New Tax Year – Key Changes Business Owners Should Know (From 6 April)

The new tax year has started, and with it come several changes that business owners, company directors and landlords should have on their radar.

Here are a few key points for 2026/27 👇

💷 National Minimum Wage increase

The National Living Wage for workers aged 21+ has increased to £12.71 per hour.

If you employ staff, now is a good time to check:

• Payroll software has been updated

• Salaries still comply with minimum wage rules

• Employment budgets reflect the higher cost

📈 Dividend tax increase

Dividend tax rates have increased from 6 April 2026:

• 10.75% (basic rate) – previously 8.75%

• 35.75% (higher rate) – previously 33.75%

• 39.35% (additional rate – unchanged)

The dividend allowance remains at £500, so planning how you extract profits from your company is becoming even more important.

📊 Making Tax Digital (MTD) – time to prepare

MTD for Income Tax is approaching, and many sole traders and landlords will soon need to:

• Sign up to the MTD system

• Keep digital records

• Submit quarterly updates to HMRC

That means good bookkeeping is becoming essential. The first quarterly submission deadlines will arrive quickly, so April is the perfect time to get systems in place.

The start of a tax year is one of the best opportunities to plan ahead rather than react later.

💬 If you run a business or receive dividends, have you reviewed your tax strategy for the new year yet?

office preparing for new tax year