April 2026: the UK compliance changes every business owner must act on now

A new tax year brings a new compliance reality. April 2026 is a landmark month for UK businesses as Making Tax Digital goes live, the Construction Industry Scheme tightens, and the Employment Rights Act 2025 starts reshaping the workplace. Here is what you need to know, and what to do about it.

1. New tax year 2026/27: rates, wages and SSP

Income tax thresholds remain frozen until 2028, with the Personal Allowance at £12,570, the basic rate ceiling at £50,270, and employer NICs holding at 15% with the secondary threshold at £5,000. The National Living Wage rises to £12.71 per hour for workers aged 21 and above, and Statutory Sick Pay is now payable from day one, with lower earners receiving 80% of average weekly earnings and those above the threshold receiving £123.25 per week.

2. Making Tax Digital for Income Tax: now mandatory

MTD for Income Tax Self Assessment is live from 6 April 2026 for sole traders and landlords with qualifying gross income above £50,000, requiring digital records and four quarterly updates plus a Final Declaration by 31 January. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028, with a penalty-free period for quarterly updates applying throughout 2026/27.

3. Construction Industry Scheme: tighter rules from 6 April

The CIS has been tightened to tackle fraud across construction supply chains. Three key changes are now in force:

• Mandatory NIL returns reinstated: contractors with no subcontractor payments in a tax month must file a NIL return unless HMRC has been pre-notified.
• Public body payments exempt: payments to local authorities and qualifying public bodies are fully removed from CIS.
• Strengthened anti-fraud powers: HMRC can act where a contractor knew or should have known a payment was linked to non-compliance.

4. Employment Rights Act 2025: changes now in force

The Employment Rights Act 2025 introduces several significant changes from April 2026. Day-one unfair dismissal rights come into force, removing the two-year qualifying period for most employees. Flexible working requests must be considered within two months. Collective redundancy consultation thresholds are amended. Employers should review contracts, disciplinary procedures, and workforce planning policies accordingly.

What to do now

These changes layer on top of each other and demand immediate attention from business owners across every sector. Agility Outsourcing helps UK businesses stay on top of compliance requirements, financial administration, and workforce management so your team can focus on what matters most. Book a consultation today to understand where your business stands.