Across the UK, people often come together for a common purpose, typically to support vulnerable people or their community in some way. If this group becomes more formal, then there’s often a question as to whether the unity should become a charity or a Community Interest Company (CIC).

A CIC – a hybrid between a charity a non-profit-making company – is a limited company that operates to provide a benefit to the community it serves. Examples of a CIC could be a direct welfare service to vulnerable people, or an activity that generates profits which are used to support a specific purpose such as a running a café, where all profits generated are used to benefit the community.

A CIC operates in the same way as any other company, with many of the characteristics of a limited company, such as a separate legal identity; the ability to enter into contracts and own assets in its own name; and flexibility in borrowing and fund raising. The separate legal identity means that a CIC will continue to exist despite changes in ownership or management. The directors can be paid or unpaid and have the same rights and duties as any other directors.

There are certain activities that the CIC legislation states are not eligible for CIC status and these activities include a political party or a political campaigning organisation.

The option of becoming a charity, rather than a CIC, comes with more compliance and regulation, as well as the requirement for trustees and AGMs etc. However, there are also benefits. If you’re looking at the pros and cons of both from a finance and tax perspective, do get in touch with us at Lewis & Co.

The 2024/25 Annual Report from the Government’s Regulator of Community Interest Companies (CICs) stated that the number of CICs on the register rose, with a record 8,376 new CICs being incorporated during that year, a 12% rise from the previous financial year.

As Louise Smyth, the then Regulator of Community Interest Community explained in the report: “Since the inception of the Community Interest Company model in 2005, CICs have continued to grow in number and in influence. As at March 2025, there are now over 37,000 registered CICs across the UK, demonstrating the strength of social enterprise as a force for good.”

A CIC can only be registered with the consent of the Community Interest Companies Regulator; the application must comply with CIC legislation as well as the usual rules for registration of a company. Currently, it costs £115 to register a CIC online/via software (£139 paper) and £45 for the conversion of a limited company to a CIC.

Each year, a CIC must submit a return stating what its activities have been and that these have been of community benefit; the annual CIC Reporting Fee is £15. We can help our clients with that reporting element for Companies House, while also supporting them as they plan ahead.

Here at Lewis & Co, we have supported a number of CICs as clients over the years, including food hubs, community shops and cafes, and community exercise groups. Although they are basically treated in a similar way to limited companies, as regards to tax, our support also includes tax planning and management to make sure they aren’t paying more tax than they need to.

For more information, do get in touch on 01892 513515 or email: info@lewisandco.biz

Making Tax Digital for Income Tax is here!

Today, 1 July 2026, represents the first day that the first batch of submissions can be made for Making Tax Digital for Income Tax.

Those of you that it affects will have been contacted directly by H M Revenue and Customs some time ago and will no doubt also have had numerous conversations with your Accountant as well.

These first batch of submissions, relating to the quarter ended 30 June 2026, can now be made – via your reporting software of choice.

If you still have any queries or concerns regarding Making Tax Digital and how it will affect you, our team is always on hand to assist and provide you with the reassurance you are searching for. Our contact details are below:-

Tel: 01892 513515
Email: info@lewisandco.biz

If you’re running your own business or working for yourself, that’s time-consuming enough and that’s even more true if you are involved in some way with the medical profession, which comes with its own particular sort of stress. Rest assured, whatever field you’re in, we are here to take away the burden of doing accounts and tax-related activities.

Doctors’ tax is a typically tricky area. While doctors are typically self-employed, many doctors also work in the NHS, meaning that a proportion of their salary is PAYE. The pension element can be complex for doctors, who could typically have an NHS pension, as well as a private pension.

In addition, GPs could also be business owners, running their own surgeries, with practice accounts to manage, as well as potential private practice or ‘freelance’ income. Whatever their situation, we can support them with the preparation of both business and personal accounts.

We can make sure accounts are calculated as tax efficiently as possible. Nowadays, there may also be IR35 implications to consider too, as well as VAT, and claiming the relevant benefits and allowances.

If a doctor is heading up a GP practice, we can also advise them on business planning, including developing their practice, incorporation, succession planning and any potential mergers and acquisitions.

