Your essential guide to the Spring 2026 changes – Stay ahead of what's coming

What happened — and why it matters

Chancellor Rachel Reeves delivered the Spring Statement 2026 with a clear message: steady as she goes. Against a backdrop of rising oil prices and ongoing uncertainty from the conflict in Iran, Reeves focused her speech on security, stability and growth — but made no major new policy announcements.

That said, ‘no new policies’ doesn’t mean no change. Far from it. April brings a wave of measures from November’s Autumn Budget, and you need to be ready. From wage increases to business rates and tax threshold freezes, the impact will be felt across the board.

Here’s your quick-read guide to what’s happening, what it means, and what to do about it.

The economic picture at a glance

Oil prices have already climbed to their highest level in a year. If the situation escalates, inflation could stay stubbornly higher for longer — something to keep a close eye on.

Changes coming into effect from April

1. Freeze on personal tax thresholds continues

Income Tax and National Insurance rates aren’t changing. However, the freeze on thresholds continues until 2030–31 — which means fiscal drag will quietly pull more people into higher tax bands as wages rise. Scotland sets its own bands, so check the latest Scottish Government rates separately.

2. National Living Wage rises

From April, minimum wage rates increase:

• Over-21s (National Living Wage): rises to £12.71/hour (+50p)
• 18–20 year olds: rises to £10.85/hour
• Under-18s and apprentices: rises to £8.00/hour

Businesses with eligible workers — nearly 2.7 million across the UK — will need to adjust payroll budgets accordingly.

3. Business rates multiplier changes

The figure used to calculate business rates is changing across all UK nations. England and Scotland offer special relief for small businesses and the retail, hospitality and leisure sector. Wales moves to five new banded multipliers. Northern Ireland applies a 3% increase for non-domestic properties.

4. Class 2 National Insurance changes

For sole traders, the Small Profits Threshold increases to £7,105, with Class 2 NI set at £3.65 per week from 6th April.

5. Free apprenticeships for small businesses (England)

Part of the government’s £725m package begins rolling out this April — fully funded apprenticeships for eligible under-25s. A great opportunity if you run a small business and want to grow your team cost-effectively.

Tax on income from assets: what’s changing and when

The government is increasing tax rates on income from dividends, savings, and property. Here’s the timeline:

More changes to be aware of

Capital allowances

A 40% first-year allowance on main rate expenditure (including leased assets and unincorporated businesses) was introduced from 1 January 2026. From April 2026, main rate writing-down allowances reduce from 18% to 14%.

Corporation Tax late filing penalties

HMRC is doubling fixed penalties for late Corporation Tax returns from 1 April 2026. Initial penalties rise from £100 to £200; three-month delays attract £400; and repeat offenders face up to £2,000 for three successive late filings. Make sure you are up to date.

Enterprise Management Incentives (EMI)

From April, the EMI scheme is extended to scale-ups. The employee limit rises to 500, the gross assets test to £120 million, and the company share option limit to £6 million. The maximum holding period extends to 15 years (including existing contracts).

Venture Capital Trust & Enterprise Investment Scheme

The VCT and EIS investment limit rises to £10 million (£20 million for Knowledge Intensive Companies). Lifetime company investment limits increase to £24 million (£40 million for KICs). Note: VCT income tax relief decreases to 20%.

Making Tax Digital (MTD) for Income Tax

MTD for Income Tax goes ahead from 6 April as previously confirmed. Automatic exemptions apply to those with qualifying income of £20,000 or less, or those without a National Insurance number. Trustees are also exempt. Some groups (such as those who claimed averaging relief) have until 2027–28.

✅ Practical tips for you, Dear Reader

Here’s what to focus on right now:

• Review payroll now: The National Living Wage rise takes effect in April. Make sure payroll systems are updated and cash flow projections reflect the increased costs — especially for businesses with lower-paid or part-time staff.
• Check business rates relief eligibility: Small businesses and those in retail, hospitality and leisure may qualify for significant relief. This varies by nation, so check the specific rules for your location.
• Plan around the threshold freeze: With thresholds frozen until 2030–31, if your income is rising you should model the impact of fiscal drag. Now is a good time to review salary/dividend splits and other tax-efficient structures.
• Flag the dividend tax rise: The April 2026 increase in dividend tax rates affects anyone drawing income from shares — including owner-managed business directors. Review dividend strategies before April.
• Prepare for MTD if not already done: If you haven’t started preparing for Making Tax Digital, time is very short. Check whether you are exempt, whether you have more time, or whether you need to act now.
• Watch late filing penalties: The doubling of Corporation Tax late filing penalties from April is a real risk. Now is a good moment to review your submission schedule and set earlier internal deadlines.
• Explore EMI and EIS opportunities: The expanded eligibility for EMI and increased VCT/EIS limits open new planning opportunities for growing businesses — worth exploring if this applies to you.

What to do next

The Spring Statement may have lacked headline drama, but the cumulative effect of April’s changes is significant — especially for small business owners, sole traders, landlords and investors.

The best thing you can do right now is act proactively. Don’t wait for things to catch up with you. Understanding which changes affect you and taking the right steps early will make a huge difference.

Get in Touch Now

Time is of the essence, so don’t delay any further. Contact TTAM Ltd today — whether you’re dealing with employment income, self-employment, rental properties, capital gains, or any combination, we have the expertise to help you navigate every change covered in this update.

TTAM Ltd

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📧 Email: ttam.smarttax@gmail.com

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This blog post is for general information only and does not constitute tax or financial advice. Please contact us for advice tailored to your circumstances.