Get ready for 2026 tax year updates

Why this matters to you:

As a business owner or director, staying ahead of tax and accounting changes is one of the best ways to protect your profits, avoid surprises and ensure your business remains compliant and efficient. With a number of important changes already in effect for the 2025-26 tax year — and more on the horizon — now (November) is a great time to review your finances, systemise your processes and get ready for 2026 tax year updates.

What’s changed (and what’s coming) – key updates for your business:

Here are some of the main changes you should know:

• From 6 April 2025, the employer National Insurance Contributions (NICs) rate has increased and the threshold at which you begin paying employer NICs has been reduced.
• The personal allowance and income tax thresholds remain frozen until at least April 2028, which means unless you act, you may pay more tax simply through “fiscal drag”.
• Capital Gains Tax (CGT) rates on certain asset disposals have increased, for example Business Asset Disposal Relief is now higher than under previous rules.
• Stamp Duty Land Tax (SDLT) nil-rate bands have reverted to lower levels for property purchases. While this is more relevant to property owners, it may affect directors/property-investment portfolios.

Even though some changes are already live, there are signals of further changes in the upcoming Budget/Autumn statements which may impact businesses.

What you should check this month: action checklist for November:

Here are specific steps you can take now to get ready for 2026 tax year updates:

1. Review your payroll and NICs exposure
   • Check how many employees or contractors you have, what you pay them, and how the employer NICs change affects your cost base.
   • If you have seasonal/formalised staffing changes, build in the extra NICs cost for next year.
2. Review your business structure and asset disposals
   • If you’re planning to sell business assets, shares, or make major property sales, consider the higher CGT rates and relief changes.
   • Speak to us about timing and whether you should accelerate or defer any disposals.
3. Review your tax-planning position
   • With thresholds frozen, even modest growth in profits can push you into higher tax bands or reduce tax-free allowances.
   • Consider whether pension contributions, investment in plant & machinery (capital allowances) or tax-efficient remuneration strategies make sense before year end.
4. Clean up your year-end accounts and bookkeeping
   • Ensure your bookkeeping is up to date, expenses correctly recorded, and you’ve reconciled all bank accounts.
   • This will make your year-end accounts preparation smoother, reduce surprises, and give you accurate numbers to make informed decisions.
   • How WBV can help you get ready for 2026 tax year updates:
     • If you currently manage bookkeeping internally, remember that WBV can take this off your plate. Our experienced bookkeeping team can handle everything from day-to-day record-keeping and reconciliations to preparing your year-end accounts, ensuring accuracy, compliance, and peace of mind.
     • Already working with WBV? You can rest assured we’re already doing this for you as part of our proactive year-end service. If you’d like to review your processes or discuss how we can make things even more efficient, just let us know.
5. Review software and systems
   • With more digital and compliance demands (e.g., real-time payroll, Making Tax Digital setups), ensure your accounting software and systems are up to date and working efficiently.
   • Now’s a good time to check that your team or external provider (that’s us, your accountant!) has everything aligned.
6. Plan a forward-looking budget/cashflow forecast
   • Build a simple forecast for the next 12 months (to April 2026) that includes the impacts of extra taxes/costs.
   • This gives you a head-start in identifying potential cash-flow squeezes or investment opportunities.
     • How WBV can help you get ready for 2026 tax year updates:
       Creating and maintaining a meaningful forecast can be challenging, especially when juggling day-to-day business demands. WBV’s team can work with you to build a practical, easy-to-understand budget and cashflow forecast tailored to your business goals, helping you plan ahead, manage funding needs, and stay in control of your finances.
     • If you already prepare your own forecasts internally, we can review and refine them to ensure the numbers reflect reality and provide actionable insight.

Looking ahead – what to watch for:

• Keep an eye on the upcoming Autumn Budget (26^th November 2025) — there are indications that further business tax changes could be on the way.
• Monitor how cost inflation, wage growth and regulatory requirements might feed into your overheads.
• Consider investment in efficiency (digital tools, automation) now while you have the lead time, so your business is well-positioned for next year’s changes.
• Review your exit/expansion strategy, where relevant, in light of tax, cash-flow and relief changes.

WBV will be providing a full review and practical guidance following the Budget to help you understand what any new measures mean for your business. We’ll translate the key announcements into clear and actionable advice

If you’d like us to walk through your business’s position, please let us know. Let’s book a review meeting and ensure you’re not just compliant but optimally prepared for the year ahead.