With the 2025/26 tax year now behind us, this is the ideal moment to take stock, tidy up loose ends, and plan ahead. Below is a round‑up of the key actions, opportunities and updates that matter for individuals, small businesses, and purpose‑driven organisations.
1. Finalising 2025/26: What to Do Now
- Collect and organise your records
Bank statements, dividend vouchers, pension statements, Gift Aid records, rental accounts, mileage logs — having these ready early makes the whole year smoother. - Check your payroll and benefits
Ensure P60s, P11Ds (where applicable), and salary sacrifice arrangements are correct. - Review your grant and project allocations
For charities and social enterprises, confirm that restricted and unrestricted funds are correctly allocated before preparing year‑end accounts.
2. Pension Planning: A Good Time to Review
With the new tax year underway, now is the moment to check:
- Whether you used your full annual allowance for 2025/26
- If you can carry forward unused allowances from the previous three years
- Whether salary sacrifice remains tax‑efficient for you in light of the 2029 NI cap announced in the Autumn Budget
A quick review now can prevent surprises later.
3. Dividend and Salary Strategy for 2026/27
Dividend tax rates will rise from April 2026, so this year is a good time to:
- Revisit your salary vs dividend mix
- Consider whether bringing forward dividends into 2025/26 was beneficial
- Plan ahead for the higher rates to avoid unnecessary tax leakage
For charities and non‑profits paying only salaries, these changes do not affect you.
4. VAT and Making Tax Digital Updates
A few reminders as we enter the new year:
- MTD for income tax remains on the horizon — if you’re a landlord or sole trader, now is the time to ensure your digital records are in good shape.
- Charities should note the upcoming VAT changes around fundraising exemptions and virtual events.
If you’re unsure whether your systems are ready, we can help you review them.
5. Sustainability Corner: Greener Habits for the New Year
The start of a new tax year is a great moment to refresh your sustainability goals:
- Switch to renewable energy tariffs where possible
- Review your home‑working energy use
- Consider greener travel options for short trips
- For organisations: revisit your environmental impact reporting and Carbon Accounting.
Small changes add up — financially and environmentally.
6. Looking Ahead: What has changed 2026/27
A few key changes now in place:
- Dividend tax increases from April 2026
- FSCS protection limit now £120,000
- Charity SORP 2026 and new thresholds coming in October 2026
- Electric vehicle mileage charge from April 2028
- Pension salary sacrifice NI cap from April 2029
Need Support?
If you’d like help preparing your 2025/26 tax return, reviewing your remuneration strategy, or ensuring your charity or organisation is compliant with the latest rules, we’re here to help.