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The Chancellor of the Exchequer, John Healey, has announced that Budget 2026 will be presented on 28 October 2026.
Announcing the date, the Chancellor said that the Budget will ‘move money and power out of Westminster, and into every postcode around Britain’.
He also stressed that the government would continue to meet its fiscal rules, adding that the Budget would provide businesses and families with the stability they need to plan for the future.
Alongside the Budget, the Office for Budget Responsibility (OBR) will publish its latest economic and fiscal forecast, reflecting its assessment of the government’s plans.
We will provide coverage of the Budget announcements as details emerge.
In the meantime, if you have any concerns about how you may be affected by existing or proposed tax measures, please get in touch. We will be happy to discuss your circumstances and help you understand the implications.
HMRC is writing to some self-employed individuals whose National Insurance (NI) records may contain gaps that could affect their State Pension.
If you receive a letter, don’t ignore it. In some cases, you may be able to boost your State Pension by making voluntary NI contributions for missing years going back as far as 2015-16.
The issue affects some people who were self-employed between 2015 and early 2024. HMRC believes up to 800,000 taxpayers could be affected.
If HMRC contacts you, check:
You can do this through your Personal Tax Account on GOV.UK.
Receiving a letter does not necessarily mean you have a problem.
Many people already have enough qualifying years to receive the full State Pension, in which case paying extra NI would provide no benefit.
Normally, there is a time limit on paying voluntary NI contributions. However, HMRC’s current exercise may allow affected individuals to fill gaps potentially dating back to 2015-16.
For those who are affected, this could be a relatively low-cost way to increase their retirement income.
If you receive a letter from HMRC and are unsure whether it is worth paying voluntary contributions, please contact us. We can help you review your position and determine whether filling any gaps would improve your State Pension entitlement.
Companies and individuals that are careless or even illegal in their tax affairs need to watch out. New figures show that HMRC has paid out £1.4 million in rewards to whistleblowers of tax illegality.
A record number of reports were made to HMRC in the 2025-26 tax year, hitting 170,992.
The last Budget saw the government strengthen a reward scheme for tip-offs. Payouts only go to tips that lead HMRC to recover more than £1.5 million in tax. Informants now receive between 15% and 30% of the value of the extra tax collected.
Recent HMRC figures on the tax gap – the difference between the tax owed and the amount actually collected – showed that small businesses made up the largest share of uncollected tax, two-thirds of the £59.2 billion shortfall.
HMRC have also just released a two-minute YouTube video as a ‘general explainer’ on the scheme. It is aimed at employees, family members, friends or acquaintances of high-net-worth individuals or businesses engaged in suspected serious tax evasion or avoidance. It sets out what the scheme is, what rewards eligible informants could receive and how any information provided may help HMRC to tackle the tax gap and fund vital public services.
The video can be found here: https://www.youtube.com/watch?v=wsmzQR-Uhqc
Should you be unsure of your tax position and need advice, please get in contact. We’re here to help.
HM Revenue and Customs (HMRC) have reported that 298,905 people filed their Self Assessment tax return in the first week of the tax year, with a record total of 737,891 returns being filed during the month of April 2026.
HMRC are highlighting several benefits to filing early, including:
More than 12 million tax returns are due to be filed by 31 January 2027, so there are still plenty of returns to be filed yet.
If you would like help in preparing and filing your 2025/26 tax return, please do get in touch. We would be happy to help you!
See: https://www.gov.uk/government/news/298905-self-assessment-filers-quick-off-the-mark
The government has confirmed that it will review its approved mileage rates before a future Budget.
Many businesses use HMRC’s approved mileage rates to reimburse directors and employees for the cost of using their own vehicle when travelling for business. The current rates have not changed since 2011, although motoring costs have increased significantly in that time.
There is no indication when a review will take effect, with the government’s statement simply specifying ‘a future Budget’.
In the meantime, to inform its work it appears that the government will meet with people struggling with increased costs.
As a reminder, the current mileage rates, which remain unchanged for now, are:
| Type of vehicle
|
First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
| Cars and vans
|
45p | 25p |
| Motor cycles
|
24p | 24p |
| Bicycles
|
20p | 20p |
See: https://www.gov.uk/government/news/mileage-rates-review-to-support-working-people
The Spring Statement will be delivered in Parliament on 3 March, giving an update on the state of the UK economy and the government’s financial outlook.
Unlike the Autumn Budget, the Spring Statement is unlikely to be used for big tax decisions. For businesses it is a useful event as it may set the tone for the months ahead and could give early clues about future tax and spending pressures.
