June 2026 Newsletter | Cylchlythyr Misol Mehefin 2026
1. For the first time in 15 years, the Government has increased the rate for mileage allowances from 45p to 55p per mile (for the first 10,000 miles per tax year). The rate for mileage over and above the first 10,000 miles remains at 25p.
This has been backdated to 6 April 2026, therefore good news for:
· Self-employed individuals: remember to claim a 55p rate in your 2026-2027 accounts next year
· Employees: if your employer decides not to increase their own reimbursement rates from 45p to 55p per mile, you can claim the extra tax relief from HMRC.
2. To help families with the cost of living, the Chancellor has announced a temporary reduction in VAT, from 20% to 5%, at various attractions over the summer holidays. Although it will be up to the businesses whether they pass on this discount to customers, we will hopefully see reductions in ticket prices at museums, zoos, theme parks, as well as children's tickets to soft play and cinemas.
3. Do you have a type of insurance coming up for renewal soon? Maybe home or car insurance? Huw has recently received quotes for car insurance / home insurance / homecare cover. All renewal prices were quoted at £100-£150 more than the previous year, increases of around 30%. One phone call / online form reduced the increases to around £30 or 10% of the premium in each case. Insurance companies will take full advantage of the vulnerable... and the lazy!
Ask Huw & Aled
Q: Both my parents have always resisted giving me power of attorney and sadly they have both ended up with dementia and need to enter residential care. They have significant assets, but I am unable to access their savings to pay for the care or sell their house to raise capital. What can I do to resolve matters?
A: Unfortunately, you are now facing a set of problems that are all too common, where sensible planning was resisted, and events have overtaken the family. If your parents had applied for Power of Attorney documents you would be able to use their investments and sell the home to fund the care.
You will need to submit an application to the Court of Protection for the appointment as your parents' property and financial affairs deputy. The process of applying is not cheap with an application fee of £421 and legal costs, often taking up to a year to be enacted.
The lesson for all families – plan properly for the future, get Power of Attorney documents in place and also write your wills.
