The brand new tax yr 2026 is on its means. Modifications are coming for employment legislation, enterprise charges and tax, amongst different issues. Verify this checklist to see should you’ve missed any necessary particulars.
When does the brand new tax yr begin for 2026?
The brand new tax yr begins as typical on April 6, which falls on Easter Monday this yr.
Nationwide Dwelling Wage will increase – April 1, 2026
Nationwide Dwelling Wage goes up once more on April 1 – a number of days forward of the brand new tax yr, however nonetheless vital. For over 21s, this is a rise to £12.71 from £12.21. For 18-20-year-olds it’s going from £10 to £10.85 and for these aged 16-17 and apprentices it’ll be £8 an hour, up from £7.55.
In case you’re paying the Actual Dwelling Wage, you’ll be paying £13.45 as a substitute of £12.60.
What can I do now? Make it possible for payroll has been up to date to adjust to the adjustments in time for the following pay day.
Making Tax Digital (MTD) for Earnings Tax launched for enterprise homeowners with greater than £50,000 turnover
Enterprise homeowners and landlords with a turnover of over £50,000 might want to begin submitting quarterly utilizing MTD-compatible software program. Fines and penalties will probably be imposed for non-compliance. Discover out extra in Making Tax Digital thresholds and timelines for 2026-2028.
What can I do now? In case you’re eligible, examine what your obligations will probably be and discover a appropriate software program platform for your small business.
Enterprise charges
A completely decrease enterprise price is being launched for leisure, hospitality and retail companies. Nonetheless, it’s nonetheless increased than the enterprise charges reduction (40% low cost as much as a worth of £110,000) that’s at present in place.
From April 6, leisure, hospitality and retail enterprise charges for properties with a rateable worth (RV) of £51,000 or much less could have a multiplier of 38.2p. These in properties with an RV of £51,000-£499,999 could have a multiplier of 43p.
The Nationwide Small Enterprise multiplier is 43.2p for properties with an RV of £51,000 or much less. These charges apply to companies in England and Wales.
Take a look at this video for extra important data.
There’s some excellent news for pubs; they’ll get a 15% low cost on their enterprise charges.
What can I do now? Check out how your small business charges will change. In case you assume you’ll be paying an excessive amount of, communicate to your native council.
UK dividend tax revenue charges growing by 2%
The fundamental price will rise from 8.75% to 10.75%, whereas the higher price is rising from 33.75% to 35.75%. The 39.35% price will keep the identical.
What can I do now? Rebalance your wage vs your dividends and use your pension contributions.
Statutory Sick Pay (SSP) from day one
A couple of adjustments from the Employment Rights Act 2025 are coming into drive on April 6. This one is probably probably the most notable.
In the intervening time, Statutory Sick Pay for workers doesn’t kick in till day 4 of sickness and damage absence. From Easter Monday onwards, Statutory Sick Pay will should be paid from day one among damage or sickness. SSP will probably be 80% of the employee’s common weekly incomes or £123.25 per week, whichever is decrease.
What can I do now? Study the brand new guidelines and guarantee HR is conscious of how you can implement them, guarantee your workers are conscious of the adjustments and that your payroll supplier can adapt.
Paternity and Paternal depart rights from day one
Equally, unpaid parental depart will probably be a proper to your workers from day one, whereas the 26-week service interval for paternity depart will probably be eliminated. They are going to nonetheless have to provide the suitable size of discover earlier than they intend to go on parental depart.
What can I do now? Familiarise your self with the brand new guidelines. HR ought to be updating contracts and firm insurance policies consistent with these new guidelines.
Collective redundancy award to double
In case you fail to fulfill collective redundancy session obligations, you possibly can count on to pay double, going from 90 days’ pay for every affected worker to 180 days’ pay for every affected worker.
What can I do now? Be sure you know your collective redundancy session obligations. You should maintain a collective session should you’re proposing 20 or extra redundancies, they’re multi functional institution (not essentially in your complete organisation) and the redundancies are anticipated throughout the subsequent 90 days.
Whistleblower safety prolonged
Whistleblower safety will probably be prolonged to those that make sexual harassment disclosures.
What can I do now? In case you haven’t already, get managers and employees educated in order that they’re conscious of this new safety.
Umbrella chain PAYE legal responsibility
The umbrella firm and the consumer will probably be collectively answerable for pay as you earn (PAYE) and nationwide insurance coverage contributions. HMRC can search cost from both get together.
What can I do now? Know your duties on PAYE and nationwide insurance coverage contributions.
Late submitting of company tax
Penalties will double for late submitting of company tax. That’ll be £200 for the preliminary tremendous and £400 for filings over three months late. Continued failings to file will incur fines of as much as £2,000.
What can I do now? Know your company tax obligations and when the submitting deadlines are. It will usually rely in your accounting interval, which is the time period that your accounts cowl, which is generally 12 months. Signal into your HMRC enterprise tax account should you’re uncertain.
Truthful Work Company – April 7, 2026
The federal government is launching the Truthful Work Company the day after the brand new tax yr begins, on April 7. The company goals to implement staff’ rights. It’ll transcend the minimal wage and fashionable slavery to implement components akin to vacation pay.
The company could have powers and it intends to make use of them. It’ll have the ability to entry your HR, payroll and different employment information with out discover. It will possibly additionally do inspections and communicate to workers – an investigation doesn’t even should be triggered by a grievance.
What can I do now? Make certain your payroll and vacation pay calculations are correct. Get coaching for managers in place if essential in order that they’re following applicable protocol and recording data appropriately.
Making ready your small enterprise
As Katharine Moxham, spokesperson for GRiD, factors out: “These should not insignificant operational challenges for companies to soak up at a time when they’re already contending with rising prices and sustained financial pressures. Certainly, the analysis has discovered that some companies should not ready to easily soak up the associated fee and will probably be seeking to make cuts in different areas.”
Hopefully this text has given you a place to begin. In case you want any further assist, it’d be greatest to speak to a trusted skilled, akin to an accountant, an employment lawyer or your native authority.
Learn extra
Employment Rights Act 2025 and the adjustments you have to put together for – The federal government has revealed the timetabled adjustments which are coming consistent with the Employment Rights Act 2025. Right here’s a rundown
Making Tax Digital (MTD) – HRMC necessities and one of the best appropriate software program suppliers – After the rollout of Making Tax Digital (MTD) for VAT, MTD for Earnings Tax is being phased in from April 2026
Greatest Gives for Making Tax Digital accounting software program – Uncover one of the best present affords and reductions on MTD-compatible accounting software program that you should utilize to file your returns and handle bookkeeping
