On 3 March 2026, Chancellor Rachel Reeves delivered her second Spring Statement. If you were bracing for another round of tax rises – you can relax. There were none.
The Chancellor stuck to her commitment of saving major tax changes for the Autumn Budget, so this was an economic update rather than a new round of policy.
That said, “no new taxes” doesn’t mean “nothing to act on.” The economic forecasts paint a mixed picture, and a wave of previously announced changes are hitting in April 2026.
That will directly affect how much you pay, how you file, and how you run your payroll.
What’s Changing in April 2026
The Spring Statement was the government’s last opportunity to delay or water down the changes already announced in the 2025 Autumn Budget.
However, it didn’t, and mostly everything went ahead as planned. Here’s what you need to prepare for.
Sole Traders and Landlords: Quarterly Digital Reporting Arrives
If you’re self-employed or earn rental income, this change will affect your day-to-day life the most.
From 6 April 2026, anyone with business or property income over £50,000 will need to keep their records digitally and send HMRC a summary of their income and expenses every quarter – not just once a year at self-assessment time.
This is called Making Tax Digital for Income Tax and involves quarterly submissions to HMRC instead of one single annual self-assessment (though an annual final declaration will still be in place).
You’ll need compatible accounting software and be signed up before April. If you’re not sure whether this applies to you, HMRC has an eligibility checker and a step-by-step guide that walks you through the whole process.
The threshold drops to £30,000 from April 2027 and £20,000 from April 2028, so even if you’re not caught this year, you likely will be soon. We’ve written a full MTD checklist that covers exactly what you need to do and when.
Limited Companies: Filing Late Just Got Twice as Expensive
From 1 April 2026, HMRC is doubling the penalties for filing your Corporation Tax return late.
The old penalty amounts hadn’t been updated since the late 1990s, so this has been coming for a while – but it’s still a steep increase:
- Up to one day late – £200 penalty (was £100)
- Three months late – another £200 on top, so £400 total
- Three late filings in a row – up to £2,000
These penalties apply even if your company doesn’t owe any tax.
Buying Equipment? The Tax Relief Rules Are Shifting
If your business buys equipment, vehicles, or machinery, you get tax relief on the cost – but how much you get and how quickly depends on the type of allowance you claim. Two things are changing from April 2026.
First, the main Writing Down Allowance – the standard rate at which you write off the cost of assets against your profits each year – is dropping from 18% to 14%. That means if you’re claiming this relief (rather than full expensing or the Annual Investment Allowance), it’ll take longer to get the full tax benefit.
Second, a new 40% First Year Allowance has been in place since January 2026. This lets you write off 40% of the cost of qualifying equipment in the year you buy it – and for the first time, it covers assets used for leasing too. The 100% allowance for zero-emission cars and EV charge points has also been extended to March 2027.
The key point here is that the timing of your purchases matters. Depending on what you’re buying and how your business is structured, you could get better tax relief by bringing a purchase forward or pushing it back. It’s worth talking to your accountant before committing to any large spend.
Hiring Is Getting More Expensive – Again
This one isn’t new, but it’s still biting. From April 2025, the employer National Insurance rate increased from 13.8% to 15%, and the threshold at which you start paying it dropped from £9,100 to £5,000 per employee. That threshold stays frozen at £5,000 until at least 2031.
On top of that, the National Living Wage rises to £12.71 per hour from April 2026. Put together, every employee costs more this year than last year – regardless of whether you’ve given anyone a pay rise.
The Employment Allowance lets eligible businesses knock £10,500 off their annual employer NICs bill, which can make a real difference if you only have a few staff. But if you’re running a larger team, the maths is painful and proper payroll planning is essential.
A New Way to Check R&D Claims Before You Submit
For businesses doing innovative work – whether that’s developing new products, improving processes, or solving technical problems – HMRC is piloting a new advance assurance service from spring 2026. The idea is simple: you can check whether your R&D work qualifies for tax relief before you submit your claim, rather than finding out months later that it’s been rejected.
If you’ve ever held back from claiming because you weren’t confident it would be accepted, this is worth watching.
Other April 2026 Changes Worth Knowing About
There are a few more moving parts from April that could affect you depending on your circumstances:
- Dividend tax rates are going up by 2%. If you’re a director who takes income through dividends, your tax bill is increasing. Our guide to allowable expenses covers ways to offset some of the impact.
- Business Asset Disposal Relief – the tax break you get when you sell your business – sees its rate rise from 14% to 18%. That’s a noticeable increase if you’re planning an exit. We cover this in our capital gains guide.
- EIS and VCT limits are expanding, with annual investment limits doubling and asset thresholds increasing. If you’re a growing company looking to raise investment, more doors just opened.
- EMI scheme eligibility is broadening – the employee limit rises from 250 to 500, making it available to more mid-sized businesses looking to offer share options.
- Business rates – permanently lower rates apply for retail, hospitality, and leisure properties below £500,000 rateable value. Pubs and live music venues get a 15% relief for 2026/27.
How Double Point Can Help
At Double Point, we help small businesses stay ahead of exactly these kinds of changes.
Whether you need support transitioning to MTD-compatible software, reviewing your capital allowance position, or planning around higher employer costs, our team of chartered accountants is here to make it straightforward.
Book a free consultation with us today, and let’s make sure your business is ready for what’s ahead.