06/04/2026
🌟 New Tax Year 2026/27 Starts 6 April 2026 – What You Need to Know About Income Tax
The new UK tax year is here! From 6 April 2026 to 5 April 2027, here are the key basics that affect most individuals, employees, and sole traders:
✅ Personal Allowance remains £12,570
You can still earn up to this amount completely tax-free.
✅ Income Tax Bands (England, Wales & Northern Ireland)
• Basic rate (20%): £12,571 to £50,270
• Higher rate (40%): £50,271 to £125,140
• Additional rate (45%): Over £125,140
Important note: These thresholds (including the Personal Allowance) are frozen and will stay the same until at least April 2031. This means as your income rises with inflation or pay increases, more of it gets taxed at higher rates – known as “fiscal drag”.
✅ Other notable changes from April 2026
• Dividend tax rates are increasing by 2% (basic rate to 10.75%, higher rate to 35.75%)
• Making Tax Digital (MTD) for Income Tax begins for sole traders & landlords with over £50,000 qualifying income – quarterly digital updates required
Tax rules might look similar on the surface, but the frozen thresholds and upcoming MTD changes mean many people will end up paying more tax – or missing opportunities to save – unless they plan ahead.
At Alpha Tax Associates, as an FCCA-qualified tax consultant with over 10 years’ experience, I help individuals and sole traders maximise allowances, claim every legitimate deduction, and prepare smoothly for MTD.