Welcome Sara, Mileage Rate Changes, and Software Insights
Welcome to the latest update from the team at MBS! We have a lot of important news to share this month—from an exciting new addition to our team, to significant changes in HMRC mileage rates and our latest thoughts on accounting AI.
Here is everything you need to know right now to keep your business running smoothly.
Welcoming Sara to the MBS Team
We are incredibly excited to welcome Sara to the MBS family!
Sara joins us after an impressive 27-year tenure at RSM, where she worked across a diverse range of fields. She brings an incredible breadth and depth of knowledge that will be a massive asset in assisting your businesses. We will be slowly introducing Sara to everyone soon, so please look forward to a formal introduction!
Increased Personal Mileage Rates
For the first time since 2011, HMRC has updated its approved mileage rates. The rate has increased from 45p to 55p per mile for the first 10,000 business miles.
Key details to note:
Effective Date: This change takes effect retrospectively from 6 April 2026.
The Financial Impact: Although this increase doesn't fully match inflation, it carries a significant benefit. If you travel the full 10,000 miles in your personal vehicle, you can now claim an extra £1,000 tax-free from the business, which simultaneously reduces your company's corporation tax bill.
Over 10,000 Miles: It is important to note that the rate for anything over 10,000 miles has not changed and remains at 25p per mile.
Key Upcoming Deadlines
Make sure you have the following important dates marked in your calendar so you don't fall behind on your compliance:
Self Assessment: Deadline to register.
Making Tax Digital (MTD): First quarterly update due for sole traders and landlords.
Self Assessment: Submission and payment deadlines.
(If you need help preparing for any of these, please reach out to the team!)
Software Updates: Xero and AI (JAX)
In line with almost every other software provider on the market, Xero is eager for users to fully embrace its new AI offering, JAX.
In our last newsletter, we discussed the auto-reconciling feature, which—after further experimentation—continues to throw up a few teething problems. However, it's not all bad news. Where JAX is actually proving to be quite useful is in reporting cash flow and its functionality for adding bills.
Having said this, Hubdoc still remains our preferred and recommended option for uploading your bills.
A New Prime Minister
As of 20 July 2026, the country has a new Prime Minister, Andy Burnham, along with a new cabinet team.
How will this affect our industry and your business? We don’t know right now, and only time will tell. The general sentiment seems to be that the country needed a change, and the majority want the new PM to succeed. Watch this space, and we will keep you updated on any upcoming legislative or tax changes that may impact you.