Landlords

Learn how to read rental accounts and identify the key figures every UK landlord should monitor.

Learn how to read limited company accounts, understand FRS 105 and FRS 102 Section 1A, and identify the key figures every UK company director should monitor.

A UK Chartered Accountant’s Guide for Business Owners and Taxpayers

With anyone able to call themselves an accountant in the UK, choosing a Chartered Accountant gives you greater protection, expertise, and peace of mind.

Confused about Making Tax Digital? Here’s whether you really need an accountant, and how to stay compliant without the stress.

If you’ve been asked to pay tax in July, it’s likely a payment on account. Here’s how it works, how it’s calculated, and what to do if you can’t pay.

MTD ITSA first quarterly update explained for UK sole traders and landlords. Deadlines, what to file, and how CJL Accountancy can help.

The UK government has increased the statutory mileage rates from 6 April 2026 - here’s exactly what it means for you.

Choosing whether to operate as a sole trader (self-employed) or run a limited company remains one of the biggest decisions for UK business owners, and the answer is no longer as clear‑cut as it once was. With dividend tax increases, corporation tax now tiered and the introduction of Making Tax Digital (MTD), the landscape in 2026 looks very different from a few years ago. This updated guide explains the key differences, the latest tax rules, and what you need to consider if you’re thinking about incorporating or moving back to sole trader status. The Core Differences: Self‑Employed vs Limited Company Self‑Employed / Sole Trader You and the business are the same legal entity Profits are taxed via Self Assessment Straightforward setup and minimal admin Full personal liability for business debts Limited Company A separate legal entity Directors run the company; shareholders own it Profits are taxed at Corporation Tax rates Owners typically extract profits via salary + dividends More complex accounting and compliance Limited liability protection How Tax Has Shifted: Why the Gap Has Narrowed Dividend Tax Rates Have Increased Dividend tax has been rising over several years, reducing the traditional tax advantage of operating as a limited company. The tax‑free dividend allowance is now just £500, a big drop from the original £5,000. From 6 April 2026, the personal tax rates for dividends are: Basic rate: 10.75% Higher rate: 35.75% Additional rate: 39.35% This means the well‑known strategy of paying a small salary and taking the rest as dividends still works, but the savings are smaller than in the past. Corporation Tax Is Now Tiered Since 2023, Corporation Tax rates have been based on profit levels: 19% for profits under £50,000 25% for profits over £250,000 Marginal rate in between via tapering Note that the thresholds above reduce if the company has associated companies. While corporation tax is still generally lower than higher‑rate income tax, the gap has tightened. National Insurance (NI) Savings Still Exist Sole traders pay class 4 NI on profits above the threshold. Class 2 NI no longer needs to be paid. Employees (including directors) and the company pay class 1 NI on salaries above the thresholds, although there can be a reduction in the company NI if the Employment Allowance is available. No NI is payable on dividends. Making Tax Digital (MTD): A Key Factor for Sole Traders MTD for Income Tax Self Assessment starts from April 2026. Requirements include: Digital record‑keeping Quarterly submissions End‑of‑period finalisation This introduces new admin and potential software costs for self‑employed individuals. The latest from HMRC is that companies will not be required to comply with MTD, although annual accounts and corporation tax returns still need to be filed electronically. Incorporation If you've been self-employed and would like to incorporate, you may trigger a capital gains event when transferring your business into a company, depending on your circumstances. Incorporation relief may be available which effectively defers the tax. Professional guidance ensures you structure incorporation tax‑efficiently. Disincorporation: Moving Back to Sole Trader With higher dividend taxes and the narrowing of tax benefits, some business owners are now considering moving back to trading as a sole trader. It's important that you get professional advice on this as you may need to pay tax at income tax rates when moving from a company to self-employed. So… Which Structure Is Better in 2026? There’s no universal answer, but recent tax changes mean the “best” structure depends more on your circumstances than ever. A Limited Company Might Suit You If: ✔ Your profits are above £50,000 ✔ You want to keep profits in the company ✔ You need limited liability protection ✔ You plan to grow, scale, or bring in shareholders ✔ Your industry expects a company structure Self‑Employment Might Suit You If: ✔ Your profits are below £50,000 ✔ You value simplicity Final Thoughts Recent tax changes have shifted the balance but haven’t eliminated the benefits of incorporation entirely. The “best” structure depends on: Your profit level Whether you reinvest or withdraw income Your risk position How much admin you’re comfortable with Your long‑term goals If you’re unsure, the best next step is a personalised review of your business finances and future plans. Get in touch if you'd like tailored advice on the right structure for your business in 2026.