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info@adeptaccountax.com
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Mon - Sat: 9:00 AM - 7:30 PM
info@adeptaccountax.com
Mon - Sat: 9:00 AM - 7:30 PM 
As the current tax year ends on 5 April 2026, now is the ideal time for individuals and businesses to review their finances and take advantage of any remaining tax planning opportunities. A few simple steps—such as reviewing allowances, updating payroll systems, and confirming pension contributions—can make a significant difference to your tax position.
In this March 2026 update, we highlight important regulatory changes, payroll updates, and practical tax tips to help you remain compliant and financially prepared for the new tax year.
Several important changes will take effect from April 2026 that may impact employers, employees, and business owners.
From 1 April 2026, the UK Government has confirmed new minimum wage rates:
| Rate Category | Hourly Rate |
| National Living Wage (21 and over) | £12.71 |
| 18–20 Year Old Rate | £10.85 |
| 16–17 Year Old Rate | £8.00 |
| Apprentice Rate | £8.00 |
| Accommodation Offset | £11.10 per day |
Employers must update payroll systems and employee pay rates to reflect the new thresholds. Failure to comply may lead to penalties and enforcement action.
Several employment-related statutory rules are also changing:
Parental Leave
Employees will have the right to parental leave from their first day of employment, rather than after a qualifying period.
Statutory Sick Pay (SSP)
Holiday Record Requirements
Employers must keep holiday records for six years, including pay calculations and leave details.
Businesses should review HR policies, payroll systems, and employee records to ensure they comply with the new Fair Work Agency rules.
HMRC will issue updated tax codes for the new tax year.
Employers must ensure their payroll systems are updated to apply the correct codes.
Using incorrect tax codes can lead to:
Keeping payroll systems updated helps prevent unnecessary administrative issues.
Minimum workplace pension contributions are increasing:
Employers must ensure that payroll deductions reflect these updated rates to remain compliant with pension regulations.
Failure to meet the minimum contribution requirements could result in fines from the pensions regulator.
Rental income from jointly owned property is automatically treated by HMRC as being split 50:50 between owners, regardless of who actually receives the income.
However, if owners wish to allocate income differently, they must:
This issue commonly arises when one spouse earns significantly more than the other, and couples attempt to allocate rental income to the lower-earning partner for tax efficiency.
Professional advice is recommended before making any changes, as incorrect reporting could lead to HMRC penalties.
The VAT registration threshold remains £90,000 from 1 April 2026, with the deregistration threshold set at £88,000.
Many VAT-registered businesses may face compliance checks, particularly:
HMRC requires valid documentation for VAT claims.
No receipt means no VAT claim.
Maintaining accurate records and keeping all purchase invoices and receipts will help ensure a smooth compliance review if HMRC conducts an inspection.
Taxation has always inspired creative responses.
In 1696, England introduced a tax based on the number of windows in a house. To avoid paying the tax, many homeowners bricked up their windows.
This unusual policy is believed to be the origin of the phrase “daylight robbery.”
With the 2026/27 tax year approaching, now is the ideal time to review your financial position and plan ahead.
Whether you:
Taking proactive steps now can help you:
At Adept Accountax, we provide practical and professional advice to help individuals and businesses manage their tax responsibilities with confidence.
If you would like personalised guidance or support with your tax planning, please contact us to discuss your situation.
