The start of the new tax year on 6 April 2026 brings contentious changes with it, warns the Chartered Institute of Taxation (CIOT).

The most controversial change is the taxation of dividends and employee benefits as well as the introduction of Inheritance Tax (IHT) on family businesses and farms.

The government’s Making Tax Digital for Income Tax programme requires most sole traders and landlords with income of more than £50,000 a year to keep digital records and make quarterly submissions to HMRC.

Over the next three tax years HMRC plans to bring 2.9 million self-assessment taxpayers into the programme, requiring them to use compatible software to keep digital records and submit quarterly updates and an annual return.

Most of the changes took effect on Monday 6 April, the start of the new tax year, though a few changes were in place from Wednesday 1 April.

Ellen Milner, CIOT Director of Public Policy, said:

‘Spring is a time of fresh starts, and for taxpayers it also marks the arrival of a new tax year and new tax rules.

‘The most contentious change being made this April is bringing business and agricultural assets into the scope of IHT, albeit with an additional allowance and being taxed at a lower rate. This will mean many more valuations of estates will be?required. Farmers and business owners potentially in scope will need to pay careful attention to their tax planning.’

Internet link: CIOT

HMRC has launched a new ‘Tax Confident’ website which it says will help people fill their tax knowledge gaps.

The tax authority says the site is designed around real-life situations, helping people to find information that is relevant to their circumstances. These include ‘tax in retirement’, ‘small businesses’ and ‘working life’.

The website also features ‘tax basics’, to help people understand the essentials and includes information about the free HMRC app and how to get further support.

HMRC says that with simple explanations, videos, and examples, Tax Confident makes it easier for people to understand tax. It also has links to GOV.UK guidance for when people are ready for more detail.

As well as the basics, current resources are aimed at pensioners, and people establishing new small businesses, who sometimes feel unsure about tax and are more likely to look for help.

Myrtle Lloyd, HMRC Chief Customer Officer and Customer Services Director General, said:

‘We know that tax can feel confusing at times, especially when you are not sure where to start. HMRC’s Tax Confident website is here to help people get to grips with the basics, covering everything from the tax essentials for new businesses to the need to knows for retirement.

‘Tax Confident is designed to help you feel informed, capable and in control when it comes to managing your tax.’

Internet link: HMRC

It is vital that taxpayers and small businesses use reputable tax advisers with professional qualifications, warns the Chartered Institute of Taxation (CIOT).

Currently, anyone in the UK can refer to themselves as a tax adviser, regardless of whether they are professionally qualified.

However, tax advisers who are members of relevant tax or accountancy related professional bodies, such as the CIOT and the Association of Taxation Technicians (ATT) will have gained a qualification through passing stringent exams.

Chartered Tax Advisers are required to meet high professional standards, undertake continuing professional development and follow the profession’s code of conduct.

The CIOT encourages anyone seeking help with their tax affairs to use its online guidance for help on how to find and work with qualified advisers.

Nichola Ross Martin, President of the CIOT, said:

‘Dealing with our own taxes should not be confusing or stressful.

‘We want to give taxpayers greater knowledge and understanding of taxes and help point them to trustworthy help. The right advice can protect you and your finances.

‘Rogue agents who are not properly qualified can put taxpayers at risk – whether through poor advice, incorrect filings or even fraudulent claims made in a taxpayer’s name. Choosing a professionally qualified adviser provides reassurance that they are bound by ethical standards and subject to professional oversight.’

Internet link: CIOT

An estimated one million taxpayers missed the self assessment deadline for the 2024/25 tax year, according to HMRC.

Over 11.48 million taxpayers filed their self assessment tax returns before midnight on 31 January.

However, more than 12 million self assessment taxpayers were expected to file a tax return and pay any tax owed by the deadline.

HMRC says that anyone who needs to file a return and missed the deadline should meet their tax obligations as soon as possible, as late filing and late payment penalties are charged.

The tax authority said that 97.25% of tax returns were filed online with 475,722 taxpayers waiting until the final day to file their return.

On 31 January, 27,456 people submitted their returns in the final hour while the busiest hour for submitting a return was 17:00 to 17:59, when 32,982 people filed.

HMRC advisers handled 5,409 webchats and 10,483 calls to the helplines which, unusually, were opened on a Saturday to provide extra support to taxpayers on deadline day.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘Thank you to the millions of people and agents who filed their self assessment tax return and paid any tax owed by 31 January.

‘HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs.’

Internet link: HMRC

The number of people using the HMRC app to pay their self assessment tax bill has increased by 65% this tax year, according to the tax authority.

Almost 340,000 people have used the HMRC app to pay their self assessment tax since 6 April 2025, an increase of 132,788 people compared to the same period last year, says HMRC.

Self assessment taxpayers need to file their tax return online for the 2024/25 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

HMRC says that filing tax returns ahead of the deadline means knowing how much tax to pay sooner.

The tax authority says it is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline is not missed.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘The self assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your self assessment payment.’

Internet link: HMRC