All the things you should find out about new tax 12 months adjustments from 6 April

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Your help makes all of the distinction. Learn extra April 6 marks the beginning of a brand new tax 12 months, and it's only simply across the nook.

For many of us, this implies vacation allowances being reset, and it’s additionally the deadline to max out our ISA allowance for the 12 months. However for some, extra wide-ranging adjustments to the tax system which can be coming in might doubtlessly hit onerous.

We spoke to Rowan Harding DipFPS, a monetary planner at Path Monetary, about what adjustments are on the way in which, and who they're most certainly to have an effect on…

The dividends tax price

“Numerous the adjustments which can be coming in actually are extra to do with enterprise house owners and companies as an entity,” notes Harding.

“So for any individual who does have some earned earnings, as a result of they run their very own enterprise, the dividend (funds made by firms to shareholders) price goes to extend by 2% from April.

“The fundamental price will go as much as 10.75%; the upper price will go as much as 35.75%. The dividend allowance stays the identical at £500, which has decreased in earlier tax years. So we’ll see what occurs on that entrance.”

She says the “implications are positively going to be felt by smaller enterprise house owners, sadly”, who arguably already pay a number of tax.

“They could not be capable to afford, essentially, to run their companies with an elevated value,” says Harding.

“There could also be extra smaller companies that go underneath. Hopefully we nonetheless have this excellent entrepreneurship that occurs within the UK.”

<img src="https://static.independent.co.uk/2026/03/20/09/19141205-7c866a14-81b8-4582-a93b-f7b0f53f8619.jpg" srcset="https://static.independent.co.uk/2026/03/20/09/19141205-7c866a14-81b8-4582-a93b-f7b0f53f8619.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/03/20/09/19141205-7c866a14-81b8-4582-a93b-f7b0f53f8619.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="All the tax changes you need to be aware of for the new tax year (Alamy/PA)" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> All of the tax adjustments you want to pay attention to for the brand new tax 12 months (Alamy/PA) (PA Wire) Nationwide Minimal Wage enhance

That is nice information for these on the nationwide minimal wage. For apprentices and underneath 18s, the Nationwide Minimal Wage will enhance from £.755 to £8 an hour, for 18-20-year-olds it jumps from £10 to £10.81, and for ages 21 and over, it’s £12.71, up from £12.21.

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“It’s actually essential that you just do get that enhance, as a result of finally, even with that enhance, that amount of cash for most individuals is a very onerous amount of cash to dwell off,” acknowledges Harding.

For enterprise house owners, particularly small enterprise house owners with workers, nonetheless, it’s “in all probability one of many largest prices”, and can have an effect on Nationwide Insurance coverage contributions too.

Enterprise property reduction and agricultural property reduction

The Authorities goes to cap reliefs, so anybody with enterprise or agricultural property that exceed £2.5m will see an efficient tax price of 20% on the subject of inheritance tax.

For these affected, Harding says it might be “value reviewing wills or structuring property to take that into consideration”.

“Most individuals would assume, ‘In the event you’ve obtained £2.5m in agricultural or enterprise property, then you definately’re in all probability doing fairly effectively for your self’. So it’s maybe going to be a really small portion of individuals impacted by this, however you're going to get people who find themselves within the farming trade being very uncomfortable and upset,” explains Harding.

Though adjustments are “geared toward these individuals who have a better degree of property, the issue is, a number of property round agriculture are land-related, and also you want land to farm.”

Enterprise Asset Disposal Reduction (BADR)

“There may be nonetheless going to be one million pound cap, however [the Government] goes to lift the Capital Positive aspects Tax for qualifying proposals to 18% (up from 14%) for exiting a enterprise,” says Harding. “It’s going to be fairly a chunky quantity of tax once you’re speaking massive sums of cash.”

She provides: “It’s actually individuals who have excessive ranges of property [who’ll be affected], the final inhabitants is just not more likely to have £1m when it comes to enterprise property.”

“The hyperlink in with that, is to do with the inheritance tax on Qualifying Various Funding Market Shares.”

The present 100% reduction “goes to lower by 50%, so it’ll be a everlasting 20% inheritance tax legal responsibility, they usually’re usually used as automobiles to assist mitigate inheritance tax for people who've a excessive quantity of property.”

Working from residence allowance

That is being utterly abolished. At the moment, you may “declare £6 for prices related to working from residence,” which doesn’t sound like loads, “however over a 12 months that may add up” says Harding.

<img src="https://static.independent.co.uk/2026/03/20/09/19143202-c7f4c266-43fe-407e-989a-42ae2865b74f.jpg" srcset="https://static.independent.co.uk/2026/03/20/09/19143202-c7f4c266-43fe-407e-989a-42ae2865b74f.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/03/20/09/19143202-c7f4c266-43fe-407e-989a-42ae2865b74f.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Working from home allowance is set to be abolished" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> Working from residence allowance is ready to be abolished (PA Wire) Making Tax Digital

The introduction of Making Tax Digital means “extra life admin for individuals, and a bit much less for HMRC” says Harding wryly.

It’s principally a brand new system for sole merchants and landlords who earn £50k qualifying gross earnings earnings, to report their earnings tax, “lowering in April 2027 to £30k”.