If you’re a company director, there have been quite a few changes over the past year that affect how you pay yourself, how your company reports to HMRC, and what Companies House expects from you.
Some of them are well-publicised – like the dividend tax increase – but others, like the rise in the s455 charge on director’s loans or the new close company reporting consultation, are easier to miss.
We’ve pulled together the key changes you need to be aware of for 2026/27, along with a practical checklist at the end so you can work through them one by one.
1. Dividend Tax and Employer NIC Have Both Risen
Most directors pay themselves through a combination of a low salary and dividends. If that’s how you do it, it’s worth knowing that the tax on both sides of that equation has increased.
What’s Changed
The dividend tax increase is new for 2026/27, while the employer NIC changes came in from April 2025. But this is the first full planning year where most directors are dealing with both at once:
- Dividend tax – the basic rate is now 10.75% (up from 8.75%) and the higher rate is 35.75% (up from 33.75%). The £500 dividend allowance is unchanged.
- Employer NIC – still at 15%, with the secondary threshold at £5,000, so even a modest salary starts generating employer NIC sooner than it used to.
- Employment Allowance – still can’t be claimed if the director is the only person liable for secondary Class 1 NIC. For single-director companies, there’s nothing to offset the increase.
What This Means for You
Dividends are still more tax-efficient than salary for most directors because they avoid National Insurance. But the advantage isn’t as wide as it used to be.
A director taking £40,000 in dividends on top of a £12,570 salary will pay about £790 more in personal tax this year than they would have on the same figures last year. It’s worth sitting down with your accountant and running the numbers again – the split that worked for you last year may not be the best one now.
2. The S455 Charge on Director’s Loans Has Gone Up
If your director’s loan account is overdrawn at year end, your company has to pay a section 455 tax charge on the outstanding balance if the loan isn’t repaid within nine months and one day. That charge has risen to 35.75% for loans made on or after 6 April 2026, up from 33.75%. The rate is linked to the dividend upper rate, so it moved automatically.
To put that in context, on a £50,000 overdrawn balance, the charge is now £17,875. You do get it back once the loan is repaid, but the refund process takes time, and in the meantime that money is sitting with HMRC rather than in your business.
If you tend to draw money before dividends are formally declared, this is worth getting on top of now.
3. HMRC Is Consulting on New Reporting for Close Companies
This one isn’t law yet, but it’s important to be aware of. HMRC has launched a consultation on mandatory reporting requirements for close companies – covering loans to directors, dividends, benefits, and other transactions between a company and its participators. The consultation closes on 10 June 2026.
At the moment, most of this information only comes to light when you file your Corporation Tax and Self Assessment returns. The proposed rules would require close companies to report these transactions directly and in more detail. HMRC is still consulting on the format and timing, so the final requirements aren’t settled yet.
The message from HMRC is fairly clear – they want better records of how money moves between directors and their companies, and they want them kept up to date throughout the year rather than tidied up at year end.
4. Tax Thresholds Are Now Frozen Until 2031
The personal allowance stays at £12,570, the basic rate limit at £37,700, and the higher-rate threshold at £50,270 – all now locked in until 5 April 2031. That means more of your income will keep getting pushed into higher tax bands as wages and profits rise – even though your actual spending power hasn’t improved.
Why the Combined Effect Matters
The freeze wouldn’t be quite so painful on its own. But when you add up everything that’s changed recently, the overall cost of paying yourself from your company has moved quite a bit:
- Dividend tax up to 10.75% / 35.75%.
- Employer NIC at 15%, threshold down to £5,000.
- S455 charge up to 35.75% on new director’s loans.
- BADR rate up to 18% on business disposals.
- Tax bands frozen through to April 2031.
Individually, each of these is manageable. Together, they add up – and if you haven’t reviewed how you pay yourself recently, it’s well worth doing.
5. Business Asset Disposal Relief Is Less Generous
If you’re thinking about selling your business or shares in a trading company at some point, the CGT rate under Business Asset Disposal Relief went up to 18% from April 2026. It was 14% the year before that, and 10% before that. The £1m lifetime limit is still the same.