What the Spring Statement is
The Spring Statement is built around the latest set of economic forecasts from the Office for Budget Responsibility (OBR). The OBR publishes forecasts twice a year and considers areas such as growth, inflation, unemployment, government spending and tax income.
The OBR also has responsibility for checking whether the government is on track to meet its self-imposed fiscal rules. However, the Spring Statement will not make a formal assessment of this area as this is now only being reviewed once a year, in the autumn.
Even so, the OBR’s numbers are still likely to influence decisions the Chancellor will make later in the year.
What Is Happening
The Chancellor’s speech is likely to begin shortly after midday on 3 March. As soon as the speech is finished, the OBR’s full forecast will be published on the government website.
This is a change from previous practice, where the OBR would publish their forecast on their own website. However, due to the early accidental release of OBR data at last year’s Autumn Budget, controls are being tightened on how and when the forecast is published.
Will There Be Any Tax or Spending Changes?
This seems to be highly unlikely. The Chancellor has made clear that she intends to announce major policy decisions only once a year, at the Budget in the autumn. The idea is to stop the cycle of constant speculation that can affect business planning and household spending.
However, while we are not likely to see new tax rises or cuts in the Spring Statement, we could perhaps see smaller administrative or follow-up measures.
For most businesses though, the real interest will lie in the OBR’s figures, especially inflation, growth and unemployment, as these influence future interest rates and wage pressures and may indicate the likelihood of tax changes later in the year.
For example, persistent weak growth or rising unemployment may increase the pressure to raise taxes or limit spending. Alternatively, if the OBR gives a more optimistic outlook, especially on inflation, it may strengthen the case for interest rate cuts.
Summary
The Chancellor’s speech is not expected to make sweeping policy changes, but her comments could give a sense of how the government sees the economy developing over the next 12-18 months.
With just a few weeks to go until the beginning of a new tax year, a new round of tax changes take effect from April 2026. While many people won’t see a big difference in their day-to-day tax position, there are some areas worth having on the radar.
Here is a run-through of some of the changes you may want to be aware of.
Dividend Tax Rises
The tax rates for dividends are rising from April 2026. The basic rate and higher rates are each increasing by two percentage points to 10.75% and 35.75%, respectively. The dividend additional rate remains at 39.35%.
Many company owners rely on a combination of salary and dividends for their pay. If that’s you, it’s important to review how you draw income and whether your current mix of salary and dividends still makes sense.
Thresholds Remain Frozen
The tax-free personal allowance and income tax thresholds all remain frozen and are set to stay that way until 2030/31. That ongoing freeze will continue to pull more people into higher rates of tax.
For Scottish taxpayers, there is an increase to the basic and intermediate rate thresholds. This means that lower earners will see a small increase in their take-home pay. However, because of fiscal drag, higher earners will be increasingly drawn into paying additional tax.
National Insurance and Voluntary Contributions
People with gaps in their national insurance contribution (NIC) record, those who are self-employed with low profits, or those who work overseas often consider making voluntary contributions.
From 6 April 2026, the rate for Class 2 NICs (applicable to the self-employed) will be increased from £3.50 to £3.65. The rate for voluntary Class 3 NICs will increase from £17.75 to £18.40.
Aside from the increase in rates, a major change is that voluntary Class 2 NIC will no longer be an option for periods spent abroad. Making voluntary Class 3 contributions will be possible, but the qualifying criteria have been tightened.
Capital Gains Tax (CGT)
Business owners thinking about selling or restructuring should be aware that capital gains that are subject to business asset disposal relief or investor’s relief will be taxed at 18% for 2026/27, an increase from 14% in 2025/26.
Reliefs for disposals to employee ownership trusts have also been scaled back and the rules for share reorganisations have been tightened. Both changes are already in force.
These changes won’t affect everyone, but if you are considering business succession or restructuring, getting the timing and your approach right continues to be key.
Inheritance Tax – Agricultural and Business Property Relief Changes
As has been widely publicised, changes to Inheritance Tax (IHT) to Agricultural Property Relief (APR) and Business Property Relief (BPR) will come into force on 6 April 2026.
These reliefs were previously unlimited, but from April, 100% relief will be capped at £2.5 million of combined agricultural and business assets. Thereafter, the relief reduces to 50%. Unused amounts can be passed to a spouse or civil partner.
The £2.5 million limit is higher than initially proposed, but those who may be affected by the new cap may want to consider whether there are ways to rearrange their estate that would be effective in saving tax.
In Conclusion
If you are affected by any of these changes for 2026/27 and would like help in making sure you are in the best tax position possible, please get in touch. We would be happy to help you!
