Tax E-News – April 2026
Welcome to the April 2026 edition of Tax E-News. We hope that you find this informative. Please contact us if you wish to discuss any matters in more detail.
MAKING TAX DIGITAL FOR INCOME TAX – GO LIVE!
The commencement of Making Tax Digital (MTD) for income tax is now live! This is the new 2026/27 tax year regime for self-employed individuals and landlords if they have business and/or property income (i.e. total takings, not net profits) of more than £50,000 per annum. MTD requires digital record-keeping and quarterly updates to HMRC, with the first such update due by 7 August 2026. […]
WHAT ELSE IS CHANGING IN THE 2026/27 TAX YEAR?
It can be hard to keep track of tax changes, with the start of a new tax year often bringing new rates, allowances and other legislative changes. To make things easier, here is a list of the key tax changes that will take effect from April 2026.
INCOME TAX
In 2026/27 income tax rates, thresholds and bands generally remain at their 2025/26 levels. One key change from 6 April 2026 is the rate of income tax that applies to dividend income. […]
CORPORATION TAX
The rate of tax (known as the ‘s455’ tax charge) on loans to ‘participators’ (broadly shareholders) in ‘close companies’ (broadly companies controlled by 5 or fewer participators), is set according to the dividend upper rate. This means that the tax charge on loans that remain unpaid 9 months and 1 day after the accounting period end will increase to 35.75% for loans and advances made on or after 6 April 2026. […]
CAPITAL GAINS TAX
The CGT rates applicable to gains qualifying for both Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) are set to increase again to 18% on 6 April 2026. The rates previously increased to 14% (from 10%) on 6 April 2025.
VAT
From 1 April 2026, a new relief will exclude most donations of business goods to charities from the deemed-supply VAT rules.
DIVIDENDS: HMRC ARE WATCHING!
NEW CONSULTATION ON REPORTING COMPANY PAYMENTS TO PARTICIPATORS
Returning to corporation tax, a new consultation, ‘Reporting company payments to participators’ has been published, inviting views on proposals to introduce new requirements to report transactions between close companies and their participators to HMRC. […]
NEW DIVIDEND DATA BEING COLLECTED VIA 2025/26 SELF ASSESSMENTS
Finance Act 2024 introduced powers to enable the collection of additional data on income tax self-assessment and allowed for HMRC to specify the particular information required. […]
VAT ON PUBLIC ELECTRIC VEHICLE CHARGING
In a recent VAT case (Charge My Street Ltd v HMRC [2026] TC09802), the First Tier Tribunal found that electric vehicle charging supplied at public charging stations qualified for a 5% reduced rate VAT charge. This ruling contradicts HMRC’s long-held policy that electric vehicle charging at public charging stations is subject to a standard 20% rate of VAT. […]
DIARY OF MAIN TAX EVENTS
APRIL / MAY 2026
| Date | What's Due | |||
|---|---|---|---|---|
| 1 April | Corporation Tax for year to 30/06/2025, unless quarterly instalments apply | |||
| 1 April | National Minimum Wage rate increases take effect. | |||
| 5 April | End of the 2025/26 tax year – many tax planning actions need to have been taken by this date, including making use of 2025/26 allowances). | |||
| 6 April | Start of the 2026/27 tax year. Updated tax rates, thresholds and statutory payment rates take effect. | |||
| 6 April | Commencement of the Making Tax Digital for income tax regime. | |||
| 19 April | PAYE & NIC deductions, and CIS return and tax, for month to 05/04/2026 (due 22 April if you pay electronically) | |||
| 30 April | Annual Tax on Enveloped Dwellings (ATED) returns and payment for the chargeable period starting on 1 April 2026. | |||
| 1 May | Corporation Tax for year to 31/07/2025, unless quarterly instalments apply | |||
| 19 May | PAYE & NIC deductions, and CIS return and tax, for month to 05/05/2026 (due 22 May if you pay electronically) |