April: Key Finance News

The start of the new tax year has brought in a range of rule changes as businesses get up to speed with what’s new. Here are the key updates and reminders from this month:

Making Tax Digital for Income Tax officially started from 6th April 2026

If you’re a sole trader or landlord earning over £50,000, you’ll now need to:

  • Keep digital records
  • Use compatible software
  • Send updates to HMRC every quarter

First quarterly deadline: 7th August 2026 – so there’s still time to get set up if needed.

Reminder: You’ll still need to submit your normal tax return for the 2025/26 tax year, so for now both systems will run alongside each other.

If you need help getting set up, or have any further questions, please get in touch here.

The new tax year has brought in a few changes:

  • Tax on dividends has gone up
  • Penalties for late company tax returns have increased
  • Some tax relief on business purchases has reduced

Each one may seem small, but together they can impact how much tax you pay and when.

HMRC are asking for more detail from business owners

HMRC are increasing the level of detail they collect from business owners, particularly company directors.

From your next tax return, you may need to include:

  • Details of any companies you’re involved in
  • How much you’ve taken in dividends
  • Your shareholding

There are also plans to collect more information on how money moves between companies and their owners, such as loans and other payments.

This is all part of a 12-week consultation open until 10 June 2026, where HMRC is asking for feedback before making any final decisions.

What this means for you:

  • No immediate changes, but this is something to be aware of
  • Make sure your records are accurate and up to date
  • Keep clear records of any money taken from your business

You can have your say and fill in the consultation form here.

We’ve also shared a simple breakdown of this on our Instagram, click here.

What business structure is right for you?

With recent tax changes, some business owners are starting to question whether being a limited company is still the best option.

Things to consider:

  • Personal financial risk (limited companies offer more protection)
  • How you take money out of the business
  • The extra admin involved
  • How your business is viewed by customers

Changing structure isn’t a straightforward decision, so it’s worth reviewing this properly before making any decisions.

We’ve shared an overview of the key differences between sole traders and limited companies on our Instagram, you can view it here.

E-invoicing to become mandatory for VAT from 2029

This simply means sending and receiving invoices in a format that links directly with your accounting software, rather than PDFs or paper.

It’s not something you need to act on now, but it’s a good reminder that things are continuing to move in a more digital direction.

Late payments are still a big issue for many small businesses...

The government is planning new rules to help, including:

  • A maximum 60-day payment term
  • More power to act against businesses that pay late
  • Possible penalties for repeat offenders

These changes aren’t in place yet, but they show that this is an area being taken seriously.

Changes for employers

If you employ staff, there are a few important updates from April:

  • Sick pay now starts from day one (not day four)
  • Paternity leave and unpaid parental leave are now available from day one
  • New bereavement leave rights have been introduced

It’s worth checking your policies and payroll are up to date with these changes.

Business rates update:

The Valuation Office Agency is now part of HMRC.

This won’t change how you deal with business rates, but you may notice different contact details or communications going forward.

 

April has brought in a lot of small but important changes.

From new reporting requirements to employment updates, it’s clear that keeping your records up to date and staying organised will make things much easier.

If you’re unsure how any of this applies to you, or simply want to make sure you’re on track for the new tax year, we’re here to help! Get in touch here.

MAIN TAX EVENTS HAPPENING IN MAY: GET AHEAD

DATE

WHAT’S DUE

1 May

Corporation Tax for year to 31/07/2025, unless quarterly instalments apply

 

19 May

 

PAYE & NIC deductions, and CIS return and tax, for month to 05/05/2026 (due 22 May if you pay electronically)

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