Which business taxes changed on 6th April 2026?

CREATED BY HELEN BEAUMONT Published: 08/04/2026 @ 09:00AM #BusinessTaxChanges #CapitalAllowances #CompanyCarCharges #VanCharges #HMRC #UKTaxThresholds

A number of business taxes changed on 6th April 2026: capital allowances were trimmed, company car and van charges increased, and some reliefs were shifted too. My blog post this week is a practical tax update for firms keeping an eye on tax changes and thresholds ...

Business taxes underwent changes on 6th April 2026. Find out which ones were affected and how it may impact you

From 6th April 2026, business taxes began shifting in ways that many owners will feel quite quickly. The changes did not rewrite the whole system, but they did alter the cost of investing, running vehicles, and planning for the year ahead.

One of the most important changes
was to capital allowances!

The main writing-down allowance for plant and machinery was reduced, meaning businesses with ongoing investment plans may now receive tax relief more slowly than before. In simple terms, that makes business taxes a little heavier over time for firms that rely on equipment, vehicles, or other fixed assets.

There was some softening around that change, though. A new first-year allowance was introduced for certain main-rate assets, which helped businesses that cannot use full expensing. That was especially relevant to parts of the small-business tax world, including unincorporated businesses and leasing operations, where immediate relief can make a real difference to cash flow.

Vehicle costs also moved in the wrong
direction for many firms!

Standard road tax increased, electric vehicles lost their free status, and some higher-value cars remained subject to the extra expensive-car charge. For companies running a fleet, these changes meant vehicle budgeting needed a fresh look rather than a quick assumption that last year's figures would still hold.

The company car tax position also shifted on the same date, making the overall tax situation less lenient for employers and directors alike. Even when the headline rates appear modest, these business taxes can accumulate over the year, particularly where multiple vehicles are in use or benefits in kind are included as part of a pay strategy.

There were also practical compliance
issues to keep in mind!

HMRC closed its free Corporation Tax filing route around this period, pushing businesses towards commercial software for submissions and amendments. That was not a tax rate change as such, but it was still a meaningful part of HMRC's tax changes because it affects how companies actually deal with their returns.

Business rates were also in motion, although the impact varied by property type and size. Some retail, hospitality and leisure premises saw lower multipliers, while larger properties faced pressure from revaluation.

For anyone comparing the April 2026 tax update with previous years, this was another reminder that business taxes are rarely changed in just one place.

The sensible conclusion is clear. Business owners who treated 6th April 2026 as just another date may have overlooked several quiet but costly changes. A fresh review of investment plans, vehicle costs, filing software, and wider tax thresholds is now advisable.

Business taxes tend to reward those who spot the detail early.

Until next time ...

HELEN BEAUMONT
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About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist. Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance. When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.

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