April is one of the most significant months in the UK tax calendar. It brings the close of one tax year, the start of another, and a raft of deadlines spanning Corporation Tax, VAT returns, PAYE, and more. On top of the usual compliance obligations, April 2026 also marks the introduction of several major tax changes that businesses, landlords, and advisers need to be ready for.
Companies with a financial year ending 30 June 2025 must pay any outstanding Corporation Tax liability by 1 April 2026. This applies to companies not within the quarterly instalment payments regime. Payment must be made electronically to HMRC.
Important: Late payment will attract interest charges. Ensure your figures are finalised and funds are ready in advance.
Employers who provide company cars to employees and have not already reported the benefit through payroll must submit a P46(Car) form electronically to HMRC for the quarter ending 5 April 2026. This covers any cars first made available, or withdrawn, during the quarter. Filing must be done through HMRC's PAYE Online service or compatible payroll software.
The 2025–26 tax year closes on 5 April 2026. This is the final day for Income Tax purposes, affecting individuals, sole traders, and partners. It is also the last date on which certain reliefs and allowances for 2025–26 can be used, including the annual ISA allowance and pension contribution limits for this tax year.
5 April 2026 is the standard deadline to make voluntary National Insurance contributions for the 2019–20 tax year. Paying voluntary Class 2 NI (for the self-employed) or Class 3 NI (for those with gaps in their record) can help protect your entitlement to the State Pension. Once this deadline passes, you will generally no longer be able to fill the 2019–20 gap.
Employers who wish to payroll benefits in kind for the 2026–27 tax year must register with HMRC by 5 April 2026. Missing this deadline means you will need to continue using P11Ds for the 2026–27 tax year.
💡 Tip: If you are considering payrolling benefits, register before 5 April each year and inform your employees in writing. Employees whose benefits are payrolled will no longer receive a separate tax code adjustment for those benefits.
The new 2026–27 tax year begins on 6 April 2026. New allowances, rates, and thresholds take effect from this date, including updated Income Tax bands, revised NI thresholds, and the new Making Tax Digital for Income Tax rules (see New Measures below). Employers should ensure their payroll software is updated ahead of the first pay period falling on or after 6 April.
VAT-registered businesses with a VAT accounting period ending 28 February 2026 must submit their VAT return and pay any VAT due to HMRC by 7 April 2026. Returns must be submitted via Making Tax Digital-compatible software.
Note: Bank transfer processing times should be factored in — payments must clear by the deadline, not just be sent.
Companies that have paid interest, royalties, or similar annual payments from which they are required to deduct Income Tax at source must file a CT61 return and pay the deducted tax to HMRC for the quarter ended 31 March 2026. The CT61 applies where a company makes payments such as loan interest to individuals or non-UK companies.
Employers and contractors paying PAYE, National Insurance contributions, or CIS deductions by cheque or postal payment must ensure HMRC receives the payment by 19 April 2026 for the month or quarter ending 5 April 2026.
Important: Postal payments are treated as received on the date they arrive at HMRC, not the date they are sent. Post well in advance. HMRC strongly encourages electronic payment to avoid delays.
Contractors operating under the Construction Industry Scheme must file their monthly CIS return with HMRC by 19 April 2026, covering all payments made to subcontractors in the month to 5 April 2026. The return must detail each subcontractor paid, the gross amount, any materials deduction, and the tax deducted. Failure to file on time results in automatic penalties.
The electronic payment deadline for PAYE, National Insurance, and CIS deductions relating to the month or quarter ending 5 April 2026 is 22 April 2026. Electronic payments include Faster Payments, BACS, and CHAPS.
💡 Tip: Where possible, set up PAYE and CIS payments by Faster Payments for same-day or next-day processing. Always use your Accounts Office reference number as the payment reference to avoid delays in allocation.
Businesses liable to Plastic Packaging Tax must submit their return and pay any tax due by 30 April 2026 for the quarter ending 31 March 2026. The tax currently stands at £217.85 per tonne and applies to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic content.
