John’s New Years Blog 2026
Dear All,
It seems a long, long time ago (Christmas 2024) that I wrote a regular blog or article or whatever it may be called so this is a belated New Year message. Incessant rain since Christmas (when we did enjoy a period of dry whether) has certainly made us all feel somewhat depressed and we certainly look forward to the Spring, Daffodils and some summer sun.
We have all been feeling the effects of the chancellors tax and economic policies with increase of tax and many other issues which threaten our business and personal tax situations. It is hard to do any sort of tax planning at the moment with so many reversals by the government.
We are faced with the issues of pensions coming into account for inheritance tax from April 2027 If you are fearful of large inheritance tax bills now is the time to start giving this some consideration and long-term planning. Do feel free to contact me, Antonina, Gemma or Colin in this respect going forward.
Only a few weeks to the 5th April 2026 so some general tax planning is needed especially in the form of dividends, as we know the dividend tax rate is going up as from 6th April to 10.75%. We do have the changes in business property relief and agricultural relief to consider also.
The increasing costs of running a business or charity and Taxation issues are effecting us all so do feel free to look to us for support as necessary.
The firm continues to grow especially in the charitable and taxation sector. Since I wrote last we have welcomed Lydia back to the firm as an accounts and audit manager. You will recall Lydia qualified as a Chartered Accountant with us but then went away to gain experience in a much larger firm. Now married with a young daughter we are pleased to have her back with us. Lydia of course is also the sister-in-law of Jacob our audit manager.
You may have come across Beata in your dealings with the firm, she is a new lady who has also joined us heading up our bookkeeping and quarterly accounting. She helps a number of clients in their digital accounting packages and monthly / quarterly returns.
The government have announced a reduction to the audit and independent examination thresholds for charities. The official gov.uk web page states that these changes are expected to apply to accounting years ending on or after 30th September 2026. If this affects you then please do not hesitate to contact us for guidance as to whether you will need an audit or just an independent examination under the Charities Act. In some cases we do advise to carry on with the audit because of the safeguards and assurance it gives you. This has to be weighed up against a cost saving by just moving over to the much lighter touch of an independent examination.
As of April this year some clients will be caught by the new Making Tax Digital rules, whereby you have to submit quarterly reports of income and expenses to HMRC. This is basically only going to effect clients who’s combined income (before expenses) from rental properties and trading income was excess of £50,000 per annum. If you have any doubts as whether you should be registered please contact Colin. He is looking after this particular area of the business.
Like yourselves the firm are not immune from the difficulties in the business world and also the other pressures which come on us all in a fast-moving, changing world. It can be difficult to find some stability, peace and quiet.
At the beginning of a New Year I am always reminded of the words of Minnie Louise Haskins who said “As I said to the man who stood at the gate to the year: ‘Give me a light that I may tread safely into the unknown’ And he replied ‘Go out into the darkness, put your hand in the Hand of God, that shall be better to you than light and safer than a known way.’ So I went forth and finding the Hand of God trod gladly into the night.”
That is my prayer for all of you
John Caladine
February 2026