📰 Jenners Monthly Newsletter – June 2026
In the News – What Business Owners Need to Know
1. Is Your Dividend Strategy Still Working in 2026?
Many company directors have traditionally relied on a low salary plus dividends approach to extract profits tax-efficiently. However, from 6 April 2026, dividend tax rates increased, meaning many directors are now paying more tax on the same level of income.
The new dividend tax rates are:
- Basic rate: 10.75%
- Higher rate: 35.75%
- Additional rate: 39.35%
While the strategy is still often worthwhile, it is no longer a “set and forget” solution. The right mix of salary, dividends and pension contributions should now be reviewed regularly to ensure you remain tax efficient.
For some directors, increasing pension contributions or restructuring remuneration could produce better overall results.
If you want to read more about Dividend strategies and the recent changes, you can read our latest blog here
If you are unsure whether your current salary and dividend structure is still the best option, now is a good time for a review.
💡 Jenners Tip:
A remuneration review is no longer something to do once a year. Small changes to salary, dividends or pension contributions can create significant tax savings over time. If you have not reviewed your extraction strategy since April 2026, now is a good time.
2. HMRC Side Hustle Crackdown – Are You Declaring Extra Income?
HMRC continues to increase its focus on undeclared income from “side hustles” and online selling platforms.
Whether you sell products online, create digital content, offer freelance services, rent out property or earn money through apps and marketplaces, HMRC may receive information directly from the platform.
This does not automatically mean tax is due, but it does mean accurate records are becoming more important than ever.
Common examples include:
- Selling regularly on platforms such as eBay or Vinted
- Freelance work alongside employment
- Social media income and sponsorships
- Online tutoring or coaching
- Property rental income
If you earn additional income outside your main business or employment, it is important to understand whether you need to register for Self Assessment and declare it correctly.
Getting ahead of the issue now is far easier than dealing with penalties later.
💡 Jenners Tip:
Keep separate records and bank transactions for any additional income streams, even if they start as a hobby. Good record keeping early on can save a huge amount of stress if HMRC ever asks questions later.
3. Summer Tax Planning Tips for Business Owners
Summer can often provide a quieter period before the final quarter of the year begins. It is an excellent opportunity to review your finances and prepare for upcoming deadlines.
Things worth checking now include:
- Are your bookkeeping records up to date?
- Have you set money aside for upcoming tax bills?
- Are there outstanding invoices affecting cash flow?
- Is your pricing still profitable?
- Could pension contributions reduce your tax bill?
- Are you ready for Making Tax Digital changes?
A mid-year financial review can help identify problems early and reduce stress later in the year.
Business owners who regularly review their numbers are often in a far stronger position to make confident decisions.
💡 Jenners Tip:
Set aside time every month to review your numbers not just at year end. Business owners who regularly monitor cash flow and profitability are often quicker to spot problems and opportunities.
4. Cash Flow Check-In Before the Autumn Rush
Many businesses experience pressure in the autumn as workloads increase and tax deadlines begin to approach.
Now is a good time to review:
- Outstanding debts
- Supplier costs
- Subscription creep
- Pricing margins
- Forecast income
- Staffing requirements
Cash flow problems are one of the biggest causes of business stress, yet many issues can be improved simply by reviewing systems and tightening processes.
Even small changes such as improving invoicing speed or chasing overdue payments sooner can make a significant difference.
A healthy cash flow gives you more options, more confidence and more control.
💡 Jenners Tip:
If customers regularly pay late, review your invoicing process. Sending invoices promptly and following up sooner can improve cash flow far more quickly than many businesses realise.
Questions & Answers
Q: Do I need to pay tax on items I sell online?
Not always. Selling unwanted personal possessions occasionally is unlikely to create a tax liability. However, buying or making items with the intention of selling for profit may count as trading income.
Q: Can pension contributions reduce corporation tax?
Yes. Pension contributions made by a limited company are usually allowable business expenses and can reduce corporation tax.
Q: Should I still take dividends from my company?
In many cases, yes. Dividends can still be tax efficient, but the optimal balance between salary, dividends and pension contributions may have changed following the 2026 tax increases.
Key Tax Dates
19 June 2026
PAYE, NIC and CIS payment deadline for electronic payments.
30 June 2026
End of corporation tax quarter for some quarterly instalment payers.
5 July 2026
Deadline for reaching PAYE Settlement Agreements with HMRC for 2025/26.
📞 Need Help?
If any of this applies to you and you’re unsure what to do next, just get in touch.
Keeping on top of your accounts doesn’t have to be stressful with the right support, it becomes a powerful tool for growth.
📞 01432 379988
🌐 www.jennersacc.co.uk