 31 May 2025
2 March 2026
5% surcharge applies to 2024/25 Self Assessment tax if unpaid and not covered by a Time to Pay arrangement by 1 April 2026
19 March 2026
PAYE and NIC deductions due for month ended 5 March 2026
(22 March if paying electronically)
19 March 2026
CIS300 return due for month ended 5 March 2026
19 March 2026
CIS tax deducted for month ended 5 March 2026 payable
1 April 2026
Corporation Tax due for companies with year end 30 June 2025
19 April 2026
PAYE and NIC deductions due for month ended 5 April 2026
(22 April if paying electronically)
19 April 2026
CIS300 return due for month ended 5 April 2026
30 April 2026
Late filing penalties of £10 per day begin for 2024/25 tax returns filed after this date (up to 90 days)
Need Help With Your Tax or Accounting?
If you are unsure how any of these changes affect you, it is always best to seek professional advice.
At Bidwell Accountancy Ltd, we work with:
Small businesses
Limited companies
Sole traders
Property landlords
Individuals requiring tax advice
Our services include:
Self-Assessment tax returns
Corporation tax planning
Cloud accounting and bookkeeping
Payroll services
Making Tax Digital compliance
📞 01908 380391
🌐 info@bidwellaccountancy.com
Our team is always happy to help you stay compliant, minimise tax and keep your finances on track.
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