ACT NOW
Act now
Energy costs: the impact of the Iran conflict on business bills
Wholesale gas prices rose by over 50 per cent within days of the US-Israeli strikes on Iran on 28 February 2026. Unlike domestic customers, businesses have no Ofgem price cap. If your contract is ending or has already lapsed, you are absorbing every movement in the wholesale market in full. Energy brokers and suppliers have, in several cases, suspended new fixed-price offerings while the market remains volatile. The priority for any business approaching renewal is to understand your actual exposure, take specialist advice promptly, and model costs across a range of scenarios rather than waiting for the market to settle.
APRIL 2026 CHANGES
6 April
Dividend tax rates rise from 6 April 2026
The basic rate on dividend income rises from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%, from 6 April 2026. For owner-directors paying themselves through salary and dividends, this increases the personal tax cost on drawings. Critically, dividends are taxed in the year they are declared, not the year they are paid. A board resolution before 5 April 2026 falls within the 2025/26 tax year at current rates. Directors planning to draw dividends in the coming weeks should discuss the declaration date with their accountant before the window closes.
6 April
Business Asset Disposal Relief: CGT rate rises to 18%
The CGT rate applying to qualifying disposals under Business Asset Disposal Relief rises from 14% to 18% from 6 April 2026. For a business sold for £500,000 above base cost, that is a £20,000 difference in tax. For directors actively considering a business sale or restructure, the window before April is short and pre-sale structuring cannot typically be done quickly. The relief remains highly valuable after the rate increase, but the timing of a disposal matters more than it did.
6 April
Employment Rights Act 2025: the April 2026 changes for employers
Three changes take effect from 6 April 2026. Statutory Sick Pay becomes payable from the first day of absence, removing the three waiting days, and the lower earnings limit is removed bringing more part-time and lower-paid employees into eligibility. The maximum protective award for failing to properly consult in a collective redundancy doubles from 90 to 180 days’ pay per employee. And paternity leave and unpaid parental leave become day-one rights requiring no qualifying service. Contracts, payroll settings and manager briefings all need to be updated before April.
1 April
National Living Wage rises to £12.71 per hour
The adult rate rises to £12.71 per hour from 1 April 2026, with proportionally larger increases for younger workers and apprentices. The direct cost impact on minimum-wage roles is clear. Less visible is the compression effect further up the pay structure: experienced staff earning above the minimum tend to expect their differentials to be maintained when the floor rises. Reviewing the full pay band before April, not just the bottom line, avoids a morale problem in May.
1 April
Business rates revaluation 2026: what it means for Richmond premises
Rateable values across England are updated from 1 April 2026 using rental data from April 2024. For some Richmond premises, particularly in areas where commercial rents have risen, the new values may be significantly higher. The 40% RHL relief ends, replaced by permanently lower multipliers for eligible retail, hospitality and leisure properties, but independent cafes, small hotels and restaurants are not covered by the additional pubs-specific relief. Check your new rateable value, confirm you are on the correct multiplier, and consider whether an appeal is warranted before the transitional period absorbs the increase.
6 April
Making Tax Digital for Income Tax: £50,000 threshold from April 2026
Sole traders and landlords with qualifying income over £50,000 in the 2024-25 tax year must use MTD for Income Tax from 6 April 2026, requiring digital records and quarterly submissions to HMRC. Compatible software and HMRC sign-up are both needed before the first quarterly period begins. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028. If you are not in the first wave, check whether your qualifying income could cross the threshold this year and start building compatible record-keeping habits now.
6 April
Inheritance tax relief for business & agricultural property: new £2.5m cap
100% Business Property Relief and Agricultural Property Relief are capped at a combined £2.5m from 6 April 2026. Value above that threshold qualifies for relief at 50% rather than 100%. For business owners, farmers and those with significant qualifying assets, this changes long-standing succession planning assumptions. Estates that previously expected to pass assets entirely free of IHT may now face a meaningful tax charge. Early advice is essential for anyone whose estate includes qualifying business or agricultural property.
Ongoing
Frozen income tax thresholds: the silent tax rise continuing to 2031
The personal allowance, basic rate limit and higher rate threshold have all been frozen since 2022 and will remain frozen until at least April 2031. As earnings rise with inflation each year, more income is pulled into higher tax bands without any announced rate change. A director whose income was comfortably within the basic rate band three years ago may now find dividend income crossing into the higher rate band simply through modest earnings growth. HMRC collects more revenue. No announcement was made. Reviewing your remuneration structure annually is more important than ever.
WATCH
Check now
Do you need to file a Self Assessment return this year?
Many Richmond residents are unaware they have a Self Assessment obligation. Common triggers beyond self-employment include dividends above the £500 allowance, rental income, employment income over £100,000, income from overseas, and various life changes such as marriage or receipt of Child Benefit above the income threshold. Missing a filing obligation that HMRC believes exists can result in automatic penalties even if no tax is owed. A quick review of your position each year removes a significant source of avoidable stress.
Watch
AI adoption: the risk of continued deferral for Richmond businesses
Over a third of UK SMEs are now integrating AI tools into daily operations, but productivity gains across the SME sector have remained flat. The businesses most likely to fall behind are not those that consciously decided against AI, but those that kept deferring while competitors moved. The most practical starting point is an operational question: which tasks in my business consume significant time but add relatively little distinctive value? Getting cloud accounting and digital record-keeping in order is often the most sensible first step.
Watch
Property owners and landlords: the tax traps that surface late
Richmond’s concentration of property-owning professionals and landlords creates specific tax exposure that often surfaces not when decisions are made, but when properties are refinanced, sold or when HMRC asks questions. Common issues include the interaction of mortgage interest relief with higher-rate tax, the CGT 60-day reporting obligation on residential property sales, the treatment of repairs versus improvements, and ownership structures between spouses. The time to address most of these is before a transaction or change of circumstances, not after it.
PLANNING AHEAD: 2027
January 2027
Unfair dismissal qualifying period reduces to six months
From January 2027, the two-year qualifying period before an employee can bring an unfair dismissal claim reduces to six months. This applies to employees whose employment begins on or after July 2026. Businesses hiring this spring and summer are not yet directly affected, but anyone taking on staff from July needs to understand that those employees will have dismissal rights from January 2027 onwards. The practical implications are for recruitment processes, induction quality and performance management in the first six months of employment.
April 2027
Pension funds entering estates for inheritance tax
From April 2027, unused pension funds and most lump sum death benefits will be brought within estates for inheritance tax purposes. For many higher earners and business owners who have deliberately built up pension wealth as an IHT-efficient structure, this changes the planning calculus significantly. The time to revisit pension drawdown strategies, nomination forms and the overall estate plan is well before the rule change takes effect, not after it.
