Category Archives: General

The High Income Child Benefit Charge (HICBC) applies where an individual or their partner receives Child Benefit, and their adjusted net income currently exceeds £60,000. The charge may also apply where another person claims Child Benefit for a child living with you and contributes at least an equal amount towards the child’s upkeep, regardless of whether the child is your own.

Adjusted net income is your total taxable income, including earnings, savings interest and dividends, calculated before the Personal Allowance and after deductions such as pension contributions and Gift Aid.

For the current 2026-27 tax year, if income is between £60,000 and £80,000, the charge is calculated at 1% of the total Child Benefit received for every £200 of income above £60,000. Once income reaches £80,000 or more, the charge equals the full amount of Child Benefit received.

Where both partners have income above the threshold, the charge is paid by the partner with the higher adjusted net income.

Taxpayers can choose to continue receiving Child Benefit and pay the charge or opt out of payments while still remaining registered. Opting out does not affect entitlement and preserves National Insurance credits, which can help build entitlement to the State Pension, and ensures a child can receive a National Insurance number automatically at age 16.

The charge can be paid through PAYE or self-assessment, although self-assessment is required where the taxpayer already files a return for other reasons or where payment is made after 31 January following the end of the tax year.

The government has announced a review into access to face-to-face banking services as concerns continue to grow over the impact of bank branch closures on local communities, older customers and small businesses.

Over recent years, many high street bank branches have closed as more customers move towards online and mobile banking. While digital banking has become increasingly popular, there remains significant concern that some individuals and businesses still rely heavily on in-person banking facilities for cash handling, account support and day-to-day financial transactions.

The review will examine whether existing arrangements continue to provide adequate access to banking services across the UK, particularly in rural areas and smaller towns where branch closures can leave customers with limited alternatives. It will also consider how shared banking hubs and other community banking solutions are performing and whether additional measures may be needed.

Small businesses are likely to take a close interest in the review, especially firms that regularly deal with cash or require local banking support. For many business owners, the loss of nearby branches can increase administration time and create additional security and travel concerns when paying in cash or obtaining change.

Consumer groups have also highlighted the challenges faced by elderly and vulnerable customers who may be less comfortable using digital banking services or who value personal contact when dealing with financial matters.

The government has stated that maintaining appropriate access to banking services remains important for consumers, businesses and local economies, and the findings of the review may help shape future banking access policies across the UK.

The Chancellor of the Exchequer, Rachel Reeves updated Parliament on 21 May 2026 on the Government’s economic response to the war in Iran and the wider measures being taken to support households and businesses with rising cost pressures. One of the measures announced was an increase in approved mileage rates for those using their own vehicles for work.

The approved mileage rates for cars and vans will increase from 45p per mile to 55p per mile. This increase has been backdated to the start of the tax year, 6 April 2026. This rate applies only to the first 10,000 business miles in each tax year, with the approved mileage rate remaining at 25p per mile for any additional mileage over the threshold. The change is intended to support employees and the self-employed who rely on travel for work. It has been confirmed that all other mileage rates remain unchanged for the time being although this may be reviewed again at the next Budget.

If an employer reimburses mileage at less than the approved rates, the employee may claim the shortfall through Mileage Allowance Relief (MAR). This ensures tax relief is given on the difference. For example, if an employer reimburses 35p per mile, tax relief may be claimed on the remaining 20p per mile for qualifying business journeys (excluding ordinary commuting). If no mileage allowance is paid then tax relief can usually be claimed on the full 55p per mile rate (up to 10,000 business miles).

The approved mileage rates for motorcycle journeys remain at 24p per mile and for bicycle journeys at 20p per mile. Where employees carry colleagues on business journeys, employers may also pay an additional 5p per passenger per mile. There are no overriding distance limits for these payments.

The government has announced a package of measures intended to help motorists and businesses manage rising fuel costs following disruption linked to the conflict in Iran.

As part of the package, the temporary 5p fuel duty cut has been extended until the end of 2026. The government estimates that the extension will save the average driver around £120 since 2025 and will mean that fuel duty on petrol and diesel remains at its lowest level for more than 16 years.

Additional support has also been announced for the haulage sector. Hauliers will benefit from a 12-month road tax holiday, with qualifying vehicles paying just £1 on renewal. The government stated that this could save up to £600 for a typical heavy goods lorry and as much as £912 for largest vehicles on our roads.

The measures also see a reduction of over one third in the fuel duty charged on red diesel until the end of the year. Farmers, rail freight operators and other qualifying users are expected to benefit from the reduced rate, which the government says is now at its lowest level for more than 20 years.

Marking the announcement, the Prime Minister Sir Keir Starmer said:

‘I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices, it’s working people who feel it first. 

That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.’

The Government has announced a new package of measures designed to help households manage rising living costs during the summer months, as concerns continue over inflation, fuel prices and household spending pressures.

The package, described as the “Great British Summer Savings Scheme”, includes free bus travel for children aged 5 to 15 on participating local bus services throughout August in England. The Government has stated that the measure is intended to support families during the school holidays and help reduce travel costs at a time when many household budgets remain under pressure.

Alongside the transport support, the Government has also announced plans to reduce tariffs on a range of imported food products. While the full list is still to be confirmed, reports suggest that items such as biscuits, chocolate, dried fruit and nuts may be included. Ministers estimate that the tariff reductions could save consumers more than £150 million annually.

The measures come against a backdrop of continued economic uncertainty and concerns that rising global tensions could increase inflationary pressure later this year, particularly through higher energy and fuel costs.

For small businesses, the impact may vary. Hospitality, tourism and leisure businesses could benefit from increased summer spending and higher visitor numbers, while retailers may see some improvement in consumer confidence if household costs ease temporarily.

Business owners may nevertheless wish to continue monitoring:

• cash flow pressures,
• pricing strategies,
• staffing costs,
• and customer spending patterns.

While the latest measures may provide short-term support, many businesses are still operating in a challenging economic environment.