With just over a month to go until the new tax year, we take a look at the tax and compliance changes from 6 April 2026.
Corporation tax
No changes to the rates which stay at 19% for profits up to £50,000, 26.5% for profits between £50,001 and £249,999, and 25% if profits are £250,000 or over.
The penalties for late submission of a corporation tax return will double from 1 April 2026, so the new amounts will be:
| Time | Penalty |
| Up to 3 months late | £200 |
| More than 3 months late | £400 |
| 3 successive late returns | £1,000 |
| 3 successive late returns more than 3 months late | £2,000 |
The deadline to file a corporation tax return is 12 months after the end of an accounting period.
National Minimum Wage
From 1 April 2026 the new National Minimum Wage and National Living Wage rates will increase to:
| Age group | Hourly rate |
| 16-17 year olds and apprentices | £8.00 per hour |
| 18-20 year olds | £10.85 per hour |
| 21 and over | £12.71 per hour |
Capital Gains Tax
The rates remain at 18% for basic rate taxpayers and 24% for higher rate taxpayers on both residential property and gains from other chargeable assets. Remember if you dispose of an investment property you have 60 days to report the gain to HMRC and pay the capital gains tax.
From 6 April 2026 the rate applicable for Business Asset Disposal Relief (previously known as Entrepreneurs Relief) will increase from the current 14% to 18%. BADR applies for the first £1 million of qualifying lifetime gains.
Income tax
The personal allowance is frozen at £12,570 until 2030/31.
No changes to the rates and they remain:
| Band | Rate |
| Basic rate = £12,571 – £50,270 | 20% |
| Higher rate = £50,271 – £125,140 | 40% |
| Additional rate = over £125,140 | 45% |
Remember for every £2 you earn over £100,00 you lose £1 of your personal allowance, until £125,140 when you have lost it completely. This means an effective tax rate of 60% between £100,001 and £125,140.
Dividend tax rates
From 6 April 2026 the rate of tax on dividend income will increase by 2% for basic rate and higher rate taxpayers, therefore the new rates will be:
| Band | Rate |
| Basic rate taxpayers | 10.75% |
| Higher rate taxpayers | 35.75% |
| Additional rate taxpayers | 39.35% (unchanged) |
Electric cars
The benefit in kind rate for zero emission vehicles will increase to 4% of the list price of the vehicle (including options).
Making Tax Digital reporting for income tax
From 6 April 2026 those who had income of more than £50,000 from self-employment and/or property in 2024/25 will have to start reporting under Making Tax Digital. HMRC are writing to those affected in the next few weeks, but it is best to get your ducks in a row now.
Those affected will have to quarterly report their income and expenses to HMRC. The deadline to file these quarterly reports is as follows:
| Quarter ended | Filing deadline |
| 5 July | 7 August |
| 5 October | 7 November |
| 5 January | 7 February |
| 5 April | 7 May |
After the 5 April quarter has been submitted there will be a final year end declaration to be filed via a digital tax return which will contain details on all other income in the year. The deadline for that will be 31 January following the end of the tax year.
If you would like to discuss your tax position, why not reach out by clicking the button below and arranging your free initial meeting.