Scope: United Kingdom
Status requires verification
Changes to voluntary National Insurance contributions for periods abroad from tax year 2026-27
From 6 April 2026, individuals will **no longer be able to pay voluntary Class 2 NICs for periods spent abroad**. New applications to pay voluntary Class 3 NICs for periods abroad will only be accepted if the individual has lived in the UK for at least 10 continuous years or has built at least 10 qualifying years on their NIC record (excluding past voluntary Class 2 or 3 abroad). This impacts expatriates, digital nomads, and those with mixed residence histories who depend on voluntary contributions to preserve UK eligibility for state pensions or other benefits.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Mandatory real-time reporting of most Benefits-in-Kind via payroll software from April 2026
From 6 April 2026, employers must report and pay Income Tax and Class 1A National Insurance Contributions on most Benefits-in-Kind (excluding workplace accommodation and employment loans initially) in real time via payroll software (Full Payment Submission). Employees will stop receiving end-of-year P11D tax charges for many BiKs and instead see tax adjustments through PAYE earlier. Employers should prepare to adapt payroll systems and communicate changes with staff.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Income Tax threshold freeze from 6 April 2026 to 5 April 2028
Personal Allowance and Basic Rate Limit will be frozen at £12,570 and £37,700 respectively for the tax years 2026-27 and 2027-28; related thresholds such as Higher Rate Threshold, Upper Earnings Limit and Upper Profits Limit will be aligned and frozen at £50,270. This increases tax burden via fiscal drag.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Umbrella companies legislation: Chapter 11 ITEPA 2003 – introduction
New draft legislation in Chapter 11, Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (sections 61Y-61Z1) is expected to take effect from **6 April 2026**. It will make recruitment agencies and/or end clients in the labour supply chain jointly and severally liable with umbrella companies for PAYE liabilities where non-compliance (tax avoidance or fraud) is involved. This aims to prevent umbrella companies being used for avoidance/fraud and transfers liability up the chain. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm2405?utm_source=openai))
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Changes to voluntary National Insurance contributions abroad
From the tax year beginning 6 April 2026, access to voluntary Class 2 NICs for periods abroad will be removed for employees and most self-employed individuals. New applications for voluntary Class 3 NICs for periods abroad will require at least 10 continuous years of UK residence or accumulation of 10 qualifying years. The changes aim to ensure a stronger connection to the country for those accruing state pension rights while abroad.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Proposed
Making Tax Digital for Income Tax Self Assessment: extension to sole traders and landlords
From 6 April 2026 sole traders and landlords with trading and property income over **£50,000** will be required to use Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), including keeping digital records and submitting quarterly updates. From 6 April 2027, threshold falls to **£30,000**. The change aims to modernise compliance, reduce error, and streamline tax administration. Voluntary participation allowed for lower-income individuals. This extension was announced previously and remains a key upcoming compliance requirement.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
UK Budget 2025: Increase in Business Property Relief from £1 million to £2.5 million from April 2026
As per the Economic and Fiscal Outlook published in March 2026, the UK Government will raise the 100 per cent allowance for Agricultural and Business Property Relief from **£1 million to £2.5 million**, effective 6 April 2026. Intended to help business owners and farmers with inheritance and business succession planning.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: Global
Status requires verification
Payrolling benefits in kind — important dates
UK policy moving from voluntary to mandatory payrolling of most benefits in kind (BiKs) and changes to voluntary National Insurance contributions abroad, as announced in Feb 2026 Employer Bulletin. Employers must register before 5 April 2026; by April 2027 most BiKs must be payrolled. The option of voluntary Class 2 NICs abroad will be removed from tax year 2026-27; new Class 3 applications require 10 years continuous UK residency or contributions. This alters how employees abroad and employers with BiKs must calculate, report and pay tax.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Act now: 864,000 sole traders and landlords face new tax rules in two months
Sole traders and landlords with qualifying income over £50,000 will be required, from 6 April 2026, to use recognised software to keep digital records and submit quarterly updates of their income and expenses under Making Tax Digital for Income Tax (MTD ITSA). Free software and support will be available; no penalty points for late quarterly updates during first 12 months.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Voluntary National Insurance contributions abroad
From **6 April 2026**, individuals abroad lose the option to pay voluntary **Class 2** NICs; access to voluntary **Class 3** contributions abroad will require having lived continuously in the UK for at least 10 years or built up 10 qualifying years of UK NICs. The aim is to ensure a sufficient link to the UK for benefits and State Pension claims. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-february-2026/february-2026-issue-of-the-employer-bulletin?utm_source=openai))
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
P9X — Tax codes to use from 6 April 2026
Guidance published by HMRC updating the tax codes to be used from 6 April 2026 to reflect that the Personal Allowance remains at £12,570, emergency code 1257L will apply universally until correct codes are issued, and employers must prepare payroll accordingly before the start of the new tax year.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Making Tax Digital for Income Tax Self Assessment for sole traders and landlords – Operative dates and income thresholds
From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and submit quarterly updates using HMRC-compliant software. From 6 April 2027, the threshold drops to £30,000, with further plans to extend to £20,000 by April 2028. These changes aim to reduce errors, improve compliance and modernise tax reporting.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Expansion of workplace benefits relief: Exempt reimbursements and removal of certain deductions from 6 April 2026
From 6 April 2026, reimbursements for eye tests, home-working equipment, and flu vaccinations will be exempt from Income Tax and National Insurance. Conversely, the deduction for non-reimbursed home-working expenses will be removed.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Income Tax Changes to Tax Rates for Property, Savings and Dividend Income
The Budget 2025 introduces increases in tax rates for property income (basic, higher, additional rates), savings income (all rates), and dividend income (ordinary and upper rates). Dividends rates increase by 2 percentage points from 6 April 2026, while property and savings income rates increase by 2 percentage points from 6 April 2027. These changes narrow the gap between tax on employment income and income from assets, affecting landlords, savers, and investors.
