In 2026, significant financial changes are on the horizon, and The Mirror has compiled a list of important dates for your calendar. These changes range from modifications to inheritance tax to the removal of the two-child benefit cap. Some changes were outlined in the Budget, while others have been in progress for some time.
Periodic updates, such as adjustments to the Ofgem price cap and essential deadlines for self-employed individuals regarding tax payments, are also noteworthy. The Ofgem energy price cap will increase from £1,755 to £1,758 annually starting in January for those with standard energy usage and direct debit payments. This cap undergoes revisions every three months.
On January 21, the Office for National Statistics will release the first inflation update of the year. Inflation, currently at 3.6% according to the Consumer Prices Index (CPI), is a gauge of price fluctuations. Inflation figures are released monthly.
For those expecting their Winter Fuel Payment, contact the Winter Fuel Payment Centre from January 28. This payment, valued at up to £300, is accessible to individuals over the state pension age, with repayment required through the tax system for those earning above £35,000 annually.
The deadline to file online self-assessment tax returns for the 2024/25 tax year is January 31. Failure to meet this deadline incurs a minimum fine of £100, regardless of tax liabilities from the previous year.
From February, alcohol duty will rise by 3.66%, aligning with RPI inflation rates. This increase translates to 11p on Prosecco, 13p on red wine, and 38p on gin per bottle, as reported by the Wine and Spirit Trade Association.
On February 5, the Bank of England will convene its first meeting of 2026 to determine future interest rate adjustments. The current base rate stands at 4%, influencing borrowing costs and interest earnings, with rate-setting meetings occurring every six weeks.
The Household Support Fund is set to conclude on March 31, offering aid to residents struggling with bills or low incomes through cash grants or vouchers.
In April 2026, the two-child benefit cap will be eliminated, allowing low-income families to claim further benefits for third or subsequent children born after April 6, 2017.
Starting in April, the minimum wage will increase for millions of workers. Individuals aged 21 and over will see their hourly rate rise from £12.21 to £12.71, while the rate for those aged 18 to 20 will increase from £10 to £10.85.
Council tax bills will also surge in April, with English local authorities permitted to raise bills by up to 5%, subject to larger hikes requiring a referendum. The average band D council tax bill for the 2024/25 period in England is £2,280.
The TV license fee typically rises annually in April, contingent on government announcements. The current fee is £174.50 per year, with adjustments typically aligning with the previous September CPI rate.
Water bills are anticipated to increase in April, allowing companies in England and Wales to raise average bills by 36% over five years until 2030, amounting to an approximate £157 increase.
Car tax, following RPI inflation, is expected to rise every April. The standard rate for cars registered post-April 2017 stands at £195 annually, with the threshold for EVs’ expensive car supplement increasing from £40,000 to £50,000.
April 5 marks the end of the current tax year, prompting individuals to utilize tax allowances before they reset for the new tax year beginning on April 6. Notably, there is a £20,000 ISA allowance and a £60,000 pension contribution cap before taxation.
From April 6, benefits for millions of individuals will rise by 3.8%, with Universal Credit’s standard allowance increasing by approximately 6.2%. The state pension will also see a 4.8% boost in line with the triple lock promise.
In April 2026, inheritance tax changes for farmers will be implemented, introducing a new £1 million cap on inherited agricultural assets, subject to a 20% inheritance tax rate on assets exceeding this threshold.
Dividend tax rates will rise in April, with basic rate taxpayers seeing an increase from 8.75% to 10.75%, and higher rate taxpayers from 33.75% to 35.75%, post-Budget announcements.
New regulations enforcing transparent price displays in shops will become effective, simplifying price comparisons by including both selling prices and unit prices.
From April 2026, HMRC will no longer provide tax relief for additional household costs like gas and electricity for individuals working from home. The UK’s work-from-home allowance remains at a flat rate of £6 per week.
Starting July 15, 2026, buy now, pay later