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From April 2026, you must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. Once registered, you must charge VAT on all taxable supplies and submit returns under Making Tax Digital (MTD) rules. If you are already registered, you must ensure your accounting software is MTD-compliant to avoid penalties.

For the 2026/27 tax year, the dividend allowance is reduced to £500, with tax rates of 10.75% for basic, 35.75% for higher, and 39.35% for additional rate taxpayers. These rates apply to dividends paid above the £500 allowance, calculated after your personal allowance and other income. You can find the official rates on the GOV.UK tax rates and allowances page.

If your limited company lends money to a shareholder, you must pay Section 455 tax at 35.75% of the loan amount, which is due nine months and one day after the accounting period ends. This tax is refundable to the company once the loan is repaid or written off. It is crucial to track all director loans to ensure timely payment and avoid interest charges from HMRC.

Making Tax Digital for Income Tax Self Assessment becomes mandatory for individuals with business or property income over £50,000 from 6 April 2026. You will need to keep digital records and submit quarterly updates to HMRC using compatible software. This replaces the traditional annual Self Assessment return for eligible businesses, so upgrading your systems before the deadline is essential.

From April 2026, employers pay 15% National Insurance on earnings above £5,000 per employee, with no secondary threshold. This rate applies to most employees, including directors, and is calculated on the gross salary or wages paid. You should use the latest HMRC employment tools to calculate exact liabilities for your payroll runs.