As we enter the new tax year, several important changes have come into effect that may impact you, whether you run a business, earn rental income, or are employed.
At Arlington Moore Accountants, we’ve summarized the key updates in a simple, practical way—so you know what to expect and what actions you may need to take.
📲 Making Tax Digital – A Major Change
One of the biggest updates this year is the rollout of Making Tax Digital (MTD) for Income Tax.
From April 2026, this applies to sole traders and landlords earning over £50,000.
What this means for you:
* You’ll need to keep digital records
* Submit updates to HMRC every quarter
* Use compatible accounting software
If you currently rely on spreadsheets or paper records, now is the time to switch to a compliant system.
💻 A Move to Fully Digital Filing
Businesses will now be required to file company accounts and Corporation Tax returns using approved software.
What this means for you:
* Paper or manual submissions are being phased out
* You’ll need to ensure your systems are up to date
The right software can actually make this process quicker and more efficient once set up correctly.
💸 Changes to Dividend Tax
If you take income from a limited company, dividend tax rates have increased.
What this means for you:
* Dividends are slightly less tax-efficient
* It may be worth reviewing how you take income from your business
We can help you find the most tax-efficient approach based on your circumstances.
💷 Minimum Wage Increase
From April 2026, minimum wage rates have increased across all age groups, including the National Living Wage.
What this means for you:
* Employers will need to update payroll and budgets
* Wage costs may increase
* Employees may see a welcome boost in earnings
📈 Selling a Business
If you’re planning to sell your business, tax rates on qualifying gains have increased.
What this means for you:
* You may pay more tax when selling
* Early planning is key to minimise liabilities
🏡 Inheritance Tax Changes
Updates to certain inheritance tax reliefs may affect business owners and those with agricultural assets.
What this means for you:
* Some reliefs are being restricted
* It’s important to review long-term plans
📊 More People Paying Higher Tax
Tax thresholds remain frozen, which means more people are gradually moving into higher tax brackets.
What this means for you:
* You may pay more tax without any increase in rates
* Regular reviews of your tax position are important
🤝 How We Can Help
Tax rules are changing, but you don’t have to navigate them alone.
We support our clients with:
* Making Tax Digital setup and software advice
* Tax planning and compliance
* Payroll and wage updates
* Business and personal financial planning
✅ Final Thoughts
The April 2026 changes are part of a wider shift towards digitalisation and increased reporting.
Taking action early can help you stay compliant, avoid surprises, and make the most of available opportunities.
If you’d like advice tailored to your situation, feel free to get in touch—we’re here to help.
Looking forward to how these updates will modernize processes and strengthen the industry reputation!