Business Update – April-May 2026
May 7, 2026
Since our last newsletter in January, a new conflict in the Middle East has renewed pressures on the economy with another set of increases in energy and petrol prices. The ongoing standoff at the Strait of Hormuz may seem far away, but the full impact has yet to be felt. For business and individuals already feeling the strain of higher and frozen tax rates and bands, the 2026/27 tax year just started will need focus and attention.
Among the key changes to take effect from 6 April has been the first raft of reforms from the Employment Rights Act 2025, now rolling out over the next two years. In this edition of our newsletter, our feature looks at provisions now available to employees that employers should be aware of, including day one statutory rights on sick pay, paternity and parental leave and a new bereaved partner’s paternity leave. Further changes are coming from January 2027 on unfair dismissal and later in 2027 on zero- and low hours contracts.
Alongside the feature, other stories we explore in this edition include:
Time for an estate planning review? – As the changes to the inheritance tax (IHT) business and agricultural reliefs regime come into effect, many business owners and farmers are taking steps to mitigate its impact on them and their families.
Making a business out of your property – With a 2% increase on income tax rates for property income coming from April 2027, coupled with other tax differences to how property is taxed in a corporate vehicle, more buy-to-let investors are turning to incorporation to hold their properties.
Payroll update as SPA rises – The latest increase to State pension age (SPA) from this April means employers need to be aware of the impact for payroll data around class 1 national insurance contributions for affected employees. And there’s good news on higher rates of compensation for smaller employers administering statutory payments.
We also cover the penalties of paying your tax late, changes to corporation tax filing, the shelving of plans for small companies to file profit and loss accounts, and more.
Our next newsletter will be out in July as the summer holiday season kicks off. Meanwhile please do contact us if we can continue to help or provide you with more information on any of the topics covered here.