Budget 2026: what it means for you and your business —
In short
Your Self Assessment return must be filed online, and any tax paid, by 31 January following the end of the tax year. For 2026/27 the personal allowance is £12,570 and the higher-rate threshold £50,270 — both frozen, which quietly pulls more of your income into higher bands each year. LMJ Group prepares and files your return, and plans ahead so you claim every relief you are entitled to.
You generally need to file if you are self-employed, a company director with untaxed income, a landlord, have untaxed savings, dividends or capital gains above the relevant limits, have income over £100,000, receive foreign income, or are affected by the High Income Child Benefit Charge.
If you are unsure, ask — filing when you needn’t is wasted effort, and failing to file when you must attracts penalties that begin the day after the deadline and escalate quickly.
31 October — deadline for paper returns. 31 January — deadline for online filing, and for paying any tax due for the tax year just ended. 31 January — first payment on account for the current year. 31 July — second payment on account.
Payments on account catch people out constantly: in your first year of self-employment you can face 150% of a year’s tax in a single January. We forecast this well in advance so it is never a shock.
Legitimately, through the reliefs and allowances available to you. Pension contributions attract relief at your marginal rate and can also restore a tapered personal allowance. ISAs shelter investment income and gains entirely. Gift Aid extends your basic-rate band. Marriage allowance, where eligible, transfers unused personal allowance.
For directors and business owners, the salary and dividend mix is the single biggest lever — and the maths changed for 2026/27, with the dividend allowance at just £500 and dividend tax at 10.75% / 35.75% / 39.35%.
The personal allowance (£12,570) and higher-rate threshold (£50,270) are frozen. As your income rises with inflation, more of it falls into higher bands even though the rates themselves have not moved. This is fiscal drag, and it is a real, compounding tax rise.
It makes proactive planning more valuable each year — particularly pension contributions, which reduce adjusted net income and can pull you back below a threshold.
Filed early, never late — we do not do January panic, and neither will you.
Planning, not just filing — reliefs claimed before the year end, when they still count.
Payments on account forecast in advance — no unwelcome surprises in January.
Chartered (ICAEW) — a qualified adviser reviews every return.
Fixed fees, agreed before we start.
This page provides general information about the 2026/27 UK tax year and is not advice on your particular circumstances. Tax and regulatory rules change frequently. Please contact us before acting, or refraining from acting, on anything set out here. LMJ Group is a firm of Chartered Accountants regulated by the ICAEW. LMJ Group is not a registered auditor and does not provide audit services. Last reviewed: July 2026.
