Think of 6th April like a reset button
A new tax year started yesterday. Here's why that's actually good news, and what to do with it.
Every year on 6 April, the UK tax year quietly resets. No fanfare, no countdown, it just happens, and most business owners barely notice.
But I think it deserves a moment because a new tax year is genuinely one of the best opportunities you have to get your finances in better shape. Not in a scary, overwhelming way. Just in a "let's start this one right" kind of way.
Think of it like New Year’s Day, but for your business finances. A line in the sand. A chance to begin again with your New Year’s resolution (but one that you’ll keep!)
What actually changes in 2026/27?
This year there are a couple of changes worth knowing about, particularly if you're a sole trader or a limited company director.
Making Tax Digital is now live for some business owners. From 6 April 2026, if you're a sole trader or landlord with gross income over £50,000, you're now legally required to keep digital records and submit quarterly updates to HMRC, not just one annual return*. This is a significant change, and if it applies to you, the time to get set up is now, not at the end of this quarter.
Dividend tax rates have gone up. If you run a limited company and pay yourself through dividends, the basic rate on dividends has risen from 8.75% to 10.75% and the higher rate has increased from 33.75% to 35.75%. It's not a huge jump, but it's worth factoring into how you pay yourself this year.
Tax thresholds remain frozen. The personal allowance stays at £12,570 and the higher rate threshold at £50,270. With wages rising, more people are quietly being pulled into higher tax bands without realising it. so it's worth checking where you sit.
Three things worth doing right now
You don't need to overhaul everything. But these three things, done in the next couple of weeks, will make a real difference to how in control you feel throughout the year:
Get your bookkeeping up to date. If last year's records are a bit patchy, now is the time to sort them before the new year adds more to the pile. Future you will be so grateful.
Check your software subscriptions. A new tax year is a good prompt to review what you're actually paying for. Unused tools cost money and it all adds up.
Have a look at your prices. When did you last review what you charge? If the answer is "a while ago," the start of a new tax year is a natural moment to revisit it. Costs have gone up, so your prices probably should have too.
You don't have to figure it out alone
One of the things I hear most often from business owners is that they feel behind with their finances, like everyone else has it sorted and they've somehow missed the memo.
They haven't, trust me. Most people feel exactly the same way.
The difference between feeling on top of it and feeling overwhelmed isn't intelligence or how good you are at business. It's usually just having the right support in place.
A new tax year is a genuinely lovely moment to put that support in place. You've got a clean slate, 12 months ahead of you, and a real opportunity to make this year the one where your finances finally feel under control.
If you'd like a hand making sense of what the new tax year means for your business, or you're just ready to stop winging it and get some proper support in place, I'd love to hear from you.
You can book a free discovery call with me using our contact form. No jargon, no pressure, just a friendly chat about where you are and how I might be able to help.
*If you’re not sure if this applies to you, get in touch, and we can have a no-obligation chat about what action (if any) you need to be taking.