We don’t just look after doctors and have clients that also include other health professionals, including dentists and nurses, as well as osteopaths, opticians and chiropractors etc.

If you’ve got any questions at all, then please do get in touch on tel: 01892 513515.

The Government has announced a 10p increase in the amount of tax relief available to drivers who use their own vehicles for business travel.

Since 6 April 2011, the mileage allowance has been set at 45p per mile for the first 10,000 business miles. Following sustained calls by trade unions for an increase, the Government has now confirmed this rate will rise by 10p per mile for the first 10,000 miles, bringing it to 55p per mile. All other mileage rates will remain unchanged.

The revised rate is being backdated to 6 April 2026.

Where an employer reimburses an employee for the use of their own car on business journeys, the mileage allowance determines the amount that can be paid free of tax. If an employer does not reimburse the employee, or reimburses at a lower rate, the employee may claim tax relief on the difference.

On 25 April, we are proud to be celebrating our 40th anniversary. Lewis & Co was founded by Barney Lewis, who built a firm with a culture of being personable, friendly and approachable – something that continues to this day.

Barney had set his heart on being an accountant while still at school and was even more determined to achieve this goal when his maths teacher told him ‘Lewis boy, you don’t have a hope!’ Barney qualified as a Chartered Accountant in 1971 and enjoyed a corporate life, working in Singapore and New Zealand, before returning to the UK, where he undertook roles at Chloride Batteries, Wedgewood and Swiss Life.

Then, in 1986, Lewis & Co was born and, in 1997, moved to Southborough. It was there that now Managing Director, Gary Cornwell, first walked through the door – as a student embarking on two weeks’ of work experience.

“Barney really took the time to introduce me to accountancy and gave me a real insight into what it involved,” says Gary who, up until then, had intended to become a chef.

Gary returned to Lewis & Co during school holidays before being offered the opportunity to join the firm full-time as an Accounts Assistant. Ten years ago, Barney retired and Gary took the helm and, over the years, the firm has grown to include Adam Bailey and David Southall, both of whom have qualified under Gary’s guidance, and Lorraine Kendall, who manages payroll for our clients.

“We continue to be that friendly practice Barney created and a lot of our new business still comes from word-of-mouth referrals,” says Gary. “We are now looking forward to our next 40 years and have started that in new offices, while steering our clients through the challenges of Making Tax Digital.”

Here at Lewis & Co, we are delighted to share the news that our colleague, Adam Bailey, has qualified as an accountant.

“I don’t think it’s really sunk in yet,” says Adam. “The pandemic came in the middle of my studies, so it’s taken a while but it’s great that I’ve now achieved my goal of qualifying.”

He continues: “Workwise it’s a case of ‘business as usual’ but there is paperwork I can now sign-off in my own right and it does feel good to see my AAT certificate on the wall of our new office, alongside Gary’s and David’s.”

Adam says both Gary Cornwell and David Southall were very supportive while he was studying.

“That said, the syllabus has changed even in the time I’ve been studying, so I guess it’s useful for them to be refreshed as well – particularly with developments in AI for example,” he adds.

Adam joined our team on 9 April 2018. When he first left school, he worked in Argos part-time, before getting a job at AXA. After being made redundant, he was given the opportunity to work as a bookkeeper for a cleaning company, where he was introduced to the basics of online accounting using software such as QuickBooks and Xero.

He discovered that he enjoyed working with figures and then saw a job advert for a role at Lewis & Co. Not only was he interested in potentially becoming an accountant but he admits to being drawn to the job, as he only lived around the corner and could walk to the office!

Today, Adam’s role at Lewis & Co includes preparing self-employed accounts, self-assessment tax returns and VAT returns.

“What I really enjoy is problem-solving and helping clients be more tax efficient,” says. “For example, if a client’s tax bill seems too high, I like finding ways to help them, such as looking different things they can claim for. Having been here eight years, I also like seeing how our clients have grown over that time.”

Asked what sets Lewis & Co apart from its competitors, Adam says: “I believe it’s the friendly, yet professional, service we provide to our clients. We get to know them on a personal level and this makes it easier for them to contact us for any accounting query. We also turn things around pretty quickly, which often surprises newer clients who have become used to waiting longer previously.”

