The new tax year started in April, and although the media has remained silent, there are several changes that could have a significant impact on your finances.
A closer look at all of these changes reveals that a clear pattern is emerging. More pressure is being placed on ordinary people, and more control is being given to the government.
And as the government raises taxes and increases pressure on us all, national debt continues to grow to record levels, inflation persists and the purchasing power of the pound sterling continues to plummet.
Let’s break it down.
Frozen tax thresholds: paying more without realising it
The government has many ways to fund its reckless spending programmes, and they all have one thing in common. The cost ends up landing on you.
One of the most effective methods is something called fiscal drag. And the government is using this sleight of hand again in April 2026, by freezing income tax thresholds for another year.
At first glance, it sounds harmless right? It’s not.
Here’s how the trick works:
- Inflation pushes up the cost of living, and as a result, salaries tend to rise as well. Not because people are getting richer, but because everything around them is getting more expensive.
- In a fair system, tax thresholds should rise in line with wages, so you’re not penalised just for keeping pace with inflation.
- But the government has quietly decided to keep income tax thresholds frozen for another year.
- So as your salary rises, more of it is taxed at higher rates.
- The result? You pay more income tax even though you’re not any better off.
In other words, your salary might increase in nominal terms, but it stays the same in real terms. The only real difference is now you pay more income tax.
Dividend tax: earning from investments is now less rewarding
If you earn income from shares or investments, you’ll now pay more tax on what you make.
On top of that, your tax-free allowance has also been cut to just £500, meaning it doesn’t take much before you start paying tax on your returns.
Put simply, it is now harder to build your wealth through traditional investments like shares and funds.
Capital Gains Tax: more taken when you sell
Entrepreneurs and small business owners are in the firing line too. The government has decided to scale back the ‘Business Asset Disposal Relief’ scheme, which was designed to reduce tax when selling a business or shares. The outcome? You guessed it, a bigger tax bill when you sell.
The tax rate had previously been raised from 10% to 14%, and has now swiftly been raised to a whopping 18%.
Building a business means taking on risk and putting in hard work. It adds value to the economy and should be rewarded. Instead, we’re seeing another example of the government penalising wealth creation instead of incentivising it.
It’s also another reason why it’s so important to own gold right now. Gold is a neutral asset that is not affected by these changes. You only pay Capital Gains Tax when you sell, and with Tally, that process is simple and transparent.
Inheritance Tax: taxed even after a lifetime of saving
Another area being targeted is Inheritance Tax (IHT).
The amount you can pass on tax-free hasn’t changed for years. But as asset prices have increased over time, more people now find themselves with farms, houses and other assets that are taxed at a higher rate when passed on to their children.
What does that mean in simple terms?
If you’ve spent years paying off your home, building a business or growing your savings, the government has decided it can now take a bigger share when you pass it on.
It’s another sign of how the government doesn’t just tax what you earn, it’s taking an increasingly bigger slice of what you already own, particularly for those who have worked hard to accumulate assets over time.
Making Tax Digital: more reporting, more oversight
If higher taxes weren’t bad enough, there’s more pressure being added in the form of more reporting for self-employed people and landlords.
The scheme is called ‘Making Tax Digital’ and it’s changing how you manage your tax.
Instead of submitting tax reports once a year, self-employed people and landlords will now need to keep digital records and submit up to five updates throughout the year.
What used to be a simple annual task is now an ongoing responsibility.
The result? More oversight and control for the government.
For those affected, the changes effectively mean more admin, and more scrutiny.
So it’s not just that you’re paying more. You’re also being asked to do more to keep up.
The bigger picture: a system that keeps squeezing
A clear pattern is emerging in the UK: regular people are being taxed and monitored more, while government spending soars and national debt is at unsustainable levels.
Meanwhile, inflation remains elevated, silently eating away at the purchasing power of the pound, and that trend looks set to continue long term.
The reality is the system is broken, and if you are holding large savings in pounds, you are exposed.
Inflation reduces what your money can buy. Taxes reduce what you can keep. Reporting requirements increase the complexity of managing it all.
TallyMoney is your alternative
TallyMoney gives you a way to opt out of this broken system.
As inflation and reckless government spending destroys the value of the pounds in your bank account, the price of gold is growing.
TallyMoney lets you build your savings in gold, and spend from your balance in pounds (or any currency for that matter). This means you can protect your money from inflation by holding gold, and retain the spendability of cash.
The April 2026 tax changes are a continuation of a trend that shows no signs of reversing: higher taxes, a weaker pound and soaring national debt.
TallyMoney gives you a way to shield your money from inflation, and take back control.
