Spring is a season of fresh starts, new ideas and exciting opportunities. As the days lengthen and energy returns, we’re inspired to innovate, grow and support you in every step of your financial journey.
With the tax year end fast approaching, it’s time to get your personal tax return and P11D forms ready. For those of you affected, we’ll soon be sending you your Personal Tax Return Checklist and P11D Checklist. Completing these promptly allows us to process your returns quickly and efficiently, giving you more time to enjoy the season.
To add a touch of excitement, the first tax return we file this year will be rewarded with a bottle of champagne. Consider it our way of celebrating your promptness and helping the season start with a pop.
Whether it’s new opportunities at work or personal growth, let’s welcome spring with enthusiasm and positivity. Here’s to a season full of achievements, bright ideas and fresh possibilities!
Statutory Sick Pay (SSP) Changes from 6 April 2026
What Employers Need to Know
From 6 April 2026, the Employment Rights Act 2025 introduces two significant changes to SSP:
Removal of the Lower Earnings Limit
All eligible employees will qualify for SSP, regardless of how much they earn. SSP will be paid at:
- 80% of normal weekly earnings, or
- £123.25 per week (the uprated flat rate)
Removal of the Waiting Period
SSP will be payable from the first full day of sickness absence.
Currently, SSP is paid from the fourth qualifying day of absence. From 6 April 2026, this waiting period will be removed.
When the New Rules Apply
The new SSP rules will apply across the UK, including Northern Ireland.
- Absences starting before 6 April 2026 will follow the current SSP rules
- Absences starting on or after 6 April 2026 will follow the new rules, unless otherwise outlined in legislation
Eligibility and payment will be determined by the start date of the sickness absence.
Mandatory Payrolling of Benefits
A reminder that if you plan to payroll benefits and expenses, you must register with HMRC via their online service before 5 April 2026 (the start of the new tax year).
Missing this deadline means you won’t be able to payroll benefits until the following tax year, so early action is essential.
Why Register Now?
Mandatory payrolling of benefits will come into effect from 6 April 2027. Leaving registration until the last minute could place unnecessary pressure on your business during the 2026/27 tax year.
Getting internal systems and processes ready now will make the transition smoother, more efficient and far less stressful.
Good News for Clear Vision Payroll Clients
To support our clients ahead of these legislative changes, we have decided to upgrade our payroll software well in advance of the mandatory introduction date.
This proactive approach ensures:
- Full compliance with upcoming legislation
- A seamless transition to payrolling benefits
- Continued accuracy and efficiency in payroll processing
The new BrightPay software provides enhanced functionality, including:
- Greater control over the information you submit
- Improved reporting capabilities
- A fully integrated employer portal
This allows for a more efficient, transparent and future-proof payroll process.
The link here explains the payrolling of benefits and will apply to any employer who currently prepares P11Ds for employees.
What Employers Need to Know
From an employer perspective, you will have access to the secure online portal with a range of value-added features, including:
- Direct access to payroll reports
- The ability to view all employee records
- Access to employee payslips
- Visibility of amounts due to HMRC
The software is HMRC recognised and RTI compliant and fully supports automatic enrolment. All payroll data is encrypted to ensure it is safe and secure.
Changes for Employees
Employees will benefit from secure access to their payroll information anytime, anywhere, using a smartphone or tablet. A free employee app is available to download on both Android and iOS devices.
The registration process is simple and once completed, employees will be able to access their payslips with ease.
If you have any questions about the recent changes to SSP or the mandatory payrolling of benefits, please reach out to our payroll team for assistance.
Tax on Overdrawn Director’s Loan Accounts (ODLA)
What’s Changing?
From 6 April 2026, the tax charge on overdrawn director’s loan accounts will increase.
Under Section 455 of the Corporation Tax Act 2010, close companies must pay a temporary corporation tax charge if a director (or participator) has an outstanding loan that is not repaid within the required timeframe.
New Rate from 6 April 2026
For loans made on or after 6 April 2026, the Section 455 tax rate will increase to:
- 35.75%
This applies to close companies making loans to directors or other participators.
Current and Previous Rates
For comparison:
- 33.75% – applies to loans made on or after 6 April 2022
- 32.5% – applies to loans made before 6 April 2022
The new rate represents a 2 percentage point increase from the current 33.75% rate.
What This Means
- Companies with overdrawn director’s loan accounts will face a higher upfront tax charge
- The tax remains repayable to the company once the loan is repaid (subject to HMRC rules and timing)
- The increase further aligns the Section 455 rate with higher dividend tax rates
Action Points for Companies
- Review director’s loan balances before 6 April 2026
- Consider the timing of any new loans
- Plan repayments carefully to manage cash flow and avoid unnecessary tax charges
- Speak to us about planning opportunities
Research & Development (R&D) Tax Credit Claims
HMRC Acknowledgement of Additional Information Form (AIF)
If you’ve recently submitted an R&D Tax Credit Claim, you may have received an email from HMRC acknowledging receipt of your Additional Information Form (AIF).
Important Clarification from HMRC
HMRC is now explicitly confirming that:
- The AIF is not the R&D tax claim itself
- The R&D claim is made through the corporation tax return (CT600), including the relevant financial figures.
Given how complex the R&D claim process has become in recent years, this clarification is helpful. It reinforces that submitting the AIF alone does not constitute a valid claim.
R&D tax relief is governed by the Corporation Tax Act 2009, with claims formally made as part of the corporation tax return process.
Why HMRC is Sending These Messages
While the tone of the email may feel like a warning, it appears to be part of HMRC’s broader effort to:
- Improve compliance standards in the R&D sector
- Increase transparency for taxpayers
- Ensure claims are properly prepared and submitted
With the forthcoming Tax Adviser Registration requirements, HMRC is clearly signalling higher expectations for agents and advisers operating in this area.
A Positive Step for Taxpayers
Although the additional communication may seem cautious, it does provide:
- Clear confirmation of what has (and has not) been submitted
- Greater transparency around HMRC’s expectations
- Reassurance for clients working with compliant advisers
These additional checks and communications help protect legitimate claimants and uphold standards across the profession.
As proud members of The R&D Community, Clear Vision offers a complete end-to-end R&D Tax Credits service, helping innovative companies to claim valuable tax relief.
If you think your company might qualify for R&D Tax Credits, or you would like to discuss anything R&D-related, do please get in touch.
Do You Understand Your Business Financials?
Knowing your numbers isn’t just important, it’s transformational. With the right insights, you can:
- Assess the performance of your business with confidence
- Identify the key metrics that truly matter
- Gain a clear, actionable financial picture
- Spot opportunities for growth and improvement
If this resonates and you feel ready for support, our Leadership Support Package is here to guide you. Through our dedicated Financials Module, you’ll gain:
- A clear snapshot of the financial health of your business
- Insights into how your business is truly performing
- Recommendations for improvements
Take the next step toward financial clarity and business growth. Discover how our Leadership Support Package can transform your business – visit our website today!
How We Can Help
If you have any questions about the topics covered in this month’s newsletter and how they might affect you or your business, please don’t hesitate to reach out. We are committed to keeping our clients ahead of regulatory changes, so you can focus on running your business with confidence.
At Clear Vision, we’re more than a team of professionals; we’re a group of people who genuinely enjoy supporting our clients. We’re here to help you.
However you need us to support you through your journey as a business owner, we’re here for you!
“It is often the small steps, not the giant leaps, that bring about the most lasting change.”
Queen Elizabeth II