At the same time as qualifying, Adam is also settling into our new office in London Road, Southborough, as well as celebrating four decades of Lewis & Co and stepping-up to the challenge of navigating Making Tax Digital (MTD).

“I’ve only ever known our previous office but being here makes our firm feel revitalised and ready for another 40 years,” he says.

When he’s not in the office, Adam enjoys meeting up with friends socially, either at a pub or the driving range, while he also enjoys travelling – although that could be curtailed a little this year, as he’s currently looking to buy a house.

From 1 April 2026, the UK National Minimum Wage (NMW) has increased. Please see below for the new rates:-

• For 21 year olds and older: £12.71 (a 4.1% increase)
• For 18-20 year olds: £10.85 (a 8.5% increase)
• For 16-17 year olds: £8.00 (a 6.0% increase)
• Apprentice Rate: £8.00 (a 6.0% increase)

Also, from April 2026 onwards, there are significant changes to Statutory Sick Pay (SSP) which we are currently supporting our clients with.

SSP will now be paid from the first day of illness, instead of the fourth day; and the lower earnings limit will be removed – currently, workers must earn a minimum amount (£125 per week) to be eligible for SSP.

In addition to supporting clients with SSP calculations, we can help with other statutory payments, such as staff holiday entitlements and calculation of holiday pay, as well as maternity, paternity, adoption and other leave entitlements.

Running payroll can be complicated and it’s important that it’s done correctly. Getting it wrong can create stress, extra work and financial penalties and we can help you avoid all of that. At Lewis & Co, we can manage all aspects of payroll for businesses of all sizes and our services include:

• Payroll processing.
• Payslips and reports.
• RTI (Real Time Information) submissions.
• Additional forms and reporting, including P11D and P45 when necessary.
• Year-end returns and P60s.
• Auto-enrolment and workplace pensions.
• Employer’s National Insurance and Employment Allowance.

For more information about payroll, message us or call: 01892 513515.

After nearly 40 years in our current offices, Lewis & Co is on the move! However, we couldn’t leave our spiritual home of Southborough, so – from Wednesday 1 April – we are relocating just a few doors down to 116 London Road (the former home of Hardman & Hemming Tailors).

Locals might have noticed the recent building work going on in our new office and we are excited to move our team into a space that will perfectly suit our needs, as we plan our next 40 years!

All our existing contact details remain the same, including our phone number: 01892 513515.

We’d love to welcome you into our new home, so do knock on the door if you’re passing.

Making Tax Digital (MTD), effective from 1 April 2026, is a significant change as to how Self Employed and Property Landlord taxpayers report their income and expenditure to HMRC.

Below are some of the Frequently Asked Questions (FAQ’s) we have been asked on the subject so far:-

What is MTD?

MTD has been introduced primarily to give HMRC more visibility as to the income and expenditure of Self Employed and Property Landlord taxpayers whilst also trying to promote more timely record-keeping.

In very simple terms MTD means making quarterly digital submissions to HMRC, using an accounting software package, in addition to making the usual year end submission.

Who does MTD apply to?

MTD applies to Self Employed and Property Landlord taxpayers with gross income (before the deduction of expenses) over and above the relevant thresholds. See the next section for these thresholds.

When does MTD start and what are the relevant income thresholds?

MTD comes into effect from 1 April 2026 – but not necessarily for all Self Employed and Property Landlord taxpayers. That depends on your level of gross income.

If your gross income exceeds £50,000 per year then you will need to comply with MTD from 1 April 2026.

If your gross income exceeds £30,000 per year then you will need to comply with MTD from 1 April 2027.

If your gross income exceeds £20,000 per year then you will need to comply with MTD from 1 April 2028.

What are the relevant quarter end dates and reporting deadlines?

Quarterly reporting will operate cumulatively and covers the following periods with the following deadlines, irrespective of the actual accounting year end date of the business.

Q1 – 1 April to 30 June – Deadline 7 August.
Q2 – 1 April to 30 September – Deadline 7 November.
Q3 – 1 April to 31 December – Deadline 7 February.
Q4 – 1 April to 31 March – Deadline 7 May.

