The moves to make right now before the 31 July payment on account deadline and the start of Q2 filing season.
June sits in a quiet spot in the tax calendar — Self Assessment was filed in January, the new tax year started in April, and the next big deadline (31 July payment on account) is still a few weeks away. That makes it exactly the right time to take stock.
For contractors, landlords and locum doctors, mid-year is when the decisions you make now directly affect your tax bill in January 2027. Pension contributions, expense capture, salary and dividend timing, MTD compliance — all of these have a cut-off. Once the tax year ends on 5 April 2027, most of these planning windows close permanently.
This guide covers the specific actions available to each segment right now, and what happens if you leave them too late.
The second payment on account for 2025/26 is due on 31 July 2026. This applies to anyone who filed a Self Assessment return with a tax bill over £1,000 in January 2026. If your income has dropped since last year, you can apply to reduce this payment — but you must do so before the deadline.
For limited company contractors, June is the halfway point of the 2026/27 tax year. Your salary and dividend decisions for this year are in motion — but there is still time to adjust them before year end.
The most tax-efficient structure for 2026/27 remains a salary at the Secondary NI threshold (£5,000), with remaining profit extracted as dividends. At this level, neither employer nor employee National Insurance is due on the salary, and you use part of the £500 dividend allowance before tax applies.
| Income Type | Rate (Basic) | Rate (Higher) | NI Due? |
|---|---|---|---|
| Salary up to £5,000 | 0% | 0% | No |
| Dividends (within £500 allowance) | 0% | 0% | No |
| Dividends (basic rate band) | 8.75% | — | No |
| Dividends (higher rate) | — | 33.75% | No |
| PAYE salary above £5,000 | 20%+ | 40%+ | Yes |
If you have been paying a higher salary than necessary this year, speak to AccTek before adjusting — changing payroll mid-year has RTI and pension auto-enrolment implications that need to be managed correctly.
Pension contributions made through your limited company are a corporation tax deduction. The annual allowance for 2026/27 is £60,000 (or 100% of earnings if lower). Unused allowance from the previous three tax years can also be carried forward.
If you have not yet contributed this year, June is the time to plan — contributions need to clear before 5 April 2027. For higher earners with adjusted income above £260,000, the tapered annual allowance reduces this limit, so get a calculation before committing.
If any of your contracts are due for renewal in Q3 or Q4 2026, now is the time to review the IR35 position before signing. A contract that shifts from outside to inside IR35 mid-year can significantly affect your year-end position. AccTek reviews contract wording and working practices as part of onboarding and annual reviews.
If your self-employment income exceeded £50,000 in 2024/25, you should already be registered for MTD ITSA and submitting quarterly updates from April 2026. Your first quarterly deadline is 7 August 2026. If you are not yet registered, contact AccTek immediately — late registration does not eliminate the obligation to submit retroactively for the quarter already passed.
For landlords, June brings two immediate priorities: the 31 July payment on account deadline and the start of mid-year MTD preparation for those crossing the £50,000 threshold.
Your second payment on account for 2025/26 is due on 31 July 2026. It is based on 50% of your 2024/25 tax liability. If your rental income has dropped this year — through voids, lower rents or increased allowable expenses — you may be able to reduce this payment.
You apply to reduce payments on account via HMRC Self Assessment online. The reduction must be submitted before 31 July. If you reduce too aggressively and underpay, HMRC charges interest from the original due date, so the reduction needs to be based on a realistic projection of your 2025/26 liability.
Section 24 restricts mortgage interest relief to a 20% tax credit. If you are a higher-rate taxpayer with a leveraged portfolio, your actual tax bill is likely higher than it appears from your rental profit figures alone. AccTek includes a Section 24 calculation in every landlord Self Assessment.
If your rental income (alone or combined with self-employment income) exceeded £50,000 in 2024/25, you are mandated for MTD ITSA from April 2026. Your first quarterly update covers 6 April to 5 July 2026 and is due by 7 August 2026.
This requires digital records of income and expenses kept property by property. If you have not yet set up Xero or another compatible platform, the Q1 records need to be reconstructed from bank statements, agent statements and invoices. AccTek handles this migration as part of onboarding.
The Furnished Holiday Let regime was abolished from 6 April 2025. Properties that previously qualified as FHLs are now treated as ordinary residential lets for all tax purposes — including the loss of mortgage interest relief, capital allowances and the ability to use profits for pension contributions. If you have not yet reviewed your position following abolition, a mid-year review with AccTek will identify any planning opportunities still available.
For higher-rate taxpayers with growing portfolios, incorporation into a limited company continues to be a long-term tax planning option, particularly given Section 24. The decision involves stamp duty land tax on transfer, CGT at the point of disposal, and mortgage availability in a company name. None of these are simple, but mid-year is a good time to model the numbers before making any commitment.