Companies with an accounting period ending 30 April 2025 must file their Corporation Tax return (CT600) with HMRC by 30 April 2026. The return must be filed online along with full statutory accounts and computations. Note that the deadline to pay Corporation Tax for this year end will have passed earlier — if payment has not yet been made, interest will already be accruing.
Companies, partnerships with corporate members, and collective investment schemes that own UK residential property valued above the ATED threshold must submit their ATED return and pay any charge due, or file a relief declaration, by 30 April 2026. Many properties qualify for relief but a relief claim must still be filed annually.
Letting agents and tenants who pay rent directly to non-resident landlords and have deducted basic rate Income Tax under the Non-Resident Landlord (NRL) scheme must pay that deducted tax to HMRC by 30 April 2026, covering the quarter ended 31 March 2026.
Inheritance Tax due on chargeable lifetime transfers made between 6 April 2025 and 30 September 2025 must be paid to HMRC by 30 April 2026. Interest runs from the due date on any unpaid IHT, so prompt payment is important.
April 2026 brings some of the biggest changes to UK tax in recent years. Here is what you need to know:
From 1 April 2026 (Corporation Tax) and 5 April 2026 (Income Tax), the main rate of Writing Down Allowance reduces from 18% to 14%. This means businesses will receive less tax relief each year on their existing capital pools, increasing their effective tax cost over time.
💡 Tip: If your company has significant expenditure planned on plant and machinery, review the timing carefully. Expenditure falling before 1 April 2026 will benefit from the higher 18% WDA rate.
From 1 April 2026, the fixed penalties for late filing of Corporation Tax returns will increase. The current flat penalty of £100 for filing up to three months late and £200 for later filing will rise. Companies and agents should review all upcoming CT600 deadlines to ensure returns are filed on time.
From 6 April 2026, MTD for Income Tax Self Assessment becomes mandatory for self-employed individuals and landlords with qualifying business turnover above £50,000.
Under MTD for ITSA, these taxpayers must use HMRC-recognised software to keep digital records and submit quarterly updates to HMRC, followed by a final declaration at the end of the tax year. This replaces the current annual Self Assessment return for the income sources in scope.
Action needed now: If you are affected and have not yet signed up, choose compatible software, register with HMRC, and begin keeping digital records from the start of the 2026–27 tax year. If your turnover is close to £50,000, check whether it applies to your combined income from all qualifying sources.
From 6 April 2026, the 100% rates of Business Property Relief (BPR) and Agricultural Property Relief (APR) will be capped at a combined total of £2.5 million per individual. Qualifying assets above this combined threshold will attract relief at 50% rather than 100%, effectively meaning the excess is taxed at 20% IHT.
This is a significant change for business owners and farmers with estates above the cap. Estate planning should be reviewed urgently, particularly for family businesses and agricultural estates that have historically passed free of IHT.
Also from 6 April 2026, BPR will be reduced from 100% to 50% on shares traded on the Alternative Investment Market (AIM) and similar markets. Previously, AIM shares held for at least two years qualified for 100% BPR. Under the new rules, the effective IHT rate on qualifying AIM shares will be 20% rather than 0%. Investors holding AIM shares as part of an IHT planning strategy should review their portfolios.
From 6 April 2026, carried interest will be brought fully within the Income Tax framework and treated as trading profits. Previously taxed under Capital Gains Tax at lower rates, this significantly increases the tax cost for fund managers and private equity professionals who receive carried interest as part of their remuneration.
April 2026 sees the introduction of mandatory registration for tax advisers who interact with HMRC on behalf of clients. Under the new regime, only registered agents will be able to act for clients in dealings with HMRC. This is aimed at raising standards across the tax advice profession and tackling non-compliant agents.
RH KPO Services supports UK accounting firms and businesses with accurate, on-time compliance across all tax obligations — VAT returns, Corporation Tax, PAYE, CIS, Self Assessment and more. Start with 20 hours of free trial work, no commitment required.
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