It’s been a busy start to 2026, and with Spring now underway, we’ve pulled together a helpful round‑up of notable tax changes that are having an impact across the UK.
These are the types of timely communications we provide to our clients to keep them informed and compliant. If you’re not yet a Wallace White client and are looking for a proactive Accountant, get in touch today.
This blog details and advises on:
Making Tax Digital (MTD) for Income Tax
From 6 April 2026, self‑employed individuals and landlords earning over £50,000 will be required to:
- Keep digital records
- Submit quarterly updates to HMRC using compatible software.
This marks the end of paper‑based record keeping for affected clients – but it’s also where we can help make the transition as smooth as possible.
Although this may not apply to you just yet, the scope of MTD will widen over the coming years:
- Turnover threshold reduces to £30,000 from April 2027
- Turnover threshold reduces further to £20,000 from April 2028
What does this look like in practice?
In practical terms, Making Tax Digital changes how and how often you report your income to HMRC, but not the amount of tax you ultimately pay.
Instead of keeping paper records or spreadsheets and submitting one annual Self-assessment return, you’ll move to a more regular digital reporting cycle using HMRC‑compatible software.
You’ll be required to submit:
- Quarterly updates: Every three months, you’ll send a summary of your income and expenses to HMRC. These updates are not tax bills – they’re snapshots that help HMRC build a picture of your earnings over the year.
- A year‑end final declaration: After the end of the tax year, you’ll review all quarters together, make any necessary adjustments (such as accounting for allowances or reliefs), and submit a final declaration to confirm your taxable position.
If you are affected by MTD for Income Tax then Wallace White can help you with the transition. We’ll support you by:
- Setting up and recommending suitable software
- Ensuring records are structured correctly from day one
- Reviewing submissions before they’re sent
- Acting as your point of contact with HMRC throughout the process
If you’d like to discuss how MTD might affect you, contact info@wallacewhite.com
Changes to Double-Cab Pickups Tax Treatment
From April 2025, HMRC made a significant change regarding the tax treatment of double‑cab pickup vehicles. This follows a revision to HMRC’s interpretation of what constitutes a “car” versus a “van” for tax purposes. While the vehicles themselves have not changed, the way they are treated for tax has – and this can have a noticeable impact on both businesses and individuals.
What has changed?
Historically, many double‑cab pickups were treated as vans for tax purposes, primarily because of their commercial appearance and common use in trades such as construction, agriculture, and utilities. Van treatment meant lower benefit‑in‑kind (BIK) charges and attractive Capital Allowances (tax treatment).
From April 2025, HMRC now classifies pickup vehicles based on payload capacity rather than body style. In simple terms:
- Pickup vehicles with a payload of less than one tonne will generally be treated as cars
- Only pickups with a payload of one tonne or more will continue to qualify as vans
As many popular double‑cab pickups fall below the one‑tonne payload threshold, this change means they are now more likely to be taxed as cars.
Why does this matter?
Being treated as a car rather than a van can significantly increase the tax cost.
Van tax treatment:
- Fixed BIK charge, regardless of vehicle value
- Generally more tax‑efficient for both employers and employees
- Lower Class 1A National Insurance for employers
Car tax treatment:
- BIK calculated as a percentage of the vehicle’s list price
- Percentage depends on CO₂ emissions, often resulting in much higher charges
- Higher income tax costs for employees and higher NIC for employers
For company directors or employees who use a double‑cab pickup privately, this change could result in an increase in personal tax liability.
When does the change apply?
The revised interpretation applies to vehicles purchased or first made available from April 2025 onwards.
In many cases, vehicles acquired before April 2025 may continue under the old treatment, but this will depend on the specific facts, including:
- The purchase or lease date
- Any changes to ownership or lease agreements
- How the vehicle is used
This is an important area where individual advice is essential.
What should businesses and directors do now?
If you currently use, or are planning to purchase, a double‑cab pickup, it’s worth reviewing the position before committing. Points to consider include:
- Checking the manufacturer’s stated payload capacity
- Comparing the tax cost of car treatment versus van treatment
- Considering alternative vehicles that clearly qualify as vans
- Reviewing whether the vehicle is genuinely required for business use
How Wallace White can help
The tax rules around company vehicles can be complex, and HMRC’s change in interpretation has attracted widespread criticism. If you’ve already bought a double‑cab pickup, or are considering buying one, at Wallace White we are happy to help you understand the tax implications and explore the most tax‑efficient options for your circumstances.
Get in touch at info@wallacewhite.com if you’d like tailored advice.
Notable Tax Changes
Several recent tax changes are quietly increasing the amount many individuals and business owners pay each year. While some of these apply across the UK, they are particularly relevant for company directors, investors, and self‑employed individuals.
Higher Dividend Tax Rates
Dividend tax rates have increased, meaning company owners taking income through dividends may now face a higher personal tax bill:
From 6 April 2026
- Basic rate dividend tax: 8.75% to 10.75%
- Higher rate dividend tax: 33.75% to 35.75%
The dividend allowance also remains frozen at just £500, so a larger portion of dividend income is now taxable.
Capital Gains Tax Increases
From 6 April 2026 the Capital Gains Tax rate for both Business Asset Disposal Relief and Investors’ Relief has increased from 14% to 18%. This affects individuals selling qualifying business assets or shares and can increase the tax payable when exiting a business or investment.
Home-Working Tax Relief Ended
Employees can no longer claim tax relief on household costs for working from home unless those costs are reimbursed by their employer. This brings an end to the temporary relief that previously supported many remote and hybrid workers.
National Insurance Contributions
Class 2 National Insurance Contributions have risen to £3.65 per week, increasing costs for many self‑employed individuals.
Income Tax Thresholds Remain Frozen
The following UK‑wide income tax thresholds remain unchanged:
- Personal allowance: £12,570
- Higher‑rate threshold: £50,270
With wages rising due to inflation, this continued freeze means more people are being pulled into paying higher rates of tax over time.
For Scottish taxpayers, it’s important to remember that Scottish income tax bands apply to earned income, while UK‑wide rates continue to apply to savings and dividend income.
What's Next
These changes will impact individuals and businesses differently, which is why tailored, business‑specific advice is essential.
If you have any questions after reading this, Wallace White clients can contact their regular contact. If you’re not yet working with us and would like support or advice, get in touch today at info@wallacewhite.com.