Several UK tax changes scheduled for 2026 could affect individuals, landlords and business owners alike. While some measures have been discussed for several years, others may still come as a surprise.
Dividend tax and investment income updates
From the 2026-27 tax year, dividend tax rates are set to rise by two percentage points for both basic and higher rate taxpayers. The dividend allowance also remains far lower than in previous years, meaning tax may be due on relatively modest dividend income. This change is particularly relevant for company directors and private investors who use dividends as part of their overall income strategy.
Making Tax Digital and business-related changes
Making Tax Digital for Income Tax will become mandatory from April 2026 for self assessment taxpayers earning over £50,000, with the threshold reducing the following year. Although penalties for late quarterly submissions will initially be eased, the move represents a significant shift in how income is reported and monitored. Businesses should also be aware of changes to business rates, including new lower multipliers for retail, hospitality and leisure properties. Support from advisers, such as accountants Chippenham, like this example https://chippendaleandclark.com/ may help with adapting systems and meeting new obligations.
Other measures to keep in mind
Further developments include consultations on PAYE and self-employed tax payments, environmental tax rises and fuel duty freezes, which may influence long-term budgeting and reporting decisions for taxpayers. Overall, the 2026 tax changes reinforce the value of early preparation. Taking time to understand potential impacts now can help minimise disruption later.
