The 2026/27 tax year brings important updates for business owners and individuals across West London, including Acton and Ealing. While some thresholds remain unchanged, others are becoming less favourable—making proactive tax planning more important than ever.
One key point is that the personal allowance remains frozen at £12,570. This means that as income rises, more of your earnings could be pulled into higher tax brackets—a phenomenon often referred to as “fiscal drag”.
In addition, dividend tax rates on non-ISA income are increasing by 2%. For company directors and shareholders who rely on dividends as part of their income strategy, this change could significantly affect overall tax liability.
Here’s what to keep in mind:
- Personal allowance stays at £12,570, despite rising costs
- Dividend tax rates are increasing by 2% on non-ISA income
- More individuals may be pushed into higher tax bands over time
For many small business owners, especially limited company directors, dividends remain a tax-efficient way to extract profits—but the gap is narrowing. Careful planning is now essential to ensure you’re not paying more tax than necessary.
At GnC Accounting, we work closely with clients across Acton, Ealing, and the wider West London area to navigate these changes. Whether you’re running a growing business or managing investments, there are still ways to optimise your position.
We can support you with:
- Reviewing your salary and dividend mix
- Making the most of ISA allowances
- Long-term tax planning strategies
With allowances frozen and rates increasing, doing nothing could cost you. Taking early advice can help you stay ahead and protect your income in the 2026/27 tax year and beyond.