HMRC is also writing to taxpayers who claimed BADR on their 2024/25 return and may have exceeded the lifetime limit. If you’ve used some of your allowance in previous disposals, make sure you know exactly how much is left.
6. Savings and Property Income Tax Is Changing From April 2027
This one sits outside your company, but it’s relevant if you have personal income from savings or property as well as your director’s earnings.
From April 2027, savings income tax rates are going up, and property income will be taxed at new separate rates – 22% at basic, 42% at higher, and 47% at additional. If you’re a landlord as well as a director, or you hold significant savings outside of ISAs, it’s worth building this into your wider tax planning now.
7. Companies House Identity Verification Is Live
Under the Economic Crime and Corporate Transparency Act, directors and persons with significant control are now legally required to verify their identity with Companies House. Verification became compulsory for new directors, new PSCs, and new incorporations from 18 November 2025. Existing directors and PSCs are being brought in during a 12-month transition period, with deadlines linked to your company roles and filings.
How to Verify
You only need to verify once, even if you hold multiple directorships. There are three ways to do it:
- GOV.UK One Login – online, using the identity verification app.
- Post Office – in person at participating branches.
- Authorised Corporate Service Provider – your accountant or formation agent can do it for you if they’re registered as an ACSP.
Once you’ve verified, you’ll receive a Companies House personal code. Hold on to it – you’ll need it to link your identity to each directorship or PSC role you hold. If you haven’t started the process yet, don’t leave it until your next confirmation statement is due. Failing to verify can lead to rejected filings, penalties, and in serious cases, disqualification.
8. Companies House Fees Have Gone Up
From 1 February 2026, Companies House fees increased across the board. Digital incorporation now costs £100 and the digital confirmation statement fee is £50. Paper filing is more expensive, with paper confirmation statements at £110.
Companies House is also moving towards software-only accounts filing from 2027, so if your company still files on paper, it’s worth thinking about the switch now.
9. Employment Law Changes for Directors With Staff
If you employ anyone – even a small team – the Employment Rights Act 2025 has been rolling out in stages, and there are several provisions already in force that you need to be aware of.
What’s Changed So Far
From April 2026, a number of new employee rights came into effect:
- Statutory Sick Pay – the lower earnings threshold and the three waiting days have both been removed, so more employees qualify and sickness absence can become a cost from day one. Your payroll, contracts, and absence policy should all reflect this.
- Day-one paternity and parental leave – employees no longer need qualifying service to take paternity leave or unpaid parental leave. The right to leave is from day one, though statutory paternity pay can still depend on separate eligibility rules.
- Collective redundancy protections – the maximum protective award for failures in collective consultation has doubled.
- Coming in October 2026 – employers will be required to take all reasonable steps to prevent sexual harassment.
As a director, you’re responsible for making sure your company meets these obligations. If your contracts and policies haven’t been updated, now is the time to do it.
Your 2026/27 Action Checklist
That’s a lot to take in. Here’s a summary you can work through:
| Area | What to do |
|---|---|
| Salary and dividends | Recalculate your split using the current rates – the one that worked last year may not be the best one now |
| Employer NIC | Check whether the £5,000 threshold affects your optimal salary level |
| Director’s loan | Clear or formalise any overdrawn balance before the nine-month deadline |
| Dividends admin | Make sure your dividend minutes and vouchers are up to date |
| BADR | Confirm how much lifetime allowance you have left if a sale is on the cards |
| Companies House | Complete identity verification and store your personal code |
| Filing fees | Budget for the higher Companies House fees (£100 incorporation, £50 confirmation statement) |
| Employment | Update policies for SSP, paternity leave, parental leave, and the upcoming harassment prevention duty |
How Double Point Can Help
Any one of these on its own is straightforward to deal with. But when you add them all up, the tax and admin picture for directors looks quite different from even a couple of years ago – and that’s where things tend to slip through the cracks.
At Double Point, our chartered accountants work with directors throughout the year to stay on top of these kinds of changes, whether that’s reviewing your salary and dividend strategy, managing your company accounts, or helping with tax planning.
Book a free consultation and we’ll go through what these changes mean for you.