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March Wrapped Up – Key Finance News
The new tax year is fast approaching and March has brought key updates that could impact your business, from economic changes to new compliance requirements. Here’s what you need to know to stay ahead:
Spring Statement 2026 Delivered:
Rachel Reeves delivered the Spring Statement and, despite plenty of speculation, there were no new tax changes announced.
The focus was mainly on the wider economic outlook and confirming the measures already set out in the Autumn Budget.
There were a few positives to take from the update:
- No new tax increases
- No changes to pensions or ISAs
- Household disposable income is expected to grow
- The average person is forecast to be around £1,000 better off per year by the next election
However, it’s important to remember that all of the Autumn Budget changes are still going ahead, so the overall direction remains the same.
What this means for you:
- You may still feel the impact of previously announced tax changes
- Costs for businesses are likely to remain high
- Planning ahead will be key over the next 12–24 months
Making Tax Digital is Less Than a Week Away
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into effect from 6th April 2026, affecting sole traders and landlords with income over £50,000.
You will need to:
- Keep digital records
- Use compatible software
- Submit quarterly updates to HMRC
This is a significant shift from the current annual system, and many businesses will need to adjust how they manage their records throughout the year.
It’s also worth noting that you’ll still need to complete a normal tax return for 2025/26, so there will be a transition period where both systems run alongside each other.
If you’re affected, everything should ideally now be in place. If you have any unanswered questions, you can read our MTD blog here, or if you simply want a chat you can contact us by clicking here – we’re here to help!
Payroll & New Tax Year Checklist
With 6th April fast approaching, we have put together a checklist of tasks for those who run payroll:
- Submit final payroll report of the year
- Update payroll software for the new tax year
- Issue P60s to employees by 31st May
- Report benefits and expenses by 6th July
Getting this right ensures a smooth transition into the new tax year and helps avoid unnecessary penalties.
Managing Rising Staff Costs: Salary Sacrifice
With rising employment costs, many SMEs are revisiting salary sacrifice as a practical way to reduce overheads while still offering valuable employee benefits.
This allows employees to swap part of their salary for benefits like pensions, electric cars or cycle schemes. Because it’s done before tax, both the business and the employee can save money.
Despite speculation around potential restrictions, the current advantages will remain in place until at least April 2029.
Why it matters:
- Reduces employer National Insurance costs
- Enhances employee benefits without increasing salaries
- Supports recruitment and retention in a competitive market
Employment Changes & Compliance Updates
From April 2026, the following employment rules are changing:
- Statutory Sick Pay will be available from day one
- Some types of leave will be available from the first day of employment
- There will be stronger protections for employees
Plus – if you use agencies or third-party workers, new rules mean you could be responsible if they don’t pay the correct tax.
Action point: It’s worth reviewing your payroll processes and any external labour arrangements to ensure everything is compliant.
Check Your Business Rates Before 31st March
If your business has premises, the deadline to review your business rates valuation is 31st March 2026.
Errors in your property details could mean you’re overpaying, so it’s worth checking everything is accurate before the new rating list comes into effect.
A quick review now could save money for the year ahead.
Capital Allowances: Changes from April 2026
From April 2026, there are a few changes to how businesses claim tax relief on purchases:
- The Writing Down Allowance is reducing from 18% to 14%
- A new 40% First-Year Allowance is available
- The Annual Investment Allowance remains in place
While some relief is being reduced, there are still good opportunities to claim tax-efficient investment.
Tip: Timing your purchases carefully can help maximise the relief available.
Financial Health: Spotting Issues Early
In the current climate, keeping a close eye on your business finances is more important than ever.
Some key areas to monitor include:
- Cash flow and how quickly you’re getting paid
- Debt levels
- Profit margins
- Running costs
Tip: Many businesses are now using simple “traffic light” systems (green, amber, red) to quickly identify potential issues before they become serious.
Takeaway: Catching problems early gives you more time and more options to fix them.
Other Updates to Be Aware Of:
- Buy Now Pay Later will be more regulated from July 2026
- Intellectual Property fees are increasing from April
- Grants for EV chargers have increased
- New rules require clearer, more transparent pricing for customers
With rising costs, tighter compliance, and a greater need for forward planning, the good news here is that there are still plenty of ways to save tax and run your business efficiently if you act early.
Taking time to review your finances and plans can make a big difference over the coming months.
If you’d like support with tax planning, Making Tax Digital, payroll, or reviewing your business finances, click here and we’ll have a chat!
MAIN TAX EVENTS HAPPENING IN APRIL: GET AHEAD
DATE
WHAT’S DUE
1 April
Corporation Tax for year to 30/06/2025, unless quarterly instalments apply
1 April
National Minimum Wage rate increases take effect.
5 April
End of the 2025/26 tax year – many tax planning actions need to have been taken by this date, including making use of 2025/26 allowances).
6 April
Start of the 2026/27 tax year. Updated tax rates, thresholds and statutory payment rates take effect.
6 April
Commencement of the Making Tax Digital for income tax regime.
19 April
PAYE & NIC deductions, and CIS return and tax, for month to 05/04/2026 (due 22 April if you pay electronically).
30 April
Annual Tax on Enveloped Dwellings (ATED) returns and payment for the chargeable period starting on 1 April 2026.
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