April 2026 Tax Update: What It Means for You | Bidwell Accountancy Milton Keynes
As we enter the 2026/27 tax year, now is the time to get ahead.
At Bidwell Accountancy, we’re already working closely with our clients to navigate upcoming changes — from Making Tax Digital (MTD) and tax allowance freezes and payroll reporting changes
Whether you’re an established business or just starting out, here’s what you need to know — and how to stay one step ahead.
🚨 Making Tax Digital (MTD) for Income Tax – Act Now
The biggest change coming this year is Making Tax Digital for Income Tax, starting 6 April 2026.
If you are:
A sole trader
A landlord
Or earning over £50,000
👉 You must:
Keep digital records
Submit quarterly updates to HMRC
Use MTD-compatible software (like Xero)
From April 2027, this expands to those earning over £30,000.
Why this matters
This is a fundamental shift from annual tax returns to real-time reporting — and many businesses are not ready.
How Bidwell Accountancy helps
We’ve already:
Set up our clients on MTD-compliant systems
Integrated tools like Xero, Dext and reporting software
Created simple, stress-free processes
👉 If you’re unsure whether MTD applies to you, now is the time to act.
📊 Tax Allowances Frozen Until 2031 – A Hidden Tax Increase
The government has confirmed that Income Tax thresholds will remain frozen until April 2031:
Personal Allowance: £12,570
Higher Rate Threshold: £50,270
What this means
Even if tax rates don’t increase, you could still pay more tax.
This is known as fiscal drag:
As your income rises, more of it is taxed
More people move into higher tax bands
Your effective tax rate increases over time
Our advice
At Bidwell Accountancy, we help clients:
Plan tax-efficient salary & dividend strategies
Use pensions and allowances effectively
Stay ahead of rising tax exposure
👉 Without planning, this can quietly cost you thousands.
💼 Benefits in Kind (BiKs) – Major Changes Coming
From April 2027, reporting Benefits in Kind (BiKs) will change significantly.
What’s changing
P11Ds will be scrapped for most benefits
BiKs will be reported through payroll (RTI) instead
Reporting will happen in real-time via FPS submissions
The original start date (April 2026) has been delayed to give businesses more time.
Key deadline now
👉 5 April 2026 – Last chance to register for voluntary payrolling for 2026/27
Why this matters
Payroll is becoming more complex — and it’s not just “pressing a button.”
👉 Our payroll team ensures:
Full compliance
Accurate reporting
No surprises from HMRC
📅 Key Tax Deadlines: April & May 2026
Stay compliant and avoid penalties:
April 2026
1 April – Corporation Tax (year ended 30 June 2025)
19 April – PAYE/NIC & CIS deadlines
30 April – Late filing penalties begin for 2024/25 tax returns
May 2026
1 May – Corporation Tax (year ended 30 July 2025)
19 May – PAYE/NIC & CIS deadlines
31 May – Deadline to issue P60s
💡 Final Thoughts – Don’t Wait Until It’s Too Late
This year is a turning point for UK tax compliance:
MTD is here
Reporting is becoming real-time
Tax thresholds are tightening
Compliance expectations are increasing
At Bidwell Accountancy, we don’t just “do the numbers.”
👉 We help you:
Stay compliant
Reduce your tax bill
Understand your business
Plan ahead with confidence
📞 Need Help? Let’s Talk
If you’re unsure how any of these changes affect you, or want to get ahead before deadlines hit:
👉 Contact Bidwell Accountancy today
🌐 info@bidwellaccountancy.com
📞 01908 380391
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