6 April 2026: what business owners should review now

With only a few working days left before 6 April, this is no longer just a typical year-end planning window. 

For many business owners, it is now a point to identify what may still be worth checking immediately, what changes from 6 April, and what should be reviewed straight after the new tax year begins. This includes higher dividend tax rates, a higher Business Asset Disposal Relief rate, and the first mandatory phase of Making Tax Digital for Income Tax for those caught by the new threshold.

For some directors and business owners, waiting until after 5 April may not just mean less time to plan. It may mean a higher tax cost, fewer options, or a more rushed decision than would otherwise have been necessary.

A common year-end problem is not that the rules are unavailable. It is that important planning points are only raised once the deadline is already too close.

Were these points raised early enough, or only now that the window is closing?At this stage of the tax year, the real question is not only what the rules say. It is whether the right points are being reviewed early enough to make a difference.

For many directors, the frustration is not a total lack of advice. It is only hearing about planning issues once the window to act has narrowed, or only discussing tax when something has already become urgent.

That is especially relevant where dividend timing, business disposals, software readiness, reporting quality, and wider succession planning are involved.

Why this year-end is still worth reviewing, even at this late stageFor many business owners, this is not just a case of asking whether there is still time to use an ISA, make a pension contribution, or realise gains efficiently. It is also a case of checking whether the cost of waiting changes after 5 April.

From 6 April 2026, the ordinary dividend rate rises from 8.75% to 10.75% and the upper dividend rate rises from 33.75% to 35.75%. At the same time, Business Asset Disposal Relief moves from 14% to 18% for qualifying disposals from that date.

That means this year-end is better viewed as a decision point rather than just an admin deadline. The right answer will depend on the individual or business, but timing matters more than usual where income extraction or disposals are still within the owner’s control.

For some owners, the real risk is not getting advice too late in the day, when the opportunity to act has already started to narrow.

Dividend timing may still be worth checking where decisions are already liveThe government has confirmed that from 6 April 2026 the ordinary dividend rate rises from 8.75% to 10.75% and the upper dividend rate rises from 33.75% to 35.75%. The additional rate remains 39.35%. HMRC’s technical note also says the dividend allowance will remain unchanged, and the current allowance is £500.

For directors and shareholders of owner-managed companies, that does not automatically mean accelerating every dividend. It does mean reviewing whether planned withdrawals, reserves, personal income levels, and wider tax position make action before 6 April more efficient than action after it. This is especially relevant where distributions were already being considered

If you have flexibility over when profits are extracted, the issue now is whether timing was reviewed early enough

If a disposal or succession step is already in progress, timing may still matterBusiness Asset Disposal Relief is 14% for qualifying disposals in 2025 to 2026, but the rate rises to 18% for qualifying disposals in 2026 to 2027. The lifetime limit remains £1 million.

That does not mean transactions should be rushed for tax reasons alone. It does mean that anyone already discussing a sale, share disposal, succession step, or wider exit should avoid leaving the tax timing review until the last minute. Where a transaction is already live, the difference between completing before and after 6 April could be material.

Where a sale, succession step, or share disposal is already being discussed, tax timing should normally be part of the conversation early rather than being left to the final stage.

Allowances still matter, but the focus now may be on immediate review rather than fresh planningSome of the most familiar allowances remain worth using. The ISA subscription limit is £20,000 for 2025 to 2026 and remains £20,000 for 2026 to 2027. The Junior ISA and Child Trust Fund limit remains £9,000. The pension annual allowance is £60,000 for 2025 to 2026, with the money purchase annual allowance at £10,000.

The current standard Personal Allowance is £12,570 and starts to taper once income exceeds £100,000. The CGT annual exempt amount remains £3,000 for individuals in 2025 to 2026. None of that is new, but it is exactly why year-end planning still matters. Frozen or reduced allowances can still be valuable where they are used deliberately rather than left unused.

Allowances only create value when they are reviewed deliberately and used in context, rather than simply being left to chance at year end.

If MTD preparation has not started, this should move straight onto the post-6 April priority listFrom 6 April 2026, Making Tax Digital for Income Tax becomes mandatory in phases, starting with those whose qualifying income from self-employment and property was over £50,000 for the 2024 to 2025 tax year. HMRC says it is still the taxpayer’s responsibility to check whether they are in scope and be prepared, even if they do not receive a letter.

This is not just a future admin issue. It is a live planning issue now. Anyone likely to fall into scope should be checking software, bookkeeping process, record quality, and adviser support before the first mandatory period begins. Leaving that review until after 6 April risks a rushed transition.

For those likely to fall within scope, this is not just a future compliance issue. It is a live test of whether records, systems, and support are already in a position to cope.

Some deadlines may still matter now, but only where the issue is already knownHMRC has also published new guidance on voluntary National Insurance for people who have spent time abroad. From 6 April 2026, people will no longer be able to pay voluntary Class 2 contributions for time abroad, and new applicants for Class 3 contributions after that date will face tighter conditions, including a 10-year UK residence or contribution test. HMRC also says some people can still rely on the current rules if they apply on or before 5 April 2026 and meet the transitional conditions.

This will not affect everyone, but where there is overseas work or residence history, it is one more reason not to leave the review until after the deadline. GOV.UK also confirms that voluntary contributions for the past 6 years are generally subject to a 5 April deadline each year.

This is exactly the sort of detail that can be missed unless someone is looking at the wider picture, not just the standard year-end checklist.

Some planning points are less about this week and more about what should be reviewed nextNot every relevant change takes effect in April 2026. HMRC has confirmed that, as announced at Autumn Budget 2024, most unused pension funds and death benefits will come into scope for Inheritance Tax from 6 April 2027, although death in service benefits from a registered pension scheme will be excluded.

That is not a reason for rushed pension decisions now. It is, however, a reminder that pension contributions, drawdown planning, and estate planning should increasingly be looked at together rather than in isolation. For some clients, this year-end is a sensible point to begin that review rather than waiting until 2027 is much closer.

For some directors and business owners, these decisions are no longer best looked at in isolation. They need joined-up thinking while there is still time to plan properly.

What this article is really about

At this stage, this is not simply a list of last-minute tax actions. For many business owners, it is a sense-check on what changes from 6 April, what may still be worth reviewing if decisions are already underway, and whether these issues were raised early enough to make a meaningful difference.

Questions directors should be asking now, and into the new tax year

• Has anyone reviewed whether dividend timing before or after 6 April changes the tax position?
• If a disposal, sale, or succession step is already live, has the timing been considered properly?
• Are allowances being used deliberately, or only discussed at the last minute?
• If MTD may apply, are records, systems, and software genuinely ready?
• Am I getting proactive support early enough to act, or mainly hearing about issues once the window has narrowed?

Tax affairs are rarely improved by rushed decisions taken close to a deadline. At this stage, the issue for many business owners is not whether every planning step can still be completed before 5 April. It is whether the right issues were raised early enough to allow proper choices, and what now needs immediate review as the new tax year begins.

If reading this has made you wonder whether these points should have been raised earlier, download our Director’s Proactive Accountant Checklist to sense-check whether you are getting timely, forward-looking support rather than last-minute compliance.

If you would prefer to review what has changed from 6 April, what may still need urgent attention, and whether your current support is proactive enough, you can book an initial conversation below.

Book an initial conversation here.

Please note: This article is for general information purposes only and was correct as at the time of writing (18/03/26) and does not constitute financial advice. Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser. No responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.