With 6 April 2026 ushering in a fresh tax year, there are a few changes quietly taking their seats that may have more impact than their understated arrival suggests.

Nothing dramatic. Just the sort of adjustments that reward preparation and gently punish procrastination.

 

Making Tax Digital – Now It’s Personal

For an estimated 864,000 sole traders and landlords, Making Tax Digital for Income Tax officially begins this April. Many more will follow in 2027 and 2028.

If your gross income exceeded £50,000 in 2024/25, you’re in scope.

What does that mean in practice?

• Digital record-keeping becomes mandatory
• Quarterly updates to HMRC
• An end-of-year submission to finalise the position

In short, fewer once-a-year scrambles, more regular check-ins.

HMRC should have written to you if you’re affected. Importantly, you won’t be signed up automatically. This is one of those rare situations where doing nothing achieves exactly that.

There are some exemptions, but they’re limited. If you’re unsure whether MTD applies to you, it’s far better to confirm now than discover accidentally in August.

 

Capital Allowances – A Subtle Shift

The main rate of writing-down allowance is reducing from 18% to 14%.

Not headline-grabbing, but it does mean slower tax relief on certain assets. Over time, that adds up.

The good news? It’s not all restraint.

• A 40% first-year allowance (introduced January 2026) is now available
• The Annual Investment Allowance continues to offer immediate relief in many cases

Translation: timing matters more than ever.

If you’re planning to invest in equipment or assets, a quick review beforehand can make the difference between efficient relief and a slightly disappointing afterthought.

 

CIS Rules – Less Room for Optimism

From April 2026, the Construction Industry Scheme tightens up.

If a business knows, or is deemed to have known, that a payment is linked to fraud, HMRC can:

• Remove gross payment status immediately
• Hold the business liable for the tax loss
• Apply penalties to the business and potentially its officers

There’s also a longer wait if gross payment status is lost: five years before reapplying, up from one.

In other words, “we didn’t realise” is becoming a less reliable defence.

Due diligence is no longer a background task. It’s front and centre.

 

A Small Boost for EV Charging (A Rare Uplift)

In a welcome change of tone, the government has increased EV charge point grants by over 40%.

• Previous grant: £350
• New potential saving: up to £500

For many installations, that now covers a meaningful portion of the cost rather than just softening the blow.

Schools can receive up to £2,000 per socket, and the number of grant schemes has been simplified (always appreciated).

There’s also continued support for:

• Purchasing electric vehicles (up to £3,750 discount)
• Installing charging solutions for homes without driveways

Combined with favourable tax treatment, EVs remain one of the more generously supported areas of the tax system.

A sentence we don’t get to write often.

 

Employers: The Quiet Admin That Matters

As the tax year closes on 5 April, payroll responsibilities make their annual appearance.

Nothing new, but no less important for it.

A quick checklist:

• Submit your final payroll report on or before your last payday of the year
• Update payroll records and software from 6 April
• Provide employees with P60s by 31 May
• Report expenses and benefits by 6 July

It’s routine work. But like most routine work, it only feels routine when it’s done on time.

 

Home Working – Still Your Responsibility

The shift to remote and hybrid working hasn’t gone unnoticed.

The Health and Safety Executive has issued a reminder: your responsibilities don’t stop at the office door.

Key areas to keep an eye on:

• Mental health and workload management
• Safe use of equipment (DSE)
• The general home working environment

The practical approach is refreshingly straightforward:

• Keep in regular contact
• Encourage open conversations
• Avoid unspoken overtime expectations
• Ask simple, sensible questions about home setups

No need for intrusive inspections. Just consistent, reasonable oversight.

 

Late Payments – Help Is (Possibly) On The Way

Late payments continue to quietly drain time, cashflow and patience, costing the UK economy an estimated £11 billion annually.

The government’s response suggests change is coming, including:

• New powers for the Small Business Commissioner to investigate and fine poor practices
• A standard 60-day maximum payment term
• Mandatory interest on late payments (8% above base rate)
• Greater scrutiny of large businesses’ payment behaviour
• A ban on construction retention payments

Legislation is expected when parliamentary time allows.

Which, as ever, is not a fixed date.

 

In The Meantime: Three Practical Ways to Get Paid Faster

While we wait for legislation to catch up, a few practical habits can make an immediate difference.

 

1. Make Paying You Effortless

Late payment is often less about refusal and more about friction.

Simple fixes help:

• Clear bank details on every invoice
• A visible due date
• Multiple payment options where possible
• Sending invoices promptly while goodwill is still fresh

Remove the obstacles and payments tend to follow.

 

2. Set the Tone Early

Payment terms shouldn’t make their debut at invoice stage.

Repeat them:

• On quotes
• In agreements
• In early communications

If deposits or staged payments are part of your process, present them as standard. Because they are.

 

3. Follow a Consistent Chasing Routine

Chasing doesn’t need to feel awkward when it’s structured.

A simple rhythm works:

• Day 1: Friendly reminder
• Day 7: Firmer follow-up with a requested payment date
• Day 14: Mention potential interest charges

Polite, consistent and predictable tends to outperform hopeful silence.

 

The Practical Takeaway

Across all of this, the theme remains reassuringly consistent:

No sudden shocks. Just a steady increase in expectations.

More reporting. More responsibility. More need for quiet organisation behind the scenes.

Whether it’s MTD, capital allowances, CIS compliance or simply getting invoices paid, the advantage sits firmly with those who plan slightly earlier than strictly necessary.

As ever, we’re here to help you stay ahead of it all — clearly, calmly, and with minimal drama.

Though we reserve the right to raise an eyebrow when tax rules attempt to be… inventive.

 

Categories: Positive Accountant