With 2026 on the horizon, many businesses are starting to consider how upcoming tax changes could affect their financial position. From potential adjustments to corporation tax and capital allowances to evolving rules around digital reporting and environmental levies, preparation is key. Taking a proactive approach now can help businesses manage their obligations, protect cash flow and stay well-positioned for growth as new regulations come into effect.
Understanding what’s changing
While the full scope of the 2026 tax landscape will continue to evolve, several areas are already drawing attention:
- Corporation tax – rates and reliefs may be reviewed, particularly for different profit bands. Businesses should ensure they’re calculating liabilities accurately under current thresholds and modelling potential future scenarios.
- Making Tax Digital (MTD) – further expansion of MTD requirements will continue, meaning more businesses will need to maintain digital accounting records and submit updates through compliant software.
- Capital allowances and investment incentives – temporary reliefs may be phased out or replaced with new schemes, affecting the timing of planned purchases or investments.
- Environmental and energy-related taxes – as sustainability initiatives expand, new levies or reporting requirements may apply to certain industries.
By understanding these areas early, businesses can begin to plan strategically rather than reactively. Here are 4 top tips:
- Reviewing financial structures and cash flow
Preparation starts with reviewing how your business is financed. Understanding how upcoming tax changes might impact profitability or available capital ensures you can adjust well in advance.
Flexible funding options such as working capital loans, invoice finance and asset refinance can help preserve liquidity when tax liabilities increase or reliefs change. By maintaining access to capital, businesses can absorb adjustments without disrupting everyday operations.
- Timing investments wisely
If your business is planning major purchases, such as new equipment, vehicles or technology, it’s worth reviewing how tax reliefs apply. Current capital allowance schemes, including full expensing for qualifying assets, may offer significant savings if utilised before any future adjustments take effect. Using asset finance can further support investment without putting pressure on cash reserves.
- Building resilience through forecasting
Scenario planning is one of the most effective ways to prepare for tax changes. By modelling different tax rates, relief structures and cash flow impacts, businesses can make informed decisions about pricing, budgeting and financing needs. Regularly reviewing forecasts with accountants or financial advisors ensures plans remain aligned with both current legislation and potential future developments.
- Using finance to smooth transitions
Upcoming tax changes may temporarily affect cash flow, particularly when adjustments alter payment schedules or reduce available reliefs. Business loans, working capital facilities or revolving credit can act as a buffer, ensuring stability while new measures bed in. Strategic use of finance helps businesses stay compliant without compromising day-to-day operations or growth plans.
In summary
Preparing early for 2026 tax changes isn’t just about compliance, it’s about creating financial resilience. By understanding what’s ahead, reviewing funding structures and maintaining access to flexible finance, businesses can approach the coming years with confidence and control. Proactive planning today will help ensure your business remains agile, efficient and ready to adapt as the tax landscape evolves.
For advice on how financial solutions such as asset finance, invoice finance, working capital loans and business loans can help your business prepare for 2026 and beyond, call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.