In 2026, significant financial changes are on the horizon, and essential dates have been compiled for your convenience by the Mirror. These updates encompass alterations to inheritance tax and the removal of the two-child benefit cap. Some adjustments were disclosed during the Budget, while others have been in the works for some time.
Regular updates such as the fluctuation of the Ofgem price cap and crucial deadlines for self-employed individuals’ tax obligations also loom on the horizon. The Ofgem energy price cap will see a slight increase from £1,755 annually to £1,758 starting in January, affecting those with average energy consumption who pay via direct debit. Ofgem revises the price cap every quarter, with upcoming changes scheduled for April, July, and October.
Mark your calendar for the first inflation update by the Office for National Statistics on January 21, which tracks price fluctuations over time. Additionally, the Consumer Prices Index (CPI) currently stands at 3.6%, with monthly inflation figure releases. For those awaiting their Winter Fuel Payment, contacting the Winter Fuel Payment Centre from January 28 is advised.
Self-assessment tax return filers must meet the online filing deadline of January 31 for the 2024/25 tax year to avoid a minimum fine of £100, regardless of tax liabilities. Furthermore, alcohol duty will see a 3.66% increase in February in alignment with RPI inflation.
Stay tuned for the Bank of England’s first meeting in 2026 on February 5, where decisions regarding interest rates will be made. The current base rate, influencing borrowing costs and savings interest, is set at 4% and undergoes review every six weeks.
Noteworthy changes include the conclusion of the Household Support Fund on March 31 and the removal of the two-child benefit cap in April 2026. Workers can anticipate a minimum wage increase from April, varying by age group, and council tax bills are expected to rise by up to 5%.
Furthermore, expect potential increases in TV license fees, water bills, and car tax in April. The tax year concludes on April 5, with new tax allowances coming into effect the following day. Benefit recipients will see their payments rise from April 6, with Universal Credit and state pension seeing substantial boosts.
In April, inheritance tax adjustments for farmers will be implemented, introducing a £2.5 million cap on inherited agricultural assets. The dividend tax rate will also rise for basic and higher rate taxpayers following Budget announcements.
New regulations for displaying prices in shops will be enforced, emphasizing clear comparisons. However, tax relief for home office costs will cease from April. Buy now, pay later services will be fully regulated by the FCA from July 15.
University tuition fees will see an inflation-linked increase, and the fuel duty cut introduced in March 2022 will gradually return to pre-cut levels by September 2026. Free school meals eligibility will expand in September, and new duties on vaping products and tobacco are expected in October.
Remember, the deadline for registering for self-assessment tax and filing paper returns is in October. Ensure compliance to avoid penalties. Lastly, mark your calendars for the upcoming changes, and stay informed to navigate the financial landscape effectively.
