As the new tax year is fast approaching, let’s take some time to remind ourselves of the changes to the tax system that could affect you:

Making Tax Digital (MTD) – Mandatory From 6th April 2026

From 6th April 2026, HMRC requires sole traders and landlords with income over £50,000 to keep digital records and submit quarterly updates, with the first update due by 7th August 2026. A digital end‑of‑year declaration will still be required.

Personal Tax & NIC Thresholds Frozen

Key thresholds remain unchanged from 6th April 2026, including the £12,570 Personal Allowance and the basic rate limit of £37,700 (higher‑rate threshold £50,270). NIC thresholds remain aligned. This freeze increases the impact of fiscal drag.

Dividend Tax Rates Increasing

Dividend tax rates will rise by 2 percentage points from 6th April 2026. Basic rate increases to 10.75% and higher rate to 35.75%.

Capital Gains & Inheritance Tax Updates

CGT on Business Asset Disposal Relief will rise to 18%, and a new £2.5m cap will apply to certain Business and Agricultural Property Reliefs.

Strengthened Digital Reporting Rules

From 1st April 2026, digital record‑keeping, quarterly submissions and digital finalisation become mandatory under new regulations.

Updated Electric Vehicle (EV) VED Rules

The expensive car supplement will apply only to EVs priced over £50,000 from 1st April 2026, up from the previous £40,000 limit.

Business Tax Changes

From 6th April 2026, the writing‑down allowance for plant/machinery reduces from 18% to 14%. A new 40% first‑year allowance will be available from January 2026. Business rate multipliers also change under the 2026 reforms.

If you would like support in preparing for any of these changes – whether reviewing your software, planning for MTD, or assessing tax impacts – please feel free to get in touch. We are here to help ensure you are ready well ahead of time.