Key Changes Every Business Owner and Individual Should Know
As we move into 2026, a number of important UK tax and regulatory changes are approaching that could affect both individuals and businesses. In this month’s update, we highlight developments that require early planning, explain how they may impact you, and outline where professional advice can make a real difference.
This update covers:
Major Construction Industry Scheme (CIS) changes from April 2026
Capital Gains Tax rules for non-UK residents selling UK property
Reforms to Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) investments
A final reminder ahead of the 31 January self-assessment deadline
A practical January–February 2026 tax diary to help you stay compliant
If any of these topics apply to you or your business, now is the time to take action.
Construction Industry Scheme (CIS): What’s Changing from April 2026?
Following the latest Budget announcements, the government has confirmed a series of significant CIS reforms, aimed at tackling fraud while simplifying administration for compliant businesses.
Tougher Enforcement Powers
From 6 April 2026, HMRC will be able to act immediately where a business makes or receives payments it knew, or should have known, were connected to fraud. In these cases, HMRC may:
Remove Gross Payment Status (GPS) with immediate effect
Assess the business for any associated tax loss
Impose penalties of up to 30%, which may apply to the business or its officers
Prevent the business from reapplying for GPS for five years (up from one year)
These changes significantly raise the stakes for CIS compliance and due diligence.
CIS Simplification Measures
Alongside tougher enforcement, the government plans to simplify CIS administration by:
Exempting payments to local authorities and certain public bodies
Removing the requirement to submit CIS nil returns
These measures are due to take effect from 6 April 2026, subject to technical consultation.
CIS Refresher: What You Need to Know
The CIS applies to businesses operating in the construction sector and affects both contractors and subcontractors.
Contractors must deduct tax from payments to subcontractors and pay this to HMRC
Registered subcontractors are subject to a 20% deduction, rising to 30% if unregistered
Subcontractors with Gross Payment Status receive payments without deductions but must pay their tax and National Insurance later
To qualify for GPS, subcontractors must demonstrate strong compliance and operate a genuine construction business.
If you operate in construction, now is the time to review your CIS processes to avoid costly penalties.
Selling a UK Property While Living Abroad: CGT Considerations
If you are non-UK resident and sell a UK property, Capital Gains Tax (CGT) may apply to gains arising after 5 April 2015.
Private Residence Relief (PRR)
PRR is one of the most valuable CGT reliefs and applies where a property has been your main home. Investment properties that were never occupied as your main residence do not qualify.
Non-UK residents may still claim PRR if certain conditions are met, including:
You, your spouse, or civil partner spent at least 90 days in the property during the tax year
The property is nominated as your main residence
Relief may be restricted where part of the property is:
Let out
Used exclusively for business
Surrounded by grounds exceeding 5,000 square metres
You will usually still benefit from relief for the final nine months of ownership (or 36 months if disabled or in long-term care).
Reporting Obligations
Regardless of whether CGT is payable, a Non-Resident CGT return must be submitted within 60 days of completion, and any tax due paid by the same deadline. Penalties apply even where no tax is owed.
VCT and EIS Changes from April 2026
The government has announced reforms to the Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) rules, designed to help qualifying companies raise more capital.
What’s Changing?
From 6 April 2026:
Gross asset limits increase to £30m before and £35m after share issues
Annual fundraising limits rise to £10m (£20m for knowledge-intensive companies)
Lifetime limits increase to £24m (£40m for knowledge-intensive companies)
VCT Income Tax relief reduces from 30% to 20%
Certain sectors and Northern Ireland-registered companies remain subject to existing limits.
What Investors Should Consider
While these changes may create new opportunities, the reduction in VCT Income Tax relief means it’s essential to review whether investments remain tax-efficient for your circumstances.
Less Than One Month Until the Self-Assessment Deadline
There is now less than one month until the 31 January 2026 self-assessment deadline for filing 2024/25 tax returns and paying any tax due.
By this date, you must:
File your 2024/25 tax return
Pay any outstanding tax for 2024/25
Make your first payment on account for 2025/26 (if applicable)
Last year, over 11.5 million returns were filed by the deadline — with more than 31,000 submitted in the final hour.
Penalties for Missing the Deadline
£100 automatic late filing penalty
Additional penalties at 3, 6, and 12 months
Late payment penalties of 5% at 30 days, 6 months, and 12 months
There is also a new digital PAYE service allowing some taxpayers who only file to pay the High Income Child Benefit Charge to settle this via their tax code instead.
If you’re filing online for the first time, registration can take up to 10 working days — act now.
📅 Tax Diary: January & February 2026
Keep on top of your tax obligations with these key dates:
1 January 2026
Corporation Tax due for year ended 31 March 2025
19 January 2026
PAYE & NIC due (22 January if paid electronically)
CIS300 return and CIS tax due for month ended 5 January 2026
31 January 2026
Final day to file 2024/25 self-assessment tax returns
Payment of 2024/25 tax balance and first payment on account for 2025/26
1 February 2026
Corporation Tax due for year ended 30 April 2025
19 February 2026
PAYE & NIC due (22 February if paid electronically)
CIS300 return and CIS tax due for month ended 5 February 2026
If you would like Bidwell Accountancy to handle upcoming deadlines or take over your payroll, CIS, or Corporation Tax submissions, we are here to help.
How Bidwell Accountancy Ltd Can Help
Whether you’re a business owner, contractor, investor, landlord, or individual taxpayer, Bidwell Accountancy provides proactive, practical tax advice tailored to your situation.
📍 Milton Keynes
🌐 info@bidwellaccountancy.com
If you would like support with CIS compliance, CGT planning, self-assessment, or investment tax advice, please contact us today. Early planning can save time, money, and stress.
📞 Call us today on 01908 380391 or visit www.bidwellaccountancy.com
to see how we can support you.
Share this post: