As we move further into the new tax year, staying ahead of tax changes, compliance deadlines and financial planning opportunities has never been more important for business owners and individuals alike.
At Bidwell Accountancy Ltd, we work closely with businesses across Milton Keynes and beyond to help make the complex simple. This month’s newsletter covers important updates on bonus taxation, HMRC scam warnings, Incorporation Relief, Personal Tax Accounts and key tax deadlines for May and June 2026.
Whether you are a limited company director, sole trader, landlord or employer, these updates could help you stay compliant, reduce tax risks and plan more effectively for the year ahead.
How Are Bonuses Taxed in the UK?
Many businesses reward employees with bonuses, incentives or staff rewards, but it is important to ensure these payments are taxed and reported correctly.
Cash Bonuses and PAYE
Cash bonuses, including vouchers that can be exchanged for cash, are treated as taxable earnings by HMRC. Employers must process these payments through payroll under Pay As You Earn (PAYE), meaning:
Income Tax must be deducted
Class 1 National Insurance contributions apply
The bonus is included within the employee’s taxable pay
One common surprise for employees is that bonuses can temporarily push earnings into a higher tax band for that pay period, meaning the net payment received may be lower than expected.
Non-Cash Rewards and Benefits in Kind
Non-cash rewards such as gifts, hospitality or other incentives may fall under different tax rules. Some are taxed through payroll, while others may be treated as Benefits in Kind and reported separately.
Getting the treatment wrong can lead to:
HMRC penalties
Underpaid tax liabilities
Payroll reporting issues
Businesses should ensure payroll systems and reporting procedures are fully up to date, particularly ahead of the upcoming mandatory payrolling of Benefits in Kind from April 2027.
If you need support with payroll, staff benefits or director remuneration planning, the team at Bidwell Accountancy Ltd can help.
Beware of Winter Fuel Payment Scams
HMRC has warned taxpayers to remain vigilant as fraudsters increasingly target pensioners and higher earners regarding Winter Fuel Payment repayments.
Why Are Scammers Targeting Taxpayers?
From April 2026, HMRC will begin recovering Winter Fuel Payments from individuals earning over £35,000 per year. In most cases, this will happen automatically through PAYE tax code adjustments, meaning there is usually no need to contact HMRC directly.
Unfortunately, scammers are using this change as an opportunity to send:
Fake HMRC text messages
Fraudulent emails
Scam phone calls requesting bank details or payments
HMRC has already received more than 25,000 scam reports linked to Winter Fuel Payments.
Important Reminder
HMRC will never:
Ask for bank details by text message
Request repayments via email
Pressure you into making immediate payments
If you are unsure whether communication is genuine, always verify it through GOV.UK or speak to a trusted accountant first.
At Bidwell Accountancy Ltd, we regularly help clients deal with HMRC correspondence and identify suspicious activity before it becomes a problem.
Tax Relief When Incorporating a Business
Many growing sole traders and partnerships eventually consider moving to a limited company structure for tax efficiency, liability protection or long-term business planning.
However, incorporating a business can create Capital Gains Tax implications if business assets increase in value.
What Is Incorporation Relief?
Incorporation Relief can help defer Capital Gains Tax when a business is transferred into a limited company.
Broadly, the relief applies when:
The whole business is transferred as a going concern
All assets (excluding cash) are transferred
The owner receives shares in the company in return
Where the conditions are met, the gain is rolled into the value of the shares received, postponing the Capital Gains Tax charge until those shares are sold in the future.
Why Professional Advice Matters
Business incorporation should never be viewed as a simple administrative exercise. There can be significant implications involving:
Capital Gains Tax
Goodwill valuation
Stamp Duty
VAT
Director remuneration planning
Mortgage or lending arrangements
At Bidwell Accountancy Ltd, we help businesses across Milton Keynes assess whether incorporation is the right move and structure the transition tax-efficiently.
Do You Have a Personal Tax Account Yet?
HMRC’s Personal Tax Account (PTA) is becoming an increasingly important tool for managing your tax affairs online.
Your PTA allows you to:
Check your tax code
Submit and view tax returns
Claim refunds
View Child Benefit information
Access National Insurance details
Find your UTR number
Update personal information
Review State Pension forecasts
Why It Matters
With HMRC continuing to digitise the UK tax system and Making Tax Digital (MTD) expanding over the coming years, taxpayers are expected to manage more of their affairs online.
Setting up a PTA now can help you:
Access information quicker
Reduce delays with HMRC
Monitor your tax position more effectively
Spot issues before they become costly
If you are unsure how to register or use your PTA, Bidwell Accountancy Ltd can guide you through the process.
Tax Diary: Important Deadlines for May & June 2026
May 2026
1 May 2026 – Corporation Tax due for year ended 30 July 2025
19 May 2026 – PAYE and NIC due for month ended 5 May 2026
22 May 2026 – Electronic PAYE payment deadline
19 May 2026 – CIS300 filing deadline
19 May 2026 – CIS tax payment deadline
31 May 2026 – Deadline to provide employees with P60s for 2025/26
June 2026
1 June 2026 – Corporation Tax due for year ended 31 August 2025
19 June 2026 – PAYE and NIC due for month ended 5 June 2026
22 June 2026 – Electronic PAYE payment deadline
19 June 2026 – CIS300 filing deadline
19 June 2026 – CIS tax payment deadline
Need Help With Tax or Business Planning?
At Bidwell Accountancy Ltd, we support businesses and individuals with:
Limited company accounts
Tax returns
Payroll and CIS
Bookkeeping
Tax planning
Xero support
Business advisory services
Cashflow forecasting and growth planning
If you would like tailored advice or support with any of the topics covered in this newsletter, please contact our team today.
Bidwell Accountancy Ltd – We make the complex simple.
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