Latest blog from the hansen company

Breakdown of relevant Budget measures and how they change planning/tax obligations.

‍

What This Means for April 2026

Although the main UK Budget was delivered in November 2025, many of the key policy measures take effect from April 2026 (the start of the new tax year). The 2026 Spring Statement, delivered in March 2026, didn’t introduce major new taxes but confirmed fiscal context and economic forecasts, meaning the Budget changes stand as the most impactful set of reforms going forward. 

‍

For business owners and accountants, this timing matters because April signals the start of new obligations, reliefs, and rates that should influence cash‑flow planning, tax strategies, and compliance behaviours for the year ahead.

 1.  Corporation Tax, Capital Allowances & Investment

Corporation Tax Remains Stable

• The headline corporation tax rates do not change from 1 April 2026, companies still face 25% on profits over £250,000; marginal relief applies between £50,001 and £250,000. 

‍

Capital Allowances Overhaul

• The government reduces the main Writing‑Down Allowance (WDA) from 18% to 14% on most assets from April 2026. 
• This lowers the amount businesses can claim each year on certain capital expenditure, so profits may appear higher (and tax bills bigger) unless other reliefs are used. 
• ‍New first‑yearallowance (FYA) at 40%
• ‍For expenditure incurred on qualifying assets from 1 January 2026, companies can claim a 40% first‑year allowance.  This will hopefully encourage investment and partially offset the lower WDA. 

Implication:
Businesses should review capital expenditure timing to maximise allowances ,e.g., deferring or accelerating purchases,  and update cash‑flow forecasts to reflect the allowance changes.

‍

2. Dividend, Income Tax & National Insurance

Dividend Tax Rates Increase from April 2026

• Dividend tax rates for basic and higher rate tax payers rise by 2 percentage points from April 2026 ( e.g., basic rate from 8.75% to 10.75%). 

Extended Threshold Freezes

• Although some threshold freeze stake effect later, the announcement signals continued fiscal drag, where inflation pushes more income into higher tax bands overtime. 

Salary Sacrifice Pension Contribution NIC Changes

• From April 2029, only the first £2,000 of employee pension contributions via salary sacrifice will be exempt from employer National Insurance. 

‍

3. Property, SDLT & Business Premises 

• Stamp Duty Land Tax (SDLT) Adjustments

‍

From 1 April 2026, SDLT rates for non-residential property remain largely unchanged, but any future temporary reliefs introduced in prior years will have expired. Commercial property purchasers should budget for the standard rates.

• Business Premises Rates

 The business rates multiplier will rise inline with inflation from April 2026. This affects both ongoing costs for owner-occupiers and rental calculations for leased properties.

Implication:
Businesses with property holdings or leases should reassess their occupancycosts, factoring in inflation-linked rate increases. Planning for propertyacquisitions or disposals may also help manage cash-flow impacts.

‍

4.  Employment & Benefits 

• National Minimum & Living Wage updates

 From April 2026, the National Minimum Wage and National Living Wage has increased. Employers must adjust payroll to remain compliant.

• Taxable Benefits in Kind

 Changes to the taxable value of certain company-provided benefits (e.g., company cars, private medical insurance) take effect in April. Electric vehicle incentives continue to provide relief, but traditional fuel benefits have risen.

‍

Implication:
HR and payroll teams should update salary structures and benefits reporting. Directors should evaluate employee compensation packages to optimise tax efficiency and maintain staff retention.

April 2026 kicks in several Budget changes, from tax rates to allowances and payroll, that demand attention. Businesses that plan ahead and adjust now can stay compliant and make the most of available opportunities. 

‍