In 2026, significant financial changes are on the horizon, and The Mirror has compiled a list of essential dates for your calendar. These changes range from adjustments to inheritance tax to the removal of the two-child benefit cap, covering a spectrum of crucial updates. Some modifications were previously outlined in the Budget, while others have been long-awaited.
Periodic updates, such as shifts in the Ofgem price cap or crucial deadlines for self-employed individuals’ tax obligations, are also part of the upcoming financial landscape. The Ofgem energy price cap is set to increase from £1,755 annually to £1,758 starting in January, impacting those with typical energy usage who pay via direct debit. This cap undergoes adjustments every three months, with subsequent changes scheduled for April, July, and October.
On January 21, the Office for National Statistics will release the first inflation update of the year, shedding light on price fluctuations over time. The current Consumer Prices Index (CPI) inflation rate stands at 3.6%, with past records showing a peak of 11.1% in the 12 months leading up to October 2022. Inflation figures are routinely disclosed on a monthly basis.
For those awaiting their Winter Fuel Payment, the Winter Fuel Payment Centre can be contacted starting January 28. This payment, worth up to £300, is available to individuals above state pension age, but recipients earning over £35,000 annually are subject to repayment through the tax system.
Self-assessment taxpayers should mark January 31 as the online filing deadline for the 2024/25 tax year. Failing to meet this deadline incurs a minimum fine of £100, regardless of tax liabilities. Any outstanding tax from the previous tax year must also be settled.
From February, alcohol duty will increase by 3.66% in alignment with RPI inflation, translating to price hikes of 11p on Prosecco, 13p on red wine, and 38p on gin per bottle. Meanwhile, the Bank of England’s first 2026 meeting, scheduled for February 5, will determine the future of interest rates. The current base rate of 4% influences borrowing costs and savings interest, with the Bank convening every six weeks to set this rate.
By March 31, the Household Support Fund will conclude, offering targeted assistance to residents struggling with bills or low incomes. Local councils administer this support through cash grants or vouchers, with no repayment required.
Come April 2026, the two-child benefit cap will be removed, allowing low-income families to claim additional means-tested benefits for third or subsequent children born after April 6, 2017. Additionally, minimum wage increases will benefit millions of workers, with hourly rates rising for different age groups.
Council tax bills will escalate in April, with English local authorities permitted to raise bills by up to 5%, necessitating referendums for larger hikes. Furthermore, the TV licence fee traditionally rises annually in April, subject to government confirmation, while water bills are anticipated to surge in line with regulatory approvals.
Car tax adjustments, standard each April in line with RPI inflation, will affect various vehicle categories, including zero-emission vehicles. The tax year concludes on April 5, prompting individuals to maximize tax allowances before the new tax year commences on April 6.
In April, benefits will rise by 3.8%, with Universal Credit recipients receiving a 6.2% standard allowance boost. The state pension will also see a 4.8% increase as per the triple lock commitment. Additionally, inheritance tax changes impacting farmers will come into effect in April, introducing a £1 million cap on inherited agricultural assets.
The dividend tax rate will escalate for basic and higher rate taxpayers post-Budget announcements, while new regulations on price display in stores will enhance price transparency. From April 2026, individuals working from home will no longer qualify for tax relief on household costs. Buy now, pay later schemes will be fully regulated by the FCA starting July 15, ensuring affordability checks and financial assistance for customers in need.
University tuition fees in England are set to increase incrementally from September, aligning with inflation. Free school meal eligibility in England will expand to children whose parents receive Universal Credit from the same month. Vaping products will face a new duty from October, alongside potential tobacco duty revisions.
First-time self-assessment tax registrants must sign up by October 5 annually to avoid HMRC penalties. Paper tax return submissions are due by October 31, with online alternatives available until January 31 of the following year. Lastly, the fuel duty reduction implemented in March 2022 will gradually revert to standard levels by March 2027.