Implications include higher tax bills for those with income from property, dividends or savings; opportunity to optimise income structure via ISAs, timing of dividends, or even considering limited company routes; need for accurate record keeping and understanding of marginal tax rates. Those with most exposure are higher rate and additional rate taxpayers. Adjustments will need to be reflected in tax planning from the relevant years.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Making Tax Digital for Income Tax (MTD IT) – phased rollout for sole traders and landlords
New legal requirement that from 6 April 2026, sole traders and landlords with gross income over £50,000 must use digital records via HMRC-recognised software, submit quarterly updates for income and expenses, and file an annual return under Making Tax Digital for Income Tax. Thresholds will drop to £30,000 in April 2027 and £20,000 in April 2028. Penalties initial ‘soft landing’ for late updates in first year; penalties thereafter based on a points system. This also includes guidance updates and requirement for agents and individuals to register voluntarily to test the service ahead of the mandate.
This marks significant compliance obligation change for many self-employed and rental income earners; those affected must prepare software, recordkeeping, tax forecasting and digital updates, and consider exemption options if applicable.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Budget 2025 — Overview of tax legislation and rates (OOTLAR)
UK Budget 2025 includes numerous tax policy changes: introduction of an International Controlled Transactions Schedule for multinationals (from 1 January 2027), increases to Annual Tax on Enveloped Dwellings (ATED) for 2026-27, changes to non-resident capital gains rules (from 1 April 2026 for companies, 6 April 2026 for individuals), abolishing non-resident dividend tax credit from 6 April 2026, strengthening the Construction Industry Scheme, withdrawing voluntary Class 2 NICs abroad from 6 April 2026, extending employer NIC relief for veterans until 2028, changes to pension surplus payments, and imposing NICs on salary sacrifice pension contributions above £2,000 from 6 April 2026.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Business Asset Disposal Relief and Investors’ Relief rate increase
The Autumn Budget 2024 raised the rate of Capital Gains Tax (CGT) for gains eligible for Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) from 14% to 18%, effective from 6 April 2026. This reduces the benefit of these reliefs and increases tax liability on qualifying gains for business owners or investors disposing of assets at that relief from that date.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Changes to voluntary National Insurance contributions for periods spent abroad
From 6 April 2026, individuals living or working abroad will no longer be able to pay voluntary Class 2 National Insurance contributions for overseas periods; only Class 3 voluntary contributions will be available for tax years 2026-27 onwards. Eligibility for Class 3 abroad will require either 10 years continuous UK residency or 10 years of UK contributions. This affects UK nationals or residents abroad planning to use Class 2 for State Pension qualification.
Editorial impact label: Medium
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
P9X — Tax codes to use from 6 April 2026
HMRC updated UK employees’ tax codes ahead of the 2026-27 tax year, confirming the Personal Allowance will remain £12,570, emergency tax code 1257L applies, and giving employers guidance on payroll record updates for the new year.
Editorial impact label: Low
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source
Scope: United Kingdom
Status requires verification
Reforms to Agricultural Property Relief and Business Property Relief (IHT)
From 6 April 2026, the UK government will cap full 100% IHT relief (APR and BPR) to the first £1 million of combined qualifying assets in an estate; amounts above that will receive only 50% relief. Additionally, shares that are “not listed” on recognised stock exchanges will get only 50% relief, even within the first £1m. These changes also extend to trusts and lifetime gifts with transitional rules applying to gifts made on or after 30 October 2024. Effective for deaths and transfers after the commencement date.
Editorial impact label: High
- Published
- Not recorded
- Policy event
- Not recorded
- Effective
- Apr 6, 2026
- Verification
- Not recorded
Open cited source