With the tax year ending on 5 April 2026, accountants at TWP accounting in Weybridge are warning that upcoming rule changes and frozen allowances could leave many taxpayers paying more than expected.

Andrew Goddon, Tax Partner at TWP, says this year brings an unusual combination of pressure points that make early planning and understanding their tax position even more important than usual.

“For many people, the biggest risk is not doing anything at all,” he says.

“This year, there are several changes that could materially affect what someone pays. That includes higher dividend tax, new reporting requirements, reforms affecting property income, updates to Business Disposal Relief and further developments around Inheritance Tax.

“What has previously worked for clients may no longer be effective under the new rules, which is why we are encouraging all of our clients to revisit their plans before the new tax year.”

Andrew says fiscal drag remains a growing issue, particularly for middle and higher-income earners.

“With Income Tax thresholds frozen until April 2031, more families are being pushed into higher tax bands, even though their real income has hardly, if at all, grown.

“Without careful planning, this can quietly erode take-home pay and long-term wealth. The effect is gradual, but over several years it can add up to a meaningful reduction in disposable income and funds available for reinvestment or retirement.”

Business owners and company directors may also need to revisit how profits are extracted and how finances are structured.

“Decisions around dividends, salaries, loans, pension contributions and capital planning can have very different tax outcomes,” he says. “Once the tax year ends, many allowances and planning opportunities can no longer be used.”

Andrew adds that individuals and families should also be aware of changes affecting pensions, investment reliefs, Gift Aid, child-related tax charges and estate planning.

“Even small adjustments before 5 April can improve a client’s position and provide greater certainty for the next generation,” he says. “The challenge is knowing which actions are relevant to your own circumstances, rather than relying on generic guidance.”

To support clients ahead of the deadline, TWP has published a free Year-End Tax Planning Guide 2026, which outlines current risks, planning opportunities, recent legislative changes for business owners, companies and private individuals and a year-end checklist.

“The guide highlights areas where people commonly overpay or miss reliefs. We’re offering it as a useful starting point.

“However, personalised advice is still the best way to ensure you’re not missing any opportunities or paying more than you need to, especially in a year with this many moving parts. The earlier clients speak to us, the more flexibility they tend to have,” says Andrew.

To learn more about TWP and download their guide to year-end planning, please contact us.