How to maximise your tax position

Anna Stubbs • March 18, 2026

The 2025/26 income tax year began on 6 April 2025 and will end on 5 April 2026.With only a couple of weeks left, make sure that you’ve taken steps to improve your tax position, and prepare for key tax changes coming in 2026/27.

Beat the dividend rate rise. If you run a company and are planning on paying yourself a dividend, consider doing so before the tax year end. In 2025/26, dividends are taxed at 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for those that pay the additional rate. However, from 6 April 2026, the basic and higher dividend rates will increase by two percentage points, to 10.75% and 35.75% respectively. Don’t forget the £500 dividend allowance either, which resets every tax year and offers further tax savings.

 

Consider capital disposals. The annual exempt amount for individuals is £3,000 in 2025/26, with most gains above this amount taxed at either 18% or 24% depending on whether you’re a basic or higher/additional rate taxpayer. While these rates and allowances will remain the same in 2026/27, the rates of business asset disposal relief and investors’ relief will increase from 14% to 18% from 6 April 2026. Time is short, but if you are considering selling a business, or qualifying assets or shares, reviewing the timing of your sale could result in tax savings.

 

Be proactive with IHT planning. From 6 April 2026, a new £2.5 million allowance will apply to the combined value of property eligible for 100% agricultural relief and 100% business relief, with a 50% rate of relief applicable to any qualifying relievable property over £2.5 million. If you have significant agricultural or business assets, estate planning will be critical to plan for these changes, including whether any action need be taken before 6 April 2026.

 

Finalise end of year housekeeping. The end of the tax year is a great time to make sure that all possible allowances and deductions have been claimed. This means maximising pension contributions, ISA investment limits, and making use of the personal allowance and personal savings allowance, if you haven’t done so already.

 

Get Ready for Making Tax Digital for Income Tax

 

From 6 April 2026, Making Tax Digital (MTD) for Income Tax will be mandatory for self-employed individuals and landlords with qualifying income over £50,000. Those in the regime will need to keep digital records and send quarterly updates to HMRC using compatible software, with a tax return still required by 31 January following the end of the tax year.

 

Need support with your tax affairs?

For bespoke tax planning advice, book some time with our team. Our expert advisers can help, and work with you to prepare for a tax-effective 2026/27.

Basic strategic advice: why your business needs an evolving strategy

By Anna Stubbs • June 2, 2026
“Q: Why do I need an evolving strategy for my small business?” You’re a business owner or CEO. And that means it’s your responsibility to take care of the business, invest in the right places and make the company a success story. However, to do this, you need an agreed business strategy that lays out your goals, your mission and your plan for taking the company to the next level. So, why does this need to be an evolving strategy? “A: Your business strategy is not a static document – it’s a plan and mission that should be fluid, agile and able to react to change.” We’re trading in uncertain times at present. Each day presents a new challenge for small businesses, and having a plan that can react to change is a major competitive advantage.

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By Anna Stubbs • June 2, 2026
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Basics strategic advice: how do accountants support your financial performance?

By Anna Stubbs • June 2, 2026
“Q: How does an accountant support my financial performance?” We’re all used to the idea of a business needing an accountant. But have you ever stopped to think what a good accountant and business adviser can actually bring to your company? Advances in technology, software and AI are changing our expectations of what a basic accountant/business owner relationship can offer. So, it’s important to reassess your expectations and to find out where we can add real, additional value. “A: Your accountant is now a full-fledged business adviser, ready to help you review, manage and transform your finances and strategy.”  In previous decades, your accountant dealt primarily with historical data – the transactions and cash inflows/outflows that had happened in the past. Today, with access to so much smart forecasting, data analysis and forward-looking scenario-planning, we can tell you far more about the future of your business.