The new tax year started on 6 April, and several important changes are now live. For small business owners, company directors and self-employed taxpayers, this is the point where tax planning stops being theoretical and starts affecting invoices, payroll, reporting and future liabilities. From Making Tax Digital developments to capital gains tax changes, inheritance tax limits and payroll updates, the 2026/27 tax year brings practical decisions that need attention now.

Why the first few weeks of the tax year matter

It is easy to treat the start of a tax year as just another date in the calendar, but early action often makes the rest of the year easier and less expensive. When rules change, businesses that review their systems, pay levels, profit extraction and record keeping promptly are usually in a stronger position than those who wait until a filing deadline approaches.

In practice, this means checking whether your software still fits your reporting needs, reviewing how you pay yourself, updating payroll settings and making sure any planned asset disposals or family wealth decisions reflect the current rules rather than last year’s assumptions.

Making Tax Digital is no longer something to watch from a distance

Making Tax Digital continues to reshape how businesses and landlords keep records and report to HMRC. For many taxpayers, the key issue is not just whether MTD applies today, but whether they are now close enough to the threshold or timeline that preparation should begin immediately.

If you are self-employed or receive income from property, this is a good time to check:

• whether your income level means you are within scope now or likely to be soon
• whether your bookkeeping records are digital, accurate and up to date
• whether your current software is compatible with HMRC requirements
• whether quarterly reporting will create extra admin if your systems are still manual

Many small business owners assume MTD is mainly a software issue. In reality, it is also a habits issue. Businesses that still rely on late bookkeeping, mixed personal and business spending, or incomplete records can find the transition far more stressful than expected. The start of the tax year is the best time to tidy processes before reporting pressure builds.

Capital gains tax changes can alter the timing of big decisions

If you are planning to sell shares, business assets or property that does not qualify for private residence relief, changes to capital gains tax can affect the amount you ultimately keep. Even where a disposal is not immediate, the updated rates and rules may influence whether you sell this year, hold for longer or restructure ownership first.

For business owners, CGT is rarely just about the sale itself. It can connect to retirement planning, succession, extracting value from a company or disposing of investment assets to fund expansion. A change in rates can turn a delay into a cost, or make earlier planning more worthwhile.

This does not mean every disposal should be rushed. It means assumptions should be reviewed. If your plans were based on previous thresholds, reliefs or rates, they may need to be revisited under the 2026/27 rules.

Inheritance tax caps make early planning more important

Inheritance tax is often left until later because it feels distant, but changes affecting caps and reliefs can have an immediate impact on long-term family planning. Business owners are especially vulnerable to missed opportunities here because company value, property holdings and investment assets can build up gradually without a coordinated tax strategy.

The right response depends on your circumstances, but common areas to review include:

• the current value of your estate and whether it is approaching key thresholds
• whether gifting plans still make sense under the latest rules
• how business property or shareholdings are structured
• whether wills and succession plans still match the tax position

Good inheritance tax planning is not only about reducing tax. It is also about clarity, control and protecting family wealth from avoidable complications later. Starting that review at the beginning of the tax year gives you more time and more options.

Payroll updates need attention before they cause errors

Each new tax year brings payroll changes, and even small updates can create problems if they are missed. Employers should make sure payroll software is updated and that all rates, thresholds and employee settings are correct from the first pay run of the year.

Areas to review include:

• PAYE tax code updates
• National Insurance thresholds and contribution settings
• minimum wage changes where applicable
• pension auto-enrolment calculations
• director salary planning for owner-managed companies

For many limited company directors, payroll is not just an admin task. It is part of a wider tax planning strategy. A salary level that was efficient last year may no longer be ideal this year, particularly when considered alongside dividend planning, corporation tax and personal allowances.

If your payroll has simply rolled forward from the previous year without a review, now is the time to correct that.

What small business owners should do this month

You do not need to tackle every issue at once, but you should avoid drifting into the year without a plan. A short review now can prevent rushed decisions later.

1. Check whether MTD affects you now or soon and confirm your bookkeeping method is fit for purpose.
2. Review any planned asset sales or share disposals in light of current CGT rules.
3. Look at your personal and business wealth together if inheritance tax could become relevant.
4. Update payroll settings and confirm director remuneration is still tax efficient.
5. Set a tax strategy for the year rather than waiting until filing deadlines.

Small business owners often lose money not because the rules are unknown, but because decisions are delayed. The beginning of the tax year is one of the best opportunities to get ahead.

Start the year with clarity

The 2026/27 tax year is already underway, and the changes now in effect will shape how businesses report, pay and plan across the months ahead. Whether you are a sole trader, landlord or limited company director, this is the right moment to make sure your systems and strategy match the current rules rather than last year’s position.

Not sure what changes apply to you? Book a free new-year review at dsraccountants.co.uk