The UK tax landscape continues to evolve, and 2026 is shaping up to be a year where proactive planning makes all the difference. With higher tax rates, tighter compliance checks from HM Revenue & Customs, and expanded digital reporting requirements, businesses can no longer afford a “file and forget” approach.
Here’s a practical guide to the key tax developments affecting UK businesses this year — and what you should be doing about them.
Corporation Tax: Strategic Profit Planning Is EssentialThe main Corporation Tax rate remains at 25% for companies with profits over £250,000, with marginal relief applying between £50,000 and £250,000.
For growing businesses, this means:
What to consider:
Small changes in timing can create significant tax savings.
Full Expensing: A Major Investment Opportunity
Full Expensing remains one of the most valuable reliefs available to limited companies. Businesses can claim 100% tax relief on qualifying plant and machinery investments.This is particularly beneficial for:
If you’re planning capital expenditure, accelerating purchases into the current financial year could substantially reduce your Corporation Tax bill.
Dividend Allowance & Director Planning
The Dividend Allowance remains at a reduced level of £500, making dividend planning more important than ever.Business owners should review:
Poorly structured remuneration can result in avoidable tax exposure.Basis Period Reform Now Fully Implemented
The move to a tax-year basis for sole traders and partnerships is now fully in effect.
This means:
If you haven’t reviewed your accounting year-end recently, this is the time.
Making Tax Digital Expansion
Making Tax Digital (MTD) continues its phased rollout under the supervision of HM Revenue & Customs.
Upcoming developments include:
Businesses that modernise their bookkeeping systems early will avoid last-minute compliance pressure.R&D Tax Relief: Increased Scrutiny
R&D tax relief rules have been restructured and compliance requirements tightened.Recent trends show:
If your business claims R&D relief, ensure your documentation is robust and defensible.Employment Costs & National InsuranceAlthough employee National Insurance rates have fluctuated in recent years, employer cost pressures remain high.
Key areas of focus:
Payroll reviews are becoming increasingly important as HMRC enforcement activity rises.Property & Landlord Considerations
Landlords and property investors continue to face:
Many are reviewing whether incorporation or restructuring may be appropriate — but careful planning is essential before making changes.
Why Proactive Tax Planning Matters in 2026
The current tax environment rewards businesses that plan early and review regularly.Now is the time to:
Waiting until filing deadlines often limits your options.
Need Guidance?
Contact us: info@rockfast.uk, 01202 051 977