What needs to be reported?

HMRC have confirmed that a simplified 3 line report can be submitted each quarter, showing income, expenditure and profitability. No detailed categorisation over and above that is required.

Does MTD affect Limited Companies and/or Partnerships?

HMRC have confirmed that MTD will not be expanded to include Limited Companies.

There is however an intention to roll out MTD at some point in the future to include Partnerships and Limited Liability Partnerships. As yet no timescales have been announced.

Do I need to pay Income Tax quarterly?

At the moment, no. It is purely quarterly reporting that has been introduced thus far.

Do I need an accounting software package?

An accounting software package is almost certainly needed in order to make the digital submissions to HMRC.

If you have a software package already in place you should speak to your accountant about the most efficient way of making the submissions through that.

If you do not have a software package then speak to your accountant to see if they can assist you in making the submissions on your behalf using their own software.

What if I become Self Employed or a Property Landlord midway through the year?

If you were to become Self Employed or a Property Landlord midway through the year then your gross income will need to be projected to estimate what your annual income will be. It is your estimated annual income that will then determine at what point MTD applies.

What if I jointly own a Property?

MTD only applies to your share of the gross rental income received. Not the overall total gross rental income received by all of the owners of the property.

Does this affect me if I am already within MTD for VAT?

Unfortunately so – MTD for Income Tax and MTD for VAT are two separate things.

What if my income falls beneath the qualifying thresholds?

Once you are within MTD you will only become exempt if your gross income falls beneath the relevant threshold for 3 consecutive years.

What if I make a mistake in one quarter?

MTD reporting is cumulative so if an error has been discovered it can simply be corrected in the submission for the following quarter.

Do I still need to do a Self Assessment Tax Return?

After the fourth and final submission you will need to file your usual Self Assessment Tax Return, pre-populated with the income and expenditure from the already-submitted quarterly reports you have made. There will undoubtedly be some adjustments needed for accounting and taxation purposes which you should liaise with your accountant about. The usual submission deadline of 31 January still applies.

Are there penalties under MTD?

Penalties for late submissions will be calculated on a points-based system, similar to those currently in place for VAT. No financial penalty arises for the first late submission but may well do for continual offenders.

Penalties for failing to keep adequate records however can be as much as £3,000 depending on the offence involved.

Before the end of another tax year (5 April 2026), it is sensible to look at how you can make the most of any unused allowances and exemptions. There are a range of options from maximising personal allowances, Capital Gains Tax and Inheritance Tax exemptions, through to transferring allowances between spouses and making tax-efficient pension contributions.

Personal Allowances
It is important to consider using your tax-free personal allowance, which is £12,570 for the 2025-26 tax year. If you have your own limited company and have not already drawn anything, then you could consider a salary of up to £12,570 – but be warned that this could trigger an Employers National Insurance liability, although you would receive a credit towards your personal state pension.

If you are earning more than £100,000, then your personal allowance will be reduced by £1 for every £2 of income over this figure and to nil if your income exceeds £125,140.

If you and your spouse are basic rate taxpayers, it is possible to transfer up to 10% of unused personal allowances to a spouse or civil partner (£1,257 for the 2025-26 tax year).

Capital Gains Tax (CGT)
Transfers between a spouse or civil partner can be made at no gain/no loss. This means that a transfer ahead of a disposal can mean that both annual allowances could be used.

Inheritance Tax
You can gift up to £3,000 a year without any Inheritance Tax (IHT) implications and this allowance can be carried forward to the next year (but only for one year). There’s no IHT to pay on gifts between spouses or civil partners.

Pensions
Pensions have traditionally been an area where tax savings can be made, with tax relief for pension premiums continuing to be tax efficient. If you’re a UK taxpayer, in the tax year 2025-26, the standard rule is that you’ll get tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance, whichever is lower.

Any contributions you make over the limit won’t attract tax relief and will be added to your other income and be subject to Income Tax at the rate which applies to you.

Always remember to speak to your financial adviser first.

This time of year is also the ideal time to have a catch up and review your affairs, whether business or personal. Do call our team on: 01892 513515.