New 40% First-Year Capital Allowance Introduced
Businesses investing in qualifying equipment, machinery, and operational assets may benefit from new enhanced capital allowances introduced for the 2026/27 tax year. These incentives are designed to encourage investment and economic growth while improving tax efficiency for businesses making significant purchases. Companies should review upcoming investment plans carefully to maximise available tax relief opportunities.
Quarterly Digital Tax Reporting Becoming Mandatory
HMRC’s transition toward quarterly digital tax reporting is transforming the way businesses and self-employed individuals manage finances. More frequent reporting obligations mean businesses need stronger bookkeeping systems, accurate financial records, and real-time accounting processes. Many businesses are now investing in cloud accounting systems and professional bookkeeping support to remain compliant and improve financial visibility.
National Living Wage Increased to £12.71 Per Hour
The increase in the National Living Wage has created additional payroll pressures for many businesses, particularly within retail, hospitality, healthcare, and care sectors. Employers must ensure payroll systems are updated correctly while reviewing staffing budgets, pricing structures, and financial forecasts to account for rising employment costs. Businesses failing to comply with minimum wage regulations risk […]
Inheritance Tax Relief Changes Affect Business and Agricultural Assets
Changes to Business Property Relief and Agricultural Property Relief could significantly affect inheritance tax planning for business owners, farmers, and high-net-worth families. New limits on reliefs may increase exposure to inheritance tax liabilities for estates previously expected to qualify for substantial tax reductions. Families and business owners are being advised to review estate planning, trust […]
HMRC Strengthens Enforcement Within the Construction Industry Scheme (CIS)
HMRC has expanded enforcement activity within the Construction Industry Scheme, with increased compliance checks and stricter penalties for errors or non-compliance. Contractors and subcontractors are being encouraged to review CIS registration, payroll systems, subcontractor verification procedures, and monthly CIS returns to ensure compliance. Accurate bookkeeping and professional CIS accounting support are becoming increasingly important within […]
Frozen Income Tax Thresholds Continue Until 2031
Although headline income tax rates have not increased, frozen tax thresholds continue to create “fiscal drag,” where individuals are pushed into higher tax bands as wages and earnings rise. This means many employees, directors, landlords, and self-employed individuals may pay more tax despite modest income increases. Tax planning has become increasingly important to help individuals […]
HMRC Increasing Penalties for Late Corporation Tax Filings
Business Asset Disposal Relief (BADR) Capital Gains Tax Rate Increased
The Capital Gains Tax rate applying to Business Asset Disposal Relief has increased from previous levels, affecting business owners planning to sell or transfer their companies. Entrepreneurs, shareholders, and business owners considering succession or exit planning should review potential tax implications early to avoid unexpected liabilities. Strategic tax planning before a sale or restructuring may […]
Dividend Tax Rates Increased for 2026/27
Dividend tax rates have increased again for the 2026/27 tax year, affecting company directors, shareholders, and investors who extract profits through dividends. Combined with reduced dividend allowances in recent years, many business owners may now face significantly higher personal tax liabilities. Directors are being encouraged to review remuneration structures, salary and dividend planning, and pension […]
Making Tax Digital (MTD) for Income Tax Now Live From April 2026
HMRC’s Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) has officially launched for self-employed individuals and landlords earning above the qualifying threshold. Affected taxpayers must now maintain digital accounting records and submit quarterly updates using compatible accounting software. Businesses and landlords who are not yet digitally prepared may face compliance challenges, penalties, and administrative […]