Locum doctors face some of the most complex mid-year tax planning decisions of any profession — combining NHS PAYE income, self-employment income, and NHS pension considerations that interact in ways that can produce unexpected tax bills.
The standard annual allowance is £60,000 for 2025/26 and 2026/27. For locum doctors with adjusted income above £260,000, the tapered annual allowance reduces this pound-for-pound above the threshold, to a minimum of £10,000.
The pension input amount for the NHS scheme is the increase in the capital value of your benefits over the year, calculated using a fixed HMRC formula. It is not the same as your actual contributions. Many locum doctors do not know their pension input amount until their Pension Savings Statement arrives — typically in autumn. By then it is often too late to act.
If you earned above £100,000 in 2024/25, request an early Pension Savings Statement from NHS Pensions now to understand your 2025/26 exposure before the 31 January 2027 Self Assessment deadline.
If your pension input exceeds your annual allowance, you have two options: pay the annual allowance charge from your own funds, or elect for Scheme Pays, where the NHS pension scheme pays the charge on your behalf and reduces your eventual pension accordingly. The Scheme Pays deadline for 2025/26 is 31 July 2027 — but you need to know your position well in advance to make an informed decision.
AccTek works with locum doctors to model the Scheme Pays vs self-payment decision before the election deadline. The right choice depends on your age, expected pension income, and marginal tax rate in retirement. It is not always straightforward.
Most locum doctors receive a combination of PAYE income (taxed at source via NHS employer) and self-employment income (untaxed, declared through Self Assessment). The self-employment element is subject to Class 4 National Insurance as well as income tax. If you have not been setting aside a regular provision from self-employment income, the January 2027 tax bill can come as a significant shock.
A reasonable rule of thumb for higher earners: set aside 40% to 45% of net self-employment income for tax. AccTek produces quarterly estimates for all locum doctor clients so there are no surprises.
Locum doctors are entitled to claim a wide range of allowable expenses that directly reduce their taxable self-employment income. June is a good point to review what has been captured and what may have been missed in the first quarter of the tax year.
| Expense Category | Examples | Claimable? |
|---|---|---|
| Professional registration | GMC fees, revalidation costs | Yes — fully deductible |
| Medical defence | MDU, MPS, MDDUS subscriptions | Yes — fully deductible |
| Professional membership | BMA, Royal College fees | Yes — fully deductible |
| CPD and training | Courses, conferences, journals | Yes — if work-related |
| Travel | Mileage to temporary workplaces | Yes — 45p/mile (first 10k) |
| Equipment | Stethoscope, clinical tools | Yes — if used professionally |
| Home office | Admin, record-keeping | Partial — proportionate use |
| Accountancy fees | AccTek monthly fee | Yes — fully deductible |
If your combined self-employment and rental income exceeded £50,000 in 2024/25, you are mandated for MTD ITSA from April 2026. Locum doctors with significant NHS self-employment income frequently cross this threshold. AccTek handles MTD registration, Xero setup and all quarterly submissions as part of the locum doctor plan.
When is the July 2026 payment on account due?
The second payment on account for the 2025/26 tax year is due on 31 July 2026. It is based on 50% of your 2024/25 Self Assessment liability. If your income has dropped significantly this year, you can apply to reduce it before the deadline.
What is the best salary and dividend split for contractors in 2026/27?
For 2026/27 the most tax-efficient structure is typically a salary up to the Secondary NI threshold of £5,000, with the remainder taken as dividends. This minimises employer and employee NI while making use of the £500 dividend allowance. Your exact optimal split depends on your total income level.
What is the NHS pension annual allowance for locum doctors?
The standard annual allowance is £60,000 for 2025/26 and 2026/27. Doctors with adjusted income over £260,000 have their allowance tapered. If your pension input exceeds your available allowance, HMRC charges tax on the excess at your marginal rate.
Do I need to register for MTD before 31 July 2026?
If your qualifying income exceeded £50,000 in 2024/25, you must already be registered for MTD ITSA. Your first quarterly deadline is 7 August 2026. If you have not yet registered, contact AccTek immediately.
Can I reduce my July payment on account?
Yes. If you expect your 2025/26 tax liability to be lower than your 2024/25 liability, you can apply to reduce your payments on account via HMRC Self Assessment online. You must do this before 31 July 2026. If you reduce too much, HMRC will charge interest on the shortfall.
What expenses should contractors capture before 5 April 2027?
Contractors should ensure all legitimate expenses for 2026/27 are recorded: home office costs, equipment purchased, professional subscriptions, training courses, accountancy fees and business travel. Any expenses not captured before year end cannot be claimed retrospectively without HMRC approval.
AccTek handles tax planning, MTD submissions, payroll and Self Assessment for contractors, landlords and locum doctors across the UK — from £19.99/month.
This guide is for general informational purposes only and does not constitute tax advice. Tax rules change regularly and individual circumstances vary. Please consult AccTek or a qualified tax adviser before making any financial decisions.
