Unprepared Taxpayers Face Challenges with Upcoming HMRC April Changes
Unprepared taxpayers are facing fresh challenges as new HMRC measures begin in April, Mollan & Co has warned. The specialist accountancy firm highlighted risks for people unaware of the changes. The warning was issued on 19 April 2026.
Why more people may pay extra tax
Rob Mollan, owner and director of Mollan & Co, said frozen thresholds are pushing more earners into higher bands. Chancellor Rachel Reeves confirmed income tax bands will stay at current levels until at least April 2031.
That freeze effectively raises tax bills for many without an explicit rate rise. Mollan described the effect as a stealth increase.
Key income tax thresholds
The basic personal allowance and main rates remain important to every taxpayer. Below are the main thresholds in use.
| Personal allowance (tax-free) | £12,570 |
| Higher-rate threshold | Above £50,271 (40%) |
| Additional-rate threshold | Above £125,140 (45%) |
Making Tax Digital and quarterly returns
A major change from April 2026 is the wider roll-out of Making Tax Digital. Landlords and self-employed people with income above £50,000 in 2024/25 must keep digital records and file quarterly returns.
This is more than an administrative tweak. Many unprepared taxpayers face challenges with upcoming HMRC April changes because of new reporting duties and possible penalties.
High earners face a hidden extra rate
People earning between £100,000 and £125,140 can face an effective marginal tax rate near 60%. This occurs because the personal allowance is reduced by £1 for every £2 above £100,000.
The allowance is fully withdrawn once income reaches £125,140. That taper raises the effective rate on earnings in that band.
Capital gains tax changes
The tax-free capital gains allowance has been cut significantly in recent years. It fell from £12,300 to £6,000 in April 2023 and then to £3,000 in April 2024.
That totals a £9,300 reduction over three years. At the standard 18% rate for basic-rate taxpayers, an extra £9,300 of gains would add about £1,674 in tax.
Practical steps for taxpayers
Mollan urged people not to assume nothing has changed. He said the system is becoming tighter with more rules and reporting obligations.
Those who plan ahead will manage the shifts better. Those who do not plan are more likely to face higher bills and penalties. Filmogaz.com recommends seeking professional advice if you are unsure how these changes affect you.
