New Tax Year, New Allowances: A Plain-English 2026/27 Tax Planning Guide for Kent Business Owners

The new tax year began on 6 April 2026, and with it came a fresh set of allowances to use, deadlines to plan around and opportunities to claim. The catch this year, as with the last few, is that most of the headline thresholds have been frozen rather than raised — which quietly drags more people and more income into higher tax bands as wages and profits grow.

Whether you run an SME from a unit on the Imperial Business Estate or are a landlord with a couple of buy-to-lets in Gravesend, here is what you need to know — without the jargon.

The thresholds that have not moved

The Personal Allowance remains at £12,570, and the higher rate band still kicks in at £50,270. Both figures are frozen until April 2028. In practice that means a pay rise tracking inflation, or a bumper trading year, can push you into the higher rate even when nothing about your lifestyle has changed.

The additional rate threshold remains at £125,140. The Personal Allowance also continues to taper away by £1 for every £2 of income above £100,000 — creating an effective marginal rate of around 60% in that band. If you are anywhere near £100,000, this is the single most important number on your tax return to manage.

Savings, dividends and investments

ISA allowance — £20,000

You can shelter up to £20,000 a year across cash ISAs, stocks and shares ISAs, innovative finance ISAs and lifetime ISAs (subject to the £4,000 LISA sub-limit). For couples, that is £40,000 a year of tax-free saving — a powerful and underused tool.

Dividend allowance — £500

The first £500 of dividend income is tax-free. After that, basic rate taxpayers pay 8.75%, higher rate 33.75%, and additional rate 39.35%. For owner-managed company directors taking a salary plus dividends, that £500 is small comfort — but the salary/dividend split is still usually more efficient than pure salary, and worth reviewing each year.

Capital Gains Tax annual exempt amount — £3,000

You can realise up to £3,000 of capital gains a year before any CGT is due. Beyond that, basic rate taxpayers pay 18% and higher rate taxpayers pay 24% on most assets, including residential property. If you and your spouse jointly own an investment, you have a combined £6,000 of exempt gains every year — useful if you are gradually rebalancing a portfolio or selling a second property.

Pensions — still the workhorse of tax planning

The annual pension allowance remains at £60,000 (or 100% of relevant earnings if lower), with carry-forward of any unused allowance from the previous three tax years available. For a higher-rate taxpayer, a £10,000 pension contribution effectively costs £6,000 after relief — and reduces the income tested for the personal allowance taper, child benefit charge and other thresholds.

If you are a company director, employer pension contributions are usually deductible against corporation tax and avoid both employer and employee National Insurance. They remain one of the most efficient ways to extract value from a profitable business.

For business owners specifically

Trading allowance and property allowance

The £1,000 trading allowance and £1,000 property allowance still let you receive small amounts of side income tax-free without filing a return. Useful for hobby income or a small Airbnb let.

Employment allowance

Eligible employers can claim the Employment Allowance against their employer's National Insurance bill. The rules tightened in recent years, so it is worth confirming each April that your business still qualifies.

Annual Investment Allowance

The £1 million Annual Investment Allowance lets most businesses write off qualifying plant and machinery in full in the year of purchase. If you are planning a significant equipment purchase, the timing across your accounting year-end can make a meaningful difference to your tax bill.

Five quick wins for Kent businesses this April

1. Top up your ISA early. The earlier in the tax year you contribute, the more time the money has to grow tax-free.
2. Review your salary/dividend split. Frozen thresholds mean last year's optimal mix may not be this year's.
3. Consider a pension contribution before profits are taxed. Especially valuable for directors with a company year-end approaching.
4. Use your spouse's allowances. Marriage Allowance, jointly-held investments and salary planning between spouses are all underused.
5. Plan capital disposals. Splitting a sale across two tax years can use two annual exempt amounts.

Talk to MCC Partners early

Tax planning works best when it is proactive rather than retrospective. By the time the next 31 January rolls around, the planning window for 2026/27 will have closed.

If you would like a one-hour review of your position for the new tax year, drop into our office at 1a Saddington Street, Gravesend, or get in touch by phone or email. We work with sole traders, limited companies and landlords across Kent, and our combined 35-plus years of experience means we have seen most situations before.

This article is general guidance only and should not be relied upon as specific tax or financial advice. Tax rates and thresholds may change. For advice tailored to your circumstances, please contact MCC Partners directly.